Hershey to acquire US-based organic snacks firm LesserEvil to expand better-for-you portfolio
The Hershey Company is planning to acquire US-based snack company LesserEvil, which manufactures organic snacks like pre-popped popcorn and extruded snacks with “better-for-you ingredients.” The move will expand the chocolate giant’s portfolio of established confection brands like Hershey’s and Reese’s as well as emerging salty snack brands including SkinnyPop and Dot’s Homestyle Pretzels.
Global snack sales have increased by 5% over the last five years, with Innova Market Insights’ projections anticipating continual growth of 4% between 2023 and 2027. The US is an important market for snacks. North America, West Europe, and Asia contributed to nearly 80% of snack sales in 2022.
“Investing in LesserEvil brings a multi-category, better-for-you snacks platform to extend our offerings into new categories and forms, reaching new consumers in more eating occasions,” says Michele Buck, The Hershey Company’s CEO and president.
He believes LesserEvil “complements” Hershey’s confection and salty snack brands and brings additional manufacturing capabilities and capacity to meet growing consumer and retailer needs.
The company focuses on “interesting and bold flavors” with organic ingredients. Its leadership team will continue with the company to lead its innovative commercial model, speed-to-market capabilities and manufacturing operations.
LesserEvil’s range of organic snacks include Popcorn, Space Balls and Paleo Puffs.The deal is expected to close later this year, depending on regulatory approval. While financial details have not been disclosed, The Wall Street Journal has reported that it is worth US$750 million.
Tapping the healthy snacks market
Last month, the Hershey Company announced its new chief growth officer, Stacy Taffet, who will be responsible for propelling the expansion of its snacks portfolio’s growth strategies.
The company’s previous moves to tap the healthier snacks market include the US$1.6 billion acquisition of better-for-you snack firm Amplify Snack Brands in 2017 for popcorn, and the US$397 million deal with ONE Brands in 2019 for its low-sugar and high-protein nutrition bars.
Hershey also invested in a minority stake in snacking business Fulfil in 2019. Fulfil specializes in vitamin-fortified, high-protein nutrition bars in the UK and Ireland.
Meanwhile, the KitKat manufacturer has twice rejected Mondelēz International’s offers to acquire it — once in 2016 and the second time in December last year — snubbing them as too low. If the deal had materialized, it would have been 2024’s largest merger following Mars’ acquisition of Kellanova for almost US$36 billion.
