The Hershey Co. plans to charge more for its chocolate, reports MarketWatch. The decision comes after lower prices and higher costs affected the company's profit margin again in its third quarter. The company's sales rose 2.3 percent to $2.1 billion in the quarter, weighed down by prices that were 1.2 percent lower on average than a year ago. Its adjusted gross profit margin slipped 1.3 percentage points to 44 percent, driven by higher shipping costs.
Hershey's core candy business in North America still makes up nearly 90 percent of its sales, but the company is downsizing some variations and seasonal assortments of candy to simplify its supply chain and save money. The company is also expanding into healthier treats and savory snacks. A deal for SkinnyPop popcorn owner Amplify Snack Brands closed in January, and the company agreed to buy the maker of Pirate's Booty cheese puffs for $420 million.
Looking ahead, Hershey expects sales for Halloween and year-end holidays to be stronger. Its candy, mint, and gum brands in the U.S. gained market share in recent weeks, according to the report. Full Story
Related: Hershey Rejects Merger Offer From Mondelez; Hershey to Acquire Pirate Brands for $420M.
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