By Natalia Rueda 
Trouble in the chocolate industry
Hershey Co. the iconic U.S. chocolate and candy maker, is facing a bitter truth: consumers are cutting back on candy consumption. The company has lowered its sales and profit forecasts for the year, signaling a bleak future for the once-dominant brand.
Hershey recently announced a troubling 17% decline in sales, which has raised concerns among market experts and raises questions about the company’s financial health. It is estimated that the company’s net sales growth will be only 2%, a figure below its initial projections of 2-3%. In addition, its earnings per share are expected to be “slightly lower” than previously forecast.
This trend of declining sales appears to be correlated with changes in consumer behavior. More and more people are opting for healthier and more economical options instead of buying fancy candy. This has led to a drop in sales volume for Hershey, which was unable to keep pace with the changing demand.
In addition, we cannot ignore the impact of the overall economic conditions. With the current situation, the steady rise in cocoa prices has been a decisive factor in Hershey’s difficulties. In order to maintain its margins, the company has had to increase its prices, but this has not been well received by cost-conscious consumers, who are turning to cheaper alternatives, such as private labels.
It is clear that Hershey faces major challenges in the near future and will need to find ways to adapt to changing consumer preferences and economic conditions. The chocolate industry will continue to evolve, and only time will tell if the iconic brand will be able to maintain its position in the market.
With information from Bloomberg