Grinch hits candy cane makers with sugar shortage, twisted supply chain - BusinessWorld Online

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CHICAGO — Orders have been pouring into Andrew Schuman’s candy cane business this year, but business has been anything but sweet. READ: .

“We’re not taking new orders from new customers,” said Mr. Schuman, chief executive officer of Hammond’s, based in Denver, Colorado. “We can’t keep up with demand.”

This year, Hammond’s labor costs have increased 30%, yet staffing remains a problem: The company’s 250-person crew is down nearly 100 people.When Sam’s Club, a Walmart unit, placed an order for Doscher’s Candy Co.’s gourmet candy canes, co-owner Greg Clark was thrilled. Still, he said, Doscher’s had staff and supplies to produce about 70% of the hand-crafted candies Sam’s Club wanted.

Retailers have increased holiday candy items per store by more than 9%; and the total amount of non-chocolate products in stores is up nearly 23%, according to the data. “We would have the cherry flavoring scheduled to come in on Monday, but the trucks were delayed, so we would have to stop and switch over to raspberry,” Mr. Vashaw said.Facing tight global supplies, some sugar suppliers have limited sales to food manufacturers.

“I’ve heard that some commercial buyers are looking at erythritol as a substitute sweetener,” said Bob Cymbala, a food trader at A&J Global USA, referring to a sugar substitute made from corn.

 

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