HERSHEY CREAMERY CO. DL 5

Falling cocoa futures have prompted Hershey to return Hershey’s and Reese's products to original recipes and increase cocoa content in its chocolate alternatives from next year. The 70% drop in cocoa prices since late 2024 has made real chocolate more profitable, encouraging other makers to consider reversing cost-driven reformulations. Analysts expect retail prices to fall and cocoa demand to recover gradually, benefiting farmers, though some cocoa-free alternatives may persist in the mass market. » More on finance.yahoo.com

Hershey reported Q1 2026 EPS of $2.35 (expectation $2.04) and revenue of $3.1bn, both above forecasts. Net sales rose 10.6% year-on-year; the North America Salty Snacks segment grew net 26% and benefited from the acquisition of LesserEvil. Adjusted gross margin fell 80 basis points, with a recovery expected in Q2; the company forecasts adjusted EPS growth of at least 15% for Q2 and 30–35% for the full year. Risks remain supply-chain disruptions and macroeconomic pressure on consumer behavior; the stock dipped slightly in premarket trading. » More on de.investing.com

Hershey is drawing criticism after family member Brad Reese called out new Reese’s line extensions that use 'chocolate candy' and 'peanut butter creme' instead of ingredients meeting FDA standards for milk chocolate and peanut butter. The company says recipe adjustments enable new shapes and innovations while preserving the brand, and reformulations are common cost-management responses to inflation, supply shocks and other industry pressures. Food scientists note that sensory testing often masks changes so consumers may not notice, but some reformulations can still prompt backlash if perceived as lowering quality. » More on yahoo.com