Hershey warns Americans squeezed by gas prices are buying less candy—and Halloween’s final days are ‘really critical’

Hershey, America's leading chocolate manufacturer, has reported a decline in candy sales at convenience stores due to high gas prices and inflation squeezing consumers' budgets. In September, candy sales at these stores fell by 5% across the category, and the slump seems to have continued into October. Hershey CFO Dave Hulays attributed this to consumers being more cautious about inflation, citing gas prices and interest rates as factors affecting household spending.

Shoppers are making more deliberate choices, shifting their spending to mass retailers, e-commerce, and warehouse clubs. Outside convenience stores, candy sales have grown by 3.7% in the third quarter, but this is seen as a channel and trip issue rather than a category problem. Hershey's overall net sales rose by 3% in the third quarter to approximately $3.28 billion, but this growth was driven by an 11 percentage point increase in prices, while volume fell by about 10 percentage points.

The company has also lowered its full-year organic net sales growth outlook to around 3%. The decline in sales extends beyond Hershey, with Halloween candy sales dropping by 6.7% in the month ending October 17 compared to the same period last year. Small bags are the only size still growing, and the average price of regular gasoline has risen to $4.29 a gallon, up nearly 40% from a year earlier.

Despite these challenges, Hershey is still expecting a record $13.5 billion in Halloween spending this year, with $4.1 billion projected to be spent on candy alone. However, shoppers are approaching the holiday season with affordability in mind, and Hershey notes that they are still feeling the impact of higher costs for freight, packaging, and other non-cocoa inputs.

Hershey CEO Kirk Tanner, who took over in August 2025, emphasized the importance of consumers showing up, especially during the final critical days of the season.