The Hershey Co. recently entered into an agreement to purchase Lily’s confectionery brand for an undisclosed amount in cash.
Lily’s is a better-for-you (BFY) brand. BFY snacking has been growing faster than other snacking categories, but it is an under-developed segment in the confection market. The purchase allows Hershey to accelerate this growth by adding Lily’s to its portfolio of chocolates and candies and aligns with the company’s BFY snacking strategy.
“Hershey is focused on developing a BFY confection portfolio that offers a variety of choices to meet the evolving needs of our consumers,” Chuck Raup, Hershey U.S. president, said. “Lily’s is a great strategic complement to our existing offerings in this growing segment of the confection category.”
Lily’s offers low-sugar products such as peanut butter cups, dark and milk chocolate-style bars, and baking chips. Eighty percent of adults want to cut back on their sugar intake, according to the company.
The deal is expected to close in the next few months and is subject to customary regulatory approvals.
Lily’s chocolate-style bars launched in 2012 in Whole Foods Market. Today, the brand can be found in numerous retailers.
Hershey has more than 90 brands worldwide and more than $8 billion in annual revenues.