The Intrinsic Value Podcast - The Investor’s Podcast Network TIVP012: Hershey (HSY): A Deliciously Beaten Down Stock? w/ Shawn O'Malley & Daniel Mahncke
Mar 23, 2025
Shawn O'Malley and Daniel Mahnke dive into Hershey, revealing its rich history and the iconic brands that go beyond just chocolate. They discuss the company's strategic shift towards salty snacks and how it navigates the global cocoa shortage. Insights into Hershey's unique ownership and challenges in international markets offer a deeper understanding of its business landscape. The hosts also evaluate Hershey's investment potential, underscoring the psychological factors behind brand loyalty and the importance of aligning values with investment choices.
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Hershey's History
- Milton Hershey's Lancaster Caramel Company pivoted to chocolate in 1900.
- Hershey's Kisses debuted in 1907, and the Reese's merger happened in 1963.
Hershey Trust's Double-Edged Sword
- The Hershey Trust Company, controlling 80% of Hershey's voting power, repeatedly rejects acquisition bids.
- This control creates long-term focus but limits shareholder influence and potential market-approved mergers.
Confectionery's Regionalism Challenge
- Scaling confectionery products internationally is difficult due to regional consumer preferences.
- Despite brand power, even See's Candies struggles with regionalism outside its core markets.