US chocolate maker Hershey has warned of a shortage of candy over the Halloween holiday as it struggles to increase supply.
On Thursday, Chief Executive Michele Buck said the company “won’t be able to fully meet consumer demand.”
It is the latest company to be hit by the pandemic and the war in Ukraine, putting production in question.
Earlier in the day, Swiss food giant Nestlé hiked prices again over “unprecedented” costs.
During a call after Hershey released its latest earnings, Ms Buck said the company had found it harder to source ingredients as a result of the war.
She added that the disruption to Russia’s energy supply to Europe – Moscow has halted gas supplies to Germany and the EU intends to limit its energy imports – affects Germany, where Hershey sources equipment and supplies.
Because Hershey’s everyday and vacation products use the same production lines, Ms Buck said the company made the “difficult decision” to focus on everyday goodies.
“We had the opportunity to deliver more Halloween, but we couldn’t deliver that. And we really produced,” she said.
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The time around the Halloween holiday in October is important to Hershey. It accounts for about a tenth of the company’s annual sales, as adults and kids stock up on Kit Kats, Twizzlers, and Reese’s Peanut Butter Cups.
Ms Buck’s comments came after Hershey reported better-than-expected earnings on Thursday.
The company said its net sales rose by over 19% to $2.37 billion (£1.9 billion) in the three months to July 3, beating market expectations.
Companies around the world are under cost pressure.
On Thursday, Nestle said it had increased prices by 6.5% in the first half of this year.
Nestle CEO Mark Schneider said price increases were made to limit “the impact of unprecedented inflationary pressures and supply chain constraints”.
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