HERSHEY, Pa. -- The Hershey Co. instituted a weighted average price increase of approximately 8 percent in wholesale prices across the United States on many of its instant consumable, multipack, packaged candy and grocery lines. The price increase took effect Tuesday.
Uncertain commodity prices are the primary reason for the wholesale price increase, the company stated.
“Over the last year, key input costs have been volatile and remain at levels that are above historical averages,” said Michele G. Buck, president, North America, for The Hershey Co. “Commodity spot prices for ingredients such as cocoa, dairy and nuts have increased meaningfully since the beginning of the year. Given these trends, we expect significant commodity cost increases in 2015.
"We are a gross margin-focused company and remain committed to our consumer-centric business model of bringing insights to retailers that will enable us to grow our business and the category," she continued. "During the transition period, we will support our brands with higher levels of investment, including merchandising, programming, advertising and innovation that will benefit Hershey and the category."
In a news release, Hershey added that direct buying customers will have an opportunity to purchase "transitional amounts of product" at price points prior to Tuesday's price increase. These purchases must be made during a four-week period that ends Aug. 12, the candy and snacks manufacturer concluded.