Hershey's $750 Million Bet on LesserEvil: A Strategic Move into Organic Snacks

In a bold move to diversify its product portfolio, hershey Company has announced its acquisition of LesserEvil, a maker of organic snacks known for its bold flavors and healthier ingredients. The deal, valued at approximately $750 million, is a strategic play by Hershey to expand its presence in the better-for-you snacking segment, a category that has seen significant growth in recent years.



Hershey, a company built on iconic sweets like Kisses, Reese’s, and Twizzlers, has been aggressively moving beyond its signature confections. In recent years, the Pennsylvania-based company has made several acquisitions to build a presence in salty snacks. The purchase of Amplify, the parent company of popcorn brand SkinnyPop, for $1.6 billion in 2017 was the largest deal in the company’s history. This was followed by the acquisition of Pirate’s Booty cheese puffs a year later, and in 2021, Hershey doled out $1.2 billion for fast-growing Dot’s Homestyle Pretzels and its Midwest co-manufacturer Pretzels Inc.

The acquisition of LesserEvil fits squarely into Hershey’s strategy of focusing on unique flavor profiles and technology that can be applied to other products. LesserEvil’s product line includes popcorn, puffs, curls, and other snacks made with healthier ingredients like coconut oil or avocado oil. Some of its popular offerings include Himalayan Pink Salt Paleo Puffs, Oh My Ghee! Popcorn, Sugar Cookie Popcorn, and Avocado-Licious Organic Popcorn. These products not only complement Hershey’s existing salty snack brands but also expand its presence in the better-for-you segment.

The deal also brings additional manufacturing capabilities and capacity, which is particularly valuable amid ongoing supply chain constraints. Hershey’s CEO, Michele Buck, highlighted the strategic advantages of the acquisition, stating, "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. This high-growth brand not only complements our beloved confection and salty snack brands but also brings additional manufacturing capabilities and capacity to meet growing consumer and retailer needs."

LesserEvil’s leadership team will continue to manage its commercial operations and manufacturing facilities, ensuring that the brand's market position and innovation pipeline are preserved. This approach, known as "founder-led integration," has proven more effective than full assimilation, which often dilutes the very brand equity being acquired. By retaining LesserEvil’s leadership, Hershey can leverage the acquired brand's operational autonomy while benefiting from the parent company's scale advantages in sourcing, distribution, and retailer relationships.

The acquisition of LesserEvil addresses a strategic gap in Hershey’s portfolio by strengthening its position in the better-for-you segment, where many traditional CPG companies have struggled to develop successful in-house brands. This is particularly important as organic offerings have been growing at 2-3× the rate of conventional snacks. By acquiring LesserEvil, Hershey gains immediate shelf presence and consumer credibility in a growing segment, rather than building an organic snacking brand from scratch, which typically takes 5-7 years.

The impact of this acquisition on Hershey’s market position against other major snacking companies is significant. For instance, PepsiCo announced in 2024 that it was buying Mexican-American food maker Siete Foods for $1.2 billion, while Slim Jim manufacturer Conagra Brands added premium meat stick brand Fatty. Earlier this year, Wonder bread manufacturer Flowers Foods announced the acquisition of better-for-you snacks maker Simple Mills for $795 million. These acquisitions indicate a trend in the industry where major food makers are snapping up smaller companies to add growth and increase their presence in trendy categories. By acquiring LesserEvil, Hershey is positioning itself to compete more effectively in the better-for-you snacking segment, offering solutions across both indulgent and better-for-you snacking occasions from a single vendor. This likely improves shelf space allocation and promotional opportunities for retailers, making Hershey a more valuable partner.



The acquisition of LesserEvil is a strategic move by Hershey to diversify its product portfolio and expand into the better-for-you snacking segment. The deal brings several competitive advantages, including entry into a high-growth category with products that command premium pricing, expanded manufacturing capabilities and capacity, and access to new consumer segments and eating occasions. While there are potential risks associated with the integration of LesserEvil’s leadership team and operations with Hershey’s existing business, the acquisition is a step in the right direction for Hershey as it seeks to reduce its dependence on seasonal chocolate sales and create a more balanced portfolio. The acquisition of LesserEvil is expected to close later this year, subject to regulatory approval.

Ask Aime: How does Hershey's acquisition of LesserEvil impact its market position in the better-for-you snacking segment?