When COVID hit the economy and things were shut down, everyone suffered and many traditions were stopped. However this past year, people wanted to maintain their traditions because they could. However trying to maintain traditions and companies having enough product sometimes are two different things.
In an article by P.J. Huffstutter and Marcelo Teixeira of Reuters confectionary companies were having problems meeting demand. The largest wholesaler of candy canes is a company based in Denver called Hammond’s. According to Andrew Schuman, Hammond’s CEO, the company is not taking extra business because they can not keep up. This year labor costs are up 30%, yet staffing is a problem, normally a 250 person crew is down 100 people.
Cincinnati based Doscher’s Candy Co received an order from Sam’s Club and Doscher was able to produce 70% of the order.
Total seasonal confectionary sales are up 20% over last year for the 5 year period ending December 5 according to the National Confectioners Association.
Spangler Candy Cane, the largest US candy maker ran an extra shift this fall to meet demand. Usually candy canes are made with cherry flavor, the past year some have been made with raspberry.
The US imports about 25% of its annual sugar needs but Hurrican Ida went through Louisiana the 2md largest sugar cane producing state. The world’s largest producer of sugar are Brazil and Thailand and they have been hit with smaller than expected revenues.
Linking to dividend paying stocks, most of us follow some sort of tradition. Whether its is decorating for the holidays, what we eat for holidays and when we do them in large number numerous industries benefit. When you are investing, it is wonderful if you use the product or service, however consider do other people do what you do? If the answer is typically yes, then are people doing what you do. From there it is possible to find good industries which have sales on a regular basis to make profits to pay you dividends.
There are more questions than answers, till the next time – to raising questions.