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Chocolate company raising prices


August 20, 2008
By Cam Wood

August 20,
2008, Hershey, Pa. – Hershey Co. says it's immediately increasing
prices on its candy by an average of 11 per cent because of rising
commodities prices.

August 20, 2008, Hershey, Pa. – Hershey Co. says it's immediately increasing prices on its candy by an average of 11 per cent because of rising commodities prices.

The chocolate maker says Friday that the increased prices on products will help offset "significant increases" in the cost of raw materials such as sugar, cocoa and peanuts, as well as the growing cost of fuel, utilities and transportation.

Separately, the company also narrowed its 2008 earnings and revenue guidance because of the price hikes.

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Hershey shares fell $2.37, or 5.7 per cent to US$39.25 in after hours trading, after closing regular trading up 43 cents at $41.62.