When we last checked in on the Oompa Loompas, we found that there was No Valentines Day for the Cadbury Oompa Loompas who were sacked only one week after Kraft promised not to close a factory and lay them off. And to add insult to injury, Kraft beat estimates and posted a higher-than-expected quarterly profit for first quarter — which I’m betting would have been more than enough money to keep the plant operating and the oompa loompas employed.
And now the Hershey Oompa Loompas are feeling the pain. Despite the fact that Hershey stock recently hit a high on sweet sales, with a better-than-expected sales volume first quarter that resulted in a raise in its full year forecast, and that Hershey expects to save $60 Million to $80 Million annually from its “Next Century” modernization program to enhance its supply chain, it just announced that it is going to trim 5% of its workforce.
At this rate, you have to wonder if there are going to be any oompa loompas left to enjoy the Orange County Chocolate Festival that is coming up this November. Personally, I don’t know what the problem is. Considering that the industry’s revenue for 2009 was approximately 4.9 Billion in the US alone (Reuters), you’d think they’d be able to keep the oompa loompas employed! And now that new research has determined that a little chocolate might cut cholesterol, you know sales have nowhere to go but up!