Hershey reports confectionery volume decline as salty snacks deliver growth

Hershey’s North America confectionery sales rose 1.6% in the third quarter, while salty snacks sales increased 22.3%, helped by its LesserEvil acquisition.

The Hershey Company reported higher third-quarter net sales, with growth in its North America salty snacks business helping offset volume pressure in confectionery, as the company continued to navigate consumer price sensitivity.

For the quarter ended September 27, 2026, consolidated net sales increased 3% to US$3.28 billion, compared with the same period last year. Organic, constant-currency net sales increased 0.8%.

Hershey attributed the organic sales performance primarily to net price realization of approximately 11 percentage points. This was partly offset by an approximately 10-point decline in volume, reflecting price elasticity in North America Confectionery and International, shipment timing, and planned portfolio optimization in International. 

Hershey posted higher third-quarter sales, with salty snacks growth in North America helping counter confectionery volume declines amid consumer price sensitivity.

Confectionery sales rise despite volume pressure

Hershey’s North America Confectionery segment generated net sales of US$2.6 billion, up 1.6% year on year. Organic, constant-currency sales also increased 1.6%, supported by approximately 13 percentage points of net price realization.

However, volume declined approximately 11 percentage points, with price elasticity and normal quarter-to-quarter shipment variability more than offsetting strong seasonal shipments.

In US retail, Hershey’s Candy, Mint and Gum takeaway increased 0.8% over the 12 weeks ended September 27, across multi-outlet and convenience store channels. The company said the comparison reflected a significant Reese’s innovation launch in the corresponding period last year. 

Salty snacks growth

Hershey also reported continued gains in its US salty snacks market share. Retail takeaway increased 4% (excluding LesserEvil) over the 12-week period.

LesserEvil, which produces organic snacks including popcorn, puffs, and other better-for-you snack products, expanded Hershey’s presence in the salty snacks category following its acquisition in November 2025.

The acquisition of LesserEvil contributed approximately 20 percentage points to the segment’s sales growth, while organic, constant-currency sales increased 2.3%.

Despite higher sales, North America Salty Snacks segment income declined 17.9% to US$47.4 million. Hershey cited higher freight, logistics and manufacturing costs, increased net commodity costs, and greater consumer marketing investment.

Full-year outlook updated

Across the wider business, Hershey reported third-quarter net income of US$580.8 million, up 111.8% year on year, while adjusted earnings per share increased 103.1% to US$2.64.

The company said its second-half demand creation initiatives were gaining momentum, although consumers were becoming more cautious.

Hershey updated its full-year 2026 outlook, now expecting net sales growth of approximately 5% and organic net sales growth of approximately 3%. Its previous guidance was 4.5–5% for net sales growth and 3–3.5% for organic net sales growth.

“Our third-quarter results show steady progress on our 2026 priorities. Our second-half demand creation initiatives are gaining momentum, even as consumers grow more cautious,” said Kirk Tanner, The Hershey Company president and CEO. 

“We remain on track to deliver solid sales growth, a meaningful recovery in margin and earnings, and disciplined investment to fuel our next chapter of growth.”