Hershey's $750M Bet on Healthier Snacks: A Strategic Pivot or Risky Gambit?

The hershey Company, known for its iconic chocolate bars and Reese's Peanut Butter Cups, is making a bold move into the better-for-you snack market with its $750 million acquisition of LesserEvil. This deal, announced on April 3, 2025, is the largest play yet by Hershey in the organic snack sector, signaling a strategic pivot towards health-conscious consumers. But is this acquisition a savvy investment or a risky gamble?



The acquisition of LesserEvil aligns with Hershey's long-term strategic goals of diversifying its product offerings and expanding into the better-for-you snack category. LesserEvil, founded in 2004, produces a range of organic snacks, including popcorn, Power Curls, and Paleo Puffs, which complement Hershey's existing confectionery and salty snack brands. The deal is expected to support Hershey's goal of capturing 15% of the better-for-you snack market by 2026, according to internal projections.

However, the acquisition is not without its risks. The transaction is subject to regulatory approval, which could delay the closing. Additionally, integrating LesserEvil's operations and culture into Hershey's existing structure could lead to inefficiencies or disruptions. LesserEvil has a vibrant culture rooted in mindfulness and better-for-you snacking, while Hershey has a century-long legacy of excellence. Ensuring that the two companies' cultures align could be challenging.

Despite these risks, Hershey is adopting a nuanced integration approach. LesserEvil's leadership team will remain intact, ensuring that the brand's innovative commercial model and speed-to-market capabilities are preserved. Hershey will also combine its distribution network with LesserEvil's agile R&D, leveraging the strengths of both companies to deliver category-leading growth and elevated category insights.

The acquisition of LesserEvil is part of Hershey's multi-year diversification strategy, which aims to add high-growth brands that can drive category-leading growth and elevated category insights. The deal is expected to support Hershey's 8.7% Q4 2024 sales growth and address critical manufacturing capacity needs, as LesserEvil brings additional production facilities to support Hershey's growing consumer and retailer needs.



The acquisition of LesserEvil is a significant step in capturing a larger share of the better-for-you snack market, which has been experiencing robust growth. This move positions Hershey to compete more effectively against other snack companies that have already established a presence in this segment. The focus on organic ingredients and bold flavors aligns with current consumer trends favoring healthier and more diverse snack options.

However, the success of this acquisition will depend on effective integration and the ability to leverage LesserEvil's manufacturing capabilities to achieve cost efficiencies. Investors should monitor the regulatory approval process and any updates on the integration strategy to assess the long-term financial impact.

In conclusion, Hershey's acquisition of LesserEvil is a strategic move that aligns with its long-term goals of diversifying its product offerings and expanding into the better-for-you snack category. However, the success of this acquisition will depend on effective integration and the ability to leverage LesserEvil's manufacturing capabilities to achieve cost efficiencies. Investors should monitor the regulatory approval process and any updates on the integration strategy to assess the long-term financial impact.

Ask Aime: What impact will Hershey's acquisition of LesserEvil have on the better-for-you snack market?