Hershey To Hike Chocolate Prices In Early 2019 To Offset Rising Costs

Posted On: 11/7/2018

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HERSHEY, PA -- Hershey Co. said its third-quarter profits were hit by rising commodity and shipping costs and lower sales prices, prompting price hikes to offset those costs. The company said it will raise the prices of a fifth of its products by 2.5%, early next year.
The maker of Hershey's chocolate and Reese's Peanut Butter Cups said overall net sales rose to $2.08 billion, up 2.3% year-on-year. Net sales climbed 2.9% to $1.84 billion in North America in the quarter.
However, the chocolate giant's net income fell to $263.7 million and operating profit fell to $406.3 million due to higher shipping costs, the rising price of ingredients and low retail prices.
Hershey has been moving away from its core confectionery business with several acquisitions. Last December, Hershey purchased former SkinnyPop popcorn owner Amplify Snack Brands in a $1.6 billion deal. In September, Hershey agreed to acquire Pirate Brands for $420 million to further expand its snacking portfolio.