The Hershey Company recently announced its intent to acquire LesserEvil, a maker of organic snacks that prioritize bold flavors with better-for-you ingredients. The purchase price was not disclosed, but sources suggest it was around $750 million. LesserEvil specializes in making popcorn, puffs, curls, and other snacks using healthier ingredients such as coconut oil or avocado oil.
This acquisition further solidifies Hershey’s expansion into the salty snacks market by adding another fast-growing brand to its portfolio. This move will also increase the snacking options available to consumers, aligning with the trend towards healthier snacking choices.
Hershey, traditionally known for its iconic sweets like Kisses, Reese’s, and Twizzlers, has been diversifying its product offerings in recent years. The company has been actively venturing into the salty snacks segment, with previous acquisitions including SkinnyPop and Pirate’s Booty cheese puffs.
Veronica Villasenor, a 22-year veteran at Hershey, has been appointed to oversee the salty snacks business. While this segment accounts for a small portion of Hershey’s overall business compared to confections, the company sees potential for growth and expansion in the salty snacks market.
The acquisition of LesserEvil fits into Hershey’s strategy of investing in unique flavor profiles and innovative snack technologies. Some of LesserEvil’s products include Himalayan Pink Salt Paleo Puffs, Oh My Ghee! Popcorn, Sugar Cookie Popcorn, and Avocado-Licious Organic Popcorn. This deal will expand Hershey’s existing presence in snacks like popcorn and puffs while introducing new offerings like curls and onion-flavored ring-shaped snacks.
Michele Buck, Hershey’s CEO, expressed excitement about the acquisition, stating that investing in LesserEvil will bring a multi-category, better-for-you snacks platform to extend Hershey’s offerings into new categories and forms. The deal will also provide additional manufacturing capabilities and capacity to meet the growing needs of consumers and retailers.
Hershey has confirmed that LesserEvil’s leadership team will continue with the company, and the transaction is expected to close later this year. This strategic acquisition reflects a broader trend in the food industry, where larger companies are acquiring smaller brands to drive growth and expand their presence in popular and emerging categories.
Overall, Hershey’s acquisition of LesserEvil represents a significant step towards diversifying its product portfolio and meeting the evolving demands of consumers for healthier snack options. This move aligns with the company’s strategic vision to expand beyond traditional confections and establish a strong presence in the growing salty snacks market.
