Hershey Co, the No. 1 candy producer in the United States, on Tuesday hiked its chocolate prices for the first time in three years, a sign that a year-long soaring cocoa market is eating into confectioners' profits.
The overall price increase, effective immediately, would be about 8 percent and was aimed at tackling rising commodity costs, the company said.
The maker of Reese's, Kit Kat and Ice Breakers candy expects 2014 sales growth to be at the lower end of its long-term target of 5 to 7 percent. It also expects diluted growth in adjusted earnings per share to be at the low end of its 9 to 11 percent target.
Adjusted gross margins were forecast to fall...