The relationship between Hershey Co. (NYSE: HSY) and Wall Street has been sour for a while. Shares of the chocolate maker have plunged more than 30% over the past year amid concerns about rising commodity prices and the growth of healthier eating habits. Now, the confectioner is raising wholesale prices by an average of 13% on one-third of its domestic product line effective immediately [subscription required].Chocoholics are paying the price for higher costs for raw materials, fuel, utilities, and transportation.
The move comes less than a week after the Pennsylvania company reported lousy fourth quarter results and gave investors disappointing guidance. In addition, the No. 1 candy maker recently bowed to pressure from law enforcement officials and said it would stop making Ice Breakers Pacs mints after some complaints that the candy might be mistaken for heroin or cocaine.
Yet another reason for people to eat healthy.
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Reader Comments (Page 1 of 1)
1-28-2008 @ 10:55PM
lisa said...
hershey's need to move 90 percent of its product in to Dark Chocolate where consumers are gobbling it up for its anti -oxident health benefits. they should reduce manufacture of milk chocolate which is actually really fattening and bad for anyone. 70 percent dark is the way to go. they should also add in green tea to their bars (along with those yummy cranberries that they have in some of their gourmet bars) and sales would flourish!