Hershey pivots to bring US operations under one banner, amid market challenges
Hershey CEO Kirk Tanner, (right of pic) takes to the stage at the State of the Industry Conference. He has outlined its new One Hershey direction. Pic: Neill Barston
A key strategic move has been made by the Hershey Company, as it confirms plans to launch a combined US operating model in which is draws its sweet, salty and protein interests under one unit, writes Neill Barston.
Market observers have seen the move as a pivot amid challenging conditions in which volatile cocoa prices of the past 18 months that have swung from $12,000 a tonne on commodities markets, through to under $3,000 tonne last month, have impacted its manufacturing.
This has led to corresponding recipe amendments for some of its extended range of products relating to its Reese’s range, which are reportedly using alternate chocolate compounds.
According to the company, its new operating model, under the banner of One Hershey is “designed to unlock deeper consumer connections, strengthen customer partnerships and accelerate Hershey’s leadership” as it drives its snacking operations forward.
The move comes amid a reported move by the Hershey Trust Co, which has a 10 per cent stake in the company, to sell 20,000 shares of common stock, said to be valued at some $4.3 million, which is understood by market observers to be related to the company’s strategic pivot.
Kirk Tanner, President and CEO of The Hershey Company, commented on the move to unify its operations. He said: “Our brightest moments come from talented people working together across functions to deliver bold thinking.
“By activating our full portfolio as ONE Hershey, we’re better positioned to meet consumers wherever they are, create more moments of goodness and lead next generation snacking with speed and purpose.”
Notably, as the company explained, under the ONE Hershey model, the company will combine its execution of commercial activity across all three U.S. categories while centralising global brand marketing.
This marks the first time Hershey has unified its brand power, category strategies and consumer insights under a single integrated structure. The evolution scales the commercial capabilities of its iconic U.S. Confection brands with the speed and agility of its Salty and Protein portfolios.
As the business noted, its executive Leadership Team will assume expanded responsibilities to support the integrated model, with Andrew Archambault, President, U.S. – Expands leadership to encompass the full U.S. portfolio, including commercial planning and execution, category leadership, customer relationships and retail execution.
Meanwhile, Nitin Jain, Chief Strategy & Transformation Officer, joins its top team reporting directly to the CEO, integrating enterprise and business unit strategy, prioritisation and resourcing.
For her part, Stacy Taffet, Chief Growth & Marketing Officer – Expands scope to include oversight of demand creation capabilities, portfolio strategy, innovation, consumer connections and brand leadership, while Vero Villasenor, chief brand officer moves to a global role responsible for expanding its international marketing campaigns.
