Hershey: The secret to success and what’s next

Future of The Hershey Company – summary

• Hershey maintains ‘Big Five’ status despite recent 60 percent profit decline
• Core brands like Hershey’s and Reese’s remain dominant US favourites
• Younger generations show declining preference creating long‑term brand risks
• Global expansion offers major growth potential beyond its US‑centric model
• Salty snacks and bold flavours help attract emerging Gen Z and Gen A consumers

It’s been a turbulent year for The Hershey Company.

The confectionery giant had some exciting highs – expanding its portfolio through acquisitions – and some challenging lows – a 60% profit drop.

Despite this the American institution, know for big-name brands including Hershey’s Kisses, Twizzlers, and Reese’s Piece’s, remains one the top five confectionery companies in the world, in terms of revenue – making up part of an elite group known as ‘The Big Five’.

To understand how the company continues to command such influence, and why its brands still resonate so powerfully today, it’s worth looking back at the roots of the business and the principles that shaped it from the very beginning.

The rise of The Hershey Company

Founded by Milton Hershey in rural Pennsylvania back in 1894, The Hershey Company was built on its iconic Milk Chocolate Bar – a product it still sells in the millions.

But it grew into the $11bn (€9.5bn) company we recognise today through Milton Hershey’s shrewd business decisions and sharp understanding of scale and brand. He made early bets on mass production – rapidly expanding output to meet rising demand – and invested heavily in brand‑building, embedding Hershey into the very fabric of American life.

And it’s those same strategies that power Hershey today, as it continues to grow.

“The company has a diverse portfolio that consists of chocolate, salty snacks, and sweets,” says Kasia Davies, data journalist for consumer goods at Statista, a company for statistical and market data.

The company’s international presence and sales have remained steady over the past decade, totalling just under $1bn, she explains. By contrast, its North American operations, which include the recent expansion into salty snacks through the acquisition of brands like Dot’s Pretzels, have experienced consistent growth and dominate sales.

This domestic-focused strategy has enabled the company to maintain growth.

“Within the US, The Hershey Company has not just focused on its own product marketing and development but has also acquired the rights to produce and sell other brands domestically, namely Cadbury and KitKat,” explains Davies. “Both are globally recognised brands with strong consumer loyalty, making these acquisitions a considerable asset to the The Hershey Company’s portfolio.”

Though its two most famous brands – Hershey’s and Reese’s – are undoubtedly the biggest revenue drivers.

“Hershey’s and Reese’s are two of the most iconic brands in the companies’ portfolio,” says Davies’ colleague and fellow data journalist Thomas Ozbun. “This is reflected in the ranking of the most consumed chocolate bars in the US, where they hold the first and second positions.”

Though, digging into the numbers, we find a more concerning pattern.

The Hershey brand

Statista’s figures reveal that 64% of Baby Boomers prefer Hershey’s, followed by 55% of Gen X, then 51% of Gen Z – the only outlier being Millennials (43%) who generationally sit in the middle but preference-wise sit at the bottom.

This creates a worrying picture for Hershey – consumers are generationally falling out of love with the famed American chocolate brand, and the numbers have been in decline for some time.

“Hershey’s consumers in the US are mostly older generations,“ confirms Statista’s Ozbun.

But there are major growth opportunities out there for the American confectionery brand – it just needs to step outside America.

Growth opportunities

Geographical expansion

“The Hershey Company has concentrated the majority of its business in the US with a small international presence,” says Statista’s Davies.

Meanwhile its competitors – Mars, Inc., Ferrero Group, Mondelēz International, and Nestlé all maintain a strong global presence.

• Mars' confectionery arm includes global staples such as M&M’s, Snickers, Twix and Mars Bar, giving it enormous brand recognition across both mature and emerging markets
• Ferrero offers a broad portfolio, including premium confectionery, child‑focused brands such as Kinder, spreads like Nutella, all of which are recognised across the globe
• Mondelēz, owner of Cadbury, Milka and Toblerone, continues to leverage its global footprint, drawing the majority of its sales from international markets. Its scale and distribution capabilities have enabled it to push into emerging markets where confectionery consumption is still growing
• Nestlé remains a dominant global player in confectionery, thanks to powerhouse brands like KitKat and Smarties.

Collectively, these companies’ large, globally diversified operations help insulate them from regional downturns – a contrast to Hershey’s more US‑centric footprint. As the international confectionery landscape becomes increasingly competitive, that global reach is proving to be one of the most valuable assets out there.

In other words, Hershey literally has a whole world of opportunity to explore.

Portfolio expansion

There’s also room for growth within its portfolio.

“Some of the biggest opportunities are expansion in salty snacks segments as this, together with confectionery, is the most profitable food product group,” says Statista’s Davies. “Snacks and potato chips are regularly consumed by over half of the population – even more than confectionery."

Plus, Hershey’s already pushing flavour boundaries to appeal to Gen Z and Gen A. The newly released Jolly Rancher Heat Wave Gummies is the perfect example of this. It combines sweet and spicy flavours to match the increasingly popular swicy trend.

But, says Statista’s Davies, to captivate and connect with the next generation of consumers, brands need to go beyond simply delivering on-trend, and prioritise delivering good-quality products.

“The most impactful step brands can take, to gain loyalty from Gen Z, is to make consumers feel like they are part of something,” she says. “Gen A shares this desire for co-creation, with 93% stating they would be interested in designing their own toy, clothing item, or snack.”

Hershey’s next move

Hershey is standing at a crossroads.

Its legacy brands still dominate US confectionery shelves, and its strategic bets on salty snacks have proven successful. But the trends shaping the future of snacking are changing fast, and Hershey can no longer rely solely on the affection of ageing consumers in its home market.

To thrive in the decades to come, the company must think bigger and look further afield. Its rivals have already shown that global scale offers resilience, reach and relevance. If Hershey wants to remain part of the industry’s elite, it will need to accelerate its international ambitions and introduce its brands to the millions of consumers who didn’t grow up with a Hershey bar.

The Hershey Company has weathered 132 years of cultural shifts, economic upheavals and evolving consumer preferences by steadily adjusting its strategy and portfolio. The question now is how far it is prepared to push that evolution.