The First Woman to Lead Hershey Chocolate Company
Chocolate is a delicious treat, but it can also be addictive. There are many reasons for this, but the most common is that the taste of chocolate has been associated with feelings of happiness. This is due to the high levels of antioxidants in the substance. But, as a recent study suggests, the real reason is that people eat it for its own sake. Hershey's snacking drive is an extension of its strengths
The nation's largest chocolate company is redefining itself as a snacking powerhouse. Its goal is to turn the company into a healthier snacking brand with better-for-you products.
Hershey plans to do this by buying new brands and creating a diversified portfolio of high-growth snacking options. This includes dairy-free popcorn, gluten-free puffed rice, and salty snacks.
Hershey has invested in startup Bonumose, focusing on plant-based food ingredients. Moreover, the company has acquired US jerky maker Krave Pure Foods. With the acquisition, Hershey will gain access to the rapidly growing meat snacks category.
According to Buck, consumers' preferences are changing. For instance, people are trading down to lower price-per-ounce offerings. Likewise, they are purchasing more online. To address this change, Hershey is looking to add more points of sale outside the typical store walls.
Additionally, the company is targeting $100 million-plus brands with strong margins. As such, Buck said that it will need to focus on data and analytics to help it succeed.
Buck was chosen for the position because of her business experience and her expertise building brands. She also has a relationship with the Hershey Trust, which is the charitable trust that owns the majority of the company.
While Hershey's reliance on its core brands is intact, executives note that the market has become more diversified. This is good news for the company, especially since it is benefiting from inflationary conditions.
Hershey's full-year net sales rose 2.5% to $8 billion. In the fourth quarter, net sales grew 4%. These results are an extension of the company's strategy to refocus on its core confections business in the U.S. and to focus on the evolution of snacking.
Currently, Hershey has three of the top five confections brands in the U.S., including Reese's, Hershey's Kisses, and Hershey's Milk Duds. However, the company is still facing challenges in emerging markets. And the coronavirus outbreak that has plagued China has caused some concern. penis envy chocolate bars
Although the company has experienced some market share losses, it is able to rely on its iconic brands. For instance, Reese's is the third-largest snacking brand in the U.S. and has experienced 10% retail sales growth in the past year. Hershey's CEO gave away free chocolate
Amid all the excitement around Halloween and the upcoming holiday, it's important to remember that Hershey's CEO, Kathy Buck, is just the first woman to hold that position. And while she may not be in the corner office, she's certainly doing her best to make a change at Hershey.
During her tenure, Buck has been instrumental in expanding Hershey's portfolio to include new snack offerings. She has also worked to boost sales forecasts, which helped the company achieve its financial goals. But she's also focused on guiding the company into the next phase of growth.
In the first quarter of 2018, Hershey's net sales surpassed analysts' estimates and rose over 19%. The company also saw strong results in the baking ingredients and e-commerce businesses. However, the candy company had to lower its long-term sales growth target twice in two years.
When it comes to the future, Hershey is betting on healthier options and a growing demand for alternatives to refined sugar. It's part of the company's “Better for You” strategy. These better-for-you products are aimed at capturing new consumers and eating occasions.
Meanwhile, consumers are recognizing the impact that their diet has on their health and buying habits are changing. This is why the food and beverage industry has to invest in technology and analytics.
As the food and beverage industry moves forward, more companies will need to adapt to these changes. That's why Hershey's CEO is focusing on the opportunities in new consumer segments.
Buck believes that the snacking industry is changing and Hershey is well-positioned to capitalize on it. According to the company, consumers are trading down to lower price-per-ounce offerings. Shoppers are spending more time on their smartphones, and they're also purchasing more online.
To help consumers get healthier, the company is working with partners like Bonumose, a company that makes rare natural sugars. It also has an agreement with the Ivory Coast to purchase cocoa beans. Although the company will not discuss the exact nature of its purchases, it will say that it purchased a “substantial” amount. Hershey's CEO stumbled with Krave
Hershey is one of the largest confectionery companies in the world. They're famous for their iconic chocolate cups and candy bars. But over the past few years, they've moved beyond just the chocolate category. The company is aiming to become a snacking powerhouse. And with their recent acquisitions, they're looking to expand into new categories.
During their first-quarter earnings call, Hershey's CEO Michele Buck outlined the company's plans. She said that the chocolate company is now focused on launching new products in other snacking segments, especially salty snacks.
One example of this is Krave, a meat snacks brand that Hershey bought back in 2015. This isn't the first time Buck has advocated for Krave, a brand she has worked with at Kraft and was instrumental in helping shape.
Hershey also acquired Amplify Snack Brands and Pirate's Booty cheese puffs in 2018. These brands will help them broaden their reach into a variety of different snacks.
During their fourth quarter, Hershey reported net income of $116.9 million, up from $55.9 million in the previous year. Their top-quartile net sales growth was impressive, too. In fact, their revenues topped Wall Street's expectations.
Another key development is that the Hershey Trust has made major hires, including Doug Straton, the company's chief digital commerce officer. He comes to the company with a background in ecommerce and e-retail.
While the company isn't shy about its desire to be a snacking powerhouse, it's been clear for some time that they're going to have to adapt to the changing consumer landscape. For example, they're facing challenges in the premium segment.
However, the most impressive thing is that they're making a play for more mainstream brands. This includes taking a risk in foreign markets. As confectionery companies start to realize how privileged they were in the past, they're looking to expand their business.
Despite the challenges, the company is optimistic about the year ahead. It expects to grow sales to $8 billion by 2020, from $6.6 billion last year. Moreover, the company is expecting full-year earnings of $4.72 to $4.81, which will make it the second-largest candy maker in the world. Hershey's CEO tried to move beyond chocolate
Hershey is one of the nation's largest confections companies. But the company has seen its market share shrink over the past several years. It's now ranked second behind PepsiCo in snacks. As a result, Hershey is seeking to reposition itself as a snacking powerhouse. In order to do this, the company's top executive, Kathy Buck, has been working to reinvent the business.
Buck is a strategic communicator who uses her innate listening skills to make sense of complex information. She's also praised for her ability to balance both the minute and the strategic requirements of her job. Those who follow Hershey's business are impressed by her product innovation and acquisitions.
The food and beverage industry has faced a number of challenges in recent years, including weak sales and the coronavirus pandemic. These factors have forced many packaged-foods companies to change their strategy. Now, Hershey is focused on finding new points of sale outside of the traditional store wall.
In a world where consumers are spending more time shopping online and using smartphones, companies like Hershey need to invest in data and analytics. That means developing new product lines, re-evaluating distribution, and launching products outside the chocolate category.
According to Beckman, Hershey is currently working with retailers to develop more innovative candy displays. This includes creating cross-functional e-commerce teams. Also, the company recently announced plans to cut calories in many of its products. And Hershey is aiming to have half of its single-sale items reach a reduced calorie level by 2022.
Buck is confident of the impact of these changes so far. Consumers are moving away from high-calorie and sugary treats and looking for healthier, more wholesome options.
Buck has set a clear goal to build Hershey into a “snacking powerhouse” – a company that creates classic chocolate products that are snackable and appealing. At the same time, she's making sure to maintain the core strengths of the company: its iconic brands, its clout with retailers, and its reputation for quality and taste.
Hershey's recent net sales growth has been solid. However, the company saw market share declines in Pirate's Booty, SkinnyPop, and Amplify.