Hershey's Stout Brand Spending and Investments in Capabilities Should Buoy Its Long-Term Standing

Consumers' penchant for confectionery and snacking fare has yet to be fulfilled, as evidenced by the outsize organic sales growth Hershey has chalked up the past few years. But from our vantage point, this isn't merely a byproduct of a favorable demand environment. Rather, we applaud the strategic focus CEO Michele Buck has brought to bear over the past seven years--ramping up investments in its core domestic brands while pulling back in its international arm (high-single-digit percentage of total sales, where we surmise its competitive position lags its global peers).