For over 130 years, the name Hershey has been synonymous with the silver-wrapped kiss and the orange glow of a Reese’s Peanut Butter Cup. But as the company looks toward the next century, its survival strategy is shifting from the candy aisle to the pantry. In a recent deep dive into the company’s evolution, Food Dive noted that “much of its 132-year-old history has been built around its iconic sweets… but a bigger part of its future growth hinges not just on sugar, but salt.”
This shift is more than just a flavor preference; it is a calculated multibillion-dollar “big bet” on the changing habits of the American consumer.
The Salty Transformation
Under the leadership of CEO Michele Buck, Hershey has undergone a radical transformation. Since 2017, the company has methodically snatched up brands that define the modern “permissible” snacking category. The portfolio now includes SkinnyPop popcorn, Pirate’s Booty cheese puffs, Dot’s Homestyle Pretzels, and its most recent acquisition, the organic snack maker LesserEvil.
According to Food Dive, these salty snacks already account for approximately 10% of Hershey’s $11 billion in annual revenue. However, the company’s ambitions are far loftier. Executives have set a firm goal to grow the salty division to 20% of total revenue within the next decade.
“It’s a big bet. It’s a long-term bet, and it’s a bet that is working,” Veronica Villasenor, president of Hershey’s salty snacks division, told Food Dive. She emphasized that the commitment to salt comes from the very top of the organization, signaling that Hershey no longer views itself as just a chocolate maker, but as a “snacking powerhouse.”
A Strategy of Precision
While competitors like PepsiCo’s Frito-Lay dominate the potato chip market, Hershey is taking a more surgical approach. The company has intentionally avoided “crowded” categories like standard chips, focusing instead on high-growth, niche segments.
The acquisition of Dot’s Homestyle Pretzels is a prime example of this success. Since joining the Hershey family four years ago, Dot’s has more than doubled its market share to 22%, becoming the top-selling pretzel brand in the United States. By focusing on intense flavor profiles—like garlic parmesan and honey mustard—and proprietary manufacturing processes, Hershey has found a way to make a commodity like the pretzel feel like a premium experience.
This “slow and methodical” push has earned praise from industry observers. Erin Lash, a senior director at Morningstar, described the move to Food Dive as a “prudent strategy,” noting that Hershey is leveraging its deep-rooted retail relationships to put these smaller brands into stores they never could have reached on their own.
Tapping into the “Better-For-You” Trend
The pivot to salt is also a pivot toward health—or at least the perception of it. As consumers increasingly look for “better-for-you” options, Hershey’s acquisitions have focused on transparency and clean ingredients.
LesserEvil, the latest addition to the stable, uses coconut and avocado oils rather than traditional vegetable oils. This allows Hershey to capture a younger, more health-conscious demographic that might shy away from traditional confections. As Food Dive highlights, while SkinnyPop is a favorite among women, LesserEvil is gaining significant traction with children and parents looking for healthier “puffs” and “rings.”
“Having [LesserEvil] coming into our portfolio really helps us continue to expand into new consumers and new occasions,” Villasenor told Food Dive.
Looking Ahead
The financial results suggest the bet is paying off. In the quarter ending December 31, 2025, Hershey’s salty portfolio generated $357 million in sales—a staggering 28% increase from the previous year. While cocoa prices remain volatile and the traditional chocolate market faces headwinds from health trends and inflation, the salty snacks division provides a much-needed hedge.
For Hershey, the future isn’t about choosing between sweet and salty; it’s about owning the entire snack occasion. Whether a consumer wants a celebratory Reese’s Cup or a “permissible” bag of SkinnyPop during a movie, Hershey wants to be the one providing the crunch.
As the company integrates LesserEvil and looks for its next target, one thing is clear: the house that chocolate built is now being reinforced with a very heavy dose of salt.
Source: Food Dive
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