Dive Brief:
- Hershey Co.'s international performance, particularly in China, hindered the company's second quarter earnings. Hershey reported a loss of $99.9 million, well under the $168 million profit a year earlier. Sales were flat as well at about $1.58 billion.
- Hershey said it was negatively impacted by "declining consumer confidence in China on mixed macroeconomic data, where it has seen many packaged goods categories declined," The Wall Street Journal reported.
- Net sales in North America rose 1.8% over last year, but Hershey CEO John Bilbrey said that "the rollout of new products — such as Brookside Fruit and Nut Bars and Hershey’s Snack Bites — as well as seasonally stronger orders in the Halloween and holiday period" would make for stronger growth in that market, according to The Wall Street Journal.
Dive Insight:
Hershey has been dealt a mixed bag in terms of the effects seen on other processed foods companies. The company announced in June that it would cut about 300 jobs to simplify its business, which many other companies in this space have also done in the past year, and the company also lowered its outlook for the year. At the same time, Hershey and rival Mars, Inc., are faring consumers' shifting preferences and health concerns better than other segments. Hershey and Nestle, another competitor, also recently said they were moving to simpler ingredients.