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A court has dismissed a lawsuit that claimed Hershey misled customers because its Halloween-themed Reese's pumpkins did not have the carved faces shown on the packaging. The ruling ends a case that could have forced the company to change how it designs and labels seasonal products. While legal challenges like this can be a distraction, they rarely affect the long-term value of a company with brands as strong as Reese's. This outcome is a minor win that keeps the company's marketing and packaging costs from being pushed higher by a settlement or forced redesign.
Source: Reuters
Retail sales in the US grew more than expected in August, with 12 out of 13 categories showing increases. This broad spending growth was helped by back-to-school shopping and suggests that consumers are still willing to spend even as gasoline prices rise.
For Hershey, this is a positive sign that shoppers are not pulling back on small luxuries like chocolate and snacks. The company has been raising its prices to cover the record-high cost of cocoa, and steady retail demand makes it easier for those price hikes to stick without losing customers.
Source: Bloomberg Markets and Finance
The company launched a new line called Hershey's Creme Bars, starting with Salted Caramel and Affogato varieties. This is a routine product launch aimed at keeping the brand fresh and appealing to different tastes. While new flavors are common for a snack company, they help Hershey maintain its large share of the chocolate market. For long-term owners, the real test remains whether these new items can sell well enough at higher prices to help offset the rising costs of ingredients like cocoa.
Source: PRNewsWire
On September 2, Hershey appointed Dave Hulays as its new Senior Vice President and Chief Financial Officer. Mr. Hulays is a long-time insider who has been with the company since 2012 and most recently led finance across its various business units, including salty snacks and international operations. He succeeds Steven E. Voskuil, who stepped down from the role on the same day.
Mr. Voskuil will remain with the company as Senior Vice President of Strategic Projects to help with the transition until he retires in early 2027. This is an orderly succession at the top of the finance department, which is important as the company continues to manage high cocoa prices and its expansion into snacks like Dot's Pretzels.
Source: 8-K filing
Hershey is leaning into the seasonal coffee trend by partnering with The Nitro Bar to launch a drink featuring the flavor of Reese's Pumpkins. This is a small move into the beverage space, but it keeps the company's most important brand in front of customers during the critical fall and Halloween shopping season. While a single drink partnership will not move the needle on total sales, it shows how Hershey is using its brand power to stay relevant outside of the candy aisle. For long-term owners, this is a routine example of the company's strategy to keep its core brands top-of-mind as it heads into the most profitable quarter of the year.
Source: PRNewsWire
Management consistently sets a low bar and clears it, with seven beats in a row. This suggests they have a firm grip on costs even when cocoa prices are volatile.
| Expectation | |
|---|---|
| EPS | $2.11 |
| Revenue | $3.26B |