From Candy to Costumes: Meeting Supply Chain Demand During Halloween
By Morgan Pettrone, Marketing Communications Program Manager at MHI
One of my favorite parts about Halloween (besides candy… drool) are the costumes! Yes, it’s still socially acceptable to dress up in costume as an adult and I look forward to bringing the creativity.
This year, I plan to dress up as Wednesday Addams from the hit Addams Family spin off series on Netflix. I know genius idea, but it’s already mid-October and I’m running out of time!
Thanks to the supply chain, we’re able to make late costume purchases not to mention everything else needed for Halloween festivities, including decorations, food, candy and of course a costume for the dog too!
Did you know, according to a survey by the National Retail Federation (NRF), it’s projected that 73% of people celebrating Halloween will spend an all-time high of about $12.2 billion, which averages out to $108.24 per person.
What’s more, because of the pandemic, popularity in decorations has grown and continues to increase in demand with an expected spend of $3.9 billion. Candy spending is expected to reach $3.6 billion up from $3.1 billion in 2019 and spending on pet costumes is projected to reach $700 million.
What does that tell us? When it comes to Halloween, we want a lot, and we want it now.
To capitalize on the high demand, companies are learning to invest in their supply chain and are making some tantalizing changes.
For example, in 2022, Hersey faced capacity restraints that would hinder their ability to supply enough product to meet the Halloween demand — oh no, not a candy shortage! To address this problem, Hershey increased operational investments and announced a capacity investment plan, which included the addition of 10 production lines and three distribution and fulfillment centers. Not only did they create new and improved lines, the company used advanced analytics and AI to help find hidden capacity. You could say Hershey’s 1 billion push to boost its supply chain capacity has created a supply chain “sweet spot” almost as satisfying as the candy bar itself! That means being agile enough to adapt to increasing customer demand while also having the capacity to meet current customer needs.
Other snack companies have invested to boost production as well. In a statement from former Virginia Govenor Ralph Northam, Snack company Mondelēz International invested $122.5 million over three years to boost capacity at its Richmond, Virginia, location including a 68,000-square-foot expansion of the company’s Richmond Biscuit Bakery, which was projected to help manufacture a high-speed Oreo production line.
To sum things up, while myself and others splurge on last-minute Halloween costumes and festive supplies, product manufactures are equally hard at work to make sure they find creative supply chain solutions to match our growing demand.
As the speed of manufacturing and supply chain operations continues to accelerate, building a more agile, efficient, and transparent supply chain depends on today’s forward-thinking decisions. That’s why we recommend attending MODEX 2024 March 11-14 in Atlanta, GA for all your future supply chain needs. Learn more about MODEX by visiting modexshow.com and have a spooktacular Halloween.
