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Hershey Reduces SKUs Amid Trucking Shortages High Cocoa Prices

HERSHEY, PA -- Hershey Co. is reportedly eliminating some sizes and varieties of its candies to offset rising manufacturing and delivery costs. A trucking shortage has made delivery difficult and costly and cocoa prices have increased nearly 40% over the past year, according to Forbes. Forbes reported that Hershey's first SKU cuts will likely be to holiday candies that it makes for specific retailers, which require delivery to 500 different types of displays. Instead, the candy giant might ...

May 8, 2018

HERSHEY, PA -- Hershey Co. is reportedly eliminating some sizes and varieties of its candies to offset rising manufacturing and delivery costs.
 
A trucking shortage has made delivery difficult and costly and cocoa prices have increased nearly 40% over the past year, according to Forbes.
 
Forbes reported that Hershey's first SKU cuts will likely be to holiday candies that it makes for specific retailers, which require delivery to 500 different types of displays. Instead, the candy giant might produce a smaller number that can be sold across the country and focus on its core brands, including the Hershey bar, Kit Kat and Reese's.
 
In January, Hershey bought SkinnyPop maker Amplify Snack Brands for $1.6 billion to diversify its portfolio beyond candy.
 
Hershey's sales climbed 4.9% last quarter, but the candy giant expects sales to decline in the second half of the year and lowered its projection to annual sales climbing only 5% versus its previously projected 7%.
 
Click here to read the Forbes article.