Hershey Says It Won't Be Able To Meet Halloween Candy Demand This Year

Bad news for Halloween enthusiasts. This year, you might be out of luck in the candy aisle, Danielle Wiener-Bronner reported for CNN Business.

Photo Insert: The company is still struggling with disruptions along its supply chain, including higher dairy prices and scarce ingredients.

"We will not be able to fully meet consumer demand," for the October holiday, warned Hershey CEO Michele Buck in prepared remarks about the company's second-quarter results Thursday.

The problem? Consumers are demanding more regular and Halloween-themed candy than Hershey can make, at least right now.

"We had a strategy of prioritizing everyday on-shelf availability," Buck said during an analyst call discussing the company's second-quarter results. "That was a choice that we needed to make," she said. "It was a tough decision."

That likely means ceding ground to competitors such as Mars Wrigley, which makes M&Ms, Snickers, Skittles, and other candies, and Brach's, during the busy Halloween season.

Hershey is adding more manufacturing lines and hoping that it will be able to meet demand in the next couple of years.

But it has other issues. In addition to capacity constraints, the company is still struggling with disruptions along its supply chain, including higher dairy prices and scarce ingredients. In order to get the ingredients it needs, Hershey has to source them from other suppliers, which is costly.

These issues are largely related to the war in Ukraine, Buck said.

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