Hershey said Michael Del Pozzo, the president of its U.S. confections business, will leave the company on Dec. 12 and return to an unspecified leadership role at PepsiCo.
Michele Buck, Hershey’s CEO, will manage the candy division on an interim basis while the Pennsylvania company “identifies a successor from among a strong pipeline of internal and external candidates.”
Del Pozzo joined Hershey in September to oversee brands including Kisses, Reese’s and Jolly Rancher. At the time, Hershey said Del Pozzo “brings a wealth of experience in leading growth and transformation” from his 23 years at the food and beverage company. At the time, Hershey said Del Pozzo “brings a wealth of experience in leading growth and transformation” from his 23 years at PepsiCo.
As president and general manager of Gatorade, Del Pozzo ran a $10 billion business, transforming the sports drinks company into a portfolio of sports and fitness brands. He also previously led the sales and commercial functions for PepsiCo’s Frito Lay North America unit.
His departure comes as Oreo manufacturer Mondelēz International reportedly approached Hershey to gauge its interest in an acquisition. At least one analyst said Del Pozzo’s decision to leave increases the likelihood of a combination between the two snacking giants.
Hershey has faced a series of challenges recently that have made the company more vulnerable to a deal. It cut its net sales growth forecast earlier this year after a series of price hikes curtailed demand for its sweet and salty products. Hershey also is experiencing pressure on its business due to higher cocoa costs and popular GLP-1 weight-loss drugs.
“We view the sudden departure of U.S. Confection President Michael Del Pozzo after fewer than three months at Hershey as another indication of difficult fundamentals at the company,” Robert Moskow, an analyst with TD Cowen, said in a note to investors. “We think these conditions increase the probability of the Hershey Trust agreeing to sell the business to Mondelēz.”
