HERSHEY CO (HSY)

The Hershey Company, incorporated in Delaware in 1927 as successor to Milton S. Hershey's 1894 business, is a global confectionery leader in chocolate, sweets, mints and snacks, marketing over 90 brands in approximately 80 countries. The company is the largest producer of quality chocolate in North America and a leading U.S. snack maker, operating through three reportable segments: North America Confectionery (chocolate and non-chocolate confectionery, gum, mints, protein bars, spreads, pantry and food service items, retail Chocolate World stores, and licensing), North America Salty Snacks (ready-to-eat popcorn, baked snacks, pretzels), and International (operations in Mexico, Brazil, India, and Malaysia plus export markets across Asia, Latin America, Middle East, Europe and Africa). Key brands include Hershey's, Reese's, Kisses, Jolly Rancher, Kit Kat, Cadbury, Twizzlers, Ice Breakers, SkinnyPop, Pirates Booty, and Dot's Homestyle Pretzels.

Recent acquisitions include Weaver Popcorn Manufacturing assets (2023), Pretzels Inc. and Dot's Pretzels (2021), and Lily's Sweets (2021), while the company divested Lotte Shanghai Foods in January 2021. Customers are primarily wholesale distributors, grocery chains, mass merchandisers, and other retail channels, with McLane Company accounting for approximately 28% of 2023 consolidated net sales. The primary raw material for chocolate products is cocoa, sourced largely from West Africa (about 70% of global supply) and managed through a Swiss trading subsidiary handling procurement and price risk.

The company also relies on sugar, corn products, dairy, wheat, peanuts, almonds and energy inputs, mostly sourced domestically. Hershey operates in a highly competitive market against large multinational and regional firms, competing on innovation, quality, price, brand loyalty and marketing. Sales are seasonally higher in the third and fourth quarters due to holiday demand, with minimal order backlog since the company manufactures primarily to stock.

The company holds significant trademarks and licensing agreements, including arrangements with Cadbury UK, Nestlé, and Iconic IP Interests for various brand names. Hershey maintains research and development operations across the U.S., Mexico, Brazil, India, and Malaysia, and is subject to extensive food safety regulation from agencies such as the FDA and USDA, supported internally by its Product Excellence Program. The company has committed to environmental goals including a 50% reduction in Scope 1 and 2 and 25% reduction in Scope 3 GHG emissions by 2030 (versus 2018 baseline), alongside packaging sustainability targets, guided by its "Shared Goodness Promise" strategy.

Approximately 12.7% of 2023 net sales came from outside the U.S., with 17.4% of long-lived assets located internationally. As of December 31, 2023, Hershey employed approximately 18,650 full-time and 1,855 part-time employees globally, with about 31% covered by collective bargaining agreements. The company emphasizes human capital initiatives including employee engagement, talent development, competitive compensation and wellness benefits, and diversity, equity and inclusion programs, and it continues strategic realignment efforts, including the completed International Optimization Program (2023) and the newly approved Advancing Agility & Automation Initiative (2024) aimed at improving operating efficiency and generating long-term savings.