Candy prices rise by double digits

[New Sancai Compilation and First Release] Are you scared by the high prices of Halloween candy? No sign of possible relief in sight.

For the second year in a row, U.S. consumers are seeing double-digit inflation on the candy aisle. According to retail price tracker Datasembly, candy and gum prices increased an average of 13% this month compared with last October, more than double the 6% increase for all groceries. This is coupled with a 14% increase in candy and chewing gum in October 2022.

"Candy prices are already ridiculously high," said Jessica Weathers, a small business owner in Shiloh, Illinois. "Spending $100 on candy makes no sense to me."

Weathers said she usually buys a lot of candy for school and church Halloween events. But this year, she bought just two bags and planned to turn off her porch light when she was done trick-or-treating.

Other consumers are changing the way they buy. According to its survey results from market research company Numerator, about one-third of U.S. consumers plan to switch to discount or store-brand candies when buying Halloween candy this year.

Weather is the main reason for price increases. Heavy rains during the West African production season that began last autumn have sharply reduced production and pushed cocoa prices to a 44-year high. Now, El Niño is making the region drier and may continue into spring.

"This price is here to stay until at least the first half of 2024," said Dan Sadler, head of client analytics at market research firm Circana.

Kelly Goughary, senior research analyst at agricultural analytics firm Gro Intelligence, said Ivory Coast produces 40% of the world's cocoa. There are already signs of the worst drought since 2003.

Meanwhile, global sugar prices are at a 12-year high, Gowri said. India, the world's second-largest sugar producer after Brazil, has banned sugar exports for the first time in seven years as monsoon rains hit the upcoming harvest. Production in Thailand has also declined.

These costs, along with increases in labor, packaging and ingredients such as peanuts, are driving up the price of various candies.

Discount grocer Aldi is advertising a 250-piece chocolate bar combo set from Mars, including Milky Way, Twix and Snickers, for sale. Price is $24.98. Two years ago, the same set cost just $19.54.

Hershey has gained more than 7% in each of the past seven quarters and acknowledged this week that higher prices are taking a toll on demand. Hershey's North American candy sales fell 1% between July and September.

“We know that as customers’ budgets tighten, value and affordability continue to be key for consumers,” Hershey President and CEO Michele Buck said on a call with investors Thursday. The primary consideration.”

Barker said Hershey is trying to meet consumer demand through discount stores and packaged content products at different price points.

(Compiled by: Zhong Daren)

(Editor: Jiang Qiming)

(Source of the article: First published by Xinsancai)