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Can Hershey's Innovation & Brand Investments Strengthen Demand?
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Key Takeaways
Hershey is boosting demand efforts as U.S. consumers remain value-oriented and selective.
Hershey expects brand investment to rise 30% year over year to support 2026 and 2027 growth.
Hershey plans 30% more innovation items versus the first half, including new bars and Reese's products.
The Hershey Company (HSY - Free Report) is increasing its focus on demand creation in the second half of 2026 as U.S. consumers remain value-oriented and selective in their spending. The company is pairing higher brand investment with a broader innovation pipeline, improved core-item availability and stronger seasonal programs as it works to support consumer demand.
Hershey expects brand investment to increase 30% year over year, with the spending intended to boost growth in both 2026 and 2027. The company is also activating new campaigns across Cadbury, Payday and FulFil to strengthen consumer engagement. Seasonal and tentpole programs, including Halloween and the Hershey Movie, are expected to provide additional visibility with customers during the second half.
Innovation is another key part of the demand plan. Hershey expects a 30% increase in innovation items versus the first half of 2026. Upcoming launches include Hershey’s Creme Filled Bars and Reese’s Pieces with Cookie, the latter representing the first step in expanding that platform. The company is prioritizing opportunities that broaden its reach across snacking occasions and address evolving consumer needs.
Image Source: Zacks Investment Research
The stepped-up investment follows a 3.3% year-over-year decline in advertising and related consumer marketing expenses in the second quarter. The decrease mainly reflected efficiencies and the timing of non-working media investment in North America Confectionery. Hershey expects brand investment to rise meaningfully in the second half as support increases behind 2026 and 2027 initiatives.
Hershey’s second-half demand efforts center on stronger brand support, increased innovation, better core-item availability and seasonal activation. These initiatives are designed to strengthen consumer engagement and support demand creation, while the company navigates a selective spending environment.
The Zacks Rank #3 (Hold) stock has dipped 6.3% over the past three months compared with the industry’s decline of 5.7%.
Stocks to Consider
The Chefs' Warehouse, Inc. (CHEF - Free Report) is a distributor of specialty food and center-of-the-plate products across the United States, Canada and the Middle East. CHEF currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for The Chefs' Warehouse’s current fiscal-year sales and earnings per share (EPS) implies growth of 10.6% and 33.7%, respectively, from the year-ago figures. CHEF delivered a trailing four-quarter earnings surprise of 30.4%, on average.
Utz Brands, Inc. (UTZ - Free Report) , a leading U.S. manufacturer of branded salty and savory snacks, currently carries a Zacks Rank of 2 (Buy).
The Zacks Consensus Estimate for Utz Brands’ current fiscal-year sales suggests a 3.7% jump from the prior-year levels. However, the consensus estimate for current fiscal-year EPS indicates a 2.4% decline from the year-ago period. UTZ delivered a trailing four-quarter surprise of 1.8%, on average.
Laird Superfood, Inc. (LSF - Free Report) is a consumer product company that develops, manufactures and markets plant-based, natural and functional food and beverage products. LSF currently carries a Zacks Rank #2.
The Zacks Consensus Estimate for Laird Superfood’s current fiscal-year sales and EPS calls for growth of 188.2% and 104%, respectively, from the year-ago figures. LSF delivered an earnings surprise of 100% in the last reported quarter.
View the Zacks #1 Rank List
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Can Hershey's Innovation & Brand Investments Strengthen Demand?
Key Takeaways
The Hershey Company (HSY - Free Report) is increasing its focus on demand creation in the second half of 2026 as U.S. consumers remain value-oriented and selective in their spending. The company is pairing higher brand investment with a broader innovation pipeline, improved core-item availability and stronger seasonal programs as it works to support consumer demand.
Hershey expects brand investment to increase 30% year over year, with the spending intended to boost growth in both 2026 and 2027. The company is also activating new campaigns across Cadbury, Payday and FulFil to strengthen consumer engagement. Seasonal and tentpole programs, including Halloween and the Hershey Movie, are expected to provide additional visibility with customers during the second half.
Innovation is another key part of the demand plan. Hershey expects a 30% increase in innovation items versus the first half of 2026. Upcoming launches include Hershey’s Creme Filled Bars and Reese’s Pieces with Cookie, the latter representing the first step in expanding that platform. The company is prioritizing opportunities that broaden its reach across snacking occasions and address evolving consumer needs.
Image Source: Zacks Investment Research
The stepped-up investment follows a 3.3% year-over-year decline in advertising and related consumer marketing expenses in the second quarter. The decrease mainly reflected efficiencies and the timing of non-working media investment in North America Confectionery. Hershey expects brand investment to rise meaningfully in the second half as support increases behind 2026 and 2027 initiatives.
Hershey’s second-half demand efforts center on stronger brand support, increased innovation, better core-item availability and seasonal activation. These initiatives are designed to strengthen consumer engagement and support demand creation, while the company navigates a selective spending environment.
The Zacks Rank #3 (Hold) stock has dipped 6.3% over the past three months compared with the industry’s decline of 5.7%.
Stocks to Consider
The Chefs' Warehouse, Inc. (CHEF - Free Report) is a distributor of specialty food and center-of-the-plate products across the United States, Canada and the Middle East. CHEF currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for The Chefs' Warehouse’s current fiscal-year sales and earnings per share (EPS) implies growth of 10.6% and 33.7%, respectively, from the year-ago figures. CHEF delivered a trailing four-quarter earnings surprise of 30.4%, on average.
Utz Brands, Inc. (UTZ - Free Report) , a leading U.S. manufacturer of branded salty and savory snacks, currently carries a Zacks Rank of 2 (Buy).
The Zacks Consensus Estimate for Utz Brands’ current fiscal-year sales suggests a 3.7% jump from the prior-year levels. However, the consensus estimate for current fiscal-year EPS indicates a 2.4% decline from the year-ago period. UTZ delivered a trailing four-quarter surprise of 1.8%, on average.
Laird Superfood, Inc. (LSF - Free Report) is a consumer product company that develops, manufactures and markets plant-based, natural and functional food and beverage products. LSF currently carries a Zacks Rank #2.
The Zacks Consensus Estimate for Laird Superfood’s current fiscal-year sales and EPS calls for growth of 188.2% and 104%, respectively, from the year-ago figures. LSF delivered an earnings surprise of 100% in the last reported quarter.