Hershey has finalized its acquisition of LesserEvil, an organic snacks brand, marking a significant milestone for the food giant as it expands its presence in the salty treats market and aims to shape the future of snacking, according to a top executive interviewed by Food Dive.
The company behind Reese’s announced earlier this year that it was purchasing LesserEvil to diversify its portfolio of salty snacks. Since 2017, Hershey has acquired several popular brands, including SkinnyPop popcorn, Pirate’s Booty cheese puffs, and Dot’s Homestyle Pretzels.
Veronica Villasenor, president of Hershey’s salty snacks division, stated in an interview that the acquisition of LesserEvil is strategic and will help the company reach new consumers and occasions, offering them more choices.
The price paid for LesserEvil was not disclosed by Hershey, but The Wall Street Journal reported that it was approximately $750 million.
Hershey was attracted to LesserEvil due to its use of better-for-you ingredients like coconut oil and avocado oil. The brand’s popcorn, puffs, and rings are seen as a healthier snack option that appeals to kids and their parents, providing Hershey with an opportunity to engage with a younger demographic.
LesserEvil, a 14-year-old company, aligns with Hershey’s strategy of acquiring brands with unique and bold flavors. The brand offers products like Himalayan Pink Salt Paleo Puffs, Oh My Ghee! Popcorn, Sugar Cookie Popcorn, and Moonions onion-flavored corn rings.
Hershey mentioned that LesserEvil will benefit from its innovation and scale, with the brand already seeing an increase in household penetration from 5% to 8% since the beginning of the year.
Looking ahead, Hershey sees potential for LesserEvil to expand into new snacking categories. The company plans to integrate the brand into its portfolio and collaborate with LesserEvil’s executive team to discuss future plans.
Hershey’s focus on salty snacks has been growing rapidly, with the category accounting for around 10% of its $11.2 billion revenue in 2024. The company aims to double this share to 20% over the next decade.
During the most recent quarter, Hershey reported a 10% increase in sales from its salty portfolio, reaching $321 million. Meanwhile, its confections division, which includes Hershey’s Kisses, Almond Joy, and Jolly Rancher, saw a 5.6% surge in sales to $2.6 billion, driven by price increases.