Hershey Revenue Dip Blamed on Limited Edition Foods
Chocolate brander Hershey’s released bad news last week, reporting profits had fallen 96 percent from where they were last year. Many analysts claimed Hershey’s investment in limited edition foods for part of the decline, even as they cited the brand’s hope that this summer’s limited edition Elvis Reese’s cup would provide a boost in sales.
Most of the issues surround branding costs, which would explain why limited edition products are getting the blame … like any other marketing investment, limited editions must be designed to help the core brand long term. Other woes for Hershey include increased milk costs and a perceived failure to capitalize on the interest in high-end dark chocolate.
Hershey, chocolate, limited edition, Elvis, marketing, branding, profits, sales, milk
August 1st, 2007 at 12:14 pm
I’m inclined to agree that LtEd are to blame for the sales slump. Nestle reported pretty much the same thing in Europe with all their KitKat varieties.
Of course Hershey’s has some other really big problems with their image and efficiency.