BRRLY - Upslope Capital - Hershey: Ideally Positioned To Emerge Stronger Despite Cocoa Crisis
2024-04-26 10:40:00 ET
Summary
- Hershey should be able to navigate the cocoa crisis better than smaller competitors due to its scale and experience.
- While Hershey has some diversification outside of chocolate, its chocolate offerings contain relatively lower amounts of cocoa and sell at lower price points vs. premium competitors.
- If/when cocoa prices do revert, Hershey should benefit as prices lag commodity declines and margins expand.
The following segment was excerpted from this fund letter.
The Hershey Company ( HSY )
Upslope is long Hershey and Barry Callebaut ( BYCBF ). Hershey is a leading chocolate, candy, and salty snacks provider, primarily in the US....
Upslope Capital - Hershey: Ideally Positioned To Emerge Stronger Despite Cocoa Crisis