Hershey is seeing strong demand for its chocolates and seasonal candies as people are locked in their homes looking for every little occasion to celebrate.
“Seasons throughout the year were one of the main drivers as consumers really wanted the comfort and standard that come with seasonal traditions and rituals at a time when Covid was uprooting their lives,” said Hershey CEO Michele Buck in an interview Thursday with Sara. from CNBC. Requirements on “Closing Bell.”
A notable example was a trend Hershey saw that as coronavirus cases increase across the country, the demand for s’mores ingredients increased. No doubt, families were looking for fun by setting up barbecues in their backyards and roasting s’mores by the fire. Hershey said chocolate sales were 40% to 50% higher in areas with a higher rate of Covid-19 cases than in areas with a lower rate.
“For the past year, we noticed that wherever the number of Covid cases increased, we saw increased sales of s’mores ingredients and then we were able to use the case counting pathway as a foreshadowing of where we have some of those efforts had to focus and displays and put media in those markets, ”Buck said.
Retailers are also smart with the trends and have stocked up on candy for Valentine’s Day and Easter sooner than ever to make sure they have enough stock.
Hershey shares closed less than 1% at $ 147.22 on Thursday after reporting fourth-quarter sales rose 5.7% to $ 2.19 billion. Net income increased 41% to $ 291.4 million. Excluding items, Hershey earned $ 1.49 per share, which is higher than analyst estimates.