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Hershey's price increase


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Wing close PI am sure most of you are probably aware that Hershey had a price increase of 8.9% effective midnight, July 15, 2014. How do you all plan to address this increase? I am sure that the other manufacturers will be following close behind the lead of Hershey.

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Maybe they will make them even smaller and keep the per bar price the same.

They make Snickers any smaller we will be vending them out of our gum dispensers!

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Of course prices will vary by source. Since there was no notice given to the increase your suppliers will be working off of their inventory but when they need to re-order they will be paying the new price and your pricing will increase. Here is a copy of the notice:

HERSHEY, PA -- Hershey Co. said rising commodity costs have forced the candy giant to raise prices on most of its products by an average of 8%.

The No. candy producer in the U.S. announced on July 15 that the price hike is effective immediately. Customers who purchase directly from Hershey will be able to buy at prior prices until Aug. 12.

"Over the last year, key input costs have been volatile and remain at levels that are above historical averages," said Michele G. Buck, president of Hershey North America. "Commodity spot prices for ingredients such as cocoa, dairy and nuts have increased meaningfully since the beginning of the year."

The cost of cocoa butter, a byproduct of the cocoa bean that gives chocolate its melt-in-the-mouth texture, has been high since late 2013. The cocoa butter ratio over the price of the bean is now about 2.65 times, bringing the price above $8,200 per ton for nearby needs. Some analysts said they see this as the main driver in the price hike.

Additionally, the company said it expects increases for packaging, fuel and other costs. Hershey's last price increase -- a 9.7% hike --was in 2011.

Hershey said it now expects 2014 sales growth to be at the lower end of its long-term target of 5% to 7%.

- See more at: http://www.vendingtimes.com/ME2/dirmod.asp?sid=EB79A487112B48A296B38C81345C8C7F&nm=Vending+Features&type=Publishing&mod=Publications%3A%3AArticle&mid=8F3A7027421841978F18BE895F87F791&tier=4&id=EA9B2F5E607044D7BE769559FD92CFEB#sthash.q5AMfKk2.dpufk

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Vistar went to .61 on hershey. I'm buying hershey exclusively at Sam's now and looking for more mars products to buy enough to get on their rebate program ($5k a qtr in Mars purchases to earn 6%)

 

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Vistar went to .61 on hershey. I'm buying hershey exclusively at Sam's now and looking for more mars products to buy enough to get on their rebate program ($5k a qtr in Mars purchases to earn 6%)

 

Well, just checked and its almost $.64 at Vistar now

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Maybe it's time to stock up before prices go up. The Sam's near me has 52 cents per bar for Milk Chocolate and Chocolate and Almonds, Reese's, and Kit Kat in the 36 counts, 55 cents on the Cookies and Creme, Kit Kat Extra Crispy. It's been like that for a while now.

 

The variety packs were cheaper at 49 cents per bar before, but now they are at 55 cents a bar in the Hershey's variety pack.

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The hershey were 55.5 , then 48.9 , and now back to 55.5. I don't know if they raised the prices yet or just put them back to what they were before the price drop.

$1/bar should be minimum without commission.

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