Hershey implements price hikes on confectionery line
April 04, 2007
by Eric Schroeder
HERSHEY, PA. — The Hershey Co. announced it has raised the wholesale prices of its domestic confectionery line, including a 4% to 5% hike in the price of the company’s standard bar, king-size bar, 6-pack and vending lines. The move marks the first price increase to the lines since December 2004, Hershey said.
Hershey said the price increase will effect approximately one-third of its portfolio and will help offset the company’s input costs, including raw and packaging materials, fuel, utilities and transportation. While there has been no change in list prices on these impacted items since December 2004, over this period costs have continued to rise.
"Our primary business objective is to win in the market place," said Christopher J. Baldwin, senior vice-president, president North American Commercial Group. "As we implement this pricing action we will work with our customers to create programs which will drive retail takeaway. Given the mid-year timing of this pricing action and our commitment to planned consumer and customer promotions and merchandising events, we expect minimal financial impact from the pricing in 2007."