Not So Sweet! Candy Makers Hit With Sugar Shortage Ahead Of Holiday Season
Portfolio Pulse from Bibhu Pattnaik
Candy companies are facing higher costs and reduced production due to tight sugar supplies, attributed to U.S. agriculture policy mandating that at least 85% of U.S. sugar purchases must be sourced from domestic processors. This has led to limited supplies and elevated prices during periods of high demand. Hershey Co (HSY) and Mondelez International Inc (MDLZ) acknowledged the elevated sugar prices during their company earnings calls in April. The USDA predicts that tight supplies worldwide and weather concerns will keep U.S. sugar prices high.
July 23, 2023 | 3:56 pm
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Hershey Co acknowledged the elevated sugar prices during their company earnings calls in April, which contributed to the overall rise in their expenses.
The increase in sugar prices has led to a rise in Hershey's expenses, which could negatively impact their profit margins and overall financial performance in the short term.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Mondelez International Inc acknowledged the elevated sugar prices during their company earnings calls in April, which contributed to the overall rise in their expenses.
The increase in sugar prices has led to a rise in Mondelez's expenses, which could negatively impact their profit margins and overall financial performance in the short term.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80