Motley Fool Money Who Killed the Candy Bar?
Oct 29, 2022
In this engaging discussion, investment analyst Asit Sharma dives into the complexities of the candy market as Halloween approaches. He reveals how shrinkflation is impacting perceptions of popular candy bars and analyzes Hershey's strategic M&A moves to transition into the snacking space. The chat highlights the challenges of product innovation and competition in chocolate, punctuated by light-hearted debates about favorite Halloween treats, making it both informative and entertaining!
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Shrinkflation History
- In the 1950s, candy companies shrunk product sizes instead of raising prices when vending machine operators resisted a price hike.
- This shrinkflation continues today, evident in smaller Hershey Kisses bags, lighter Reese's Cups, and skimpier Cadbury bars.
Modern Shrinkflation Examples
- A Washington Post story highlighted how shrinkflation affects various candies, including Hershey's Kisses and Reese's Cups.
- A listener, Jenny S Wave, shared that Quaker Oats instant grits packages now contain fewer servings.
King-Size Deception
- Ricky Mulvey bought a "king-size" Hershey bar that was smaller than expected, only enough for two s'mores.
- He argues that candy companies are misleading consumers with the "king-size" label.