Supply Chain Council of European Union | Scceu.org
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Grinch hits candy cane makers with sugar shortage, twisted supply chain | Local Business

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

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

Candy makers, like retailers and farmers, have been slammed during the pandemic with high commodity prices, labor shortages, and transportation and supply chain snarls, preventing them from fully cashing in on the holiday season.

For more than a century, Hammond’s Candies has twisted and packed up the classic Christmas treat for tiny gift shops and massive grocers alike. It is the largest wholesale supplier of U.S. handmade candy canes.

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 Doscher’s Candy Co. landed a big order from Sam’s Club for gourmet candy canes, co-owner Greg Clark was thrilled. But he had the same problem: His staff and on-hand supplies could only produce about 70% of the hand-crafted candies Sam’s Club wanted.

“More and more Sam’s Club members are shopping for seasonal candy, including candy canes,” a company spokeswoman said.

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