Even as Cocoa Costs Dent Profits, Hershey Is Prudently Investing in Its Brands and Capabilities

We applaud the strategic focus CEO Michele Buck has brought to bear over the past eight 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 has perpetually lagged its global peers). And while cash-constrained consumers’ hankering for confections may sour near term (given the product's more discretionary nature), we don’t think Hershey’s leading position (with more than one third share of the US chocolate aisle versus just low-single-digit marks for lower-priced private-label offerings) has been tarnished.