Hershey is seeing strong demand for its seasonal chocolates and sweets, as people are tucked into their homes, looking for every little occasion to celebrate.
“Throughout the year, seasons were a major driver, as consumers really wanted the comfort and normalcy associated with seasonal traditions and rituals at a time when Covid was destroying their lives,” said Michele Buck, CEO of Hershey, in an interview on Thursday with Sara, from CNBC Eisen in “Closing Bell”.
A notable example was the trend that Hershey identified that, as coronavirus cases increased across the country, the demand for s’mores ingredients increased. Undoubtedly, families sought pleasure by setting barbecues in their backyards and roasting marbles by the fire. Hershey said its chocolate sales were 40% to 50% higher in areas with a larger number of Covid-19 boxes than in areas that were smaller.
“Last year, we realized that whenever Covid’s case count increased, we saw an increase in sales of s’mores ingredients and then we were able to use the case count trajectory as a harbinger of where we should focus some of those efforts and build displays and places media in those markets, “said Buck.
Retailers are also on the lookout for trends and have stocked up on Valentine’s Day and Easter sweets earlier than ever to ensure they have an adequate supply.
Hershey’s shares closed Thursday at less than 1%, at $ 147.22, after reporting that its fourth quarter sales rose 5.7% to $ 2.19 billion. Net income increased 41% to $ 291.4 million. Excluding items, Hershey earned $ 1.49 per share, exceeding analysts’ estimates.