Mike Blake/Reuters
- The Hershey Company may see a boost sales thanks in part to the coronavirus pandemic, according to a March 18 note from Credit Suisse.
- Analysts with the bank said the chocolate giant tends to see a spike in demand during crises, like the recession between 2008 and 2010.
- "We also expect the increase in impulse purchase occasions at grocery stores to offset declines in alternative channels," the bank's analysts wrote.
- Visit Business Insider's homepage for more stories.
Turns out, people don't lose their sweet tooth in a crisis. So, while the coronavirus pandemic may be adversely affecting businesses and industries around the world, the Hershey Company could see a boost to sales.
Credit Suisse upgraded the chocolate manufacturing giant's stock to "outperform" Wednesday, saying that the "business has proven resilient during all types of social and economic backdrops." There's a precedent for consumers turning to candy for comfort during hard times. Between 2008 and 2010, Hershey's organic sales spiked 4.7% per year, according to Credit Suisse.
"We also expect the increase in impulse purchase occasions at grocery stores to offset declines in alternative channels," the bank's analysts wrote in a March 18 note.
Analysts Ariel Altaras, Jacob Nivasch, and Robert Moskow added that they didn't anticipate that consumers would stop craving Hershey products during the Easter season, despite the epidemic. They also wrote that Hershey's "duopoly" with rival Mars ensures that the company doesn't have much to fear from third-party disruptors.
The biggest threats facing the Pennsylvania-based sweets business include health-conscious consumers abandoning the confectionery category altogether and "business disruption or weaker impulse purchase occasions during the spread of COVID-19."
But for now, whether it's a virus-themed chocolate Easter egg or on-the-fly purchases to reward a stressful grocery store run, many consumers seem set to continue to indulge their taste for sweets during the pandemic.
Tweet Embed://twitter.com/mims/statuses/1238291880728649728?ref_src=twsrc%5Etfw
I'm just going to pack the car with camping essentials, a fishing rod, 10 slabs of beer, and a heap of chocolate, then head out to a remote and secluded lake and return in four weeks. I'll probably come back with diabetes and a fucked liver, but at least I won't get #coronavirus.Tweet Embed:
//twitter.com/mims/statuses/1238605279211782144?ref_src=twsrc%5Etfw
I have stockpiled wine and chocolate. Apparently friends want to come self-isolate with me. #coronavirusTweet Embed:
//twitter.com/mims/statuses/1238815326210572293?ref_src=twsrc%5Etfw
Coronavirus Cupboard Check: 15 lbs of pasta (what???) and nearly that much chocolate (totally defensible) - I'm okay for a bit. pic.twitter.com/kk6WHZddaSTweet Embed:
//twitter.com/mims/statuses/1237777435426512902?ref_src=twsrc%5Etfw
Coronavirus Quarantine Checklist:
1. Toilet Paper
2. Paper (for writing, not the bum)
3. Pens and Pencils
4. Coffee
5. Chocolate
6. Pantry Filled With Story Ideas
...oh wait, that's what I live off of everyday.#writingcommmunity
NOW WATCH: Watching sweets and chocolate melt in fast motion is strangely hypnotic
See Also:
- A viral rumor about Costco toilet paper being recalled is a hoax
- KFC debuts a dragon fruit burger with a pink bun in Vietnam, after the country struggled to sell excess fruit due to the coronavirus outbreak
- Chick-fil-A shuts down seating areas to prevent people from eating in stores during the coronavirus outbreak
SEE ALSO: A viral rumor about Costco toilet paper being recalled is a hoax
