Bingqing Zhu

Bingqing Zhu asked how much volume decline Hershey is comfortable absorbing in 2026 (given 2.5-3.5% organic sales growth and 10% pricing implies meaningful volume mix decline) before reconsidering pricing or leaning more towards promotion/price adjustment. She also requested clarification on the 2026 pricing guidance of 10%, as it's lower than a previously guided mid-teens expectation from a few quarters back, and if this implies any rollback of original pricing plans.

Answer

Steve Voskuil (SVP and CFO) stated that the volume impact of pricing is embedded in the guide, and while they don't like it, they accept it, with agility built into the plan to deploy marketing and promotion dollars if needed. He noted the market is rational and competitive environment stable. He clarified that no pricing has been rolled back, suggesting the difference in pricing guidance might be a misunderstanding related to segment-specific versus overall company pricing, confirming all previously announced pricing is in the market.

Bingqing Zhu asked about the meaningful volume mix decline embedded in Hershey's 2026 guidance (2.5-3.5% organic sales and 10% pricing), inquiring how much volume decline the company is comfortable absorbing before reconsidering pricing or leaning more towards promotion. She also sought clarification on the 2026 pricing guidance of 10%, which is lower than a previously guided mid-teens, asking if this implies any rolled-back pricing from original plans.

Answer

SVP and CFO Steve Voskuil confirmed that the volume impact of taken pricing is embedded in the guide, which Hershey accepts but aims to improve. He stated that the company has agility within its plan (marketing, promotion, investments) to protect sensitive areas and respond if needed, noting a rational market and stable competitive environment. He clarified that no pricing has been rolled back, and the 10% pricing is on track, suggesting any perceived difference might be a misunderstanding related to segment-specific versus overall company pricing.

Bingqing Zhu asked for an update on the competitive landscape in U.S. chocolate and questioned the possibility of further price increases this year to offset costs, given Hershey's Q1 pricing was below the market.

Answer

CEO Michele Buck stated there has been no significant change in the competitive landscape, with smaller players softening slightly. She confirmed that pricing will increase in Q2 and Q3 from previously announced actions and that a holistic update on mitigation plans will be provided in the summer.