Hershey Co. raising candy prices, including Kit Kats, Reese’s

Sorry chocolate lovers, even your favorite candy isn’t immune from inflation.

The Hershey Co. announced recently it is planning “list price increases across all segments” as a way to drive sales growth. The company said the hikes will offset rising labor and ingredient costs.

“Pricing will be an important lever for us this year and is expected to drive most of our growth,” said Hershey CEO Michele Buck in remarks discussing the company’s financial results on Thursday.

Historically, Hershey has successfully weathered price increases, something Buck said should be the case this year. The candy maker said it already raised some prices in 2021, which contributed to higher sales at the end of the year.

The news comes as Hershey delivered a record year of production in 2021 and double-digit sales and earnings growth.

The company joins other food manufacturers including Kraft Heinz Co. and General Mills raising prices as inflation hits historic 40-year highs.

Steven Voskuil, Hershey’s chief financial officer, noted sugar, dairy, packaging materials and specialty ingredients prices are all rising. Hershey is also encountering inflation from a labor standpoint.

Voskuil said they are pleased with where the company ended 2021 and momentum entering the new year.

“We continue to operate in a very volatile environment. There is inevitably a higher degree of risk in the current operating environment, but we remain confident in our ability to deliver another strong year of balance of top and bottom line growth,” he said.