The Hershey Company (HSY): Business Model Canvas [Jan-2025 Mise à jour]

Plongez dans le monde sucré de la Hershey Company, un empire au chocolat qui s'est transformé d'une petite factoire de chocolat de Pennsylvanie en une centrale de confiserie mondiale. Avec un riche patrimoine couvrant plus d'un siècle, la toile du modèle commercial de Hershey révèle une approche stratégique qui mélange l'innovation, la durabilité et le développement de produits centrés sur le consommateur. De la recherche de fèves de cacao haut de gamme en Afrique de l'Ouest à la création de marques de chocolat emblématiques qui résonnent avec les générations, cette exploration déballera comment Hershey continue de ravir les papilles et de maintenir son avantage concurrentiel sur le marché mondial des confiseries en constante évolution.

The Hershey Company (HSY) - Modèle d'entreprise: partenariats clés

Fournisseurs de cacao en Afrique de l'Ouest et en Amérique latine

Hershey s'approvisionne au cacao à partir de plusieurs régions avec des détails d'approvisionnement spécifiques:

Région	Volume de cacao annuel	Pourcentage de l'offre
Côte d'Ivoire	38 000 tonnes métriques	45%
Ghana	25 000 tonnes métriques	30%
Equateur	12 000 tonnes métriques	15%

Fabricants d'équipements agricoles

• John Deere - Fournisseur d'équipement agricole primaire
• AGCO Corporation - partenaire d'équipement secondaire
• Procurement de l'équipement annuel: 42,6 millions de dollars

Sociétés d'emballage et de distribution

Partenaire	Valeur du contrat	Services fournis
Westrock Company	87,3 millions de dollars	Matériaux d'emballage
Fret fedex	63,5 millions de dollars	Logistique de distribution

Partenaires de vente au détail

Les principaux partenariats de vente au détail comprennent:

• Walmart - 425 millions de dollars de ventes annuelles
• Cible - 210 millions de dollars ventes annuelles
• Kroger - Ventes annuelles de 185 millions de dollars
• Costco - 160 millions de dollars de ventes annuelles

Agences de marketing et de publicité

Agence	Valeur du contrat annuel	Services
Groupe publique	35,7 millions de dollars	Stratégie marketing mondiale
WPP PLC	28,4 millions de dollars	Publicité numérique

The Hershey Company (HSY) - Modèle d'entreprise: activités clés

Fabrication de produits au chocolat et à la confiserie

La société Hershey exploite 7 installations de fabrication en Amérique du Nord, avec une capacité de production totale d'environ 1,3 million de pieds carrés. En 2022, la société a produit plus de 90 millions de livres de produits de chocolat et de confiserie.

Emplacement de fabrication	Capacité de production annuelle
Hershey, Pennsylvanie	500 000 pieds carrés
West Hershey, Pennsylvanie	350 000 pieds carrés
Hazleton, Pennsylvanie	250 000 pieds carrés

Recherche et développement de produits

Hershey a investi 214 millions de dollars dans la recherche et le développement en 2022, en se concentrant sur l'innovation et le développement de nouveaux produits.

• Moyenne de 250 nouveaux concepts de produits développés chaque année
• 25-30 lancements de nouveaux produits par an
• Centres d'innovation situés à Hershey, en Pennsylvanie et à Singapour

Gestion mondiale de la chaîne d'approvisionnement

La société gère une chaîne d'approvisionnement mondiale complexe avec des dépenses d'achat annuelles d'environ 2,8 milliards de dollars en 2022.

Métrique de la chaîne d'approvisionnement	2022 données
Nombre de fournisseurs	1,200+
Pays d'approvisionnement mondial	35+
Pays d'approvisionnement de cacao	12

Marketing et promotion de la marque

Hershey a alloué 579 millions de dollars aux frais de publicité et de marketing en 2022.

• Le budget marketing représente 8,2% du total des revenus de l'entreprise
• Le marketing numérique représente 40% des dépenses marketing
• Présence active dans 80+ pays

Initiatives de durabilité et d'approvisionnement éthique

La société a engagé 500 millions de dollars dans des programmes d'approvisionnement durable d'ici 2030.

Initiative de durabilité	2022 Progrès
Investissement en durabilité du cacao	27,5 millions de dollars
Source de cacao durable	62% du cacao provenant de sources certifiées
Cible de réduction du carbone	25% de réduction d'ici 2025

The Hershey Company (HSY) - Modèle d'entreprise: Ressources clés

Installations de fabrication

La société Hershey exploite 6 installations de fabrication aux États-Unis, avec des emplacements principaux dans:

• Hershey, Pennsylvanie
• West Hershey, Pennsylvanie
• Draft de Stuarts, Virginie
• Robinson, Illinois
• Hazleton, Pennsylvanie
• Shanghai, Chine

Emplacement	Capacité de production (annuelle)	Produits primaires
Hershey, PA	70 millions de livres de chocolat	Bisous, barre, reese's
West Hershey, PA	85 millions de livres de chocolat	Bars de Hershey, bisous
Shanghai, Chine	25 millions de livres de chocolat	Produits du marché local

Propriété intellectuelle

Portefeuille de marques: 130+ marques enregistrées dans le monde, notamment:

• Hershey
• Reese's
• Kit Kat
• Twizzlers
• Jolly Rancher

Réseau de distribution

Couvrage des infrastructures de distribution approfondies:

• 50 États aux États-Unis
• Plus de 70 pays dans le monde
• Plus de 200 000 points de vente au détail

Technologie et équipement

Type de technologie	Investissement (2023)	But
Systèmes d'emballage automatisés	85 millions de dollars	Efficacité de production
Contrôle de la qualité de l'IA	45 millions de dollars	Cohérence des produits
Capteurs de fabrication IoT	30 millions de dollars	Surveillance en temps réel

Effectifs

Total des employés: 19 000 à partir de 2023

• Fabrication: 12 500 employés
• Recherche & Développement: 650 employés
• Tenure moyenne des employés: 8,5 ans

The Hershey Company (HSY) - Modèle d'entreprise: propositions de valeur

Produits de chocolat et de confiserie de haute qualité

La société Hershey produit 90 millions de baisers de Hershey par jour. Les ventes nettes annuelles en 2022 étaient de 9,98 milliards de dollars. Le portefeuille de produits comprend plus de 80 marques de chocolat et de confiserie différentes.

Catégorie de produits	Volume des ventes annuelles	Part de marché
Barres de chocolat	3,4 milliards de dollars	44.2%
Sacs de chocolat / sacs	2,6 milliards de dollars	36.7%
Chocolat saisonnier	1,2 milliard de dollars	19.1%

Patrimoine de marque emblématique et reconnaissable

Fondée en 1894, Hershey a une valeur de marque estimée à 6,8 milliards de dollars. Le taux mondial de reconnaissance de la marque est d'environ 92%.

Large gamme d'offres de produits

• Portfolio total de produits: 90+ marques
• Catégories de produits: barres de chocolat, bonbons, boissons, écarts
• Présence du marché mondial dans 85 pays

Engagement envers l'approvisionnement durable et éthique

A investi 500 millions de dollars dans des programmes d'élevage de cacao durables. Orcaire 100% certifié de cacao durable d'ici 2020.

Métrique de la durabilité	2022 Performance
Coco-cacao certifié durable	100%
Programmes de soutien aux agriculteurs	75 millions de dollars investis
Réduction des émissions de carbone	Réduction de 22% depuis 2018

Développement de produits innovants

Investissement annuel de R&D de 124 millions de dollars. Lancé 35 nouvelles variations de produits en 2022.

• Nouvelles présentations de saveurs: 12 par an
• Développement de produits axé sur les consommateurs
• Innovation numérique dans l'emballage et le marketing

The Hershey Company (HSY) - Modèle d'entreprise: relations clients

Programmes de fidélité et récompenses

Le programme Hershey Rewards offre aux membres:

• Points pour les achats de produits
• Remises exclusives
• Récompenses d'anniversaire

Métrique du programme	2023 données
Membres du programme de fidélité	1,2 million
Points moyens rachat	15,50 $ par membre
Investissement annuel du programme	3,7 millions de dollars

Engagement actif des médias sociaux

Plate-forme sociale	Abonnés	Taux d'engagement
Instagram	2,1 millions	3.8%
Facebook	3,5 millions	2.9%
Gazouillement	850,000	1.5%

Commentaires et personnalisation des clients

Canaux de rétroaction des clients annuels:

• Enquêtes en ligne: 125 000 réponses
• Commentaires directs par e-mail: 87 000 soumissions
• Interactions des médias sociaux: 62 000 commentaires

Communication de marque cohérente

Canal de communication	Points de contact annuels
E-mail marketing	24 campagnes
Publicité numérique	1 800 annonces ciblées
Recommandations personnalisées	8,5 millions

Initiatives communautaires et caritatives

Initiative	2023 Investissement	Impact
Programme de durabilité de cacao	12,5 millions de dollars	37 000 agriculteurs soutenus
Subventions à l'éducation communautaire	2,3 millions de dollars	89 programmes éducatifs
Dons locaux de banque alimentaire	1,7 million de dollars	2,4 millions de repas fournis

The Hershey Company (HSY) - Modèle d'entreprise: canaux

Magasins de détail et supermarchés

La société Hershey distribue des produits à travers plus de 85 000 emplacements de vente au détail aux États-Unis. Les principaux partenaires de vente au détail comprennent:

Détaillant	Nombre de magasins
Walmart	4 742 magasins
Kroger	2 742 magasins
Cible	1 948 magasins

Plateformes de commerce électronique en ligne

Les canaux de vente en ligne de Hershey comprennent:

• Amazon.com
• Walmart.com
• Cible.com

Les ventes en ligne représentent 12.4% du total des revenus de l'entreprise en 2023.

Sites Web directes aux consommateurs

Hershey exploite des plateformes de vente directes, notamment:

• Hersheys.com
• Reesses.com
• Kisses.com

Distributeurs en gros

Distributeur	Volume des ventes annuelles
Distributeurs de McLane	47,3 millions de dollars
Supervalu	36,8 millions de dollars

Marchés d'exportation internationaux

Hershey exporte vers 75 pays avec des marchés clés, notamment:

• Canada: 543 millions de dollars de ventes annuelles
• Mexique: 276 millions de dollars de ventes annuelles
• Japon: 186 millions de dollars de ventes annuelles

The Hershey Company (HSY) - Modèle d'entreprise: segments de clientèle

Enfants et familles

Taille du marché pour le segment de la confiserie des enfants: 4,2 milliards de dollars en 2023

Groupe d'âge	Pourcentage de consommation	Dépenses annuelles
Enfants (4-12)	38%	620 millions de dollars
Familles	52%	845 millions de dollars

Jeunes adultes et milléniaux

Target démographique: 18 à 40 ans

• Valeur du segment du marché total: 3,7 milliards de dollars
• Fréquence d'achat: 2,4 fois par mois
• Dépenses annuelles moyennes: 275 $ par personne

Chocolates et passionnés de confiserie

Type de consommateur	Part de marché	Consommation annuelle
Amateurs de chocolat premium	22%	1,6 milliard de dollars
Consommateurs de chocolat réguliers	65%	3,9 milliards de dollars

Consommateurs de cadeaux et saisonniers

Valeur marchande saisonnière: 2,5 milliards de dollars en 2023

• Achats de cadeaux de vacances: 780 millions de dollars
• Segment de la Saint-Valentin: 420 millions de dollars
• Marché des bonbons d'Halloween: 680 millions de dollars

Consommateurs soucieux de leur santé

Segment de produits axé sur la santé premium: 1,2 milliard de dollars

Catégorie de produits	Croissance du marché	Préférence des consommateurs
Chocolat à faible teneur	12.5%	35% des consommateurs soucieux de leur santé
Chocolat noir	8.3%	42% des consommateurs soucieux de leur santé

The Hershey Company (HSY) - Modèle d'entreprise: Structure des coûts

Achat de matières premières

Total du coût d'approvisionnement du cacao en 2022: 1,15 milliard de dollars

Matière première	Coût annuel	Pourcentage du coût total
Fèves de cacao	652 millions de dollars	32.4%
Sucre	287 millions de dollars	14.3%
Lait	214 millions de dollars	10.6%

Frais de fabrication et de production

Total des dépenses de fabrication en 2022: 2,01 milliards de dollars

• Facilités de production Coûts opérationnels: 678 millions de dollars
• Entretien de l'équipement: 214 millions de dollars
• Coûts de main-d'œuvre: 512 millions de dollars
• Consommation d'énergie: 186 millions de dollars

Coûts de marketing et de publicité

Total des dépenses de marketing en 2022: 571 millions de dollars

Canal de marketing	Dépenses	Pourcentage du budget marketing
Marketing numérique	187 millions de dollars	32.7%
Publicité télévisée	214 millions de dollars	37.5%
Publicité imprimée et extérieure	170 millions de dollars	29.8%

Investissements de recherche et développement

Total des dépenses de R&D en 2022: 124 millions de dollars

• Développement de nouveaux produits: 68 millions de dollars
• Innovation de processus: 42 millions de dollars
• Technologie d'emballage: 14 millions de dollars

Dépenses de distribution et de logistique

Coûts de distribution totaux en 2022: 412 millions de dollars

Composant logistique	Coût annuel	Pourcentage du budget de distribution
Transport	218 millions de dollars	52.9%
Opérations de l'entrepôt	124 millions de dollars	30.1%
Gestion des stocks	70 millions de dollars	17%

The Hershey Company (HSY) - Modèle d'entreprise: Strots de revenus

Ventes de produits au détail

En 2023, la société Hershey a déclaré des ventes nettes de 11,2 milliards de dollars. Les ventes de produits au détail sur divers canaux comprennent:

Canal de vente	Contribution des revenus
Épiceries	38% du total des ventes au détail
Dépanneurs	22% du total des ventes au détail
Marchands de masse	18% du total des ventes au détail
Pharmacies	12% du total des ventes au détail

Distribution de gros

La distribution en gros représente 4,5 milliards de dollars de revenus annuels, avec des segments clés, notamment:

• Ventes de bonbons en vrac aux détaillants
• Distribution des distributeurs automatiques
• FoodService Wholesale

Exportations du marché international

Les ventes internationales ont atteint 1,2 milliard de dollars en 2023, avec les marchés primaires:

• Canada: 450 millions de dollars
• Mexique: 280 millions de dollars
• Autres marchés internationaux: 470 millions de dollars

Lignes de produits saisonnières et en édition limitée

Revenus de produits saisonniers:

Saison / vacances	Revenu
Halloween	600 millions de dollars
Noël	450 millions de dollars
Pâques	380 millions de dollars
Saint Valentin	250 millions de dollars

Licence et partenariats de marque

Détails des revenus de licence:

• Revenu total des licences: 120 millions de dollars en 2023
• Partenariats clés avec Disney, Warner Bros. et Marvel
• Marchandises de marque et gammes de produits co-marqués

The Hershey Company (HSY) - Canvas Business Model: Value Propositions

You're looking at what The Hershey Company actually delivers to its customers right now, late in 2025. It's not just about the classic chocolate bar anymore; it's a full snacking strategy built on a few key pillars.

Affordable, nostalgic, and high-quality indulgent treats.

The core value proposition still hinges on that familiar, high-quality indulgence. You see this play out in their pricing strategy, which has been a major driver of growth. For the third quarter ended September 28, 2025, The Hershey Company reported that its North America Confectionery segment achieved net sales growth of 5.6%, largely supported by approximately 7 points of net price realization. This price realization, even as volume declined approximately 1 point, shows they are successfully passing on costs while maintaining the premium perception of their treats. Furthermore, their U.S. candy, mint, and gum (CMG) retail takeaway grew 21.8% for the 12-week period ending June 29, 2025, indicating strong consumer pull for their core offerings, even at higher price points. They are also using value-focused tactics, like the Everyday Multiples (EDM) bundle deal strategy, to encourage multi-unit purchases.

Diversified portfolio spanning chocolate, salty, and protein snacks.

The shift to a broader snacking company is evident in the segment performance data. The Hershey Company is actively balancing its traditional confectionery business with high-growth salty and protein categories. For Q3 2025, consolidated net sales hit $3,181.4 million, up 6.5% year-over-year, showing the combined strength of the portfolio. The North America Salty Snacks unit was a standout performer, posting a 10% increase in net sales and an 11% volume increase in that same quarter. This diversification is key to weathering volatility in any single category, like the cocoa market.

Here's a quick look at how the main segments contributed to that Q3 2025 momentum:

Segment	Q3 2025 Net Sales Growth (YoY)	Key Driver/Metric
North America Confectionery	5.6% increase	Volume declined ~1 point; Price realization ~7 points
North America Salty Snacks	10.0% increase	Volume increased ~11 points
International	12.1% increase	Volume increased ~6%; Price realization ~7 points

Better-for-you (BFY) options (Lily's, LesserEvil) for health-conscious consumers.

The investment in health-conscious snacking is now a material part of the revenue base. As of 2025, revenue generated from better-for-you snacks rose 12% year-over-year. Honestly, this category now accounts for 22% of The Hershey Company's total sales. The planned acquisition of LesserEvil, a producer of organic, clean-label snacks, is set to further bolster this commitment in late 2025. This focus helps capture the market where 68% of U.S. consumers prioritize snacks with "clean labels."

Seasonal and limited-edition product excitement (e.g., Reese's OREO Cup).

Innovation drives excitement and trial, which is crucial for maintaining relevance. The Reese's OREO Cup is cited as a top growth driver, with a robust pipeline extending into 2026-27. While the Halloween selling period got off to a "somewhat soft" start due to weather and timing, strong execution on innovation helps offset these seasonal fluctuations. The company is using new product launches to keep consumers engaged across its confectionery lines.

Wide availability and convenience across all retail formats.

You can find The Hershey Company's products almost everywhere you shop. Their chocolate is available in 60 countries worldwide. Domestically, they are pushing hard in convenience channels; for instance, their salty brands saw a 9.5% Year-to-Date sales increase in C-stores (convenience stores). To support this massive footprint, the company operates three large distribution centers utilizing modern labor management systems. This infrastructure is designed to ensure that when a consumer wants a treat, it's right there on the shelf.

The Hershey Company (HSY) - Canvas Business Model: Customer Relationships

You're looking at how The Hershey Company (HSY) keeps its massive customer base engaged, from the biggest grocery chains to the youngest TikTok users. It's a complex mix of high-volume automation and targeted, personal outreach.

Automated, high-volume transactional relationship with retailers.

The foundation of The Hershey Company's volume relationship is its deep penetration across traditional retail. This means a high-volume, automated transactional flow with major partners. The company maintains a significant presence in supermarkets, convenience stores, mass merchandisers, drugstores, and wholesale clubs. This scale necessitates efficiency, which was a focus area, especially following the 2024 ERP system implementation, which aimed to create a more efficient and flexible global chain network. The company's ability to drive sales growth through net price realization, seen in Q3 2025 with an approximate 7 points of net price realization in the North America Confectionery segment, relies on these smooth, high-volume transactions.

Dedicated sales teams managing key account relationships.

For the largest retailers, the relationship moves beyond simple transactions. Andrew Archambault, as President of U.S. Confection, leads brand and commercial strategies, execution, and P&L oversight, which inherently involves managing the most critical customer relationships. This dedicated management structure is crucial for negotiating shelf space and promotional displays, especially as The Hershey Company pushes for changes like moving more snack-size confections into stand-up bags. The company's focus on omnichannel integration suggests these teams are aligning execution across both physical and digital retail touchpoints.

Direct-to-consumer (DTC) engagement via Hershey's Chocolate World.

While the bulk of revenue flows through third-party retailers, direct engagement is a key relationship lever. The Hershey Company utilizes e-commerce platforms and its own website for DTC sales. The physical locations, like Hershey's Chocolate World, serve as high-touch brand experiences, though specific foot traffic or DTC revenue figures for late 2025 aren't public. The overall digital sales strategy is designed to meet changing consumer needs, focusing on seamless availability.

Social media marketing targeting Gen Z (e.g., Sour Strips).

Targeting younger consumers requires a different relationship style, one built on digital conversation. The acquisition of the chewy candy brand Sour Strips in November 2024 specifically targets this demographic by leveraging the brand's strong social media presence. This brand, known for its social media savvy, posted an impressive nearly 50% surge in total sales over the previous fiscal year (as of May 2025). As of June 2025, The Hershey Company executives, like Paige Walker, were presenting on how they turn social data into smart business decisions, showing active management of these digital relationships.

Loyalty built on over a century of brand trust and nostalgia.

The deepest relationship asset is brand equity, built over more than 125 years. This heritage is actively used in marketing, such as the relaunch of travel retail exclusives with new graphics that celebrate the company's American heritage to drive consumer engagement. This trust allows The Hershey Company to maintain strong consumer loyalty, which is evident in the salty snacks category where research shows 70% of consumers are loyal to their favorite multipacks. This long-standing trust helps offset current headwinds; for instance, in Q3 2025, volume declined by approximately 1 point in North America Confectionery, which was partially offset by price elasticity, suggesting brand loyalty helps absorb price increases.

Here's a snapshot of the retail landscape supporting these relationships:

Relationship Channel Focus	Metric/Data Point	Source Context Year
Salty Snack Multipacks Household Penetration	73.4% household penetration	2025
Salty Snack Multipacks Growth Rate (4-Year)	Up 14%	2025
Sour Strips Sales Growth (YoY)	Nearly 50% surge	2025
North America Confectionery Price Realization (Q3 2025)	Approximately 7 points	2025
Brand Heritage Tenure	Over 125 years	2025

Finance: draft the Q4 2025 customer acquisition cost analysis by next Tuesday.

The Hershey Company (HSY) - Canvas Business Model: Channels

You're looking at how The Hershey Company (HSY) gets its products-the chocolate bars, the salty snacks, the mints-into consumers' hands as of late 2025. This is all about the physical and digital pathways they use to move product from their plants to your shopping cart.

The core of The Hershey Company (HSY)'s distribution relies heavily on established, high-volume retail partners. This includes the mass merchandisers and large grocery chains, which are the backbone of their North America Confectionery segment sales. For the 12-week period ending September 28, 2025, the U.S. candy, mint, and gum retail takeaway across the multi-outlet plus convenience channels (MULO+C) saw a year-over-year increase of 5.4%.

The channel mix is critical, and you see the difference in growth rates between categories. For instance, the convenience stores (C-stores) and gas stations, which are part of that MULO+C figure, saw strong performance, though the salty snacks category within those channels grew even faster. For the 12 weeks ending September 28, 2025, The Hershey Company (HSY)'s U.S. salty snack retail takeaway in the multi-outlet plus convenience channels rose by 14.2% year-over-year.

The Hershey Company (HSY) also maintains a direct-to-consumer presence through e-commerce platforms and a company-owned online store. While specific revenue percentages for this channel aren't broken out in the latest reports, the company uses these platforms for offering exclusive bundles and personalized gifting options, helping control the brand experience directly. This digital push complements the traditional routes.

The structure of their sales across major segments in Q3 2025 clearly shows the scale of these channel operations:

Segment/Channel Focus	Q3 2025 Net Sales (Millions USD)	Year-over-Year Growth
North America Confectionery (Mass/Grocery/C-Store)	$2,615.6	5.6%
North America Salty Snacks (Mass/Grocery/C-Store)	$321	10%
International Retail (Key Growth Markets)	$244.8	12.1%

The International segment, which includes markets like Brazil and Mexico, is a key growth driver, with Q3 2025 net sales reaching $244.8 million, a 12.1% increase over the prior year. This international volume growth was approximately 6%, with Brazil showing double-digit growth.

The company's overall channel execution is tied to its financial guidance. For the full year 2025, The Hershey Company (HSY) raised its net sales outlook to approximately 3% growth. To support this scale, they forecast capital expenditures of $425 million for 2025. Furthermore, the company is actively managing costs across its supply chain, expecting its Agility & Automation Initiative to deliver $150 million in savings during 2025, which helps offset input cost pressures that affect pricing strategies across all channels.

The wholesale distributors and foodservice channels are integrated within these segment results, facilitating placement in non-retail locations. The overall consolidated net sales for Q3 2025 hit $3,181.4 million, reflecting the combined output of all these distribution methods.

You should keep an eye on the Q4 shipment timing, as volume increases in Q3 were partially due to a shift of shipments from the fourth quarter in Europe and Mexico, which is expected to reverse. That's a near-term channel risk to watch. Finance: draft 13-week cash view by Friday.

The Hershey Company (HSY) - Canvas Business Model: Customer Segments

You're looking at the core groups The Hershey Company targets to drive its sales across confectionery and its growing salty snacks portfolio. This isn't just about candy anymore; it's a multi-faceted approach to snacking.

The primary segment remains mass-market consumers seeking everyday and seasonal indulgence. This group drives the core business, as seen in the North America Confectionery segment, which reported net sales of $2,615.6 million in the third quarter of 2025, and $2,300.1 million in the first quarter of 2025.

A significant and growing focus is on health-conscious snackers. This segment now accounts for 22% of total revenue for The Hershey Company as of 2025, a notable increase from 15% in 2023. Revenue from better-for-you snacks saw a rise of 12% year-over-year in 2025. This aligns with the broader consumer trend, where 68% of U.S. consumers prioritize snacks with clean labels.

The Hershey Company also heavily relies on its wholesale and retail partners (B2B). These partners are crucial for distribution across various channels. For instance, in convenience stores (C-stores), confectionery promotions using the Everyday Multiples (EDM) strategy deliver a 56% average unit lift, and standard bars achieve a 92% promotional lift. The company maintains a 47% market share in snack size confections, a key area for retail shelf space.

Targeting younger consumers and Gen Z is being executed through strategic innovation and acquisitions. The acquisition of Sour Strips in late 2024 is specifically noted for boosting appeal among Gen Z shoppers. Furthermore, a limited-edition "Dubai chocolate" bar launch, priced at $8.99 with only 10,000 bars produced via GoPuff, directly targets this demographic, as roughly 85% of GoPuff users fall into the Gen Z category. For branded desserts overall, 63% of Gen Z consumers will choose a restaurant specifically for one they love, and 70% of Gen Zers are likely to return to a restaurant where they enjoyed a Hershey-branded dessert.

Here is a look at the market context for these segments:

Market Segment	2025 Valuation/Metric	Projected 2030/2035 Value	Projected CAGR
Global Candy Market (Valuation)	$73.4 billion	$97.6 billion (by 2030)	4.6% (through 2030)
Global Salty/Savory Snack Market (Valuation)	Approximately $250.5 billion (in 2021)	$386.8 billion (by 2030)	4.9% (through 2030)
Global Better-For-You Snacks Market (Valuation)	$32.7 billion (in 2024)	$70.3 billion (by 2035)	7.2% (through 2035)

The willingness to pay a premium by these younger consumers is quantifiable:

• One-third of Gen Z and Millennial consumers will pay between $0.50 and $1.50 more for a Hershey-branded dessert.
• The North America Salty Snacks segment margin reached 21.1% in the second quarter of 2025.
• The North America Salty Snacks segment margin was 15.1% in the first quarter of 2025.

The Hershey Company (HSY) - Canvas Business Model: Cost Structure

The Cost Structure for The Hershey Company is heavily weighted toward input costs and significant brand investment. You see this pressure acutely in 2025, especially with commodity volatility.

High variable costs for raw materials (cocoa, sugar, dairy).

The cost of goods sold remains a primary driver of expense, with cocoa being the most volatile input. To manage this, The Hershey Company hedges over 40% of its annual cocoa requirements to try and mitigate some of that price swing. For the latest twelve months ending September 2025, Cost of Sales was reported at $2.14B.

Significant manufacturing and logistics expenses.

Manufacturing and supply chain efficiency are key levers to offset input cost inflation. The company is actively pursuing productivity improvements, targeting approximately $150 million in savings from its Advancing Agility & Automation Initiative for the full year 2025, an increase from the previously stated $125 million goal. The longer-term goal is to achieve $300 million in productivity savings by 2026.

You can see a snapshot of the key cost components and projections here:

Cost Component	Latest Reported/Projected Value (2025)	Reference Period/Context
Cost of Sales (TTM)	$2.14B	Twelve Months ending September 2025
Selling, General & Admin Expenses (TTM)	$2.385B	Twelve Months ending September 30, 2025
Interest Expense (Projected)	$190 million to $195 million	Full-Year 2025 Outlook (as of Feb 2025)
Interest Expense (Projected)	$200 million	Full-Year 2025 Outlook (as of July 2025)
Capital Expenditures (Projected)	$425 million to $450 million	Full-Year 2025 Outlook
Full Year 2024 Cost of Sales	$5,901.4 million	Fiscal Year Ended December 31, 2024

Sales, advertising, and promotional spending.

Brand building is a substantial, ongoing cost. For the second quarter of 2025, advertising and related consumer marketing expenses jumped 35.5% compared to the same period last year. Overall Selling, marketing and administrative expenses increased 11.5% in Q2 2025 over Q2 2024, though expenses excluding advertising only rose 2.2%.

Capital expenditures for automation and capacity expansion.

The Hershey Company is investing in its future operational base. The projection for capital expenditures, including capitalized software, for the full year 2025 is set between $425 million and $450 million. This spending is intended to bring capital spending as a percentage of sales back to historical levels. For context, actual CapEx in 2024 was $605.9 million.

Debt servicing costs from recent note offerings.

Financing costs are clearly rising due to the general interest rate environment. The full-year 2025 interest expense is projected to be approximately $200 million, reflecting higher leverage and interest rates on note issuances. This compares to the actual interest expense of $174.3 million recorded for the full year 2024. Long-term debt stood at $3.49 billion at the end of 2024.

You need to watch that interest expense projection closely; it's a fixed commitment.

The Hershey Company (HSY) - Canvas Business Model: Revenue Streams

You're looking at how The Hershey Company actually brings in the money, which, as of late 2025, is still heavily weighted toward its core. The North America Confectionery sales remain the primary engine for revenue generation, which you can see clearly when you look at the third-quarter numbers.

Here's a quick look at the segment net sales performance for the third quarter ended September 28, 2025, compared to the prior year period:

Revenue Stream Segment	Q3 2025 Net Sales Amount	Year-over-Year Growth Rate
North America Confectionery	$2,615.6 million	5.6%
North America Salty Snacks	$321.0 million	10.0%
International Segment	$244.8 million	12.1%
Consolidated Total Net Sales	$3,181.4 million	6.5%

The North America Salty Snacks stream, which includes brands like SkinnyPop and Dot's, delivered robust growth in that same quarter. That segment posted net sales of $321.0 million, marking a 10.0% increase versus the third quarter of 2024. Honestly, that growth rate outpaced the core confectionery business for the quarter.

The International segment, while smaller in absolute terms, showed the strongest percentage growth rate in Q3 2025. Net sales for this stream increased by 12.1% year-over-year, reaching $244.8 million. Still, that segment reported a loss of $13.6 million in Q3 2025, showing profitability challenges despite the top-line acceleration.

When you look at the full-year expectations based on that Q3 momentum, management raised the guidance. The overall revenue picture for The Hershey Company for the full year 2025 is now projected at approximately 3% net sales growth, up from the prior guidance of at least 2%.

The complete set of revenue streams contributing to The Hershey Company's top line includes:

• North America Confectionery sales (primary stream).
• North America Salty Snacks sales (e.g., SkinnyPop, Dot's).
• International segment sales (Q3 2025 growth of 12.1%).
• Full-year 2025 net sales growth projected at approximately 3%.
• Licensing and royalty income from brand usage.