stockrowWhat it does
The Hershey Company makes and sells chocolate, candy and other snacks. Its products include Hershey’s, Reese’s and Kisses chocolates; Jolly Rancher and Twizzlers sweets; Ice Breakers gum and mints; SkinnyPop and LesserEvil popcorn; and Dot’s Homestyle Pretzels. It also sells protein bars, spreads, baking ingredients, toppings and beverages.
Hershey’s customers include grocery chains, mass merchandisers, convenience stores, drugstores and wholesale distributors. Most customers resell its products to consumers through retail outlets. The company also operates Hershey’s Chocolate World stores and licenses some trademarks to other businesses.
The business has three reporting segments. North America Confectionery covers chocolate, sweets and related products in the United States and Canada. North America Salty Snacks sells products such as popcorn and pretzels in the United States. International covers operations outside North America, including manufacturing for regional consumers and exports to other markets.
Hershey markets, sells and distributes products under more than 85 brand names in approximately 65 countries worldwide. The business was founded in 1894 and is headquartered in Hershey. Kirk Tanner is president and chief executive officer.
How it makes money
Hershey earns revenue principally by selling confectionery and snacks to distributors and retailers. Its North America Confectionery segment includes chocolate and non-chocolate candy, gum, mints, protein bars, spreads, pantry products and food-service lines. It also includes the company’s retail operations and licensing of certain trademarks and products to third parties.
North America Salty Snacks sells ready-to-eat popcorn, pretzels and other snacks. International manufactures and sells some of the same brands as well as regional products, including Pelon Pelo Rico confectionery in Mexico, IO-IO snacks in Brazil and Sofit beverages in India.
In FY2025, North America Confectionery generated $9.5 billion of revenue, or 81.1% of the company’s total. North America Salty Snacks generated $1.3 billion, and International generated $941.6 million.
2025 net sales: $11,692.6 million.
Hershey manufactures primarily for stock and typically fills customer orders within a few days. Sales are typically higher in the third and fourth quarters because of seasonal and holiday demand. The company uses consumer advertising, customer promotions and product development to stimulate sales throughout the year.
Hershey can change product prices and weights to respond to input costs, competition and profit objectives. Price increases do not necessarily flow immediately into net sales: the company typically honors earlier promotional commitments, and additional promotional allowances can delay or partly offset the effect. In 2025, net sales growth reflected higher realized prices and acquisition benefits, partly offset by lower volume and unfavorable foreign exchange.
| Segment | Revenue, FY2025 | Share | Change on the year |
|---|---|---|---|
| North America Confectionery | $9.5 billion | 81.1% | 3.96% |
| North America Salty Snacks | $1.3 billion | 10.9% | 11.9% |
| International | $941.6 million | 8.05% | −0.67% |
Customers and how it sells
Hershey sells through wholesale distributors, grocery and drugstore chains, mass merchandisers, convenience stores, wholesale clubs, vending companies, dollar stores and other customers. Most customers other than wholesale distributors resell its products to consumers in retail outlets.
McLane Company, Inc. accounted for 27.0% of Hershey’s revenue in FY2025. McLane distributes to convenience stores, drugstores, wholesale clubs and mass merchandisers and is the primary distributor of Hershey products to Wal-Mart Stores, Inc.
The United States is Hershey’s principal market. Hershey generated $10.3 billion of revenue in the United States in FY2025, or 87.7% of its total revenue. The North America Confectionery segment serves the United States and Canada, while the North America Salty Snacks segment serves the United States.
Outside North America, Hershey manufactures in Mexico, Brazil, India and Malaysia, primarily for consumers in those regions. It also distributes and sells confectionery in export markets across Asia, Latin America, the Middle East, Europe and Africa. Hershey ships products from manufacturing plants to distribution centers and primarily uses common carriers to deliver from those centers to customers.
| Region | Revenue, FY2025 | Share | Change on the year |
|---|---|---|---|
| United States | $10.3 billion | 87.7% | 4.92% |
| Other | $1.4 billion | 12.3% | 0.70% |
Suppliers and costs
Cocoa products are Hershey’s most significant raw materials for chocolate. The company buys cocoa liquor, butter and powder from third-party suppliers that source beans principally from the Far East, West Africa, Central America and South America. A Swiss trading company manages cocoa procurement, price risk and sourcing oversight.
Hershey also uses sugar, corn products, dairy, wheat, peanuts, almonds and energy. Most inputs for its domestic and Canadian operations come from U.S. suppliers; international operations may import inputs that are not available locally. Approximately 74% of Hershey’s manufacturing capacity is located in the United States.
Costs also include packaging, fuel, utilities, transportation and employee benefits. Hershey experienced elevated cocoa prices and higher manufacturing costs in 2025; tariffs on U.S. imports and retaliatory tariffs had a material negative effect on its results and commodity prices that year.
Hershey uses price and product-weight changes to help offset input cost increases. It also uses flexible hedging instruments for cocoa. In its salty business, the company is working to reduce reliance on freight spot rates by improving shipment loads and optimizing routes and customer orders.
- Revenue$11.7B
- Cost of revenue−$7.8B
- Selling, general and administrative−$2.5B
- Other operating costs−$20.6M
- Operating income$1.4B
Competitive position
Hershey competes in confectionery and salty snacks against global, national, regional and local firms, including large private companies and retailers. It does not identify individual companies as competitors. Competition depends on product innovation, quality, price, brand recognition and loyalty, marketing, convenience and service.
It was reported on 22 October 2026 that Hershey’s Dot’s Original Snack Mix competes with Chex Mix. In 2025, Hershey’s U.S. candy, mint and gum consumer takeaway increased 4.9%, while its share of that market declined by approximately 10 basis points. Its salty consumer takeaway increased 11.3%, and its salty market share increased by approximately 40 basis points.
The company owns trademarks for many of its brands and regards its key brand trademarks as material to its business. It also licenses rights to make or sell certain products, including Kit Kat and Rolo in the United States. Hershey uses advertising, promotions, product development and a distribution network to support sales.
Our reading: Brand recognition and trademark ownership are meaningful competitive strengths because they support a portfolio sold across several snack categories. Our reading: Distribution and retailer relationships help Hershey reach consumers, but the company still faces competition for demand and shelf space.
Growth opportunities
Hershey’s strategy is to develop its confectionery business while extending its brands into more snacking occasions and entering additional snack categories through acquisitions. Product innovation, marketing and distribution are part of that approach. The company also plans to direct international investment toward markets where it sees potential for profitable growth.
The 2025 acquisition of LesserEvil added organic popcorn and puffed snacks and increased manufacturing capacity. Hershey is also investing in automation and manufacturing lines for its salty business. The company says salty-snack demand has exceeded supply and expects additional lines to come online in the first half of 2027.
Hershey says its 2027 innovation pipeline is 50% larger than its 2026 pipeline. Products introduced or planned for the fourth quarter of 2026 include Hershey Rolls, an opening-price-point Ice Breakers gum, Dot’s Buffalo Snack Mix and a Reese’s cocoa-filled pretzel. Hershey is also creating distribution partnerships for its away-from-home business.
Alongside these sales initiatives, Hershey is working on factory automation, digitization and logistics efficiency. Its Advancing Agility & Automation Initiative aims to improve supply-chain and manufacturing spending, simplify processes and generate savings.
- $9.0BFY2021
- $10.4BFY2022
- $11.2BFY2023
- $11.2BFY2024
- $11.7BFY2025
Structural risks
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Ingredient and energy costs: Cocoa and other commodities are subject to price and supply swings from weather, crop conditions, trade policy, political unrest and other factors. Higher raw-material or energy costs, or inadequate supplies, could affect results.
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Consumer demand: Demand for existing or new products could decline. Health and wellness concerns, weight-management medications, changing preferences and the ability to secure retail shelf space can affect sales. Price increases can also reduce volume.
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Manufacturing and supply: Weather, labor actions, unavailable materials, supplier instability and system failures can disrupt production or distribution. Hershey says salty-snack demand has exceeded supply, and higher freight rates remain a headwind.
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Customer concentration: McLane accounted for 27.0% of FY2025 revenue. It distributes Hershey products to several retail channels and is the primary distributor to Wal-Mart Stores, Inc.
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Brand and product safety: Product quality, ingredient, packaging or workplace concerns could damage Hershey’s reputation or brand image and lead to litigation or lower operating results.
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Acquisition execution: Financial results may be adversely affected if Hershey does not successfully execute or integrate acquisitions, divestitures or joint ventures.
Leadership
It was reported on 17 October 2026 that Hershey Trust Company, acting as trustee, was Hershey’s controlling shareholder.
| Name | Role | Since | Total pay, FY2025 |
|---|---|---|---|
| Mr. Tanner | — | $16.8 million | |
| Mr. Voskuil | — | $9.1 million | |
| Mr. Archambault | — | $12.8 million | |
| Mr. Bhatia | — | $5.5 million | |
| Mr. Reiman | — | $5.8 million | |
| Ms. Buck | — | $16.1 million |
Bottom line
Our reading
Hershey is primarily a U.S. confectionery business built around established brands, with a smaller but expanding salty-snack portfolio. Its distribution and trademarks support its reach, while cocoa costs, customer concentration and the effect of pricing on consumer demand remain important exposures. Salty snacks offer another growth avenue, but capacity and freight constraints have limited the business’s ability to meet demand.