See’s Candies CEO on consumer demand in a tough economic environment

Summary

See's Candies CEO Pat Egan discusses strong consumer demand despite rising energy prices and consumer sentiment headwinds, citing brand loyalty and in-store experience. He notes the company's year-to-date sales are up, driven by holidays, and explains that cocoa input costs are managed through forward contracts with prices locked through 2027, though spot market volatility has eased.

• See's Candies sales are up year-to-date despite consumer sentiment weakness.
• Easter and Valentine's Day were record-breaking holidays for See's.
• See's benefits from strong brand loyalty and in-store customer experience.
• Cocoa spot prices have declined significantly after a 56x spike.
• See's buys cocoa on forward contracts and has locked prices through 2027.
• See's is not passing higher input costs directly to consumers.
• The company has 250 retail shops, 180 of which are in California.
• The interview took place ahead of Berkshire Hathaway's annual shareholder meeting.