Everyday chocolate category grew 6.7%, with Hershey's everyday chocolate growing less but gaining share and growing ahead in instant consumables.
Everyday chocolate category grew 6.7%, with Hershey's everyday chocolate growing less but making progress in instant consumables by gaining share and expanding distribution.
Gross margin expansion of 500 basis points or more is expected in 2026 before partial offsets from cocoa costs and tariffs.
Pricing actions are expected to contribute about 2 points to the enterprise top line in 2025 and a mid-teens impact in 2026, with about 80% of the profit benefit flowing through in 2026.
Salty snacks segment shows strength with brands like Dot's and SkinnyPop delivering above category trends through innovation, marketing, and expanded distribution.
Salty snacks segment shows strength with brands like Dot's and SkinnyPop delivering above category trends through innovation, marketing, and expanded multipack offerings.
Tax rate challenges persist with a 250 basis point headwind expected to carry into 2026 due to tax consequences from cocoa sourcing strategies and lower tax credit availability.
Tax rate challenges persist with a 250 basis point headwind expected to carry into 2026 due to tax credit limitations and other tax consequences.
The company is experiencing top line momentum and profit recovery plans are underway despite headwinds from record high cocoa prices and tariffs.
Impact of Subdued Pet Food Category Demand on Growth Strategy
Management highlighted a significant headwind in the dog food category due to economic uncertainty, deferred pet medical treatments, and changes in consumer behavior post-pandemic.
Despite category challenges, Freshpet continues to outperform the market, emphasizing its agility and strategic adjustments to sustain growth.
The company is focusing on controlling what it can influence—marketing, distribution, and product innovation—to mitigate macroeconomic impacts.
Strategic Focus on Long-Term Growth Initiatives and Brand Positioning
Management has clarified their brand positioning and established four strategic priorities: team member experience, handcrafted food and beverages, WOW hospitality, and keeping BJ's atmosphere fresh.
Progress includes momentum with value platforms like the Pizookie Meal Deal, and brand relevance through innovative offerings like the Snickers Pizookie and Fryckles.
Long-term initiatives are set to roll out in the second half of 2025 and into 2026, with a focus on sustainable and profitable growth.
Dafinchi
