Hershey 3Q Profit Up 30 Pct, Aided By Lower Costs

Halloween-specific promotions, merchandising and advertising are currently under way, and Hershey is planning a bigger advertising effort in the next three months, West said.

All told, that should boost Hershey's full-year, 2009 advertising expense by 50 percent above last year's, he said.

Consumers can expect to see some of that advertising effort centered around the December launches of Hershey's Bliss white chocolate and Hershey's Special Dark, Almond Joy and York Pieces, an expansion of the Reese's Pieces format.

In morning trading, Hershey's shares dropped $2.68, or 6.6 percent, to $37.99, a market reaction that Edward Jones analyst Jack Russo attributed to disappointment with Hershey's sales, despite its heavy investment in marketing and advertising.

"The market is looking at that more closely right now," Russo said. "A lot of companies have cut costs and trimmed expenses, and that's all well and good, but I think the market's going to reward companies where they see sales progress, so Hershey is going to have to work at it."

The Hershey, Pa.-based candymaker said it earned $162 million, or 71 cents a share, in the three months ended Oct. 3, up from $124.5 million in last year's quarter.