Hershey lowers sales growth target amid inflation and consumer spending pressure
- Reports
- 3
- Developments
- 1
- Repetition
- 67%
New informationRepeats or wire copies
What happened
Hershey lowered its annual organic net sales growth target to approximately 3%. The company warned that high inflation and interest rates could negatively affect consumer spending on candy this Halloween. Hershey reported that sales of candies, gums, and mints at US convenience stores declined nearly 5% compared to the previous year in September.
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Why it matters
The report indicates that US consumer sentiment is low due to high gas prices and inflation, leading to budget strain. This financial pressure is causing a contraction in discretionary spending within the confectionery sector.
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Who's involved
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- Mondelez InternationalSpeculative
Might face pressure on earnings growth due to shared industry exposure to consumer budget strain
- KrogerSpeculative
Could see reduced demand for snacks and candy as inflation and interest rates curb discretionary spending
- PladisSpeculative
May experience contraction in consumer demand for snacking products
- PepsiCoSpeculative
Could see reduced demand for snacks and beverages if consumer spending on these categories weakens
Possible ripples
Who this could reach next, traced step by step from the reporting. Possibilities worth considering, not forecasts.- Reduced consumer spending may curb Target's confectionery salesTarget's confectionery sales may face pressure from reduced consumer spendingPossible
- Pladis may face sales contraction amid consumer affordability concernsPladis may face sales contraction as consumer affordability concerns risePossible
- PepsiCo may face reduced demand amid consumer spending squeezePepsiCo may face reduced demand as consumer spending tightens on snacks and beveragesPossible
- Kroger may face reduced sales amid consumer budget strainKroger may see reduced sales as consumer budgets tighten on snacks and candyPossible
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The entities involved
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Mondelez International
American multinational confectionery, food and beverage conglomerate
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Walmart
U.S. discount retailer based in Arkansas