Hershey’s delivered 700 pounds of candy to Pennsylvania Sen. Pat Toomey’s office to use in restocking the Senate’s candy desk during the impeachment trial.
Hershey Co.’s sales got a lift from higher prices.
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The chocolatier and snack maker said Thursday that higher prices and more advertising for its biggest candy brands such as Reese’s helped spur sales growth in the quarter, with North America sales rising 3.8 percent. However, the volume of products it sold to retailers declined.
“We continued investing in our brands,” Chief Executive Michele Buck said on a conference call.
Hershey’s sales rose 4 percent to $2.1 billion in the fourth quarter. Adjusted profit rose 1.6 percent to $1.28 a share, topping analysts’ forecasts.
Shares rose 1.5 percent to $153.36 in morning trading.
The company said that in stores, shoppers still bought more of its candy and other snacks, batting down concerns that higher prices would hinder how much people buy.
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Hershey said it raised prices to offset higher costs for ingredients and to transport its products. The cost of cocoa increased last year as two nations that are major suppliers, Ghana and Ivory Coast, implemented a plan to improve revenue for farmers. Hershey said it locks in its prices in advance and uses hedging tools, so it hasn’t been hindered by the cocoa cartel.
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Hershey has also set out to better compete in the snack aisle in recent years, acquiring the makers of Krave jerky, SkinnyPop popcorn and Pirate’s Booty cheese puffs. That set the stage for Hershey to introduce new products like Hershey’s Popped Snack Mix, which contains popcorn, chocolate, almonds and pretzels. Hershey said sales of its salty snacks in retail stores climbed 11.3 percent.
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However, it said it had to write down the value of the Krave brand by $108 million.
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Hershey said it is also stepping up its marketing, with North America advertising expenses up 5 percent in the quarter.
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Rival snack maker Mondelez International Inc. said Wednesday that its comparable sales in North America rose 3.1 percent in the fourth quarter, thanks in part to more marketing spending on a smaller set of products.
Hershey said it expects sales in China to be slightly pressured by the coronavirus outbreak.
On a comparable basis, Hershey’s total sales rose 1.8 percent. The company reported net income of $207.2 million, down from $336.8 million a year earlier.
