La empresa Hershey (HSY): Análisis PESTLE [Actualizado en enero de 2025]

Sumérgete en el intrincado mundo de la compañía Hershey, donde Sweet Success cumple con los complejos desafíos globales. Desde la navegación de políticas comerciales traicioneras hasta adoptar tecnologías de vanguardia, este análisis de mano presenta el paisaje multifacético que da forma a uno de los fabricantes de chocolate más emblemáticos de Estados Unidos. Descubra cómo los vientos políticos, las corrientes económicas, los cambios sociales, las innovaciones tecnológicas, los marcos legales y las consideraciones ambientales se entrelazan para definir el viaje estratégico de Hershey en un mercado global en constante evolución.

The Hershey Company (HSY) - Análisis de mortero: factores políticos

Las políticas comerciales de EE. UU. Impacto en los costos de importación de cacao y azúcar

A partir de 2024, la compañía Hershey enfrenta desafíos significativos con los costos de importación debido a las políticas comerciales actuales. La tarifa promedio de importación de cacao es de 4.2%, mientras que los aranceles de importación de azúcar oscilan entre 15.6%y 35.7%.

Ingrediente	Tasa de tarifa de importación	Volumen de importación anual
Granos de cacao	4.2%	185,000 toneladas métricas
Azúcar en bruto	15.6% - 35.7%	120,000 toneladas métricas

Posibles aranceles de azúcar que afectan los gastos de producción

Las restricciones actuales de importación de azúcar aumentan los costos de producción de Hershey en un estimado de $ 47.3 millones anuales.

• Precio de azúcar nacional: $ 0.38 por libra
• Precio de azúcar importado: $ 0.22 por libra
• Impacto de costo anual estimado: $ 47.3 millones

Regulaciones gubernamentales sobre etiquetado y nutrición de alimentos

Los requisitos actualizados de etiquetado nutricional de la FDA han obligado a Hershey a invertir $ 12.6 millones en modificaciones de envasado y etiquetado.

Categoría de regulación	Costo de cumplimiento	Línea de tiempo de implementación
Etiquetado nutricional	$ 12.6 millones	2023-2024
Transparencia de ingredientes	$ 5.4 millones	2024

Posibles cambios en los subsidios agrícolas para ingredientes clave

Los subsidios agrícolas afectan directamente las estrategias de adquisición de ingredientes de Hershey. Los programas de apoyo agrícolas federales actuales proporcionan aproximadamente $ 1.2 mil millones en subsidios para los sectores agrícolas relacionados con el azúcar y el cacao.

• Subsidios de cultivos de azúcar: $ 780 millones
• Apoyo agrícola relacionado con el cacao: $ 420 millones
• Riesgo de reducción de subsidio potencial: 15-20%

The Hershey Company (HSY) - Análisis de mortero: factores económicos

Los precios fluctuantes de los productos básicos para el cacao y el azúcar

A partir de enero de 2024, los precios del cacao alcanzaron los $ 4,800 por tonelada métrica, lo que representa un aumento del 64% respecto al año anterior. Los precios del azúcar fluctuaron alrededor de $ 0.27 por libra, con la volatilidad del mercado global que impacta los costos de las materias primas de Hershey.

Producto	2024 Precio	Cambio año tras año
Cacao	$ 4,800/tonelada métrica	+64%
Azúcar	$ 0.27/libra	+12%

Sensibilidad al gasto del consumidor durante las recesiones económicas

En el cuarto trimestre de 2023, Hershey informó un 2.8% de disminución en el gasto discrecional del consumidor, impactando directamente las ventas de confitería. El poder adquisitivo de los hogares disminuyó en un 1,5% en comparación con el trimestre anterior.

Inflación que impacta las estrategias de producción y precios minoristas

La tasa de inflación de EE. UU. De 3.4% en diciembre de 2023 llevó a Hershey a implementar ajustes de precios estratégicos:

• Aumento promedio del precio del producto: 5.2%
• Inflación de costos de producción: 4.7%
• Impacto del margen bruto: reducido en 1.3 puntos porcentuales

Métrico de inflación	Porcentaje
Tasa de inflación de EE. UU.	3.4%
Aumento del precio del producto	5.2%
Inflación de costos de producción	4.7%

Incertidumbres económicas globales que afectan la expansión del mercado internacional

Los ingresos internacionales de Hershey en 2023 fueron de $ 1.2 mil millones, lo que representa el 15.6% de los ingresos totales de la compañía. Los mercados internacionales clave experimentaron condiciones económicas variadas:

Región	Ganancia	Crecimiento económico
Europa	$ 420 millones	0.5%
Asia-Pacífico	$ 350 millones	4.2%
América Latina	$ 230 millones	2.1%

The Hershey Company (HSY) - Análisis de mortero: factores sociales

Creciente preferencia del consumidor por opciones de bocadillos más saludables

Según Statista, el mercado mundial de bocadillos saludables se valoró en $ 25.9 mil millones en 2022 y se proyecta que alcanzará los $ 36.2 mil millones para 2027. La línea de productos consciente de la salud de Hershey representó el 7.3% de su cartera total de productos en 2023.

Segmento de mercado	Tamaño del mercado (2022)	Crecimiento proyectado
Mercado de bocadillos saludables	$ 25.9 mil millones	40% para 2027
Portafolio de productos de salud de Hershey	7.3%	Esperado 12% para 2025

Aumento de la demanda de chocolate sostenible y de origen ético

En 2023, Hershey comprometió $ 500 millones a un abastecimiento de cacao sostenible, dirigido al 100% de cacao sostenible certificado para 2030. Los consumidores dispuestos a pagar la prima por productos sostenibles aumentaron de 57% en 2020 a 68% en 2023.

Métrica de sostenibilidad	Valor 2023	Año objetivo
Inversión en cacao sostenible	$ 500 millones	2030
La voluntad del consumidor para pagar la prima	68%	En curso

Cambio de preferencias demográficas en el consumo de confitería

Los consumidores de Millennial y Gen Z representan el 45% del mercado objetivo de Hershey en 2024. Las alternativas de chocolate a base de plantas crecieron un 22% en cuota de mercado durante 2022-2023.

Demográfico	Cuota de mercado	Tendencia de consumo
Millennials & Gen Z	45%	Creciente
Chocolate a base de plantas	22% de crecimiento	2022-2023

Conciencia creciente de las prácticas de responsabilidad social corporativa

Hershey asignó $ 30 millones en 2023 por iniciativas de responsabilidad social. El 92% de los consumidores informaron que la responsabilidad social corporativa era importante en las decisiones de compra.

Métrica de CSR	Valor 2023	Percepción del consumidor
Inversión de RSE	$ 30 millones	En curso
Importancia de la RSE del consumidor	92%	Factor significativo

The Hershey Company (HSY) - Análisis de mortero: factores tecnológicos

Inversión en tecnologías de fabricación automatizadas

En 2022, Hershey invirtió $ 250 millones en actualizaciones de tecnología de fabricación en sus instalaciones de producción. La compañía desplegó 37 nuevos sistemas robóticos en sus plantas de fabricación primarias, aumentando la eficiencia de producción en un 22%.

Categoría de inversión tecnológica	Monto invertido	Mejora de la eficiencia
Sistemas de fabricación robótica	$ 87.5 millones	Aumento de la velocidad de producción del 15%
Líneas de embalaje automatizadas	$ 62.3 millones	Mejora de la precisión del envasado del 18%
Sistemas de control de calidad de IA	$ 45.2 millones	Reducción de defectos del 12%

Desarrollo de la plataforma de marketing digital y comercio electrónico

Hershey asignó $ 42.6 millones en 2023 a las mejoras de la plataforma de marketing digital y comercio electrónico. Las ventas en línea crecieron en un 34.7% en comparación con el año anterior, llegando a $ 276 millones en ingresos digitales.

Inversión de plataforma digital	Presupuesto	Crecimiento de ventas en línea
Actualización de la plataforma de comercio electrónico	$ 18.3 millones	Aumento del 27% en las transacciones en línea
Tecnologías de marketing digital	$ 24.3 millones	41% de compromiso digital más alto

Implementación avanzada de software de gestión de la cadena de suministro

Hershey implementó SAP S/4HANA Supply Chain Management Software, invirtiendo $ 35.7 millones. La implementación redujo los costos del inventario en un 16% y mejoró la eficiencia logística en un 22%.

Tecnología de la cadena de suministro	Inversión	Mejora operativa
Implementación de SAP S/4HANA	$ 35.7 millones	Reducción de costos de inventario del 16%
Sistemas de seguimiento en tiempo real	$ 12.4 millones	22% de aumento de la eficiencia logística

Tecnologías de embalaje emergentes para la preservación de productos

Hershey invirtió $ 22.5 millones en tecnologías de envasado innovadoras en 2023, centrándose en la vida útil y la sostenibilidad extendida. Las nuevas soluciones de envasado redujeron el desperdicio de alimentos en un 19% y disminuyeron el uso de plástico en un 27%.

Tecnología de envasado	Inversión	Impacto ambiental
Materiales de embalaje biodegradables	$ 12.6 millones	27% de reducción de plástico
Técnicas de preservación avanzada	$ 9.9 millones	19% de reducción de desechos de alimentos

The Hershey Company (HSY) - Análisis de mortero: factores legales

Cumplimiento de las regulaciones de seguridad alimentaria de la FDA

La compañía Hershey mantiene 100% Cumplimiento con regulaciones de seguridad alimentaria de la FDA. En 2023, la compañía se sometió a 37 inspecciones de la FDA en sus instalaciones de fabricación.

Métrico regulatorio	2023 datos
Inspecciones de la FDA	37
Violaciones de seguridad alimentaria	0
Tasa de cumplimiento	100%

Protección de propiedad intelectual

Hershey sostiene 214 patentes activas Protección de sus diseños de productos y procesos de fabricación a partir de 2024.

Categoría de protección de IP	Número
Patentes activas	214
Marcas registradas	86
Aplicaciones de patentes pendientes	42

Cumplimiento del acuerdo comercial internacional

Hershey opera en Más de 70 países, garantizar una estricta adherencia a los acuerdos comerciales internacionales.

Métrica de cumplimiento comercial	Estado 2024
Países de operación	70+
Cumplimiento del Acuerdo de Libre Comercio	100%
Violaciones de comercio internacional	0

Posibles riesgos de litigios

En 2023, Hershey enfrentó 3 desafíos legales relacionados con el etiquetado de productos, con gastos legales totales de $ 1.2 millones.

Categoría de litigio	2023 datos
Demandas de etiquetado de productos	3
Gastos legales totales	$1,200,000
Casos resueltos	2

The Hershey Company (HSY) - Análisis de mortero: factores ambientales

Iniciativas de abastecimiento de cacao sostenible

Inversión de sostenibilidad de cacao: $ 500 millones cometidos a través del programa Cocoa for Good para 2030.

Iniciativa	Objetivo	Progreso
Apoyo para agricultores de cacao	200,000 agricultores para 2030	120,000 agricultores apoyados a partir de 2023
Prevención del trabajo infantil	Eliminar el trabajo infantil en la cadena de suministro	Reducción del 75% en casos identificados desde 2018

Reducción de la huella de carbono en los procesos de fabricación

Reducción de emisiones de carbono: Reducción del 31% en las emisiones de gases de efecto invernadero desde 2018.

Ubicación de fabricación	Objetivo de reducción de carbono	Progreso actual
Hershey, PA Instalación	Reducción del 50% para 2025	37% de reducción lograda
West Hershey, PA Planta	Reducción del 45% para 2025	33% de reducción lograda

Compromiso con la energía renovable en las instalaciones de producción

Inversión de energía renovable: $ 40 millones asignados para la infraestructura de energía verde.

Fuente de energía	Porcentaje actual	Objetivo 2025
Energía solar	22%	35%
Energía eólica	15%	25%

Reducción de residuos y esfuerzos de sostenibilidad del embalaje

Objetivo de sostenibilidad del embalaje: 100% de envasado reciclable para 2025.

Categoría de reducción de desechos	Reducción actual	Objetivo 2025
Embalaje de plástico	Reducción del 40%	75% de reducción
Desechos de fabricación	35% desviado de los vertederos	90% de desvío para 2025

The Hershey Company (HSY) - PESTLE Analysis: Social factors

Growing consumer demand for 'better-for-you' and low-sugar snack options.

You can't ignore the seismic shift toward healthier snacking; consumers want indulgence without the guilt, and The Hershey Company is responding by strategically expanding its better-for-you (BFY) portfolio. This isn't just a niche trend-it's a major market driver. In North America, products explicitly labeled as BFY have seen a remarkable 22.4% sales growth annually. This demand is pushing sugar-free confections to a significant market share, which has expanded from 6.1% to 11.3% over the past three years.

The company's strategy is clear: acquire and innovate. In the first quarter of 2025, Hershey's CEO cited strategic acquisitions that further expand the BFY portfolio. Their zero-sugar and BFY product lines were a key support for growth in the third quarter of 2025. The global low-calorie sweets market is projected to reach $2,332.9 million by 2025, so this focus is defintely a necessary move to capture future growth outside of traditional chocolate bars.

Increased scrutiny on child-focused marketing and advertising practices.

The scrutiny here is two-fold: direct advertising to children and the ethical sourcing of cocoa. On the marketing front, The Hershey Company has explicitly stated its intent to direct its marketing messages primarily to adults and, where appropriate, to teens, not to children under 13 on its websites. This reflects a proactive stance to mitigate regulatory risk and public backlash over promoting high-sugar products to minors.

However, the more material social risk lies in the supply chain's ethical practices, specifically child labor in West African cocoa farming. The company is tackling this through its Cocoa For Good program, which commits to a half-billion-dollar investment by 2030. Transparency is increasing, but the risk remains high. Here's the quick math on their remediation efforts:

• Child Labor Monitoring and Remediation System (CLMRS) coverage: 95% of Hershey cocoa volumes in Côte d'Ivoire and Ghana as of December 2024.
• Children covered by CLMRS in 2024: 129,111.
• Children found to no longer be doing inappropriate work or aged out: 7,428 at the most recent follow-up.

Strong seasonal and holiday spending patterns remain a key revenue driver.

Seasonal sales are the bedrock of the confectionery business, and they continue to be a massive revenue driver for Hershey. This is a core strength for the company. The US chocolate market sees a predictable surge around major holidays like Valentine's Day, Halloween, and Christmas. In the first quarter of 2025, the strength of these seasons helped drive consumption that exceeded the company's expectations in its U.S. Candy, Mint, and Gum and Salty Snacks segments.

The timing of holidays can even swing quarterly results. For instance, the North America Confectionery segment's net sales of $2,085.5 million in the second quarter of 2025 benefited from the later timing of the Easter season compared to 2024, plus the earlier shipment of some Halloween orders. Consumers are still making room in their budgets for these treats; the annual amount spent per consumer on confectionery is $276, a 4% increase from 2023.

Seasonal demand is a predictable, reliable revenue stream. It's a huge competitive advantage.

Shifting demographics drive demand for premium and dark chocolate products.

As demographics shift and consumers become more health-aware and discerning, the market is premiumizing. This means people are buying less volume of cheap candy but spending more on higher-quality, ethically-sourced, or dark chocolate options. The U.S. premium chocolate market is projected to grow at a Compound Annual Growth Rate (CAGR) of 2.9% from 2025 to 2030.

Dark chocolate is leading this charge, holding a 62.6% market share in 2025 of the premium chocolate segment. This is driven by the perception of health benefits, such as antioxidants and lower sugar content. Dark chocolate with high cocoa content (over 70%) has seen a significant 31% sales increase since 2020. This trend presents both an opportunity and a risk for Hershey, whose core portfolio is dominated by milk chocolate brands. The global premium chocolate market, a clear opportunity, was estimated at $31.87 billion in 2024 and is projected to reach $40.60 billion by 2030.

Market Segment	Key 2025/Forecast Metric	Growth Driver
U.S. Premium Chocolate Market	CAGR of 2.9% (2025-2030)	Demand for high-quality, artisanal, and gourmet products.
Premium Dark Chocolate Segment	62.6% market share (in Premium Chocolate, 2025)	Health-conscious consumers seeking antioxidant benefits and lower sugar.
Better-for-You Products (North America)	22.4% annual sales growth	Consumer desire for 'guilt-free' alternatives and alignment with health goals.
Low Calorie Sweets Market (Global)	Projected value of $2,332.9 million by 2025	Rising health awareness, prevalence of diabetes and obesity.

The Hershey Company (HSY) - PESTLE Analysis: Technological factors

Automation and robotics in manufacturing to improve defintely efficiency.

The Hershey Company is making significant capital investments to drive manufacturing efficiency and combat rising commodity costs, like the extreme cocoa price volatility seen in 2025. For the full 2025 fiscal year, the company is projecting Capital Expenditures between approximately $425 million and $450 million, with a clear focus on automation and supply chain enhancements.

This investment is directly tied to the 'Advancing Agility & Automation Initiative,' which is designed to streamline operations and increase output. The expected savings from this initiative have been raised for 2025, now projected to deliver approximately $150 million in net savings, up from the prior target of $125 million. This is a critical move to protect margins, especially when facing headwinds in the International segment, which reported a $13.6 million loss in the third quarter of 2025.

The company is implementing modular 'advanced technology lines' that use robotics to allow for smaller production runs and faster changeover times. That's a huge win for product innovation. These lines are crucial for balancing the need for high-volume, scaled production with the agility required to launch new products or trial smaller market concepts without the expense of retooling a major production line.

E-commerce and direct-to-consumer (D2C) channels require new logistics tech.

The shift to e-commerce and D2C fulfillment demands a completely different logistics technology stack than traditional retail. For a confectionary company, the biggest tech challenge is literally melting. Hershey has had to invest in specialized logistics, such as 'chilled drop shipping,' to enable 'worry-free summer shipping.' This technical solution removes a major barrier to year-round online sales growth for meltable products like chocolate.

Beyond shipping, the focus is on digital integration throughout the customer journey. The company is working to build unique e-commerce capabilities in partnership with retailers, ensuring a seamless experience whether a consumer is shopping online or offline. This involves:

• Developing impulse-buy mechanisms for online checkout lanes.
• Creating purchase histories for easy reorder reminders.
• Offering 'add-on' suggestions to help meet free shipping minimums.

The goal is to translate the physical store's impulse-buy success into the digital world. You can't just rely on a candy bar at the register anymore; you need data-driven digital prompts.

Supply chain digitization for better tracking of cocoa sourcing and sustainability.

Technology is the only way to achieve the level of supply chain transparency required by consumers and regulators today. Hershey's 'Cocoa For Good' strategy, backed by a $500 million investment by 2030, relies heavily on digitization to meet its 2025 goals.

The company is on track to achieve 100% sourcing visibility for its cocoa volume in high-risk areas of Côte d'Ivoire and Ghana by the end of 2025. This level of traceability is achieved through advanced mapping and monitoring systems. Here's the quick math on their 2025 commitment:

Technological Target (2025)	Metric/Impact	Technology Used
Cocoa Sourcing Visibility	100% of cocoa volume in Côte d'Ivoire and Ghana.	Direct Sourcing, Polygon Mapping
Child Labor Monitoring & Remediation Systems (CLMRS)	Expanded to cover 100% of high-risk sourcing.	Digital Monitoring Systems, Community Data
Farm Monitoring for Zero-Deforestation	100% Satellite Mapping of West African cocoa farms.	Satellite Monitoring Systems

This digitization is not just about compliance; it's about building a more resilient supply chain, which is critical given the current volatile cocoa market. The satellite mapping, for instance, provides real-time data to support their zero-deforestation commitment.

Use of AI for demand forecasting and personalized marketing campaigns.

Artificial Intelligence (AI) is moving beyond simple data analysis into core marketing and product innovation. Hershey is using AI to make its media spending more efficient and to drive sales in previously overlooked markets.

For high-stakes seasons like Halloween, the company deployed a custom algorithm that ingested sales data broken down by zip code to auto-optimize media bidding. This AI-driven approach allowed them to focus ad spending where it mattered most, successfully driving sell-through to 90% in underperforming markets, up from under the national sell-through average of 85%. That's a direct, measurable return on AI investment.

Plus, AI is now a central part of their product pipeline. They are using an AI-driven innovation tool called Atlas to accelerate product development.

• Rapid Brand Creation: Generates logos, mood boards, and packaging concepts quickly.
• Personalized Marketing at Scale: AI is used for zip-code level targeting and scaling content creation across an estimated 19,000 digital shelf assets.
• Strategic Insight: Provides data-backed recommendations for licensing and M&A due diligence.

The technology is allowing them to move from broad, national campaigns to highly localized, personalized outreach, effectively speaking to consumers in places like Topeka, Kansas, who were previously missed by media strategies focused only on the largest five U.S. cities.

The Hershey Company (HSY) - PESTLE Analysis: Legal factors

Class-action lawsuits regarding heavy metals (cadmium, lead) in chocolate products.

The most pressing legal factor for The Hershey Company in 2025 remains the ongoing class-action litigation concerning heavy metals-specifically lead and cadmium-found in some of its dark chocolate products. This issue stems from a December 2022 Consumer Reports finding, which alleged that 23 of 28 dark chocolate bars tested contained potentially harmful levels of heavy metals for an adult consuming one ounce per day.

The core legal exposure is based on claims of deceptive marketing and failure to disclose health risks, particularly under California's Proposition 65 (Prop 65) standards, which set a Maximum Allowable Dose Level (MADL) for these chemicals. For example, one test found that a one-ounce serving of Hershey's Special Dark Mildly Sweet Chocolate exceeded the allowable lead limits by 265%. Another product, Lily's Extremely Dark Chocolate 85% Cocoa, was found to be 143% above the lead MADL and 101% above the cadmium MADL. This is a serious legal and reputation risk.

While one plaintiff in the Southern District of California agreed to end her suit with prejudice in March 2025, the dismissal was without prejudice for absent proposed class members, meaning the broader class-action risk persists. Another nationwide class action remains pending certification in the U.S. District Court for the Eastern District of New York.

Here's the quick math on the compliance challenge based on the Consumer Reports findings:

Product	Heavy Metal of Concern	Exceedance of CA MADL (Approx.)
Hershey's Special Dark Mildly Sweet Chocolate	Lead	265%
Lily's Extremely Dark Chocolate 85% Cocoa	Lead	143%
Lily's Extremely Dark Chocolate 85% Cocoa	Cadmium	101%

Compliance with evolving FDA food safety and nutritional labeling standards.

The regulatory landscape is shifting quickly, demanding continuous compliance updates. In June 2025, the FDA announced a major update to its General Food Labeling Requirements Compliance Program, which will guide inspectors and tighten enforcement.

The key focus areas for The Hershey Company's legal and regulatory teams in the 2025 fiscal year include:

• Sesame Allergen Labeling: Compliance with the FASTER Act, which mandates clear declaration of sesame as the ninth major allergen.
• Updated Nutrition Facts Panel: Ensuring all labels reflect the 2016 revisions, including the mandatory declaration of Added Sugars.
• Front-of-Package (FOP) Labeling: Preparing for a proposed rule, announced in January 2025, that would require a prominent 'Nutrition Info box' on the front of packaged foods. This box would display the percentage of daily value for saturated fat, sodium, and added sugars, and is a significant change.

Honestly, the FDA's intensified scrutiny on nutrition transparency, especially around added sugars and serving size accuracy, means the legal risk of a label violation leading to fines or recalls is higher than in previous years.

International intellectual property protection for core brand names and recipes.

Protecting iconic brands like Reese's, Kit Kat, and Hershey's Kisses globally is a constant legal battle. The company's international intellectual property (IP) strategy focuses heavily on trademark enforcement to combat counterfeiting and passing off.

A concrete example of this active enforcement came in May 2025 when the Delhi High Court in India granted The Hershey Company a permanent injunction. The injunction restrained the defendants from infringing upon the company's trademark and from misrepresenting their association, which is a clear win for protecting brand equity in a high-growth international market. This kind of active litigation is defintely necessary to protect the more than 80 brand names the company markets and sells in approximately 90 countries worldwide.

Labor laws and union negotiations, especially in US manufacturing facilities.

Labor relations and compliance with the National Labor Relations Board (NLRB) continue to be a significant legal risk for US manufacturing operations. The company has a history of major labor negotiations, such as the 2010 deal in Hershey, Pennsylvania, which involved a $200 million investment in the West Hershey plant but also the planned elimination of 500 to 600 jobs at the older facility.

More recently, the Stuarts Draft, Virginia plant has been a focal point for unionization efforts by the Bakery, Confectionery, Tobacco Workers and Grain Millers (BCTGM) union. In late 2023, the NLRB threw out the results of a previous election due to allegations of illegal union-busting by the company. The resulting settlement included a $200,000 payment to a union sympathizer who was allegedly fired in retaliation, plus an order for a new union election. This situation creates legal exposure for unfair labor practice charges and potential back pay liabilities. Also, the political environment in 2025 suggests a potential shift in NLRB priorities, which could either simplify or complicate labor negotiations, depending on the administration's stance on pro-labor policies.

Finance: draft a contingency plan for a 5% wage increase across all US manufacturing facilities by the end of Q1 2026 to mitigate unionization risk.

The Hershey Company (HSY) - PESTLE Analysis: Environmental factors

Climate change impacts cocoa crop yields in West African sourcing regions

You need to understand that climate change is not a theoretical long-term risk for Hershey Company; it is a 2025 cost-of-goods reality. The core of the issue is that West African cocoa production, which supplies nearly 70% of the world's cocoa, is shrinking for the fourth consecutive year. This is a direct result of erratic weather, including drought and excessive heat. For example, in 2024 alone, human-caused climate change added approximately six weeks of days above 32°C (89.6°F)-temperatures too hot for cacao-in 71% of the primary cocoa-producing areas of Côte d'Ivoire and Ghana.

This climate-driven supply shock has sent prices soaring. Cocoa prices have doubled since the start of 2024 and are projected to remain high through at least September 2025, which directly impacts Hershey's input costs. Honestly, this is why Hershey lowered its 2025 profit outlook; higher production costs due to climate-related supply chain challenges were a culprit. The company is responding by investing in 'Climate-Smart Cocoa Practices' and agroforestry programs to help farmers adapt and restore a stable cocoa supply.

Pressure to reduce packaging waste and transition to 100% sustainable materials

The regulatory and consumer pressure to manage packaging waste is intense, especially for a high-volume snack company. Hershey has actually done well on its initial goals, having met its 2015 commitment to reduce packaging weight by 25 million pounds by 2025 five years early. That's a good start.

However, the focus has shifted to material circularity. The company has a new target to eliminate an additional 25 million pounds of packaging materials by 2030. Progress toward this new goal is measurable: cumulative packaging waste eliminated between 2021 and 2024 reached 17.8 million pounds. The biggest challenge remains flexible plastics, where limited recycling infrastructure makes the 2030 goal of having 100% of plastic packaging recyclable, reusable, or compostable a major capital and R&D hurdle.

Here's a quick look at their packaging reduction progress:

• 2015 Goal: Reduce packaging weight by 25 million pounds by 2025. (Achieved early)
• New Goal: Eliminate an additional 25 million pounds of packaging by 2030.
• Progress (2021-2024): 17.8 million pounds of packaging waste eliminated.
• 2024 Elimination: Two million pounds of packaging eliminated in 2024.

Water usage and scarcity risk in manufacturing and agricultural supply chains

Water is a critical, yet often overlooked, risk in the supply chain. Hershey's operations face scarcity risks, especially in regions with high water stress. The good news is the company exceeded its internal conservation goal in its most vulnerable facilities. They aimed for a 20% reduction in absolute water consumption against a 2018 baseline in priority facilities where water is most scarce, and they achieved a 31% absolute water reduction in 2024.

But, what this estimate hides is the challenge of overall business growth. Despite the efficiency gains at priority sites, the company's 2024 Responsible Business Report noted a slight increase in both overall water usage and intensity across the entire network. So, while the high-risk sites are better off, the overall water footprint is still a moving target that requires continuous investment in process improvements.

Corporate commitment to deforestation-free cocoa sourcing standards

Hershey has a clear, near-term target to eliminate commodity-driven deforestation. The company is committed to achieving a deforestation and conversion-free supply chain for key commodities, including cocoa, palm oil, pulp & paper (packaging), and direct soy, by December 31, 2025. This is a firm deadline.

To meet this, they are focused on traceability in their West African supply chain. The goal is 100% sourcing visibility of their cocoa volume in Côte d'Ivoire and Ghana by the end of 2025. As of their 2024 reporting, they were on track, with 88% sourcing visibility achieved. Plus, 98% of the farmers producing their cocoa volume in these countries are polygon mapped by suppliers, which is a crucial step for using satellite monitoring (like the Starling solution) to enforce the no-deforestation policy. Still, a November 2025 report from the NGO Global Witness suggested that untraceable bulk cocoa, which is mixed with certified cocoa, continues to link major brands to deforestation in regions like Liberia, indicating that the industry-wide challenge of full supply chain segregation is defintely still a risk.

Environmental Metric (2025 Focus)	Target Year	2024 Progress/Status	Impact on HSY Business
Cocoa Sourcing Visibility (Côte d'Ivoire & Ghana)	2025	88% achieved (on track for 100%)	Enables real-time deforestation monitoring; mitigates EU regulatory risk.
Deforestation-Free Supply Chain (Cocoa, Palm Oil, etc.)	December 31, 2025	Polygon mapping reached 98% of farmers in key regions.	Secures long-term ingredient supply; protects brand reputation.
Water Consumption Reduction (Priority Sites)	2018 Baseline	31% absolute reduction achieved in 2024 (Exceeded 20% goal).	Improves operational efficiency; reduces exposure to local water scarcity.
Packaging Waste Elimination (Cumulative)	2030	17.8 million pounds eliminated (2021-2024).	Reduces material costs; addresses consumer demand for less waste.
Climate Change Impact on Cocoa	Ongoing (2025 Reality)	Cocoa prices high through Sept 2025; West Africa crop shrinking 4th year.	Directly increases Cost of Goods Sold; lowered 2025 profit outlook.