From a Pennsylvania caramel maker to America's #1 confectionery brand — 130 years of chocolate dominance.
The Hershey Company (NYSE: HSY) is America's largest chocolate maker and a leading snack powerhouse. Founded in 1894 by Milton S. Hershey, it's built an empire on beloved brands like Reese's, Kisses, Kit Kat, and York — while aggressively expanding into salty snacks. In 2024, Hershey posted $11.2B in revenue, navigating macro headwinds and surging cocoa prices with pricing strategy and innovation.
Milton Hershey's journey didn't start with chocolate — it started with caramel. After earlier confectionery failures, he established the Lancaster Caramel Company in 1886, which gave him the capital to chase his real dream. A visit to the 1893 World's Columbian Exposition in Chicago, where he saw chocolate-making equipment for the first time, changed everything.
In 1894, he founded the Hershey Chocolate Company as a subsidiary of his caramel operation. By 1900, he had cracked the formula: using fresh milk instead of powdered milk, making him the first to mass-produce milk chocolate affordably. The first Hershey's Milk Chocolate Bar debuted that year at just 5 cents — and the rest is history.
Hershey's Kisses followed in 1907, initially hand-wrapped by workers. The iconic Mr. Goodbar arrived in 1925, and Krackel in 1938. Milton Hershey also built an entire company town — Hershey, Pennsylvania — complete with housing, a bank, a department store, and a school for orphans.
Hershey's brand family spans chocolate, sweets, and salty snacks:
Core Chocolate
Hershey closed 2024 with $11.2 billion in net sales, a modest 0.3% increase over 2023 — solid given the macro environment. Gross profit hit $5.3 billion, with gross margin expanding to 47.3% (up from 44.8% in 2023), driven by pricing and cost management discipline.
In Q4 2024 alone, consolidated net sales rose 8.7% to $2.9B, with North America Confectionery segment income reaching $808.2 million — an 11.5% jump. The company's 3-year EPS CAGR of 9.2% exceeded its long-term target despite double-digit input cost inflation.
Key performer brands in 2024: Reese's, Kisses, and Chocolate Assortments.
Hershey Annual Revenue (USD Billions)
Hershey's forward strategy rests on three pillars:
1. Innovation — Fewer, bigger bets. The company is pursuing what it calls its 'biggest Reese's innovation ever' and secured back-to-back Super Bowl ad spots for Reese's Lava Big Cup. Partnerships with Barstool Sports and the New Heights podcast (Kelce brothers) aim to reach younger audiences.
2. Snacking Expansion — Hershey calls itself a 'Leading Snacking Powerhouse' — targeting growth well beyond chocolate into popcorn, pretzels, and protein bars.
3. Cost Transformation — A $900M cost improvement program running 2023–2026, including a $1B+ investment in modernizing supply chain and manufacturing capacity.
On the leadership front, CEO Michele Buck announced her retirement plans for 2026 after nearly 20 years at Hershey — marking a significant transition for the company.
One persistent wildcard: Mondelēz International has made multiple acquisition bids for Hershey, most recently in 2024. The Hershey Trust, which controls ~80% of voting power, rejected the offer as too low — keeping Hershey independent for now.