Sugarflation Might Take a Bite Out of Halloween 2023 — Retail Bum

Rising sugar prices could sour Halloween festivities this year, with candy prices continuing to climb.

Last year alone, candy prices were up 13.1%, marking the biggest year-to-year (YoY) increase to date, according to the Consumer Price Index.

At the heart of the problem is a 90-year-old sugar program that mandates that 85% of U.S. sugar be sourced from some 4000 domestic producers instead of producers in Brazil, the Dominican Republic, and the Philippines. The requirement is resulting in a classic case of low supply and high demand, causing candy and chewing gum prices to go up 13.2% year over year.

To make matters worse, rising inflation has caused global sugar prices to go up by 42% since June 2022, and extremely dry weather caused by El Niño this year is expected to result in a 10% to 15% reduction in global sugar cane yield.

These challenges are not only impacting the cost of candy, but also carbonated drinks, including soda, costing an average of 9.1% more.

The good news is some of the major candy producers in the U.S. are optimistic about overcoming inventory shortages.

“Our production is busy, and our warehouses are full. There is not going to be a shortage for Halloween,” said Todd Scott, Hershey’s…