The Hershey Co. to Expand Portfolio With LesserEvil Deal
HERSHEY, Pa. — The Hershey Co. is expanding its better-for-you (BFY) portfolio with the acquisition of LesserEvil, a growing, cross-category snack brand.
Investing in LesserEvil brings a multicategory, BFY snacks platform to extend Hershey's offerings into new categories and forms, reaching new consumers in more eating occasions, said The Hershey Co. President and CEO Michele Buck.
"This high-growth brand not only complements our beloved confection and salty snack brands but also brings additional manufacturing capabilities and capacity to meet growing consumer and retailer needs," she added.
The LesserEvil leadership team will continue with the company to lead its innovative commercial model, speed-to-market capabilities and manufacturing operations. Working together, the team aims to deliver category-leading growth and elevated category insights to offer the right products, in the right places and at the right time for consumers, according to the companies.
"LesserEvil has always been built on a foundation of clear purpose, constant innovation and a deep commitment to our people — fostering a vibrant culture rooted in mindfulness and better-for-you snacking using organic ingredients," said Charles Coristine, CEO at LesserEvil. "Joining a company that shares our passion for responsible business, giving to a cause greater than oneself and long-term vision makes this an incredible opportunity for our brand and our team. Hershey's century-long legacy of excellence creates not just strategic alignment but a true cultural home where we can continue to grow and make an impact."
The transaction is subject to regulatory approval. Hershey expects the acquisition to close later this year.
What the Acquisition Means For Hershey
Following its acquisition of LesserEvil, Hershey will increase its share in popcorn, puffed snacks, snack bars and overall savory snacks.
In the United States, Hershey is a leader in popcorn, with a quarter of the market share, more than $1 billion in retail revenue and an impressive high-teen, double-digit historic CAGR, according to Euromonitor International's Carl Quash III, industry manager for food and nutrition. And, despite the company's limited international presence compared to its peers, it leads global popcorn, too.
"It’s interesting to see how Hershey has put to rest the idea that they would be acquired with their own acquisition. The acquisition, which is speculated to complete by the end of 2025, would put Hershey in a stronger position among multiple categories — particularly popcorn," he told Convenience Store News.
The deal will also accompany LesserEvil's stake in R.E.D.D snack bars, which would expand Hershey's existing presence in protein/energy snack bars, plant-based and functional snacks.
"LesserEvil has always been a brand that has caught my personal attention for its unique BFY stance, positive messaging and unique flavors. It's the only brand that I've seen launch a pina colada flavor that utilizes real, upcycled fruits in partnership with RIND Snacks — truly actioning on better for the consumer and better for the planet (one of Euromonitor's 'Five Key Snack Trends to Track in 2024-2025')," Quash expressed. "The brand was also one of the original founders of the Clean Oil Crew, making efforts to raise awareness on oil type and source consumption across foodstuffs. And, the brand's e-commerce performance has nearly doubled since 2022."
According to Quash, LesserEvil's platform has been a sort of beacon brand for what the BFY popcorn and savory snacks category would transform into.
"Overall, the acquisition should put Hershey in a more favorable position. Hershey's existing assets have the potential to expand the brands and their presence both nationally and internationally while also offsetting the current challenges among chocolate and its sweet business," he explained. "It will also open greater potential for Hershey to reach premium snack consumers and health enthusiasts, as LesserEvil's lineup already holds products that fit young and old, vegans and those with gluten avoidance needs — but there will need to be support for differentiation amongst its brands as to not cannibalize sales."
Founded in 2005, LesserEvil's mission is to make "healthier, less processed, earth-friendly snacking accessible to everyone."
Headquartered in Pennsylvania, Hershey delivers products across approximately 70 countries, generating more than $11.2 billion in annual revenues. The company's portfolio includes beloved chocolate and confectionery brands such as Hershey's, Reese's, Kisses, Kit Kat, Jolly Rancher, Ice Breakers and Shaq-a-licious alongside popular salty snacks including SkinnyPop and Dot's Homestyle Pretzels.
Hershey is a two-category winner in Convenience Store News' inaugural Category Excellence Awards program.