Hershey Raises Wholesale Prices to Offset High Commodity/Fuel Costs

This week The Hershey Company announced it will raise wholesale prices by nearly 10% to offset rising raw-material and fuel costs. "Commodity costs have been volatile over the last several years and continue to remain at levels that are well above historical averages," said David J. West, President and CEO. "Market prices for ingredients such as cocoa, corn sweeteners, sugar and peanuts are up 20% to 45% since the beginning of the year."

The company forecasts 2008 earnings per share from operations will be at the low end of its forecast of $1.85 to $1.90, reports The Wall Street Journal. For 2009, Hershey expects  commodity-price increases to be more than double the jump seen in 2008. Hershey last raised prices in January 2008 by an average 13% on one-third of its domestic confectionery line.