Hershey is seeing a huge demand for chocolates and seasonal sweets as people embrace their home, looking for every little occasion to celebrate it.
“Throughout the year, seasons were one of the key drivers, as consumers really wanted the comfort and normalcy associated with seasonal traditions and rituals at a time when Covid was taking their lives,” Michele said. Buck, CEO of Hershey, in an interview Thursday with CNBC’s Eisen Sara on “Closing the Bell.”
A notable example was a trend that Hershey observed that as coronavirus cases increased across the country, demand for ingredients dwindled. Undoubtedly, families sought pleasure by setting up barbecues in the garden and roasting blackberries by the fire. Hershey said its chocolate sales were 40% to 50% higher in areas with an increased number of Covid-19 cases than in lower areas.
“This past year, we observed that where Covid case counts were rising, we saw increased ingredient sales and we were able to use the case count trajectory as a foreshadowing of where we should focus. some of these efforts and build shows and puts means into these markets, ”Buck said.
Merchants are also aware of trends and have stocked up on candy for Valentine’s Day and Easter before ever to make sure they have a proper supply.
Shares of Hershey closed lower than 1% on Thursday at $ 147.22 after reporting fourth-quarter sales rose 5.7% to $ 2.19 billion. Net income rose 41% to $ 291.4 million. Excluding the articles, Hershey earned $ 1.49 per share, beating analysts ’estimates.