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The Hershey Company is a global leader in the confectionery industry, renowned for its production of chocolate, sweets, mints, and other snacks. The company operates through three main segments: North America Confectionery, North America Salty Snacks, and International, with its products marketed under more than 90 brand names in approximately 80 countries worldwide . Hershey is the largest producer of quality chocolate in North America and has expanded its portfolio through strategic acquisitions to enhance its product offerings .
- North America Confectionery - Dominates the company's portfolio with iconic brands like Hershey's, Reese's, and Kisses, and includes non-chocolate confectionery brands such as Jolly Rancher and Twizzlers, as well as pantry items like baking ingredients and toppings .
- North America Salty Snacks - Features products like SkinnyPop popcorn and Dot's Homestyle Pretzels, contributing significantly to the company's growth .
- International - Encompasses operations outside North America with products tailored to regional markets, including Pelon Pelo Rico in Mexico and Sofit in India .
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Given the significant increase in pricing competition in international markets such as Mexico and Brazil, where you've seen higher levels of competition and are a smaller player, how do you plan to protect or grow your market share in these regions while maintaining profitability?
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With increased competition domestically from private labels and smaller players impacting your take-home segment, especially as barriers to entry have lowered due to digital media, what specific strategies are you implementing to strengthen your position and revitalize your offerings in this segment?
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Your gross margins in the recent quarter came in below expectations, partly due to negative sales mix and volume deleverage; how do you plan to address these issues and improve gross margin performance moving forward?
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With the expected significant step-up in cocoa and sugar costs next year, leading to higher inflation rates than this year, how do you plan to manage these headwinds? Will you consider further pricing actions, and how might this impact volume and elasticity?
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You mentioned seeing only a mild impact from GLP-1 drugs on your categories, but given that multiple data sources indicate consumers on these medications are consuming disproportionately less of your products, how are you proactively adjusting your product portfolio and marketing strategies to mitigate potential long-term risks?
Recent developments and announcements about HSY.
Corporate Leadership
CEO Change
Michele G. Buck, the CEO of The Hershey Company, has announced her intention to retire effective June 30, 2026. She will remain in her current roles until a successor is appointed, after which she will transition to a senior advisor role until her retirement date. The company has initiated a search for her successor, considering both internal and external candidates.
Leadership Change
Michele G. Buck is leaving her roles as Chairman, President, and CEO of The Hershey Company, with her retirement planned for June 30, 2026. She will transition to a senior advisor role until her retirement. The company has initiated a search for her successor, considering both internal and external candidates.
Financial Reporting
Auditor Changes
HSY Changes Auditor
On June 15, 2016, the Audit Committee of The Hershey Company appointed Ernst & Young LLP (EY) as the company's new independent registered public accounting firm for the fiscal year ending December 31, 2017. This change follows the dismissal of KPMG LLP, which will remain in its role until the completion of the audits for the fiscal year ending December 31, 2016 .