Hershey has completed its acquisition of organic snacks brand LesserEvil, a milestone for the food giant as it builds a bigger presence in salty treats and aims to “lead the future of snacking,” a top executive told Food Dive.
The Reese’s maker announced in April that it was purchasing LesserEvil to broaden the company’s salty snacks portfolio. Hershey has added several popular brands through acquisitions since 2017, including SkinnyPop popcorn, Pirate’s Booty cheese puffs and Dot’s Homestyle Pretzels.
“It is a very strategic acquisition that we have been waiting with anticipation because it really complements our portfolio of brands,” Veronica Villasenor, president of Hershey’s salty snacks division, said in an interview. “Having [LesserEvil] coming into our portfolio really helps us continue to expand into new consumers and new occasions, so that we give consumers more choice.”
Hershey did not disclose the price paid for LesserEvil, but The Wall Street Journal reported earlier this year that it was roughly $750 million.
Hershey was attracted to LesserEvil for its use of better-for-you ingredients, such as coconut oil and avocado oil. LesserEvil’s popcorn, puffs and rings also are viewed as a healthier snack that’s tasty and fun for kids — providing Hershey further inroads with a younger demographic and their parents.
The 14-year-old company fits squarely into Hershey’s strategy of acquiring brands with interesting and bold flavors. LesserEvil’s offerings include Himalayan Pink Salt Paleo Puffs, Oh My Ghee! Popcorn, Sugar Cookie Popcorn and Moonions onion-flavored corn rings.
Hershey said LesserEvil will benefit from the confectionery maker’s ability to innovate and scale. LesserEvil already has 8% household penetration compared to 5% at the beginning of this year.
Building up a brand is nothing new for Hershey. Dot’s is now the top-selling pretzel brand by market share at 15%, nearly double from when Hershey bought in 2021.
Hershey has identified new snacking categories that LesserEvil could expand into, Villasenor said, but the company first wants to integrate the brand and discuss its future with the organic food maker’s executive team. She and other Hershey executives are expected to meet as early as today with LesserEvil CEO Charles Coristine and members of his team.
“We need a little more time, similar to what we did [when we purchased Dot’s] where we listen and learn from the experts before we have a firm point of view,” Villasenor said. “The intent, obviously, is to partner with them, not to come in and change their plans for what they’re thinking.”
Salty snacks remain a small but fast-growing business at Hershey. The category commanded roughly 10% of its $11.2 billion in revenue in 2024. Hershey wants to double that total to 20% during the next decade.
During its most recent quarter, which ended Sept. 28, Hershey said its salty portfolio generated $321 million in sales, up 10% from the same period a year ago. Meanwhile, its legacy confections division, which includes Hershey's Kisses, Almond Joy and Jolly Rancher, was a major beneficiary of price increases, with sales surging 5.6% to $2.6 billion.
