The Hershey Company, located in Hershey, Pa., announced Monday that it would acquire two manufacturing plants from Waver Popcorn Manufacturing, a leader in popcorn production and co-packaging.
As part of a definitive agreement, Hershey said it will acquire plants in Bethlehem, Pa., and Whitestown, Ind., and would be co-manufacturing Hershey’s SkinnyPop brand with Weaver. The acquisition will help Hershey sustain growth for SkinnyPop by strengthening internal supply chain capabilities, the company said.
“Hershey has experienced tremendous growth over the past few years, stemming from a combination of successful strategy execution and an increase in more snacking occasions among consumers,” said Kristen Riggs, president of Salty Snacks at The Hershey Company. “In fact, SkinnyPop has been number one in retail sales growth for ready-to-eat popcorn over the last three years.”
The new facilities will allow the company more flexibility, agility, and resiliency across its salty snack supply chain network. The company acquired Pretzels, Inc to expand its salty snacks manufacturing capabilities a year ago.
“In response to consumer snacking trends, we continue to evolve our supply chain, making significant investments in the size, scale, and capabilities of our network, improving resiliency while we continue to strengthen existing supplier relationships,” said Jason Reiman, chief supply chain officer at The Hershey Company, said. “Our acquisition of Weaver’s two facilities is a perfect example of how we’re investing to bring added capacity and strength across our portfolio of brands well into the future.”
Weaver has nearly 100 years in the snack manufacturing business and currently has a broad array of popcorn products globally, including three independent entities, of which Weaver Popcorn Manufacturing is one.
“Participating in the growth of SkinnyPop has been a rewarding experience for our team members,” Jason Kashman, CEO of Weaver Popcorn, said. “Hershey is acquiring two best-in-class popcorn manufacturing operations that will enable continued growth in volume and quality, with teams at each location that have an unrivaled expertise.”
The companies said the acquisition is subject to regulatory approvals and will be financed with cash on hand and short-term loans.