BALTIMORE, MD, October 24, 2022 – New audio is available for media use featuring Tim Kraft, an associate professor of Operations and Supply Chain Management in the Poole College of Management at North Carolina State University. He’s also the Associate Research Director of Supply Chain Resource Cooperative. He speaks about the Halloween supply chain. This content is made available by INFORMS, the largest association for the decision and data sciences. What follows are 4 questions and responses. These responses were provided on October 21, 2022.
Question 1: How much did inflation influence the supply chain for candy manufacturing this year?
Time Cue: 0:28, Soundbite Duration: :30
“Like a lot of goods these days, the cost of candy has been impacted by inflation with items costing 13% more than they cost this time last year. This is due primarily to the increasing cost of ingredients such as sugar (due to drought) and cocoa (high producer costs), as well as, increased transportation costs. For consumers, they should prepare themselves to see higher prices when they go to the store and while maybe not empty shelves, at least be prepared not to be able to find all your favorite candy variations.”
Question 2: What are the major ingredients in Halloween candy that may be in short supply this year?
Time Cue: 1:08, Soundbite Duration: :30
“Due to droughts in countries such as Brazil, a key ingredient, sugar, has been in short supply this year. But it’s important to point out that it’s not just ingredients that have been impacted. Even the production process itself has been impacted. For example, the war in the Ukraine has had a significant impact by limiting the supply of the machinery needed to make candy, as well as, increasing the cost of producing candy through higher energy costs across Europe.”
Question 3: What are the logistical challenges candymakers had to overcome this year for Halloween?
Time Cue: 01:44, Soundbite Duration: :27
“Besides supply chain disruptions due to the pandemic and the war in the Ukraine, a major challenge candy producers have dealt with has been the increased demand for candy during the pandemic since it can serve as a stress relief. As a result, candy producers have had to balance keeping candy on the shelves daily while dedicating capacity toward planning for big seasonal events like Halloween.”
Question 4: What changes in supply chain management did candymakers have to make for this year?
Time Cue: 02:18, Soundbite Duration: :18
“Due to ingredient supply shortages, some makers have had to make decisions on which lines to limit or stop production on. Also, you’ve seen some producers practicing what’s called shrinkflation – decreasing the quantity in a bag but still charging the same price.”
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