Hershey Price Increase

On August 15, 2008, The Hershey Company announced a 10% price increase due to the growing costs of such products as cocoa, sugar and peanuts.¹ This is the second increase in 2008. The first was enacted in January, when one-third of the company's sweets experienced a 13% advance in price. Hershey added that it still expects a three to five percent growth in net sales in 2009.¹

Fast Facts

1. In 2008, Hershey estimated earnings of $1.85 to $1.90 per share, with the lower end expectation appearing more feasible²
2. The company projects more price increases in 2009²
3. Hershey shares jumped over 25% during August²
4. Affected products: Hershey's Kisses, chocolate bars and multi-bar packs²
5. Commodity prices have increased between 20% and 45%, according to Hershey's president David West¹

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