The Hershey Company (HSY): History, Ownership, Mission, How It Works & Makes Money

When you think of The Hershey Company (HSY), do you just picture a chocolate bar, or do you see a snacking powerhouse with a market cap of over $36.81 billion as of November 2025? Honestly, this company is far more complex than its iconic milk chocolate, especially with its strategic pivot into salty and better-for-you snacks, exemplified by the recent November 2025 acquisition of LesserEvil. Beyond the financials-like the trailing twelve-month revenue of $11.489 billion-you need to understand the unique ownership structure, where the Hershey Trust Company holds over 80% of the voting power to fund the Milton Hershey School, which is a defintely powerful mission. So, how does a century-old confectionery giant balance its legacy brands like Reese's with new innovations like the Reese's OREO® Cup and still manage to project about 3% net sales growth for the full 2025 fiscal year?

The Hershey Company (HSY) History

The Hershey Company's trajectory from a single-product chocolate maker to a $11.2 billion (2024 full-year net sales) snacking powerhouse is a masterclass in strategic evolution. It's a story of a founder who bet on mass-market chocolate, a philanthropic structure that secured its independence, and a recent, aggressive pivot into salty snacks to drive modern growth.

Given Company's Founding Timeline

The company's foundation was built on a prior success, which provided the capital for Milton S. Hershey's true passion: making chocolate accessible to everyone.

Year established

1894, as the Hershey Chocolate Company, a subsidiary of the successful Lancaster Caramel Company.

Original location

Lancaster, Pennsylvania, U.S. The chocolate operations were later centralized in Derry Township, which became the community of Hershey, Pennsylvania.

Founding team members

Milton S. Hershey. He was the sole founder, leveraging his prior confectionery experience.

Initial capital/funding

The chocolate venture was funded by the proceeds from the $1 million sale of the Lancaster Caramel Company in 1900. This capital was defintely a game-changer, allowing him to build a new, modern factory.

Given Company's Evolution Milestones

Given Company's Transformative Moments

The company's history is defined by two major shifts: the philanthropic endowment and the recent diversification beyond chocolate.

The 1918 transfer of the majority voting stock to the Milton Hershey School Trust is the most significant structural decision. It means the company's long-term strategy is intrinsically tied to the financial health of the school, prioritizing stability over short-term returns, which is a unique corporate governance model. Understanding this structure is key when evaluating the company; you can explore more about Breaking Down The Hershey Company (HSY) Financial Health: Key Insights for Investors.

The second major transformation is the aggressive move into the 'salty snack' category, which began in earnest around 2017. This was a direct response to changing consumer habits-people are snacking more and demanding variety.

• The goal is to grow the salty snack division to approximately 20% of total sales over the next decade, up from about 10% currently.
• In Q1 2025, the North America Salty Snacks segment generated net sales of $277.8 million, showing the segment's growing scale.
• The most recent major acquisition, LesserEvil, closed in November 2025 for $750 million, further broadening the 'better-for-you' organic snack offerings.

Looking at the 2025 fiscal year outlook, the company is navigating significant headwinds, primarily from surging cocoa prices. Management is guiding for net sales growth of around ~3%, but a sharp decline in Adjusted Earnings Per Share (EPS) of 36% to 38% is expected. This shows the current reality: the core chocolate business faces commodity cost pressure, making the successful integration and growth of the diversified salty snack portfolio more critical than ever.

The Hershey Company (HSY) Ownership Structure

The Hershey Company (HSY) operates as a publicly traded entity on the New York Stock Exchange (NYSE), but its governance is uniquely tied to its founding mission, with a non-profit trust holding the critical lever of control. The Milton Hershey School Trust, though a minority shareholder in terms of equity, holds a majority of the voting power, which means they ultimately steer the company's direction.

The Hershey Company's Current Status

Hershey is a public company, trading under the ticker HSY, yet it's not a typical corporate structure. The company's unique dual-class stock structure ensures that the Hershey Trust Company, acting as the trustee for the Milton Hershey School, retains control over major decisions. This structure is a legacy of founder Milton S. Hershey, ensuring the company's profits continue to fund the Milton Hershey School, which provides a cost-free education and home for children from low-income families. This setup means institutional investors, who own the lion's share of the common stock, still operate within the Trust's strategic framework, a crucial distinction for any investor to understand.

If you want to dig deeper into the company's financial stability, you should check out Breaking Down The Hershey Company (HSY) Financial Health: Key Insights for Investors. It definitely helps map out the near-term risks.

The Hershey Company's Ownership Breakdown

As of the 2025 fiscal year data, institutional investors collectively dominate the common stock, but the Milton Hershey School Trust holds the decisive voting power. Here's the quick math on how the equity breaks down, showing where the influence truly sits:

Note: Percentages are based on shares outstanding as of 2025 reporting dates and may not sum to exactly 100% due to rounding and varying reporting dates across sources.

The Hershey Company's Leadership

The company's direction is being steered by a recently refreshed executive team, with new appointments in key roles in 2025. This is a big change, so you should watch how this new team executes the strategy.

• President and Chief Executive Officer (CEO): Kirk Tanner. He joined Hershey in August 2025, bringing over 30 years of experience in the food and beverage industry, including a tenure as CEO of Wendy's and a long career at PepsiCo, Inc.
• Chairman of the Board: Huong Maria T. Kraus. Appointed in August 2025, she also serves as the Chairman of the Board of the Hershey Trust Company, reinforcing the direct link between the Trust and corporate governance.
• SVP, Chief Financial & Accounting Officer (CFO): Steven Voskuil. He oversees the financial strategy and accounting functions for the global enterprise.
• President, U.S. Confection: Andrew Archambault. He leads the brand and commercial strategies for the core U.S. confectionery business, which is the heart of the company.
• Chief Human Resources Officer: Natalie Rothman. Effective August 2025, she is responsible for the global human resources function, a crucial role given the company's large workforce.

The Hershey Company (HSY) Mission and Values

The Hershey Company's purpose goes far beyond just selling chocolate; it's about making more moments of goodness for people globally, a mission deeply rooted in its founder's legacy of community and ethical business. This cultural DNA guides their ambitious goal to become a leading global snacking powerhouse, a defintely necessary evolution in today's market.

Given Company's Core Purpose

Milton Hershey's original vision-making chocolate accessible to everyone while building a better world-still inspires the company's core purpose today. This isn't just a feel-good statement; it's a strategic filter for every product and investment, especially as the company generates over $11.2 billion in annual revenues and employs more than 20,000 people worldwide.

The purpose is the bedrock of their operations, driving everything from ethical sourcing to community engagement. You can see this commitment in their long-standing support for the Milton Hershey School, a critical part of their history. They've also contributed over $130 million in cash and products to community partners between 2020 and 2024 alone.

Official mission statement

The formal mission statement clarifies how the core purpose is executed daily: to bring goodness to the world through delicious snacks, and create a future full of more smiles. It's a simple mandate that covers product quality, consumer satisfaction, and social responsibility in one clean sentence.

The company's long-standing values are the principles that ensure this mission is achieved with integrity:

• Togetherness: Fostering a diverse and inclusive environment.
• Integrity: Operating ethically and honestly in all business dealings.
• Making a Difference: Committing to social and environmental responsibility.
• Excellence: Pursuing the highest standards in products and service.

Vision statement

The Hershey Company's vision is to be a Leading Snacking Powerhouse. This is a clear, future-focused goal that acknowledges the market has moved beyond just chocolate bars.

Here's the quick math: the vision means expanding their portfolio-think salty snacks like SkinnyPop and Dot's Homestyle Pretzels-to capture more of your daily snacking occasions. They are targeting a minimum of 2% growth in net sales for 2025, a goal that relies heavily on this diversification strategy and innovation like the Reese's OREO Cup launch. You can read more about the drivers behind this shift in Exploring The Hershey Company (HSY) Investor Profile: Who's Buying and Why?

Given Company slogan/tagline

While various marketing campaigns have used different phrases, the most consistent and powerful expression of the brand is its core purpose, which functions as the de facto tagline.

• Making More Moments of Goodness.

This simple phrase encapsulates the emotional connection the company strives for, linking their products to positive, shared experiences. It's what drives their focus on innovation and expansion into new categories, so they can deliver that goodness at any point in your day.

The Hershey Company (HSY) How It Works

The Hershey Company delivers value by leveraging its iconic, century-old confectionery brands and a sophisticated North American distribution network to dominate the sweet-snacking category, while aggressively diversifying into the faster-growing salty and 'better-for-you' segments. For the twelve months ending September 30, 2025, the company generated revenue of approximately $11.489 billion, showing how effectively they translate brand equity into sales.

The Hershey Company's Product/Service Portfolio

Hershey's strategy is to cover all major snacking occasions, from indulgent treats to functional alternatives, which is why their portfolio is split across three key segments: North America Confectionery, North America Salty Snacks, and International. North America Confectionery, their core business, drove $2,615.6 million in net sales in the third quarter of 2025 alone.

The Hershey Company's Operational Framework

The company's operational framework is built on a 'test and learn' approach, combining large-scale manufacturing with data-driven retail execution. They are defintely focused on supply chain productivity and cost savings to offset the high commodity costs, especially cocoa, which is putting significant pressure on 2025 earnings.

Here's the quick math: managing commodity inflation while delivering a full-year net sales growth target of around 3% requires serious operational efficiency.

• Advancing Agility & Automation Initiative: A multi-year productivity program approved in 2024 to improve supply chain and manufacturing-related spending, simplify processes, and leverage new technology for long-term savings.
• Shopper-Centric Retail: Moving from being 'Aisle Experts' to 'Shopper Experts' by using data and insights to anticipate where and how people will shop next, integrating retail sales, media, and supply chain.
• Best-in-Class Distribution: Maintaining a global supply chain known for its large-scale production and distribution, consistently ranking highly in customer service among peers.
• Late-Stage Customization: Investing in the supply chain to build in more agility and capabilities for customizing products closer to the point of sale, meeting fast-changing consumer needs.

The Hershey Company's Strategic Advantages

Hershey's market success is grounded in intangible assets-brand equity and distribution-but their near-term opportunity lies in strategic diversification and tech-enabled efficiency. Mission Statement, Vision, & Core Values of The Hershey Company (HSY).

• Unmatched Brand Equity: Core brands like Hershey's, Reese's, and Kisses enjoy strong consumer loyalty and pricing power, allowing for effective price realization to mitigate commodity cost increases.
• North American Market Dominance: The company holds a significant market share in U.S. chocolate manufacturing, which gives them leverage with retailers and strong in-store execution.
• Diversified Snacking Portfolio: Strategic acquisitions like Dot's Homestyle Pretzels and the expansion of BFY brands like SkinnyPop and Fulfil reduce reliance on the core confectionery segment and tap into high-growth areas.
• Retail Shopping Expertise: A dedicated, boots-on-the-ground retail sales force ensures products are widely available and shelves are stocked, a crucial advantage in the impulse-driven snack category.

What this estimate hides is the significant pressure from cocoa prices, which the company is actively trying to mitigate through strategic pricing and productivity programs. Still, the brand strength is the ultimate backstop.

Finance: Track Q4 2025 capital expenditures related to the Advancing Agility & Automation Initiative to assess productivity gains by the next earnings call.

The Hershey Company (HSY) How It Makes Money

The Hershey Company makes money by manufacturing, marketing, and selling a vast portfolio of confectionery and snack products globally, relying on iconic brand equity like Reese's and Kit Kat to support premium pricing and high-volume distribution. Their financial engine is primarily fueled by the North American market, where their chocolate and salty snack brands dominate retail shelves.

The Hershey Company's Revenue Breakdown

You need to see where the cash is actually coming from, not just the big-picture number. For the third quarter of 2025, which ended September 28, 2025, the company pulled in a total of $3,181.4 million in net sales. Here's the quick math on how that revenue splits across their three main segments:

Honestly, the North America Confectionery segment is still the undisputed heavyweight, driving over four-fifths of the total sales. The North America Salty Snacks business, including brands like SkinnyPop, is small but defintely growing fast, up 10.0% year-over-year in the third quarter of 2025.

Business Economics

The core of Hershey's business model is its powerful brand identity (economic moat), which lets them charge a premium and manage price elasticity (how much demand changes when price changes) better than most competitors. But, like any food giant, they're still fighting a brutal battle with input costs, especially right now.

Here's the reality check on their economic fundamentals as of late 2025:

• Pricing Power: The company continues to rely on net price realization, which contributed approximately 6 to 7 points of net sales growth in Q3 2025, to offset inflation. They even implemented a new price increase across 80% of their U.S. confection portfolio in Q2 2025 to manage the soaring cost of cocoa.
• Commodity Headwinds: Cocoa costs are the biggest near-term risk. They remain roughly 70% above 2023 levels, which is a massive headwind for margins.
• Tariff Costs: Geopolitical tariffs are a significant, quantifiable expense, projected to hit between $160 million and $170 million for the full year 2025. That's a direct hit to the bottom line.
• Cost Mitigation: To fight back, Hershey hedges over 40% of its annual cocoa needs and has a plan to deliver $300 million in productivity savings by 2026.

The name of the game right now is using brand strength to push price increases through, but still managing a declining gross margin because the cost of cocoa is just so high.

The Hershey Company's Financial Performance

Looking at the Q3 2025 results, the top line is growing, but the bottom line is clearly under pressure from costs. This is the key insight for you right now. You can dive deeper into the metrics with Breaking Down The Hershey Company (HSY) Financial Health: Key Insights for Investors.

The key financial metrics for the third quarter of 2025 show the strain from inflation and tariffs:

• Consolidated Net Sales: $3.18 billion, an increase of 6.5% year-over-year.
• Adjusted Gross Margin: Contracted by 850 basis points to 31.8%, a direct result of higher commodity and tariff costs.
• Adjusted Earnings Per Share (Diluted): Fell to $1.30, a sharp decline of 44.4% from the prior year period.
• Full-Year 2025 Adjusted EPS Outlook: Management is guiding for a decline in the range of 36% to 38% for the full year. That's a serious cut, but it's a realistic reflection of the current cocoa market.
• Operating Cash Flow: For the nine months ending Q3 2025, operating cash flow was $1,350.8 million, down $239.2 million year-over-year.

The sales growth is solid, but the margin contraction is the story. The company is trading short-term profitability for long-term category share, which is a common but painful strategy in a high-inflation environment.

The Hershey Company (HSY) Market Position & Future Outlook

The Hershey Company maintains a dominant position in the North American confectionery market, but its future trajectory hinges on successfully navigating a volatile commodity market and accelerating its diversification into the faster-growing salty and organic snack segments.

While the company projects a minimum net sales growth of at least 2% for the 2025 fiscal year, this growth is being challenged by significant cost headwinds, which are expected to cause a drop in net income this year.

Competitive Landscape

In the US confectionery aisle, The Hershey Company battles two other global giants, Mars, Incorporated and Mondelēz International, for shelf space and consumer dollars. Hershey and Mars alone account for over 60% of the total US market, making it a highly concentrated duopoly. [cite: 19 in first search]

Opportunities & Challenges

You can clearly see a dual strategy at play: protect the core chocolate business through price and efficiency, and aggressively buy into the better-for-you snack categories. The challenge is that rising costs are eating into the profitability of the core business, even as sales grow.

Industry Position

The Hershey Company is a powerhouse in the US confectionery market, holding the top spot in the category. The sheer scale of its operations and its deep-rooted brand loyalty-think Reese's Peanut Butter Cups and Hershey's Kisses-give it significant pricing power (the ability to raise prices without losing too many customers). [cite: 2 in first search, 5 in first search]

Here's the quick math: the company's revenue trajectory is strong, with projections pointing to around $11,572.9 million in revenue for the 2025 fiscal year, but the cost of goods sold is rising faster, so profit margins are under pressure. [cite: 2 in first search]

What this estimate hides is the strategic shift. The company is defintely using its core chocolate profits to fund the expansion of its salty snack portfolio, which saw robust performance in the first three quarters of 2025, with the North America Salty Snacks segment net sales increasing by 10.0% in Q3 2025. [cite: 7 in first search]

• Maintain strong profitability metrics relative to competitors, despite a projected net income drop in 2025. [cite: 2 in first search]
• Prioritize investments in digital commerce and omnichannel strategy to meet changing consumer shopping habits. [cite: 9 in first search]
• Commit to sourcing 100% certified and sustainable cocoa by 2025, addressing critical supply chain and ethical sourcing risks. [cite: 16 in first search]

For a deeper dive into the ownership structure and institutional interest, you should read Exploring The Hershey Company (HSY) Investor Profile: Who's Buying and Why?