The maker of Reese's, Kit Kat and Ice Breakers candy expects 2014 sales growth to be at the lower end of its long-term target of 5 to 7 percent. It also expects diluted growth in adjusted earnings per share to be at the low end of its 9 to 11 percent target.
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Adjusted gross margins were forecast to fall "slightly" in 2014 from last year, Hershey said. It had earlier expected full-year adjusted margins to expand by 50 basis points.
"Commodity spot prices for ingredients such as cocoa, dairy and nuts have increased meaningfully since the beginning of the year," Hershey's North America head Michele Buck said in a statement on Tuesday.
The price increases, which affect packaged candy and grocery products, would not have an effect on earnings until next year.
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Customers who buy directly from the company will be able to buy at the pre-increase prices until Aug. 12.
Analysts said Hershey's price increase announcement will likely trigger a flurry of similar announcements from rivals such as Nestle and Kraft Foods Group.
Price increases are often done quietly, analysts said.
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Hershey last raised wholesale prices in 2011 by roughly 9.7 percent in the United States, a company spokesman said.