The Hershey Company
The Hershey Company makes and sells chocolate, candy, mints, salty snacks, and related snack products under more than 85 brand names. Founded in 1894 and incorporated in Delaware, it operates through North America Confectionery, North America Salty Snacks, and International segments, with a business centered on branded consumer packaged goods sold through retail and wholesale channels.
Fiscal year 2025 · change from previous year
Development 2020–2025
Business
Share of revenueChocolate, candy, gum, refreshment products, bars, spreads, snack bites, mixes, pantry and food service lines.
Ready-to-eat popcorn, baked snacks, pretzels, and other salty snack products sold in the U.S.
Confectionery products manufactured, imported, marketed, sold, and distributed outside North America.
Customers
Hershey sells primarily through wholesale distributors and retail channels that resell to end consumers, including grocery, mass merchandisers, drug stores, convenience stores, clubs, dollar stores, vending, concession, and department stores. Its largest customer is McLane Company, a major U.S. distributor to convenience and other channels, which highlights the company’s dependence on a concentrated route-to-market as well as broad consumer demand for branded snacks.
Buy large volumes for resale into convenience, drug, club, and mass channels; critical for U.S. distribution.
Buy core confectionery and snack assortments for everyday household demand and shelf visibility.
Buy impulse-oriented candy, mints, and snacks that benefit from frequent small-ticket purchases.
Buy branded, value-oriented packs and multipacks for high-traffic retail formats.
Buy confectionery products in export markets and local regions outside North America.
Strategy
Hershey’s strategy centers on brand strength, product innovation, and distribution reach across confectionery and snacking occasions. The company is expanding beyond traditional chocolate into salty snacks and adjacent categories through acquisitions and capacity investments, while also pushing international growth and operational efficiency.
Diversifies growth away from chocolate-only demand and captures more eating occasions.
Core brands drive scale, retailer relationships, and seasonal demand in North America.
Supports service levels, cost control, and the ability to meet demand across channels.
Reduces dependence on North America and builds a broader global confectionery footprint.
Geography
Hershey is heavily concentrated in North America, with North America Confectionery representing 81.1% of 2025 net sales and North America Salty Snacks focused on the United States. International operations are smaller but strategically important, with manufacturing in Mexico, Brazil, India, and Malaysia and sales into export markets across Asia, Latin America, Europe, the Middle East, and Africa.
Risks
Hershey faces commodity, pricing, and demand risks typical of branded food companies, but its exposure is amplified by cocoa, sugar, dairy, and energy costs and by seasonal sales concentration in the second half of the year. Company-specific risks include execution on acquisitions, international growth, ERP implementation, and maintaining brand reputation amid product safety, ESG, and regulatory scrutiny.
- Commodity cost inflation and supply shortagesImpact: HighLikelihood: High
The company uses cocoa, sugar, dairy, corn, peanuts, almonds, natural gas, and diesel.
Exposure: Gross margin and inventory costs
- Pricing elasticity and volume declineImpact: HighLikelihood: High
Price increases may not fully offset input inflation if consumers trade down.
Exposure: Revenue growth and unit volumes
- Brand, safety, and ESG-related reputation damageImpact: HighLikelihood: Medium
Product quality, ingredients, packaging, and human rights concerns can affect demand and litigation.
Exposure: Brand equity and legal costs
- Acquisition integration riskImpact: HighLikelihood: Low
Recent deals must be integrated to realize expected synergies and capacity benefits.
Exposure - International execution and geopolitical exposureImpact: MediumLikelihood: Medium
Growth outside the U.S. depends on local operations in Mexico, Brazil, India, and Malaysia.
Exposure: Foreign operations and export markets
- Seasonality and holiday concentrationImpact: Medium
Sales are typically higher in Q3 and Q4, increasing quarter-to-quarter variability.
Exposure: Quarterly revenue and operating leverage
Accounting
Judgemental itemsManagement must estimate retailer promotions and allowances, affecting revenue and SG&A timing.
Impact: Can shift reported sales and margins between periods
Recent acquisitions require fair value allocation and create goodwill/intangibles subject to impairment.
Impact: Can materially affect assets, amortization, and impairment charges
Mark-to-market gains and losses on commodity hedges flow through earnings and can be volatile.
Impact: Affects gross margin and unallocated derivative gains/losses
Higher third- and fourth-quarter sales can distort quarterly comparisons and working capital.
Impact: Affects revenue timing, inventory, and cash flow seasonality
Judgmental assumptions influence tax expense and benefit obligations.
Impact: Can move net income and liabilities
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Last updated: 24/09/2026