The egg aisle is anything but cheaper by the dozen these days \u2014 and that\u2019s becoming a big problem ahead of the Easter holiday.<\/p>\n
The makers of Easter egg dye kits are bracing for the potential fallout if the egg shortage doesn\u2019t begin to clear up before the April 20 holiday. For many companies that specialize in these activity sets, egg dye kits and related products make up a significant share of annual revenue. Diminished sales could have a major impact on their bottom lines.<\/p>\n
\u201cI think sales will be down,\u201d said Ashley Phelps, founder and CEO of Color Kitchen, a plant-based baking decoration company. \u201cThat remains to be seen, but I think it probably will be.\u201d<\/p>\n
Wholesale egg prices have eclipsed record levels, reaching a high of $8.58 per dozen amid a domestic bird flu outbreak, according to global commodity data firm Expana. More than 52 million egg-laying birds have died, leaving the national flock at just 280 million, a critically low level, said Ryan Hojnowski, a market reporter at Expana.<\/p>\n
He noted that rising prices have slowed consumer demand as retail egg prices average around $6 per dozen or higher. Additionally, many stores have implemented purchasing limits, restricting the number of cartons that customers can buy at one time.<\/p>\n
The combination of inflated price and limited availability could curtail sales of eggs for the Easter holiday, ultimately affecting the demand for egg dye kits.<\/p>\n
Natural Earth Paint, a company that manufactures natural art supplies and craft kits for kids, typically sells between 40,000 and 50,000 egg dye kits around the Easter holiday, according to founder Leah Fanning. So far this year, the company\u2019s retail partners have ordered only 7,000 kits.<\/p>\n
\u201cIt\u2019s definitely a huge drop,\u201d Fanning said, noting that most buyers have cited the egg shortage for the smaller orders.<\/p>\n
Fanning told CNBC that the egg dye kits have been Natural Earth Paint\u2019s bestselling product for 13 years and kept the company in business for its first eight years. Of the company\u2019s more than 40 products, the egg dye kit remains its \u201cabsolute bestseller.\u201d<\/p>\n
She noted that while the majority of Natural Earth Paint\u2019s sales come from retail locations, online sales typically pick up around three weeks before Easter. That leaves the chance that direct-to-consumer sales could get a boost in mid-March.<\/p>\n
Color Kitchen said its Easter items represent 20% of the company\u2019s total stock of items and outpace sales of all other items, including its Christmas icing kits.<\/p>\n
Phelps noted that most retailers order these egg kits months ahead of the holiday to ensure they are in stock immediately after Valentine\u2019s Day. She said retailers \u201ctook a little less product this year\u201d given sensitivity to the inflationary environment.<\/p>\n
\u201cThe other concern is that, some of the grocery stories, if they don\u2019t sell through, then we get charged back for product that goes discounted to try and move it out of the store,\u201d Phelps said. \u201cSo, that\u2019s where we\u2019ll get hit if the stuff that\u2019s already been shipped out to grocery stores does not sell. That could potentially be very bad.\u201d<\/p>\n
Phelps said 75% of Color Kitchen sales are from the shelf. The remaining 25% is from direct-to-consumer sales on its website and on sites such as\u00a0Amazon.<\/p>\n
There are some companies that still expect to see solid business this Easter. The holiday takes place in late April, giving companies three more weeks of sales compared with last year.<\/p>\n
Hey Buddy Hey Pal, a company that makes the Eggmazing Egg Decorator, a crafting tool that spins eggs so kids can use markers to color them, generates between 85% and 90% of its annual revenue from its Easter product. Last year, the company generated $14 million in sales, a 22% bump from the year prior.<\/p>\n
Curtis McGill, co-founder of Hey Buddy Hey Pal, said retailers have ordered fewer of its products this year. Still, the company said it expects another jump of 18% in annual revenue as it\u2019s set to sell between 600,000 and 700,000 egg decorators this year.<\/p>\n
Even as egg prices boil over, some dye kit makers see egg decorating as an essential tradition that few families will opt to skip, even if they reduce the number of eggs they use.<\/p>\n
Paas, the leader in the egg dye kit space, expects that some families will decorate fewer eggs this year, but said many will still participate in the tradition.<\/p>\n
\u201cIt\u2019s just such a sticky tradition,\u201d said Joe Ens, CEO of Signature Brands, which owns the 140-year-old iconic Paas brand.<\/p>\n
The company recently completed a survey of 120 consumers and found that 94% of them still plan on decorating eggs this holiday.<\/p>\n
\u201cAnd the reason for that, other than the tradition being so important to consumers, is if you really break down the cost of the tradition, it is arguably the most affordable family tradition during any holiday,\u201d he said.<\/p>\n
Paas expects to sell more than 10 million kits this year, one of the company\u2019s strongest sell-ins ever, he said.<\/p>\n
Arts and crafts store chain Michaels said it\u2019s already seeing shoppers opt for egg-inspired products. The company told CNBC that 43% of its total Easter sales so far this year have been for plaster, plastic and craft eggs.<\/p>\n
Michaels said a particular craft egg kit designed to \u201cmimic the traditional egg-decorating experience\u201d is selling nearly three times faster than the company had anticipated.<\/p>\n
Similarly, Hey Buddy Hey Pal expects some families may opt to purchase wooden eggs instead of real ones. Though the alternatives are typically more expensive than real eggs, they\u2019re an opportunity to keep the creations around long after the holiday is over.<\/p>\n
\u201cA lot could happen between now and then, we can continue to see an outbreak of avian flu and some different egg farms that hadn\u2019t been affected,\u201d said McGill. \u201cIt could get worse before it gets better. That\u2019s not the projections, but at this point \u2026 I\u2019m just gonna hold my breath until we get to April the 20th.\u201d<\/p>\n<\/p>\n
The egg aisle is anything but cheaper by the dozen these days \u2014 and that\u2019s becoming a big problem ahead of the Easter holiday. The makers of Easter egg dye kits are bracing for the potential fallout if the egg shortage doesn\u2019t begin to clear up before the April 20 holiday. For many companies that […]<\/p>\n","protected":false},"author":0,"featured_media":15529,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-15528","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/15528","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/comments?post=15528"}],"version-history":[{"count":0,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/15528\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media\/15529"}],"wp:attachment":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media?parent=15528"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/categories?post=15528"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/tags?post=15528"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}