Dive Brief:
- Sheetz warned it will be raising the price of certain Hershey’s candies on Sept. 17 in response to the sweets giant increasing the cost of many of its items, a company spokesperson confirmed to C-Store Dive.
- The c-store retailer says Hershey is boosting prices on certain regular- and king-size candy bars, including Kit-Kat, Reese’s and PayDay, by 26%.
- Separately, Casey’s General Stores noted in its latest earnings call that it has also passed some candy cost increases to the consumer.
Dive Insight:
With cocoa prices still elevated, the convenience store industry will be pressured to follow Sheetz’s lead in a vital category. Candy was the sixth-largest sales category for c-stores in 2024, according to Statista, and chocolate made up a little over half of candy sales in 2024, according to the National Confectioners Association.
And the pressures on chocolate haven’t let up. While cocoa prices have come down from highs seen earlier this year, they are still far above prices seen before 2023, according to data from the Federal Reserve of St. Louis. Earlier this summer, the candy maker said it would be raising prices due not to tariffs but to supply issues in Africa.
Sheetz’s recent decision is currently narrowly focused.
“This price adjustment only applies to Hershey-branded items; all other products at Sheetz remain unaffected,” said Nick Ruffner, public affairs manager for Sheetz. He added, “Notices of these Hershey price adjustments are being posted in all store locations.”
Hershey is not alone. Swiss chocolate giant Lindt & Sprungli passed along a 15.8% price increase earlier this year and Toblerone manufacturer Mondelēz International said it may do the same.
