The Hershey Company (HSY) Goldman Sachs Global Staples Forum 2026 summary

Strategic outlook and growth drivers

• Focus on disciplined P&L management and cost savings sharpened by recent commodity pressures, with increased investments in brands, R&D, and retail technology to drive long-term growth.

• Confidence in 2026–2027 outlook supported by proactive management of macro headwinds, including SNAP and GLP-1 impacts, and ongoing consumer research.

• Balanced approach to growth, aiming for a mix of price and volume, with elasticity trends more favorable than expected due to strong brand equity.

• Innovation and premiumization are key, with new products and tentpole events planned to drive engagement and incremental growth.

• Expansion in functional snacking and salty categories, leveraging differentiated brands and integrated operations for further distribution and margin opportunities.

Market trends, innovation, and portfolio evolution

• Market share trends impacted by timing of innovation and shelf resets, with premium segment outperforming and further premiumization initiatives planned for 2027.

• Tentpole events and culturally relevant activations are being leveraged to extend seasonal strengths and attract new demographics.

• New product launches include Reese’s Marshmallow, Peanut Butter and Jelly, and Hershey’s Creme Filled Bar, with a pipeline of disruptive innovation targeted for 2027.

• Core brands remain a priority for distribution and funding, while expansion into premium and functional snacking is seen as a growth opportunity.

• Salty snacks portfolio continues to outpace the category, with integration of new brands and a focus on unique, differentiated offerings.

Financial discipline, margin recovery, and capital allocation

• Margin recovery is a central goal, with aspirations to return to pre-cocoa pressure levels through operational efficiencies, AI, and supply chain integration.

• Diversified cocoa sourcing and robust hedging strategies provide visibility and risk mitigation through 2027.

• Capital allocation prioritizes reinvestment in the business, maintaining dividend strategy, and selective M&A focused on differentiated, value-adding assets.

• ONE Hershey operating model integrates confection and salty businesses, enabling unified customer engagement, supply chain efficiencies, and scaled marketing resources.

• Productivity gains and cost savings are being realized, but the primary driver for integration is top-line growth and enhanced capabilities.