[ad_1]
NEW DELHI: Halloween celebrations are set for a major setback for the second year in a row in US as the candy aisle scares shoppers with double digit inflation.
According to retail price tracker Datasembly, candy and gum prices have surged by an average of 13% this month compared to last October. This increase is more than double the 6% rise in all grocery prices.To put this in perspective, candy and gum prices already experienced a 14% hike in October 2022, AP reported.
Some consumers are finding the escalating candy prices concerning. Jessica Weathers, a small business owner in Shiloh, Illinois, expressed her disbelief, stating, “The price of candy has gotten to be outrageous.” She noted that in previous years, she purchased plenty of candy for trick-or-treaters and school and church events, but this year, she’s only bought two bags and plans to turn off her porch light when she runs out on Halloween.
According to a report in AP, the primary driver of these higher prices is adverse weather conditions. Cocoa prices have reached 44-year highs due to heavy rains in West Africa that constrained production in the prior fall season. Currently, El Nino conditions are causing the region to become drier and are expected to persist well into the spring. This weather-induced trend does not bode well for price relief.
Kelly Goughary, a senior research analyst at Gro Intelligence, an agricultural analytics firm, reported that the Ivory Coast, responsible for around 40% of the world’s cocoa production, is already facing one of its worst droughts since 2003.
Additionally, global sugar prices are at a 12-year high, partially due to India, the world’s second-largest sugar producer after Brazil, temporarily banning sugar exports after monsoon rains damaged the upcoming harvest. Meanwhile, Thailand’s sugar output has decreased.
These cost increases, combined with rising labor costs, packaging expenses, and the prices of ingredients like peanuts, are leading to higher candy prices across the board.
According to the report, Hershey Co. has played a part in this price escalation. The company has raised its prices by 7% or more in each of the last seven quarters.
Hershey’s President and CEO, Michele Buck, acknowledged the importance of value and affordability to consumers, especially when budgets are stretched. The company is working to cater to consumers’ needs by offering value options and various pack sizes at different price points.
According to retail price tracker Datasembly, candy and gum prices have surged by an average of 13% this month compared to last October. This increase is more than double the 6% rise in all grocery prices.To put this in perspective, candy and gum prices already experienced a 14% hike in October 2022, AP reported.
Some consumers are finding the escalating candy prices concerning. Jessica Weathers, a small business owner in Shiloh, Illinois, expressed her disbelief, stating, “The price of candy has gotten to be outrageous.” She noted that in previous years, she purchased plenty of candy for trick-or-treaters and school and church events, but this year, she’s only bought two bags and plans to turn off her porch light when she runs out on Halloween.
According to a report in AP, the primary driver of these higher prices is adverse weather conditions. Cocoa prices have reached 44-year highs due to heavy rains in West Africa that constrained production in the prior fall season. Currently, El Nino conditions are causing the region to become drier and are expected to persist well into the spring. This weather-induced trend does not bode well for price relief.
Kelly Goughary, a senior research analyst at Gro Intelligence, an agricultural analytics firm, reported that the Ivory Coast, responsible for around 40% of the world’s cocoa production, is already facing one of its worst droughts since 2003.
Additionally, global sugar prices are at a 12-year high, partially due to India, the world’s second-largest sugar producer after Brazil, temporarily banning sugar exports after monsoon rains damaged the upcoming harvest. Meanwhile, Thailand’s sugar output has decreased.
These cost increases, combined with rising labor costs, packaging expenses, and the prices of ingredients like peanuts, are leading to higher candy prices across the board.
According to the report, Hershey Co. has played a part in this price escalation. The company has raised its prices by 7% or more in each of the last seven quarters.
Hershey’s President and CEO, Michele Buck, acknowledged the importance of value and affordability to consumers, especially when budgets are stretched. The company is working to cater to consumers’ needs by offering value options and various pack sizes at different price points.
[ad_2]
Source link