AGB 2022.13 - The Hershey Company (HSY)

Market Leader in U.S. Confectionery

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The Hershey Company

Some may view consumer staples companies unexciting and expensive. However, the consistency of these businesses, especially during uncertain economic environments, calls for some attention to the best positioned companies. Hershey’s leading market share in U.S. confectionery results in excess cash flows that are currently being reinvested into savory snack brands. The current scale of the savory snacks segment is no where near the market leaders, but it does present a long future reinvestment avenue for the company.

Hershey is the leading confectionery company in the chocolate and mints categories in the U.S. (also #3 in gum and sweets). Founded in 1894, the company has a long history of growing the category through innovating, acquiring or licensing many of the well-known confection brands today. Hershey owns more than half of the top candy brands that generate over $500M in revenues annually in th…