June 25, 2021
Hershey Completes $425M Lily’s Chocolate Acquisition
The American chocolate maker is expanding its range of low-sugar, better-for-you (BFY) confections through the deal.
American chocolate maker The Hershey Co. announced the completion of its acquisition of low-sugar, better-for-you sweets maker Lily’s this Friday. The business was purchased for $425 million.
“Lily’s is a great addition to Hershey’s growing portfolio of better-for-you snacking brands, and we’re excited to add this high-growth, leading BFY brand and to get to work with its talented and innovative team,” Chuck Raup, president, US for Hershey, said in a release. “Lily’s popular low-sugar products are a great strategic fit with our multi-pronged better-for-you snacking strategy and will perfectly complement our existing iconic Hershey’s BFY offerings.”
Lily’s was launched by Cynthia Tice in 2012 at Whole Foods Market stores across the US with four varieties of chocolate style bars. Over the years other major retailers started to carry the products, including Target stores.
Hershey revealed plans to purchase the confectionary brand this May.
Major chocolate manufacturing companies have announced plans in recent years to cut sugar in their products in response to shifting consumer preferences and lifestyles. In 2017, a group of sweets makers that included Nestle, Mars, Wrigley and Ghirardelli publicly pledged to cut the amount of sugar in their individually wrapped products in half by 2022.
Companies like Barry Callebaut and Cargill are adding reduced-sugar chocolate to their portfolio and expanding their production capabilities for the products.
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