The Hershey Company Announces Intent to Acquire LesserEvil for $750 Million

On April 3, 2025, The Hershey Company announced its intent to acquire LesserEvil, a producer of organic and health-focused snacks. The deal is valued at approximately $750 million, with the potential for additional payments based on performance milestones. The transaction is expected to close later this year, pending regulatory approval. ​

About the Companies

The Hershey Company, headquartered in Hershey, Pennsylvania, is a global confectionery leader known for iconic brands such as Hershey's, Reese's, and Jolly Rancher. In recent years, Hershey has diversified its portfolio to include salty snacks, acquiring brands like SkinnyPop, Dot's Homestyle Pretzels, and Pirate's Booty. ​

LesserEvil, founded in 2004 and based in Danbury, Connecticut, specialises in organic snacks made with minimally processed ingredients. Its product line-up includes Organic Popcorn, Paleo Puffs, and Power Curls. The company emphasises sustainability and better-for-you snacking options. ​

Strategic Rationale

Hershey's acquisition of LesserEvil is driven by several strategic objectives:

• Diversifying Product Portfolio: Integrating LesserEvil's range of organic snacks allows Hershey to expand into new categories and forms, reaching new consumers in more eating occasions. This diversification helps Hershey reduce its reliance on traditional confectionery products and tap into the growing market for healthier snack options. ​

  
  

• Enhancing Better-For-You Offerings: As consumers increasingly seek healthier snack options, LesserEvil's products align with this demand, strengthening Hershey's better-for-you snack lineup. This move positions Hershey to better compete in the health-conscious segment of the snack market, appealing to consumers looking for organic and minimally processed products.

• Expanding Manufacturing Capabilities: LesserEvil brings additional manufacturing capabilities and capacity, enabling Hershey to meet growing consumer and retailer needs. This expansion is expected to improve production efficiency and support the scaling of new product lines within the better-for-you category. ​

  
  

Potential Challenges

While the acquisition offers strategic benefits, Hershey may encounter challenges:

• Regulatory Approval: The deal is subject to regulatory scrutiny, and any delays or conditions imposed could affect the transaction's timeline and terms. Regulators will assess the impact on market competition, and Hershey must be prepared to address any concerns that arise during this process. ​

  
  

• Brand Integration: Maintaining LesserEvil's brand identity and customer loyalty during integration will be essential to preserve its market position. Hershey must ensure that LesserEvil's commitment to quality and innovation is upheld, preventing any dilution of the brand's value. ​

  
  

• Market Competition: The healthy snack segment is competitive, with numerous players offering organic and health-focused products. Hershey will need to leverage LesserEvil's strengths to differentiate itself in the market and capture a significant share of this growing segment. ​

  
  

Conclusion

Hershey's planned acquisition of LesserEvil represents a strategic move to diversify its product offerings and strengthen its presence in the better-for-you snack market. By integrating LesserEvil's innovative products and manufacturing capabilities, Hershey aims to meet evolving consumer preferences and expand its reach in the snack industry. Successful navigation of regulatory approval and effective brand integration will be critical to realising the full potential of this acquisition.​

Written by: Ben Harris

Sources: Nasdaq, Hershey’s, Food Engineering, Yahoo Finance, Food Business News