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Hershey has completed the acquisition of organic snack brand LesserEvil, a milestone for the food giant as it aims to build a larger presence in the salty snack category and “lead the future of snacking,” a top executive told Food Dive.
The Reese’s manufacturer announced in April: Buy LesserEvil Expands the company’s salty snack portfolio. Hershey’s acquisitions since 2017 include SkinnyPop popcorn; Pirate’s Booty Cheese Puffs and Dot’s homestyle pretzels.
“This is a very strategic acquisition that we’ve been looking forward to because it really complements our portfolio of brands,” Veronica Villasenor, president of Hershey’s Salty Snacks division, said in an interview. “Having (LesserEvil) in our portfolio helps us continue to expand to new consumers and new situations, giving consumers more choice.”
Hershey did not disclose the price paid for LesserEvil, but the Wall Street Journal reported earlier this year: that About $750 million.
Hershey was attracted to LesserEvil. This is because they use ingredients that are better for your body, such as coconut oil and avocado oil. LesserEvil’s popcorn, puffs and rings are considered healthy snacks that are delicious and fun for kids, allowing Hershey to make more inroads with younger demographics and their parents.
The 14-year-old company fits Hershey’s strategy of acquiring brands with interesting and bold flavors. LesserEvil’s products include Himalayan Pink Salt Paleo Puffs, Oh My Ghee! Popcorn, sugar cookie popcorn, and Munion onion flavored corn rings.
Hershey said LesserEvil will benefit from the bakery’s ability to innovate and expand. LesserEvil’s household penetration rate has already increased to 8%, up from 5% at the start of the year.
Building a brand is nothing new for Hershey. Dot’s is now the best-selling pretzel brand with 15% market share, nearly double what it had in 1999. Hershey purchased in 2021.
Hershey has identified new snack categories that LesserEvil can expand into, Villasenor said. But the company first wants to unify the brand and discuss its future with the organic food manufacturer’s executives. She and other Hershey executives plan to meet with LesserEvil CEO Charles Coristine and members of his team as early as today.
“I need a little more time (when I bought Dot’s), as do listening to and learning from experts before I have a firm view,” Villasenor said. “Obviously the intention is to cooperate with them, not to change their plans as they see fit.”
Salty snacks remain a small but fast-growing business in Hershey. The category accounted for about 10% of the total market. Sales $11.2 billion Hershey wants to double that total to 20% over the next 10 years.
For the most recent quarter ended September 28Hershey said its savory portfolio generated $321 million in sales, up 10% from the same period last year. Meanwhile, Hershey’s Kisses, Almond Joy and Jolly RancherSales rose 5.6% to $2.6 billion, the main beneficiary of the price increases.
