About Hershey Co-The

The Hershey Company operates as a global confectionery leader known for making more moments of goodness through chocolate, sweets, mints and other great tasting snacks. The company is the largest producer of quality chocolate in North America, a leading snack maker in the United States and a global leader in chocolate and non-chocolate confectionery. The company markets, sells and distributes its products under more than 90 brand names in approximately 80 countries worldwide. Segments The company operates through three segments: North America Confectionery, North America Salty Snacks, and International. North America Confectionery – This segment is responsible for the company’s traditional chocolate and non-chocolate confectionery market position in the United States and Canada. This includes the company’s business in chocolate and non-chocolate confectionery, gum and refreshment products, protein bars, spreads, snack bites and mixes, as well as pantry and food service lines. This segment also includes the company’s retail operations, including Hershey’s Chocolate World stores in Hershey, Pennsylvania; New York, New York; Las Vegas, Nevada; Niagara Falls (Ontario) and Singapore, as well as operations associated with licensing the use of certain of the company’s trademarks and products to third parties around the world. North America Salty Snacks – This segment is responsible for the company’s salty snacking products in the United States. This includes ready-to-eat popcorn, baked and trans fat free snacks, pretzels and other snacks. International – International is a combination of all other operating segments that are not individually material, including those geographic regions where the company operates outside of North America. The company has operations and manufacture product in Mexico, Brazil, India and Malaysia, primarily for consumers in these regions, and also distributes and sells confectionery products in export markets of Asia, Latin America, the Middle East, Europe, Africa and other regions. Business Acquisitions On May 31, 2023, the company completed the acquisition of certain assets that provide additional manufacturing capacity from Weaver Popcorn Manufacturing, Inc. (Weaver), a leader in the production and co-packing of microwave popcorn and ready-to-eat popcorn, and former co-manufacturer of the company’s SkinnyPop brand. Products and Brands The company’s principal product offerings include chocolate and non-chocolate confectionery products; gum and mint refreshment products and protein bars; snack items, such as popcorn, pretzels, spreads, snack bites and mixes; and pantry items, such as baking ingredients, toppings and beverages. Within its North America Confectionery segment, the company’s product portfolio includes a wide variety of chocolate offerings marketed and sold under the renowned brands of Hershey’s, Reese’s and Kisses, along with other popular chocolate and non-chocolate confectionery brands, such as Jolly Rancher, Almond Joy, Brookside, barkTHINS, Cadbury, Good & Plenty, Heath, Kit Kat, Payday, Rolo, Twizzlers, Whoppers and York. The company’s protein bar products include ONE bar and its gum and mint products include Ice Breakers mints and chewing gum, Breath Savers mints and Bubble Yum bubble gum. The company also has pantry items, including baking products, toppings and sundae syrups sold under the Hershey’s, Reese’s, Heath and Lily’s brands, as well as Hershey’s and Reese’s chocolate spreads and snack bites and mixes. Within its North America Salty Snacks segment, the company has its salty snack items. This includes ready-to-eat SkinnyPop popcorn, baked and trans fat free Pirates Booty snacks and Dot’s Homestyle Pretzels snacks. Within its International segment, the company manufactures, markets and sells many of these same brands, as well as other brands that are marketed regionally, such as Pelon Pelo Rico confectionery products in Mexico, IO-IO snack products in Brazil and Sofit beverage products in India. Principal Customers The company’s customers are mainly wholesale distributors, chain grocery stores, mass merchandisers, chain drug stores, vending companies, wholesale clubs, convenience stores, dollar stores, concessionaires and department stores. The majority of the company’s customers, with the exception of wholesale distributors, resell its products to end-consumers in retail outlets in North America and other locations worldwide. In 2023, approximately 28% of the company’s consolidated net sales were made to McLane Company, Inc., one of the largest wholesale distributors in the United States (U.S.) to convenience stores, drug stores, wholesale clubs and mass merchandisers and the primary distributor of its products to Wal-Mart Stores, Inc. The company primarily uses common carriers to deliver products from distribution points to its customers. Seasonality The company’s sales are typically higher during the third and fourth quarters of the year (year ended December 31, 2023), representing seasonal and holiday-related sales patterns. The company manufactures primarily for stock and typically fills customer orders within a few days of receipt. Trademarks, Service Marks and License Agreements The company owns various registered and unregistered trademarks and service marks. The trademarks covering the company’s key product brands are of material importance to its business. The company follows a practice of seeking trademark protection in the United States and other key international markets where its products are sold. The company also grants trademark licenses to third parties to produce and sell pantry items, flavored milks and various other products primarily under the Hershey’s and Reese’s brand names. Furthermore, the company has rights under license agreements with several companies to manufacture and/or sell and distribute certain products. The company has significant licensing agreements with Kraft Foods Ireland Intellectual Property Limited/Cadbury UK Limited; Cadbury UK Limited; Société des Produits Nestlé SA; and Iconic IP Interests, LLC. Research and Development The company’s research and development costs, charged to expense as incurred, totaled $50,030 in 2023. Food Quality and Safety Regulation In the U.S., the company’s activities are subject to regulation by various government agencies, including the Food and Drug Administration, the Department of Agriculture, the Federal Trade Commission, the Department of Commerce and the Environmental Protection Agency, as well as various state and local agencies. Similar agencies also regulate the company’s businesses outside of the U.S. History The Hershey Company was founded in 1894. The company was incorporated under the laws of the state of Delaware in 1927.