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Hershey
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Updated Oct 29, 2026
Hershey cocoa hedging costs declining 43% YoY as surplus supply emerges; pricing elasticity risk cited.
Hershey's Q3 2026 10-Q discloses a structural shift in its largest input cost: cocoa futures averaged $2.08/lb in the first nine months of 2026, down 43% from the 2025 annual average of $3.65/lb. The filing explicitly warns that pricing elasticity—the risk that price increases fail to offset cost increases and result in volume declines—remains a material risk factor. Simultaneously, the company's open commodity derivative contracts declined to $646 million from $973 million year-to-date, signaling reduced hedging intensity as costs normalize. The cocoa supply-demand outlook for 2026-2027 has shifted from acute deficit to 'broadly balanced,' with some analysts now projecting a small surplus; this rebalancing follows three consecutive years of demand decline and represents the first material relief in input costs Hershey has faced since 2023.
Tone: cautiousRevenue
$11.7B
HSY 10-K · FY 2025
Employees
19,595
Revenue FY2024
$11.2B
Founded
1894
Profile
HSY 10-K Item 1 · Feb 17, 2026The Hershey Company is the largest producer of quality chocolate in North America and a leading snack maker in the United States. The company markets, sells, and distributes products under more than 85 brand names across approximately 65 countries. Its portfolio spans chocolate and non-chocolate confectionery, salty snacks, gum, mints, protein bars, and pantry items.
Read filing description ↓ Collapse description ↑
Hershey is a global confectionery leader known for making more moments of goodness through chocolate, sweets, mints, and other great tasting snacks. We are the largest producer of quality chocolate in North America, a leading snack maker in the United States and a global leader in chocolate and non-chocolate confectionery. We market, sell, and distribute our products under more than 85 brand names in approximately 65 countries worldwide. Our principal product offerings include chocolate and non-chocolate confectionery products; gum and mint refreshment products and protein bars; snack items such as popcorn, pretzels, spreads, snack bites and mixes; and pantry items, such as baking ingredients, toppings, and beverages. The Company reports its operations through three segments: North America Confectionery, North America Salty Snacks, and International. The North America Confectionery segment covers traditional chocolate and non-chocolate confectionery, gum, refreshment products, protein bars, spreads, snack bites and mixes, and pantry and food service lines, including retail operations at Hershey's Chocolate World stores. The North America Salty Snacks segment covers ready-to-eat popcorn, baked and trans fat-free snacks, pretzels, and other snacks. The International segment encompasses operations in Mexico, Brazil, India, and Malaysia, with distribution across export markets in Asia, Latin America, the Middle East, Europe, Africa, and other regions.
Primary products
- Hershey's chocolate
- Reese's
- Kisses
- Jolly Rancher
- Almond Joy
- Brookside
Business segments
End markets
Geographies
Named customers
In 2025, approximately 27% of our consolidated net sales were made to McLane Company, Inc., one of the largest wholesale distributors in the United States to convenience stores, drug stores, wholesale clubs and mass merchandisers and the primary distributor of our products to Wal-Mart Stores, Inc.
“Many of our confectionery and salty snack brands enjoy wide consumer acceptance and are among the leading brands sold in the marketplace in North America and certain international markets.” Competitive position, as stated in the filing
Revenue commentary · FY 2025
Net sales increased from $11.20 billion in 2024 to $11.69 billion in 2025, with the MD&A noting net sales growth despite persistent inflationary pressures and elevated commodity costs.
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