Dive Brief:
- Hershey's net earnings rose 4.4% in the most-recent quarter. Sales rose to $1.87 billion, shy of analysts expectations.
- The maker of Kit Kat, Reese's Peanut Butter Cups, Hershey Kisses, and other candy noted that the company's 10% price hike -- phased in over several years -- had apparently not cost the company market share.
- During a conference call regarding earnings, analysts focused on Hershey's rare reduction in advertising spending. The company, one of the largest marketing forces in the food business, had cut such spending 3% in the quarter.
Dive Insight:
On that conference call, CEO John Bilbreys said the ad-spending cuts had not affected the company's core brands. Rather, Hershey was downplaying a number of lesser -- and presumably less-well-performing -- brands.
Those out-of-favor candies include Hershey's Bliss and Hershey's Simple Pleasures.