TRENTON, NJ – Inflation and high prices for candy aren’t helping residents of New Jersey fill their Halloween bags this year. Ahead of Halloween, the busiest candy-buying period in New Jersey and the U.S., candy makers are raking in record profits.
When it comes to Halloween, we like to think of words like spooky and scary. This year, the scariest word ahead of Halloween is costly.
According to an NBC report, candy prices in New Jersey have risen 12.3% since last Halloween, making the Garden State the third most expensive state to buy candy for Halloween after Maryland (13.5%) and Pennsylvania (13.15%).
One of the companies benefiting from the financial turmoil is Pennsylvania-based Hershey.
Hershey exceeded Wall Street expectations for quarterly sales and profits on Thursday, even as consumers face rising costs. The positive earnings led to a 3% rise in the company’s shares before market opening.
The chocolate maker reported net sales of $3.03 billion for the quarter ending October 1, up from $2.73 billion a year ago. Analysts had expected sales to reach $2.95 billion, according to LSEG data. Excluding one-time items, Hershey earned $2.60 per share, outperforming estimates of $2.45 per share.
Hershey implemented several rounds of price hikes on its products, reacting to supply chain disruptions and increased commodity prices due to global events such as the Russia-Ukraine war.
Organic prices rose by 9.8% in the third quarter. Meanwhile, organic volumes increased by a modest 0.9%, signaling reduced demand as consumers grapple with higher interest rates and grocery prices.
Despite the challenges, CEO Michele Buck remains optimistic about sales during major holidays like Halloween. Buck noted that consumers were purchasing Halloween candies closer to the holiday this year, contrasting with last year’s early buys due to inventory shortages.
The company reaffirmed its annual profit forecast of $9.46 to $9.54 per share and an expected 8% increase in sales.