Hershey Names Supply Chain a Core Strategic Pillar as New CEO Kirk Tanner Outlines 2026 Priorities

The Hershey Company held its 2026 Investor Day as new CEO Kirk Tanner elevated excellence in supply chain management to one of the company’s three key strategic pillars. ” He added that the company restructured its organization into a model of demand creation, commercial excellence, and demand fulfillment. “Because that's how we see the world,” Tanner stated.

“Now, a world-class supply chain protects what consumers want most,” Tanner continued. 7 billion in the year ending December 31st, 2025. It employs approximately 20,000 people.

North America Confectionery remains its largest reporting segment, accounting for over 81 percent of revenues, while 89 percent of total revenues are generated in North America. ” Cocoa prices have created persistent cost pressure. Cocoa traded around $3,000 per ton on the New York futures exchange until mid-2023.

Prolonged droughts in Ghana and Côte d’Ivoire drove prices to $12,500 per ton by the end of 2023. Today’s cocoa prices are nearly 170 percent above levels seen two years ago. Analysts expect cocoa to stabilize at a price between $7,500 and $8,500 per ton.

0 million in commodity hedging losses last year. Hershey has a program to put in place long-term contracts with cocoa farmers in Côte d’Ivoire. ” Hershey’s trading company in Switzerland performs all aspects of their cocoa procurement, including price risk management, physical supply procurement, and sustainable sourcing oversight.

Reiman believes that procurement is a competitive advantage for the company. Over a ten-year period shown in a chart at Investor Day, the Hershey team outperformed its peers in procurement. The company operates 15 plants that it leases or owns.

Of Hershey’s 15 plants, 12 are in the US, 2 in Mexico, and 1 in Malaysia. Last year Hershey opened a 250,000-square-foot chocolate processing facility in Hershey, Pennsylvania. In 2023, Hershey purchased two popcorn operations from a co-manufacturer to increase production capacity and flexibility for its SkinnyPop brand.

Hershey is undertaking a multi-year $1 billion investment that includes adding 13 production lines and upgrading 11 existing lines across its North American facilities. For salty products, Hershey now manufactures over 80 percent internally. Five years ago, Hershey relied totally on external manufacturing partners for its salty product category.

Andrew Archambault is the president of Hershey North America. Technology investments now run through the supply chain. Hershey has implemented an AI-powered solution with AI agents from Augmentir on the factory floor.

It has implemented a solution called Precision Assortments powered by geo-demographic data and store-specific input from its sales teams. Hershey uses an agentic AI solution from Aera Technology for decision intelligence. Jason Reiman said that if production on the factory floor is running ahead of schedule, an AI agent would automatically send a signal to ensure that packaging materials are expedited.

““Precision demand fulfillment is a competitive advantage.””

““This has allowed us to accelerate the growth of these businesses.””