Hershey confirms up to $180 million set to be paid in US tariffs
Hershey at the recent Sweets & Snacks Expo in Indianapolis Pic: Neill Barston
The Hershey Company has confirmed it is set to pay up to $180 million in US tariffs this autumn, despite an appeal to the White House for exemption for the significant tax increases, reports Neill Barston.
As previously reported by Confectionery Production, the business is understood to have approached the Republican administration on the issue, asserting that as cocoa is not produced domestically in the US, the business should not be subject to addition import fees.
However, the company confirmed in its latest quarterly earning trading statement that it would in fact be paying the tariffs – which have caused major concern across sectors, with Hershey itself confirming that it intends to increase its retail prices by double-digit figures from this autumn in light of heightened costs of operating.
The company reported consolidated net sales of $2,614.7 million, an increase of 26.0%, though net income for the second quarter was $62 million, down 65%, amid challenging business conditions that the company noted had seen unprecedented conditions within its cocoa supply chains.
In addition, the second quarter 2025 reported operating profit was $192.8 million, a decrease of 33.0%, compared to the second quarter of 2024,
Furthermore, the business revealed that it would be updating its reported and adjusted earnings as a result of the tariff payments, with its outlook now incorporating commodity cost mitigation strategies.
As per previous reports, the company has just appointed a new CEO, Kirk Tanner, formerly of PepsiCo, who will be taking up his new post later next month.
For her part, Michele Buck, the company’s outgoing chief executive, asserted that the business was in fact gaining momentum this year.
She said: “We are pleased with our second-quarter results and the momentum we are seeing in our business.
“Investments in our brands and impactful innovation, coupled with effective execution, are driving solid sales and share gains across both our U.S. confection and salty snacking business. Looking ahead, we remain committed to delivering balanced growth and have taken pivotal steps toward mitigating cocoa inflation through strategic pricing, enhanced productivity, and technology enabled efficiency and speed.”
