Sweet, Sweet Money: Hershey Turns Out To Be Rare Beneficiary of COVID-19
Not every company has made gains during the ongoing COVID-19 lockdowns.
Recently, a large number of business within the U.S. have filed for bankruptcy, including 24 Hour Fitness, California Pizza Kitchen, Centric Brands, Chesapeake Energy and DavidsTea, Forbes reported.
The Hershey Co., however, cooked up some sweet third-quarter profit gains as many Americans turned to baking to cope with the boredom brought on by coronavirus-related lockdowns.
According to the New York Post, Hershey’s operating profits “climbed 33 percent to $611 million from July to September as locked-down consumers gobbled up Hershey bars and Reese’s peanut butter cups — well before the height of the Halloween season.”
“Our core US business remains healthy, as consumers reach for small treats during the pandemic and they continue to celebrate important rituals in their lives,” Hershey president and CEO Michele Buck said.
Hershey’s net sales had jumped 4 percent to approximately $2.2 billion. This was fueled by jumps in sales for not only candy, but baking items such as chocolate chips and syrups as well.
The value of company shares value went up 3.3 percent to $149.40 during Friday trading.
In light of social distancing, Americans seem to have somewhat lost interest in the company’s breath mints, with sales of Hershey’s “refreshment” products drastically declined by approximately 19 percent in the United States.
“The functional need for breath freshening has lessened with social distancing,” the company said, according to the Post.
The beloved Reese’s Peanut Butter Cup is The Hershey Company’s most popular brand, according to The Patriot News. There are around 80 products that Hershey’s produces, but Reese’s is responsible for the company’s highest profits.
According to The Patriot News, annual sales of Reese’s has passed an astounding $2 billion this year.
It is currently the nation’s most purchased confectionery brand, leaving little dispute with regard to whether or not it can be considered one of America’s favorite chocolate candies.
A poll that was conducted by Monmouth University in 2019 found that 36 percent of Americans have picked Reese’s as their favorite candy.
According to Ranker, the original Hershey bar takes second place for Hershey’s most popular candy. Unsurprisingly, the miniature version of the chocolate bar comes in third place.
Hershey’s owns six of the top 10 confectionery brands that were measured by retail sales in 2018 Information Resources Inc said.
Hershey’s has been a leader in the food industry for nearly 125 years under its “Shared Goodness Promise, and goes through five million cocoa pods per day and produces 2.8 billion Hershey Bars per year.
“We uphold our promise with brands consumers love; business models and people making a difference in the world; being better stewards of the planet we all share; building thriving communities in the places we call home; and, perhaps most near and dear to our hearts, by nourishing the lives of children so hey can learn, grow and thrive,” an official statement on the promise said
“We look forward to the next 100 years and do so with a promise to you: to build on our Shared Goodness. Because goodness is most felt when it’s shared with others.”
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