Hershey Sales Rise 3% as Candy Category Slips
Hershey's third-quarter growth came while U.S. candy, gum, and mint sales declined in September amid softer convenience store traffic.
Updated on Nov. 6, 2026 in Spending
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Hershey Company reported net sales up 3% in the third quarter ending September 27, 2026. U.S. candy, gum, and mint category sales declined nearly 5% in September as shoppers became more deliberate about spending.
Why it matters
The weakness was concentrated in convenience stores, where transactions in the first half of the year fell 4.5% year over year. Shoppers shifted spending toward mass-market retailers and online channels, a pattern tied to higher gas prices in the channels most exposed to them.
Hershey's third-quarter net sales rose 3% through September 27, while U.S. candy, gum, and mint sales fell nearly 5% in September. Convenience store in-store transactions dropped 4.5% year over year in the first half, and the expected softening tied to gas prices has not been quantified.
The players
Hershey Company
Hershey Company is a major American confectionery manufacturer known for brands such as Hershey's, Reese's, and Kit Kat, and it sells its products through grocery, mass-market, and convenience store channels.
The details
Consumer confidence rose in October and fuel prices fell from a month earlier, though shoppers remained cautious about spending in channels most exposed to higher gas prices. Hershey's sales weakness was concentrated in convenience stores, while spending moved toward mass-market and online retailers.
Timeline
First half of 2026: convenience store in-store transactions fell 4.5% year over year.
September 2026: U.S. candy, gum, and mint sales declined nearly 5%.
September 27, 2026: Hershey's third quarter ended with net sales up 3%.
October 2026: Consumer confidence rose.
Friday, November 6, 2026: Hershey's earnings call where the CEO discussed convenience store softness.
Market Dynamics
The shift of spending away from convenience stores toward mass-market and online retailers followed the post-pandemic consumer reshuffling of 2022 and 2023. The fall 2026 softening in convenience store traffic, tied to gas prices, extends that same channel pattern into a new cycle.
Shoppers who buy candy and snacks may see the category's weakness reflected in promotions as retailers compete for sales. Households spending more at mass-market and online stores may find that moving routine purchases away from convenience stores can help manage fuel-driven budget pressure.
The takeaway
Shifts in where people buy, not just how much they buy, can reveal early pressure on household budgets. Comparing prices across store types can help offset higher costs when fuel prices rise.
What happens next
Hershey's CEO is scheduled to discuss convenience store softness on its earnings call on Friday, November 6, 2026.
Further reading
For more on how households are adjusting their day-to-day purchases, see Spending coverage.
Source note: This article includes information reported by Food Dive.
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