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Hershey raising chocolate prices
©Associated Press HERSHEY, Pa. -- The nation's biggest chocolate candymaker is boosting prices on many of its products by an average of 3 percent effective with the new year. Its shares rose on the news. Hershey Foods Corp. announced Wednesday that it would increase domestic wholesale prices on many varieties of its top-selling candies such as Hershey candy bars and Reese's peanut butter cups effective Jan. 1. The price increases would largely affect its chocolate products. Items like bags of Hershey's Kisses and Jolly Rancher candies and the company's gum and mint lines are not affected. Spokeswoman Christine Dugan said Hershey was boosting prices after rival Mars Inc. recently raised its prices. Hershey said it has not raised its standard-size candy prices since 1996. The wholesale price increase for standard-size candy is 10.8 percent. The average price increase for all of Hershey Foods' affected domestic products comes to 3 percent and will affect domestic sales of standard- and king-size candy, variety packs, six-packs, and 10-packs. "What we're talking about is the stuff at the front end of the store, what you see at the checkout," Dugan said. Analysts say the company's domestic sales account for about 90 percent of its revenue. The company declined comment on how the price increases could affect sales or revenues. The company could use some help: After a six-week strike at two plants and an attempt to sell the company to a competitor, Hershey has reported sales lagging behind last year's through three quarters. Revenue in fiscal 2001 was almost $4.6-billion. On the New York Stock Exchange, Hershey shares rose 9 cents to close Thursday at $66.24.
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From the Times Business report
From the AP
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