US snacks giant Hershey has acquired local candy brand Sour Strips for an undisclosed sum to expand its sour sweets offering.
Founded in 2019 by social media personality Maxx Chewning, Sour Strips has been touted as “sour candy that doesn’t suck.”
Following the deal closure, Chewning will continue to spearhead the marketing and innovation efforts for Sour Strips.
Chewning said: “Our partnership with The Hershey Company represents a significant step in our mission to innovate and set new standards within the confection category.
“Hershey’s exceptional track record making iconic brands worldwide aligns perfectly with our vision for Sour Strips. Together with Hershey, our team is excited to continue delivering extraordinary experiences to candy enthusiasts around the globe.”
This acquisition will increase Pennsylvania-bsed Hershey’s presence in the sour candy segment and expand its reach to new consumers for more snacking occasions, a company statement read.
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By GlobalData
The Hershey Company US confection president Mike Del Pozzo said: “The acquisition of Sour Strips expands Hershey’s offerings within our growing sweets portfolio with a product that is beloved by consumers.
“We’re energised to welcome Maxx and the Sour Strips team to Hershey as we relentlessly accelerate our growth in sweets.”
With more than 20,000 employees, Hershey operates in 80 countries and generates more than $11.2bn in annual revenue. Its brand portfolio includes Hershey’s, Reese’s, Jolly Rancher and a variety of savoury snacks.
The acquisition comes amidst Hershey recently lowering its forecasts for net sales and earnings per share in 2024. The US snacks giant now expects flat net sales for the year, revising its earlier projection of approximately 2% growth.
CEO Michele Buck cited a “challenging consumer environment” as the reason for the lowered forecasts for net sales and earnings per share (EPS) for the year.
Additionally, Hershey adjusted its EPS projections, expecting a 6-9% decrease in reported EPS, compared to the initial forecast of a 1-3% decline.
Adjusted EPS is also expected to decrease at a “mid-single-digit” rate, an outlook lower than the “down slightly” prediction previously stated.
In February, Hershey unveiled a restructuring plan to enhance productivity through process automation.
Although the exact number of job cuts was not revealed, in a statement sent to Just Food, the company said that the lay-offs would affect “less than 5%” of its workforce.
