A Fresh Face at the Helm (Image Credits: Unsplash)
In the heart of Pennsylvania’s chocolate capital, where the air carries a faint, comforting whiff of roasted cocoa, Hershey’s leadership is buzzing with optimism these days.
A Fresh Face at the Helm
Kirk Tanner stepped into the CEO role at Hershey just a few months ago, bringing a track record from retail giants like Target. His arrival couldn’t have come at a better time for the iconic chocolate maker.
Right out of the gate, Tanner has emphasized a sense of forward motion in every corner of the operation. During the latest earnings call, he highlighted how the company is regaining its footing after some rocky years. It’s refreshing to hear such confidence from the top.
Third-Quarter Wins That Taste Like Victory
Imagine biting into a smooth Hershey bar after a long wait – that’s the vibe from the Q3 2025 results. Sales climbed 6.5% year-over-year, beating expectations and showing real demand for their core products.
Organic growth hit 6.2%, fueled by smart pricing and fresh innovations. Even with profits taking a hit from higher costs, the top line tells a story of resilience. Tanner called it “balanced growth across the portfolio,” and the numbers back him up.
Chocolate retail sales specifically jumped back to 4% growth, a welcome rebound in a category that’s faced headwinds.
Navigating the Bitter Side of Cocoa
Cocoa prices have been a nightmare for chocolate companies, soaring due to supply shortages and climate issues. Hershey felt the pinch, with gross margins dropping over 800 basis points in the quarter.
Yet, the team is fighting back through productivity tweaks and cost controls. Tariffs added another $160-170 million in expenses, but they’re passing some of that on to consumers without losing too much ground. It’s a delicate balance, but Tanner seems unfazed.
Innovation Driving the Snacking Surge
Hershey isn’t just resting on its classic bars; they’re pushing into salty snacks and new flavors to capture more of the everyday indulgence market. Think pairings like chocolate-dipped pretzels that keep shoppers coming back.
The CEO pointed to double-digit growth in non-chocolate categories as a bright spot. This diversification helps buffer against pure chocolate volatility. Overall, it’s building a snacking powerhouse beyond just holidays.
Looking Ahead: A Bolder 2025 Outlook
Buoyed by moderating cocoa pressures, Hershey raised its full-year guidance. They now expect 3% sales growth, up from 2%, though earnings per share will still dip due to investments.
Tanner envisions unlocking the company’s potential as a snacking leader. With Europe showing volume gains and North America stabilizing, the global picture looks promising. Analysts are watching closely for sustained momentum.
Key Strategies Fueling the Fire
To keep the energy going, Hershey is leaning on a few smart moves. Here’s what stands out:
- Heavy focus on innovation, like limited-edition flavors tied to trends.
- Supply chain efficiencies to offset rising input costs.
- Targeted marketing for everyday snacking, not just seasonal peaks.
- Expansion in international markets where volumes are climbing.
- Portfolio balancing between chocolate staples and growing salty snacks.
These aren’t flashy overhauls but steady plays that add up over time.
| Metric | Q3 2025 | Change YoY |
|---|---|---|
| Revenue | $3.18B | +6.5% |
| Adjusted EPS | $1.30 | -44% |
| Chocolate Sales Growth | 4% | Rebound |
Key Takeaways:
- Momentum is real, with sales growth outpacing forecasts despite cost hurdles.
- New CEO Tanner’s retail savvy is steering Hershey toward balanced expansion.
- 2025 could mark a turnaround if cocoa stabilizes and innovations stick.
As Hershey stirs up this positive vibe, it’s clear the chocolate world is far from stale. The real test will be holding onto that momentum through whatever twists come next. What’s your go-to Hershey treat these days? Share in the comments below.
