Hershey’s transformation continues with the purchase of Pirate’s Booty but…

Hershey’s transformation continues with the purchase of Pirate’s Booty but…

With sugar under attack as well as the overall shift toward healthier for you foods, snacks, and beverages that are part of our Clean Living investing theme, it comes as little surprise to us that candy company Hershey continues to scoop up companies outside of its bread and butter candy business. The thing is Hershey is but the latest company that is opening up its purse strings, using its balance sheet to transform the company’s business. And while Pirate’s Booty would be its third acquisition that meshes with our Clean Living investing theme, Hershey has a long way to go until it puts a dent into its overall revenue stream that is expected to hit $7.8 billion this year.



Hershey Co. plans to buy Pirate’s Booty cheese puffs from B&G Foods Inc. BGS 0.94% in a $420 million deal, the companies said Wednesday.

Pirate Brands, which also includes Smart Puffs and Original Tings, will add to Hershey’s growing roster of salty snacks.

Hershey has been working to diversify its business beyond candy and chocolate for the past several years as consumer tastes shift toward healthier snacks.

Hershey bought SkinnyPop popcorn ownerAmplify Snack Brands Inc. in January in a $1.6 billion deal, including debt, its largest acquisition ever.

Prior to that, it bought Krave jerky and expanded into the faster-growing snack aisle with new products like Reese’s pretzel-nut-and-chocolate snack mixes.

Source: Hershey to Buy Pirate’s Booty Maker for $420 Million – WSJ

About the Author

Chris Versace, Chief Investment Officer
I'm the Chief Investment Officer of Tematica Research and editor of Tematica Investing newsletter. All of that capitalizes on my near 20 years in the investment industry, nearly all of it breaking down industries and recommending stocks. In that time, I've been ranked an All Star Analyst by Zacks Investment Research and my efforts in analyzing industries, companies and equities have been recognized by both Institutional Investor and Thomson Reuters’ StarMine Monitor. In my travels, I've covered cyclicals, tech and more, which gives me a different vantage point, one that uses not only an ecosystem or food chain perspective, but one that also examines demographics, economics, psychographics and more when formulating my investment views. The question I most often get is "Are you related to…."

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