US confectionery giant Hershey has set new long-term growth targets and outlined a five-year plan to expand its five core brands, including Reese’s peanut butter cups and Hershey’s Kisses.
While Hershey has not revealed any financial details of its strategy for the brands, the move is the latest investment by the group in its product portfolio.
In April, Hershey announced it would increase its full-year advertising spend and focus on innovation during the remainder of the year. The company has continued to invest in its core brands in both the US and key international markets.
Hershey is expected to reveal further details of the strategy in an investor update today, but in its initial statement Hershey’s chief executive John Bilbrey said: “We’ll continue to invest in tools and capabilities that will drive core brand growth. We’re excited about the insights we’ll obtain from the additional work currently under way on Hershey’s confectionery demand landscape that is focused on the individual segments of chocolate, non-chocolate candy and refreshment in the US and key international markets.”
Hershey also reaffirmed its outlook for full-year 2012 net sales growth of around 7-9%, and full-year adjusted EPS-diluted growth of 10-12%, adding that it has the strategies in place to support long-term net sales growth of 7-9% and adjusted EPS growth of 8-10%.
In April, Hershey reported its first-quarter earnings jumped 24% as the firm saw its pricing efforts pay off with an 11% rise in sales. The company had raised its 2012 forecast earlier this year after it enjoyed relatively strong pricing power compared to its peers.