Core Insights - Hershey's candy sales are facing challenges despite the holiday season being traditionally profitable, with a noted slow start in Halloween sales attributed to the timing of the holiday [3][4] - The company is shifting focus to enhance consumer insights and digital marketing efforts, aiming to refine product offerings and pricing strategies year-round [4] - Hershey's strongest growth is now coming from its salty and savory snacks segment, indicating a shift in consumer preferences [6][7] Company Strategy - Hershey plans to invest in consumer insights to improve product mix, pricing, and packaging beyond just holiday seasons [4] - The company is enhancing digital marketing initiatives to drive growth and support creative collaborations, such as the Reese's Oreo partnership [4] Market Performance - Hershey reported a 5.6% year-over-year sales growth in its North America Confectionery segment for Q3 2025 [5] - The global candy market is valued at approximately $73.4 billion in 2025, with an expected annual growth rate of 4.6% through 2030, reaching $97.6 billion [7]

Core Insights - Hershey is optimistic about cocoa inflation turning deflationary by 2026, with expectations of a lower tariff impact than previously anticipated for this year [1][5][6] Sales Performance - The North America confectionery division generated $2.62 billion in sales during Q3, contributing to a total group revenue of $3.18 billion, with organic growth rates of 5.2% and 6.2% respectively [2] - Hershey has raised its fiscal 2025 sales guidance, now expecting a sales increase of about 3%, up from the prior estimate of "at least" 2% [3][2] Cocoa Pricing and Cost Management - Cocoa prices remain 70% higher than two years ago, despite recent declines from historical highs, prompting Hershey to continue managing cost inflation through various strategies [4][5] - CFO Steve Voskuil indicated that Hershey is modeling a net price realization of five to six percentage points for fiscal 2025, with a more positive outlook for the upcoming year [4] Earnings Outlook - Earnings per share (EPS) are forecasted to decline, with reported EPS expected to decrease by 48-50%, slightly adjusted from a previous forecast of 50% [3] - On an adjusted basis, EPS is now anticipated to fall by 36-37%, compared to the earlier estimate of a 36-38% drop [3] Tariff Impact - Hershey has reduced its tariff implications by $10 million, now estimating a range of $160-$170 million for the year [2] - The company has modeled an additional $200 million in tariffs for the upcoming year, while still anticipating cocoa inflation [6]

Core Insights - Sow Good Inc. will hold a conference call on November 14, 2025, at 10:00 a.m. Eastern time to discuss its third-quarter financial results for the period ending September 30, 2025 [1] - The company is recognized as a leader in the freeze-dried candy and treat industry, focusing on innovative and flavorful products [4] Company Overview - Sow Good Inc. specializes in freeze-dried candy and snacks, utilizing proprietary freeze-drying technology and a specialized manufacturing facility [4] - The company aims to create positive experiences for customers and growth opportunities for investors and employees through its core pillars: innovation, scalability, manufacturing excellence, meaningful employment opportunities, and food quality standards [4] Conference Call Details - The conference call will be accessible via a registration link, and participants will receive dial-in instructions upon registration [2] - The call will be broadcast live and available for replay on the company's website [3]

Group 1: Federal Government Shutdown Impact - Airlines including Delta, United, and American Airlines are lobbying for an end to the federal government shutdown, which has lasted 31 days, as it affects their operations and employees [2][3] - U.S. air traffic controllers missed their first full paychecks due to the shutdown, increasing stress on essential workers [3] - The Chamber of Commerce reported that government contractors are losing approximately $3 billion for each week of the shutdown, with the Congressional Budget Office estimating a loss of at least $7 billion in GDP by the end of next year [3] Group 2: Energy Sector Performance - Chevron exceeded Wall Street expectations with a record daily production of 4.1 million barrels in Q3, boosted by its acquisition of Hess [4] - In contrast, Exxon Mobil reported Q3 revenue that fell short of analysts' forecasts, with net income declining by 12% to $7.55 billion [5] Group 3: Semiconductor Chip Shortage Concerns - Automakers are facing potential shortages of auto semiconductor chips, particularly due to issues with Nexperia, a chip supplier affected by export restrictions from China [6][7] - Stellantis shares dropped around 9.5% after the company warned of one-off costs, overshadowing an otherwise positive Q3 performance [8] Group 4: Chocolate Price Increases - Chocolate prices have risen nearly 30% since last Halloween and almost 78% over the past five years, leading to decreased sales in the Halloween candy market [10] - Chocolate's share of Halloween candy sales has dropped from 52% in 2024 to 44% this year, attributed to rising prices and the emergence of cheaper alternatives [11]

Core Insights - The price of chocolate has significantly increased, impacting consumer purchasing behavior during Halloween [1][2][3] Price Trends - Chocolate prices have surged nearly 30% since last Halloween and almost 78% over the past five years [2] - A 100-piece variety bag of candy now costs $16.39, up from $7.20 in 2020 [2] - Hershey's variety packs have increased by about 22%, while Mars has raised prices by approximately 12% [3] Consumer Behavior - Approximately 80% of Americans purchase candy for Halloween, which accounts for about 18% of annual U.S. confectionery sales [4] - Chocolate's share of Halloween candy sales has decreased from 52% last year to 44% this year, as consumers opt for cheaper alternatives [4] Economic Factors - "Macroeconomic headwinds" and wage growth lagging behind inflation are influencing consumer choices regarding discretionary spending [5] - Candy prices are rising faster than the national inflation rate, with a sector-wide increase of roughly 10% compared to last year [5] Market Outlook - Despite higher food prices, consumers are still allocating budget for chocolate and candy, indicating a strong and growing category [6] - The National Retail Federation anticipates 2025 will be a record year for candy sales in the U.S., with approximately $3.9 billion expected to be spent on Halloween candy alone [5]

Core Insights - American retailers are increasing discounts on Hershey products ahead of Halloween due to price hikes from tariffs and cocoa inflation [1][2] - Hershey is among the food makers with the largest increase in discounted goods sold, as reported by Jeffries [2] - The overall chocolate candy sales per unit remained flat despite an 8% price increase, indicating potential challenges for Hershey [5] Pricing and Sales Trends - The cost of chocolate has surged nearly 30% since last Halloween and is up almost 78% from five years ago [6] - A 100-piece bag of assorted Halloween candy now averages $16.39, a significant increase from $9.19 in 2020 [6] - Nearly 80% of Halloween shoppers expect to pay more this year, reflecting broader inflationary pressures [11] Market Response - Experts attribute rising cocoa prices to a global shortage linked to poor harvests and climate changes in West Africa [9] - Candy makers are adapting by shrinking product sizes and introducing new varieties, including fruit-flavored and cocoa-free options [9] - Hershey's CEO indicated that the company is experiencing disappointing Halloween sales and plans to adjust its seasonal product and marketing strategies [5]

Core Insights - Hershey Co. reported disappointing Halloween sales in the US but raised its annual outlook due to price increases [1][4] - The company is experiencing a shift in consumer behavior towards cheaper and trendier sweets, influenced by higher cocoa costs [3][5] Sales Performance - Halloween sales are expected to be soft this season, with about a third of sales typically occurring in the final week when Halloween falls on a Friday [3] - Halloween accounts for nearly 18% of annual US candy sales, second only to Christmas [1] Financial Outlook - Hershey now anticipates full-year net sales growth of 3%, up from a previous estimate of 2% [4] - The company has increased its projection for adjusted earnings per share [4] Pricing Strategy - Hershey implemented double-digit price hikes in July due to high cocoa costs, resulting in approximately 7 points of price realization in North American confections last quarter [5] - The optimistic outlook reflects the company's ability to navigate economic pressures on US consumers [5] Consumer Trends - Despite economic pressures, the company remains optimistic about consumer resilience in its category [6] - Many food companies are seeing lower-income consumers focusing on essentials, but Hershey's category is showing resilience [6] Tariff Impact - Hershey expects tariff expenses to be between $160 million and $170 million, a reduction of $10 million due to lower Canadian retaliatory tariffs [6] Diversification - Hershey is perceived as less diversified compared to competitors like Mondelez International Inc. [7] - The company recently acquired LesserEvil, which produces organic snacks, and its sales of salty snacks in North America rose 10% last quarter, exceeding the overall growth rate [7]

Financial Data and Key Metrics Changes - The company is experiencing balanced growth across its portfolio, with a long-term revenue growth algorithm of 2% to 4% expected to be maintained [8][19] - Cocoa costs have moderated significantly, although the company still anticipates year-over-year inflation [7][41] - The company has slightly lowered its tariff estimate, contributing to a more favorable outlook for earnings recovery over time [7][41] Business Line Data and Key Metrics Changes - The everyday CMG business has shown double-digit growth in the last four weeks, indicating strong performance in this segment [15][16] - The core business achieved close to 5% growth in Q3, excluding the impact of new innovations like Reese's Oreo [32] Market Data and Key Metrics Changes - The company noted that Halloween sales have been disappointing, with a slow start attributed to warm weather and consumer behavior [23][24] - The convenience store channel is performing well, with CMG growth at over 6%, indicating a healthy market presence [76] Company Strategy and Development Direction - The company is focused on long-term growth while rebuilding margins, emphasizing the importance of investing in brands and innovation [8][41] - There is a robust pipeline of innovation planned for 2026 and 2027, with a balance between core business growth and new product introductions [32][33] Management's Comments on Operating Environment and Future Outlook - Management acknowledges that the consumer market is challenging but believes the category remains resilient [84][85] - The company is optimistic about cocoa costs moderating and potential tariff relief, although it remains cautious about the overall economic environment [41][42] Other Important Information - The company is actively analyzing consumer insights to improve product offerings and marketing strategies for future seasons [24][25] - The tax rate has been impacted by several factors, including adjustments in reserves and procurement strategies, with further guidance expected in future calls [105][106] Q&A Session Summary Question: Insights on 2026 expectations and EPS growth - Management discussed the balanced growth and the importance of defining success for 2026, focusing on category growth and margin recovery [8][19] Question: Elasticity and pricing expectations - Management indicated that elasticity is a significant factor in planning for next year, with current expectations being cautiously optimistic [10][11] Question: Halloween sales performance - Management acknowledged a slow start for Halloween but emphasized the importance of consumer insights for future improvements [23][24] Question: Cocoa costs and pricing strategy - Management noted that cocoa costs are still significantly higher than previous years, and pricing strategies will be carefully managed [27][51] Question: Innovation pipeline for 2026 - Management highlighted the importance of innovation, particularly with successful products like Reese's Oreo, and a strong pipeline for future growth [32][33] Question: Consumer health and SNAP program impacts - Management expressed that while consumer sentiment is under pressure, the category remains resilient, with minimal expected impact from SNAP changes [85][87] Question: International market performance - Management acknowledged challenges in the international market but remains optimistic about growth and returning to profitability [59][60]

Financial Data and Key Metrics Changes - The company anticipates a non-algorithmic year for both top and bottom lines in 2026, with a focus on balanced growth across its portfolio [9][10] - Cocoa costs have moderated significantly, although the company still expects year-over-year inflation [9][10] - The long-term revenue growth algorithm is projected at 2%-4%, with EPS showing potential for upside [10][44] Business Line Data and Key Metrics Changes - The everyday CMG business has shown double-digit growth in the last four weeks, indicating strong performance [18][27] - Halloween sales have been disappointing, with a slow start attributed to weather and timing, but the company is analyzing consumer insights for future improvements [26][28] Market Data and Key Metrics Changes - The competitive landscape remains rational, with no significant price gaps causing concern [22][59] - The convenience store channel is performing well, with a 6% growth in CMG, and the company is focused on enhancing its presence in this segment [79][80] Company Strategy and Development Direction - The company is committed to investing in its brands while rebuilding margins over the long term [10][110] - Innovation is a key focus, with successful products like REESE'S OREO driving growth, and a robust pipeline planned for 2026 and beyond [35][36] Management's Comments on Operating Environment and Future Outlook - The management acknowledges the challenging consumer environment but remains optimistic about the category's resilience [88][90] - There is cautious optimism regarding cocoa prices and potential tariff relief, with ongoing monitoring of consumer health and demand [44][90] Other Important Information - The company is experiencing a shift in tax rates due to various factors, including adjustments in reserves and procurement strategies [108][109] - The international segment is currently loss-making but is expected to grow share in core markets despite cocoa challenges [62] Q&A Session Summary Question: Insights on 2026 expectations and EPS growth - Management discussed the balanced growth strategy and the importance of defining success for 2026, emphasizing long-term investments [10][11] Question: Elasticity and pricing expectations - Management indicated that elasticity is a significant factor in planning for next year, with current pricing aligning with expectations [12][13] Question: Halloween sales performance - Management noted that Halloween sales have been soft, with a focus on learning from consumer insights for future seasons [26][28] Question: Competitive pricing environment - Management highlighted the rationality of the U.S. market compared to Europe, with no major price gaps causing concern [22][59] Question: Innovation pipeline for 2026 - Management confirmed a strong innovation pipeline, with successful products driving growth and plans for continued innovation [35][36] Question: Consumer health and SNAP program impacts - Management acknowledged the challenging consumer sentiment but noted minimal expected impact from SNAP changes on the business [88][90] Question: Cocoa cost outlook and pricing strategy - Management expressed cautious optimism about cocoa prices potentially turning deflationary, while maintaining a focus on balanced recovery [54][96]

Financial Data and Key Metrics Changes - The company anticipates a non-algorithm top and bottom line year for 2026, with cocoa costs moderating significantly, although year-over-year inflation is still expected [7][8] - The long-term revenue growth algorithm is projected at 2% to 4%, with potential upside for EPS growth in 2026 [9][40] Business Line Data and Key Metrics Changes - The everyday CMG business has shown double-digit growth over the past four weeks, indicating strong performance in that segment [16][17] - The core business experienced close to 5% growth in Q3, excluding the impact of new innovations like Reese's Oreo [32] Market Data and Key Metrics Changes - The company noted that Halloween sales have been disappointing, with a slow start to the season, but there are opportunities to learn from consumer insights for future seasons [25][27] - The international segment faced challenges, resulting in a loss-making quarter, but the company remains optimistic about growth and share gains in core markets [87][88] Company Strategy and Development Direction - The company is focused on balanced growth across its portfolio while investing in brands and innovation to recover margins over the long term [9][32] - There is a strong emphasis on innovation, with a robust pipeline planned for 2026 and 2027, particularly in the salty snacks category [32][95] Management's Comments on Operating Environment and Future Outlook - Management acknowledges that the consumer market is challenging, but the category remains resilient, with expectations for continued growth despite pressures [117][120] - The company is optimistic about cocoa costs moderating and potential tariff relief, which could positively impact future performance [42][40] Other Important Information - Cocoa prices are still 70% higher than in 2023, and the company is working closely with retailers to manage pricing strategies effectively [29][30] - The company is investing in digital marketing and innovation to drive performance during key seasons like Halloween and the holidays [35][95] Q&A Session Summary Question: Insights on 2026 expectations and EPS growth - Management discussed the balanced growth and the importance of defining success for 2026, focusing on category growth and margin recovery [8][9] Question: Elasticity and pricing expectations - Management indicated that elasticity is a significant factor for planning, with current expectations being cautiously optimistic [11][12] Question: Halloween sales performance - Management acknowledged a slow start to Halloween but emphasized the importance of learning from consumer insights for future improvements [25][27] Question: International market challenges - Management noted that while the international segment is currently loss-making, they are optimistic about future growth and share gains [87][88] Question: Innovation pipeline for 2026 - Management highlighted the importance of innovation, particularly with successful products like Reese's Oreo, and a strong pipeline for future growth [32][95] Question: Consumer health and SNAP program impacts - Management stated that while consumer sentiment is under pressure, the category remains resilient, and the impact of SNAP changes is expected to be minimal [117][120]