Hershey’s Ditches Sugar Legacy For Bougie Snacks and a $750 Million Acquisition…

So Hershey, America’s cavity dealer, has officially decided it wants to be the Whole Foods of snacks now. Word on the (Wall Street) Journal is that the company is this close to dropping $750 million to scoop up LesserEvil, the bougie snack brand best known for popcorn made with avocado oil and packaging that screams “mom-approved.” 

(Source: Giphy) 

In short, in a world where sugar is getting canceled, and snack aisles look more like Gwyneth Paltrow’s pantry—Hershey’s been working desperately on beefing up its salty snack offerings. First it paid $1.6 billion for SkinnyPop (which is basically popcorn with better marketing), then it acquired Pirate’s Booty, Dot’s Pretzels, and Pretzels Inc. One more puffed carb brand and they unlock the Infinity Gauntlet of guilt-free snacking LOL.

Which is why now, they’re going after LesserEvil, a brand that makes popcorn, “space balls” (think cheese balls that went to Burning Man), and corn rings that taste like Funyuns if Funyuns got a wellness coach. Now given this, Hershey’s is worth $44 billion, so dropping $750 million on a snack brand with a cult following is like impulse-buying an extra snickers bar at the gas station. It barely moves the needle on the expense budget. But it is smart. 

(Source: Investing.com) 

See, we all know Hershey’s core business is chocolate, candy, and other dentist-endorsed delights. It’s still the bread and butter, but that business isn’t exactly riding the GLP-1 wave. It’s riding a slow-moving train to stagnation as consumers cut sugar, carbs, and anything that once made childhood fun. 

For instance, salty snacks only made up 10% of its $11.2B in 2024 sales, but that number is growing. Slowly. Strategically. And with a hell of a lot more coconut oil. LesserEvil fits perfectly into this plan. It’s weird, it’s niche, it has flavor names that aren’t quite as wild as Ben & Jerry’s Ice cream (Boston Creampie still throws me for a loop), but they are definitely marketable. Basically, it’s everything Gen Z and suburban moms want in a snack brand: organic, indulgent, and just pretentious enough to feel healthy.

(Source: Food Drive) 

What’s more, ist that sure Hershey’s is buying a snack brand—but they’re buying the infrastructure that goes with it. LesserEvil brings added manufacturing capabilities, which means more control, more margin, and fewer middlemen. In a world of supply chain chao and tariffs, that matters big time. 

So, with that, what’s next? Probably more of this. Everyone’s doing it. PepsiCo just bought Siete Foods for $1.2B. Wonder Bread’s parent company bought Simple Mills for $795M. Conagra (aka Slim Jim’s dad) just added Fatty, a premium meat stick brand. The food industry is in full-on identity crisis mode, and the only way out is through the wellness aisle.

(Source: Giphy) 

In the end, Hershey’s trying to have its sugar-free cake and eat it too. Candy may still be king, but the real growth is in snacks that pretend they’re not bad for you. And if LesserEvil lets them slap a few more “organic,” “non-GMO,” and “made with ghee” labels onto shelves—then $750M is a small price to pay to stay in the game. For now, keep your eyes on Hershey’s, and place your bets accordingly, friends. Until next time… 

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Stocks.News holds positions in Pepsi as mentioned in the article.