The Hershey Co. has announced it is raising prices on its products by an average of 11 percent.
The price increase will be the second already this year.
The immediate increase was necessary to offset "significant increases" in the cost of raw materials such as sugar, cocoa and peanuts -- up as much as 45 percent since the start of the year -- as well as the growing cost of fuel, utilities and transportation, Hershey said.
"Commodity costs have been volatile over the last several years and continue to remain at levels that are well above historical averages," Hershey's President and Chief Executive David J. West said in a statement.
Hershey said it expects sales to grow between 2 and 3 percent in 2009, down from its earlier projection of a 3 to 5 percent increase. The company also warned its 2009 adjusted profit would likely miss its target of 6 percent to 8 percent growth
No comments:
Post a Comment