# Hershey Organic Sales Grow 0.8% as Candy Prices Outpace Grocery Inflation By John Kim Canonical URL: https://www.tokenpost.com/news/business/44998 Published: 2026-10-30T18:26:26.000Z Updated: 2026-10-30T18:26:26.000Z Section: Business > Hershey’s net sales rose 3% to $3,275.5 million, while volume declined. A survey projected U.S. Halloween spending at $13.5 billion in 2026. Hershey’s third-quarter organic sales grew 0.8% as pricing more than offset lower volume, while U.S. candy prices rose faster than grocery costs ahead of Halloween. U.S. candy and chewing gum prices were 7.7% higher than a year earlier in September, compared with a 1.8% rise in food-at-home prices and a 3.7% increase across all items. Sugar and sweets prices rose 5.5%. The consumer price measures cover broad categories and do not isolate chocolate, Halloween products or ingredient costs. The September inflation reading covers a different period from [category data through Oct. 15, which showed higher average unit prices alongside lower candy volumes](). U.S. Halloween spending is projected at $13.5 billion in 2026, up from the previous year’s record $13.1 billion. A Sept. 1-9 survey of 7,889 consumers put candy spending at $4.1 billion and average spending at $115.14 per person. The estimate reflects planned purchases, not completed sales. “Consumers continue to make Halloween a spending priority, but they are also approaching the season with affordability in mind,” said Allison Zeller, the National Retail Federation’s vice president of industry and consumer insights. For the quarter ended Sept. 27, Hershey’s net sales rose 3% to $3,275.5 million. Organic constant-currency sales grew 0.8%, with pricing adding about 11 percentage points and volume subtracting about 10 percentage points. North America Confectionery sales rose 1.6%; pricing contributed about 13 percentage points while volume reduced growth by about 11 percentage points. Hershey cited price sensitivity and shipment variability. Hershey narrowed its 2026 organic net sales growth outlook to about 3%, from a previous range of 3% to 3.5%. It raised its reported net sales growth outlook to about 5%, from 4.5% to 5%. Management cited pressure from consumers and convenience channels, along with constraints in salty snacks. “Our second-half demand creation initiatives are gaining momentum, even as consumers grow more cautious,” Hershey President and CEO Kirk Tanner said. Net commodity costs fell in the quarter, while Hershey’s adjusted gross margin expanded 10.9 percentage points, partly because of lower input costs. Management expects cocoa cost deflation in 2027. Commodity costs and consumer prices measure different parts of the market, so the company’s lower costs do not show when retail prices might change. ## Links in this article - [category data through Oct. 15, which showed higher average unit prices alongside lower candy volumes](https://www.tokenpost.com/news/business/40580)