The Hershey Company (HSY) recently launched two new flavors of Ice Breakers Duo mints: a blend of fruit and mint, with raspberry and strawberry flavors.
These mints are based on the brand’s flagship cooling crystals and have a sweet fruit-like taste along with a cool mint flavor. Ice Breakers Duo mints are available at grocery, drug and specialty retailers throughout the U.S. Hershey’s also joined forces with Pandora as well as an interactive Facebook application to increase the consumer awareness and popularity of the product.
Ice Breakers is one of the five core brands of Hershey. Others being Hershey’s, Reese’s, Hershey’s Kisses and Jolly Rancher. The company intends to invest and expand these five core brands across the globe. Hershey has long-term targets of 5% to 7% growth in net organic sales and 8% to 10% growth in adjusted earnings per diluted share.
We currently have a Neutral recommendation on The Hershey Company. The Hershey Company carries a Zacks #3 Rank in the near term (Hold rating).
We appreciate the company’s investment in brand building and product innovation, which eventually will lead to consistent growth in the long term. However, on the flip side, increasing advertising expenses and rising cost of input commodities can have a negative impact on margins.
Based in Hershey, Pennsylvania, The Hershey Company is the largest producer of chocolates in North America. The company also produces sugar confectionary. It offers more than 25 brands including Hershey’s, Hershey’s Kisses, Hershey’s Bliss, Hershey’s Special Dark and Kit Kat.
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