The Hershey Co. announced it will acquire high-growth, better-for-you (BFY) confectionery brand Lily’s. Lily’s will add a key better-for-you confection brand to Hershey’s portfolio of iconic chocolate and candy favorites.
“Hershey is focused on developing a BFY confection portfolio that offers a variety of choices to meet the evolving needs of our consumers,” said Hershey President Chuck Raup. “Lily’s is a great strategic complement to our existing offerings in this growing segment of the confection category.”
Lily’s low-sugar products include dark and milk chocolate style bars, baking chips, peanut butter cups and other confection products that fit Hershey’s multi-pronged better-for-you snacking strategy.
BFY snacking continues to grow faster than mainstream segments across snacking categories such as potato chips, ice cream and cookies. BFY offerings, however, are still under-developed in confection and the Lily’s acquisition would enable Hershey to accelerate this growth and reimagine the future of the candy aisle in partnership with retailers.
Based today in Boulder, Colo., Lily’s traces its roots to co-founder Cynthia Tice’s decision to raise awareness about better-for-you foods by opening Center Foods, a natural foods store, in Philadelphia in 1978.
In 2012, Tice launched four Lily’s chocolate style bars nationally in Whole Foods Market and today the expanded line of bars, baking chips and other confections can be found across the country at key retailers. The brand’s mission is to offer consumers a range of great tasting, low sugar treats.
“Cynthia (Tice) had the vision that consumers wanted a better-for-you option in confections and today 80% of adults want to cut back on their sugar intake,” said Lily’s CEO Jane Miller. “By joining the Hershey’s family of brands, Lily’s will become a platform confection brand making BFY options easily accessible to all consumers.”
The acquisition will be financed with cash on hand as well as short-term borrowings. Lily’s acquisition is expected to be slightly accretive to earnings in the first full year post closing. The acquisition is subject to customary regulatory approvals and is expected to close in the next few months.
The Hershey Company is headquartered in Hershey, Pa., and employs approximately 17,000 people worldwide. The company has more than 90 brands around the world that drive more than $8 billion in annual revenues.