Hershey plans bold strategy amid disappointing Halloween sales

Crafting some of the world’s most beloved confections, Hershey has been known for its chocolate and candy creations since its founding in 1894.

With the holiday season, particularly the Halloween and Christmas months, being the company’s most profitable time of the year, it might seem almost certain that Hershey’s candy sales would dominate the market.

However, a surprising trend is beginning to reshape the company’s business.

This year, Hershey rolled out its classic holiday offerings, including festive shapes, themed packaging, and seasonal favorites, alongside new innovations such as Reese’s Peanut Butter Mini Pumpkins sold unwrapped in resealable bags to cut packaging costs.

Yet during the company’s October 30 earnings call, CEO Kirk Tanner noted that Halloween candy sales were off to a slow start. He said some of the lag may have been due to Halloween falling on a Friday this year, which tends to move the final sales push later in the season.

In response, Hershey stated plans to invest more in consumer insights to refine its product mix, pricing, and packaging on a year-round basis, not just during the holidays. The company also intends to boost digital marketing efforts to drive growth, while continuing to support creative product collaborations like the popular Reese’s Oreo partnership.

Goldman Sachs Stock Analyst Leah Jordan wrote in a note in September: “We expect recent pricing announcements to drive outsized earnings growth in FY26 with a solid consumer backdrop supporting better-than-expected elasticities, noting HSY’s historically strong pricing power tied to its iconic brand portfolio.”

Hershey grows in an unexpected category

Hershey (HSY) remains the largest chocolate manufacturer in the U.S., and the company reported third-quarter 2025 net year-over-year sales growth of 5.6% in its North America Confectionery segment.

Still, its strongest growth now comes from a different part of its business: salty and savory snacks.

Beyond its iconic chocolate brands, such as Reese’s, Kisses, and Kit Kat, Hershey owns several top-performing snack brands, including SkinnyPop, Dot’s Pretzels, and Pirate’s Booty.

More Retail Strategy:

• JCPenney borrows bold Macy’s strategy to boost holiday sales
• Chick-fil-A unveils first-ever innovation to accelerate global growth
• Hershey rival creates first-ever dream candy combo

This nearly doubled growth in salty snacks highlights shifting consumer demand. Since snacks are consumed more frequently than candy, it’s no surprise this category is fueling much of Hershey’s recent success.

The global candy market size was valued at around $73.4 billion in 2025 and is expected to grow at an annual rate of 4.6% through 2030, reaching $97.6 billion, according to Mordor Intelligence.

Meanwhile, the global salty/savory snack market size was valued at approximately $250.5 billion in 2021 and is anticipated to reach $386.8 billion by 2030, growing at an annual rate of 4.9% through 2030, according to Grand View Research.

Growth in this segment is largely driven by consumers seeking healthier snacking options.

Hershey invests in the healthy snack market

This growing healthy snack trend has not gone unnoticed by Hershey, which has been actively responding to this shift since 2017, when it acquired Amplify Snack Brands Inc. for $1.6 billion, the largest acquisition in the company’s history. 

In the years following, Hershey has steadily expanded its portfolio through the purchase of more better-for-you snack brands and the creation of new products.

Hershey’s better-for-you snack brand acquisitions

• SkinnyPop: Low-calorie popcorn and one of the most popular healthy snack brands in the U.S. Acquisition completed December 2017. Source:CNBC
• Pirate’s Booty: Puffed corn and rice snacks positioned as a cleaner alternative. Acquired in 2018 through the Amplify Snack Brands Inc. acquisition. Source:The Hershey Company
• ONE Brands: Low-sugar, higher-protein nutrition bars. Acquisition completed in September 2019. Source:The Hershey Company
• Dot’s Homestyle Pretzels: Positioned as a better-for-you snack with simpler ingredients compared to most fried chips. Acquisition completed in December 2021. Source:The Hershey Company
• LesserEvil: Snacks made with cleaner, organic ingredients. Acquisition completed in April 2025. Source:The Hershey Company

Hershey has also begun applying the better-for-you trend to its confectionery business.

It recently launched the ONE x Hershey’s Double Chocolate protein bar, which contains 18 grams of protein and one gram of sugar. It also partnered with pro golfer Bryson DeChambeau to market it to the athletic consumer.  

Hershey’s consumer has changed

This evolution reflects a broader change in consumer behavior. As people have become more health-conscious, demand for snacks with cleaner ingredients, fewer calories, and functional benefits continues to rise.

These evolving needs and preferences can be unpredictable at times, which is why companies invest millions in trend forecasting to stay ahead of the game and outpace their rivals.

“Through thoughtful pack and product innovation grounded in consumer trends and understanding, we help retailers deliver more options and help increase sales,” said The Hershey Company CCO Tiffany Menyhart at the 2025 NACS Show.

The global better-for-you snacks market is projected to grow from $32.7 billion in 2024 to $70.3 billion by 2035, with an annual growth rate of 7.2%, according to Fact.MR.

North America holds the largest share of the global better-for-you snacks market, primarily due to the high demand for these products from its population.

Hershey navigates industry challenges

Hershey faces several mounting headwinds in the global chocolate market.

Cocoa prices have surged due to extreme weather in West Africa, which produces around 70% of the world’s cocoa. Along with inflation, tariffs, and ongoing supply-chain disruptions, these pressures have raised costs and constrained supply since 2024. 

To stay competitive, Hershey is diversifying its ingredients and reducing its reliance on cocoa by incorporating peanut butter, caramel, and wafers into its products. The company is also forming strategic partnerships to broaden its portfolio and revenue base.

Adding to these challenges, new measures in April by the U.S. Department of Health and Human Services (HHS) and the U.S. Food and Drug Administration (FDA) will phase out six petroleum-based synthetic dyes from the nation’s food supply by the end of next year.

In response, Hershey has committed to removing synthetic dyes from all its products by the end of 2027, a major promise given that many of its candies, including Jolly Ranchers, Twizzlers, and Reese’s Pieces, rely on them.

“Analysts’ consensus view stresses that even with product innovation and new snack category launches, the slow top-line growth may constrain Hershey’s ability to outdistance cost increases,” said Simply Wall St.

Related: Hershey creates first-ever seasonal new candy ahead of Halloween