screenshot lilys.com 2021.05.25 22 02 08

HERSHEY’S BAGS LILY’S LOW SUGAR CHOCOLATES

Hershey’s is buying upmarket Better for You (BFY) confectionery company Lily’s as a perceived fit with their strategy to grow this end of the market. It’s unclear if the management team will come across, although it is likely that Hershey’s will want to retain that expertise, and in fact, getting access to top management talent is a common rationale for acquiring a company. The press release is below.

The Hershey Company (NYSE: HSY) today announced it has entered into a definitive agreement to acquire Lily’s, the high-growth, better-for-you (BFY) confectionery brand.  Lily’s low-sugar products include dark and milk chocolate style bars, baking chips, peanut butter cups and other confection products that fit Hershey’s multi-pronged better-for-you snacking strategy.  Lily’s will add a key better-for-you confection brand to Hershey’s portfolio of iconic chocolate and candy favorites.

Lily’s is a great strategic complement to our existing offerings in this growing segment of the confection category.

Hershey is focused on developing a BFY confection portfolio that offers a variety of choices to meet the evolving needs of our consumers. Lily’s is a great strategic complement to our existing offerings in this growing segment of the confection category. – Chuck Raup, President of Hershey’s U.S.

BFY snacking continues to grow faster than mainstream segments across snacking categories such as potato chips, ice cream and cookies. BFY offerings, however, are still under-developed in confection and the Lily’s acquisition would enable Hershey to accelerate this growth and reimagine the future of the candy aisle in partnership with retailers. 

Based today in Boulder, Colo., Lily’s traces its roots to co-founder Cynthia Tice’s decision to raise awareness about better-for-you foods by opening Center Foods, a natural foods store, in Philadelphia in 1978.  In 2012, Cynthia launched four Lily’s chocolate style bars nationally in Whole Foods Market and today the expanded line of bars, baking chips and other confections can be found across the country at key retailers.  The brand’s mission is to offer consumers a range of great tasting, low sugar treats.

“Cynthia had the vision that consumers wanted a better-for-you option in confections and today 80% of adults want to cut back on their sugar intake,” said Jane Miller, CEO Lily’s. “By joining the Hershey’s family of brands, Lily’s will become a platform confection brand making BFY options easily accessible to all consumers.”

The acquisition will be financed with cash on hand as well as short-term borrowings.  Lily’s acquisition is expected to be slightly accretive to earnings in the first full year post closing.  The acquisition is subject to customary regulatory approvals and is expected to close in the next few months.

Author

  • Nick Baskett

    organisation:

    Nick Baskett is the editor in Chief at Bartalks. He holds a diploma from the Financial Times as a Non Executive Director and works as a consultant across multiple industries. Nick has owned multiple businesses, including an award-winning restaurant and coffee shop in North Macedonia.

Leave a Comment

Your email address will not be published. Required fields are marked *

en_GBEnglish