Hershey's suffers candy sales setbacks
Call Willy Wonka immediately...
He's needed in central Pennsylvania by the executives over at
Hershey's ($HSY)
-- the largest producer of chocolate in North America is cutting its 2015 revenue projections and is slashing its workforce by 300 employees this year to save up to $75 million in 2016. Shares of Hershey's have already melted 11% so far this year.
We would cover ourselves in chocolate daily... if it weren't so expensive. That's one of the key problems sucking the sweetness out of the confectionery king -- the raw materials used to make your afternoon sugar-saturated bites of guilty goodness are getting expensive. As worldwide demand for chocolate has risen, so have cocoa prices, while dairy prices have been at record highs too.
The takeaway... is that China's losing its chocolate fix. Sales of Hershey's slowed big-time on the other side of the Pacific (including at its Shanghai Golden Monkey chocolate subsidiary) as more candy companies jump into that market. So CEO John Bilbrey put a new guy in charge of Hershey's Asia region and plans to acquire some companies in the area. General Tso would probably like a bar named after him to start.
We would cover ourselves in chocolate daily... if it weren't so expensive. That's one of the key problems sucking the sweetness out of the confectionery king -- the raw materials used to make your afternoon sugar-saturated bites of guilty goodness are getting expensive. As worldwide demand for chocolate has risen, so have cocoa prices, while dairy prices have been at record highs too.
The takeaway... is that China's losing its chocolate fix. Sales of Hershey's slowed big-time on the other side of the Pacific (including at its Shanghai Golden Monkey chocolate subsidiary) as more candy companies jump into that market. So CEO John Bilbrey put a new guy in charge of Hershey's Asia region and plans to acquire some companies in the area. General Tso would probably like a bar named after him to start.
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