Chocolate maker Hershey Co. (HSY) has hired a new growth officer as it looks to expand its portfolio of snacks.
The Pennsylvania-based company announced that it has hired Stacy Taffet as its chief growth officer. Taffet, who has 15 years of experience in the consumer packaged goods industry, will start in the new role on April 14. Taffet’s role is to help broaden Hershey’s snack products and accelerate growth in the global marketplace, said the company in a news release.
Taffet previously worked as senior vice-president of beverage portfolio strategy and marketing at PepsiCo (PEP), helping to lead marketing overhauls and business growth for various drink brands. Taffet’s hire comes two months after the appointment of Andrew Archambault and Veronica Villasenor to lead Hershey’s North American confectionery and salty snacks departments.
Challenging Times
The strategic shift to focus more on snacks comes as Hershey faces ongoing challenges with its traditional chocolate products that include Reese’s peanut butter cups and Hershey Kisses. Poor weather has virtually wiped out cocoa crops in Africa in recent years, leading prices for the main ingredient in chocolate to spike to an all-time high and raising Hershey’s input costs.
The result is that HSY stock has declined 6% over the last three years. With more than 80% of Hershey’s revenue coming from North American chocolate sales, the company is now looking to expand into salty snacks and international markets. The company has doubled its spending on digital media since 2017.
HSY stock has also been pressured by worries over consumer spending and weight loss drugs.
Is HSY Stock a Buy?
The stock of Hershey Co. has a consensus Hold rating among 18 Wall Street analysts. That rating is based on 14 Hold and four Sell recommendations issued in the last three months. The average HSY price target of $156.82 implies 13.16% downside from current levels.
Read more analyst ratings on HSY stock
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