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Increased advertising budget will drive sales

In June 2008, Hershey announced plans to boost advertising this year and in 2009 by at least 20%^[1]. Increased ad dollars will be devoted to the company's core brands like Reese's and Hershey's Kiss which currently generate 60% of the company's sales. This is a long awaited, positive development for Hershey. The company has long under-invested in its core brands. A sales boost from increased advertising may offset the effects of rising input prices. Increased ad spending may already by paying dividends, in the quarter ending September 29th, 2008, HSY reported a 6% increase in sales on the back of a 25% increase in advertising spending.

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