Hershey Says Mint, Gum Sales Hit As Lockdowns Restrict Social Gatherings
Hershey Co has said that sales of gums and mints have taken a hit as social distancing protocols spurred by the COVID-19 pandemic discouraged people from participating in gatherings.
The company, the maker of Ice Breakers and Kisses, said its second-quarter performance would also be impacted due to a decline in its food service business and stunted candy sales at airports and stores.
"We have also experienced a decrease in retail foot traffic and volatility in consumer shopping and consumption behaviour across several areas of our portfolio, which has negatively impacted sales of our portable and on-the-go consumption products," the company said in a filing.
The health crisis triggered a long lockdown, temporarily closing everything from restaurants to malls and forcing consumers to work from home.
Hershey has for long been betting on its nutritious and on-the-go snack portfolio, a hit with health-conscious consumers who would pick up protein bars before heading to work.
The company said it expects many of the changed shopping behaviours since the outbreak of the virus to continue as governments begin a phased reopening of businesses.