Story at a glance
- Candy makers are facing labor shortages, supply chain hurdles and a surge in sugar costs.
- That’s driving some candy producers to limit how many orders they take on and some are struggling to meet the orders they already have.
- The National Confectioners Association has said total seasonal confectionery sales are up 20 percent over last year for the five-week period ending Dec. 5.
The supply chain crisis has left no industry unscathed, with candy makers reporting a spike in sugar costs that could limit their ability to meet the demand of candy canes this holiday season.
Candy makers are experiencing high commodity pricing, labor shortages and supply chain hurdles that are affecting their ability to accommodate orders with major retailers, according to Reuters.
Hammond’s Candies, a family-owned candy company established more than 100 years ago, is one of the largest wholesale suppliers of handmade candy canes in the U.S. However, this year the company’s labor costs have gone up by 30 percent and it has struggled with staffing. According to Reuters, the company’s 250-person crew is down to only 100 people.
Andrew Schuman, CEO of Hammond’s Candies, told Reuters, “we’re not taking new orders from new customers. We can’t keep up with demand.”
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Schuman isn’t alone; Doscher’s Candy Co. is another gourmet candy cane maker struggling with staffing and supply issues. The company received an order from Sam’s Club and was only able to produce 70 percent of it.
“More and more Sam’s Club members are shopping for seasonal candy, including candy canes. In an effort to meet the anticipated demand, we increased buys from other suppliers and pulled inventory and production forward where possible,” said a Sam’s Club spokesperson to Reuters.
Data from the National Confectioners Association (NCA) found that total seasonal confectionery sales are up 20 percent over last year for the five-week period ending Dec. 5. Winter holiday nonchocolate sales, which includes candy canes, are up more than 34 percent this year compared to 2020.
“Total holiday candy offerings are up by more than 9 percent on average, showing that retailers are reinvesting in iconic holiday retail sets as seasonal treats remain an important part of traditions and celebrations,” said Carly Schildhaus, senior manager of public affairs at NCA.
According to Reuters, the U.S. imports about a quarter of its annual sugar needs, and a big chunk of this year’s domestic crop was destroyed across Louisiana after Hurricane Ida hit the state. Louisiana is the country’s second-largest sugarcane producing state.
Even across the globe in Brazil and Thailand, two of the world’s top sugar producers yielded smaller than expected crops this year, pushing sugar prices to a decade high.
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