Enables Sustained Growth for SkinnyPop
brand through Supply Chain Expansion
HERSHEY,
Pa., April 17, 2023 /PRNewswire/ -- The Hershey
Company (NYSE: HSY) today announced it has entered into a
definitive agreement to acquire two manufacturing plants from
Weaver Popcorn Manufacturing, a recognized leader in popcorn
production and co-packing, and a co-manufacturer of Hershey's
SkinnyPop brand. Through the deal, Hershey will acquire
Weaver's operations in Bethlehem,
Pennsylvania and Whitestown,
Indiana.
The acquisition is designed to enable the company to sustain
strong growth for its SkinnyPop brand by strengthening
internal supply chain capabilities in combination with its network
of strategic suppliers and co-manufacturers.
"Hershey has experienced tremendous growth over the past few
years, stemming from a combination of successful strategy execution
and an increase in more snacking occasions among consumers," said
Kristen Riggs, President, Salty
Snacks, The Hershey Company. "In fact, SkinnyPop has been
number one in retail sales growth for ready-to-eat popcorn over the
last three years."
As the company continues to elevate its position as a leading
snacking powerhouse, these new facilities will also enable more
flexibility, agility and resiliency across its growing salty snacks
supply chain network. A year ago, Hershey acquired Pretzels, Inc.
to expand its salty snacks manufacturing capabilities.
"In response to consumer snacking trends, we continue to evolve
our supply chain, making significant investments in the size, scale
and capabilities of our network, improving resiliency while we
continue to strengthen existing supplier relationships," said
Jason Reiman, Chief Supply Chain
Officer, The Hershey Company. "Our acquisition of Weaver's two
facilities is a perfect example of how we're investing to bring
added capacity and strength across our portfolio of brands well
into the future."
Like Hershey, Weaver has a strong manufacturing heritage,
tracing its roots back nearly a century. As a family-owned and
operated company, over the last 90+ years, Weaver has developed
into a vertically integrated business, delivering a broad array of
popcorn products globally. The company now operates three
independent entities, including Weaver Popcorn Manufacturing.
"Participating in the growth of SkinnyPop has been a
rewarding experience for our team members," remarked Jason Kashman, Chief Executive Officer, Weaver
Popcorn. "Hershey is acquiring two best-in-class popcorn
manufacturing operations that will enable continued growth in
volume and quality, with teams at each location that have an
unrivaled expertise."
The acquisition is subject to customary regulatory approvals and
will be financed with cash on hand, as well as short-term
borrowings.
Safe Harbor Statement
This release contains
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Many of these
forward-looking statements can be identified by the use of words
such as "anticipate," "assume," "believe," "continue," "estimate,"
"expect," "forecast," "future," "intend," "plan," "potential,"
"predict," "project," "strategy," "target" and similar terms, and
future or conditional tense verbs like "could," "may," "might,"
"should," "will" and "would," among others. These statements are
made based upon current expectations that are subject to risk and
uncertainty. Because actual results may differ materially from
those contained in the forward-looking statements, you should not
place undue reliance on the forward-looking statements when
deciding whether to buy, sell or hold the company's securities.
Factors that could cause results to differ materially include, but
are not limited to: the ability to timely satisfy the conditions to
the closing the transactions contemplated in the definitive
agreement; our ability to realize the benefits of the transaction;
risks related to the impact of the coronavirus global pandemic
("COVID-19") on our business, suppliers, distributors, consumers,
customers, and employees; the scope and duration of the pandemic;
government actions and restrictive measures implemented in response
to the pandemic, including the distribution of vaccinations and
continuation of social distancing guidelines and stay at home
orders; disruptions or inefficiencies in our supply chain due to
the loss or disruption of essential manufacturing or supply
elements or other factors; issues or concerns related to the
quality and safety of our products, ingredients or packaging, human
and workplace rights, and other environmental, social or governance
matters; changes in raw material and other costs, along with the
availability of adequate supplies of raw materials; the company's
ability to successfully execute business continuity plans to
address the COVID-19 pandemic and resulting changes in consumer
preferences and the broader economic and operating environment;
selling price increases, including volume declines associated with
pricing elasticity; market demand for our new and existing
products; increased marketplace competition; failure to
successfully execute and integrate acquisitions, divestitures and
joint ventures; changes in governmental laws and regulations,
including taxes; political, economic, and/or financial market
conditions; risks and uncertainties related to our international
operations; disruptions, failures or security breaches of our
information technology infrastructure; our ability to hire, engage
and retain a talented global workforce, our ability to realize
expected cost savings and operating efficiencies associated with
strategic initiatives or restructuring programs; complications with
the design or implementation of our new enterprise resource
planning system; and such other matters as discussed in our Annual
Report on Form 10-K for the year ended December 31, 2022. All
information in this press release is as of April 17, 2023. The company undertakes no duty to
update any forward-looking statement to conform the statement to
actual results or changes in the company's expectations.
About The Hershey Company
The Hershey Company is
headquartered in Hershey, Pa., and is an industry-leading
snacks company known for bringing goodness to the world through its
iconic brands, remarkable people and enduring commitment to help
children succeed. Hershey has approximately 19,000 employees around
the world who work every day to deliver delicious, quality
products. The company has more than 100 brand names in
approximately 80 countries that drive more than $10
billion in annual revenues, including such iconic brand names
as Hershey's, Reese's, Kit Kat®, Jolly
Rancher and Ice Breakers, and fast-growing
salty snacks including SkinnyPop, Pirate's
Booty and Dot's Homestyle Pretzels.
For more than 125 years, Hershey has been committed to operating
fairly, ethically and sustainably. Hershey founder, Milton
Hershey, created Milton Hershey
School in 1909 and since then the company has focused on
helping children succeed.
To learn more visit www.thehersheycompany.com.
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SOURCE The Hershey Company