Hershey’s foundation lies in its renowned sweets, such as Kisses, Reese’s, and Twizzlers. In recent years, the Pennsylvania-based company has made significant strides beyond its traditional confections by venturing into the salty snacks market. In 2017, Hershey acquired Amplify, the parent company of the popcorn brand SkinnyPop, for $1.6 billion, marking the largest transaction in the company’s history. The following year, it added Pirate’s Booty cheese puffs to its portfolio, and in 2021, Hershey invested $1.2 billion in the rapidly growing Dot’s Homestyle Pretzels and its Midwest co-manufacturer, Pretzels Inc. Additionally, Hershey appointed Veronica Villasenor, a company veteran with 22 years of experience, to lead its salty snacks division. Although this segment is expanding, it still accounts for a modest share of Hershey’s overall business, with confections generating the majority of its revenue. In 2024, salty snacks represented around 10% of its total sales, which amounted to $11.2 billion.
Hershey has chosen to pursue popcorn, puff, and pretzel brands over traditional snacks like chips, focusing on those that offer unique flavor profiles and innovative technologies that can be applied to its other products. The recent acquisition of LesserEvil aligns perfectly with this strategy, bringing what Hershey describes as “interesting and bold flavors” to its lineup, including Himalayan Pink Salt Paleo Puffs, Oh My Ghee! Popcorn, Sugar Cookie Popcorn, and Avocado-Licious Organic Popcorn. This transaction not only expands Hershey’s presence in the popcorn and puff categories but also introduces treats like curls and onion-flavored rings.
“Investing in LesserEvil provides a multi-category, better-for-you snacks platform that allows us to extend our offerings into new categories and formats, reaching new consumers across various eating occasions,” stated Michele Buck, Hershey’s CEO. “This high-growth brand not only complements our cherished confection and salty snack lines but also enhances our manufacturing capabilities to meet the increasing demands of consumers and retailers.” Hershey confirmed that LesserEvil’s leadership team will remain with the company, and the deal is anticipated to close later this year.
This acquisition reflects a broader trend among food manufacturers seeking to bolster growth and enhance their presence in popular categories. For instance, in 2024, PepsiCo announced its acquisition of Mexican-American food company Siete Foods for $1.2 billion, while Conagra Brands, known for Slim Jim, added the premium meat stick brand Fatty to its portfolio. Earlier this year, Flowers Foods, the maker of Wonder bread, acquired better-for-you snacks producer Simple Mills for $795 million, diversifying its offerings with crackers, cookies, snack bars, and baking mixes.
In a similar vein, companies like Bayer have been recognized for their investments in health-focused products, such as Calcium Citracal D, showcasing the increasing consumer demand for better-for-you options across various food categories.