Left Hand Side
Company $X$ wish to distribute $k-1$ candies and $k+1$ chocolates to $n$ kids. The number of possible way to achieve this is given by the LHS:
$$
\binom{n}{k-1}\binom{n}{k+1}
$$
alternative expression
$m\in\left[0,k-1\right]$ kids receive both candies and chocolates, $k-m-1$ receive only candies, and $k-m+1$ receive only chocolates (so $2k-m$ different kids get something). If we sum over all possible $m$ we also get the total number of possible distribution:
$$
\binom{n}{k-1}\binom{n}{k+1}
=
\sum_{m=0}^{k-1}\binom{n}{2k-m}\binom{2k-m}{m}\binom{2k-2m}{k-m-1}
$$
Right Hand Side
Another company, company $Y$ wish to distribute $k$ candies and $k$ chocolates to $n$ kids. However, company rule prohibit a distribution where $k$ kids get both candy and chocolate. The number of possible ways is given by the RHS:
$$
\binom{n}{k}\binom{n}{k}-\binom{n}{k}
$$
alternative expression
$m\in\left[0,k-1\right]$ kids receive both candies and chocolates, $k-m$ receive only candies, and $k-m$ receive only chocolates (so $2k-m$ different kids get something). If we sum over all possible $m$ we also get the total number of possible distribution:
$$
\binom{n}{k}\binom{n}{k}-\binom{n}{k}
=
\sum_{m=0}^{k-1}\binom{n}{2k-m}\binom{2k-m}{m}\binom{2k-2m}{k-m}
$$
Putting Everything Together
It's well known that $\binom{2k-2m}{k-m-1}<\binom{2k-2m}{k-m}$ so we have what we need:
$$
\binom{n}{k-1}\binom{n}{k+1}
<
\binom{n}{k}\binom{n}{k}-\binom{n}{k}
$$