IRVING, Texas, May 14, 2025 (GLOBE NEWSWIRE) -- Sow Good Inc. (Nasdaq: SOWG) ("Sow Good" or "the Company"), a trailblazer in the freeze dried candy and treat industry, is reporting financial and operating results for first quarter ended March 31, 2025. "We're encouraged by the progress we made in the first quarter of 2025, particularly the successful everyday launches at Winn-Dixie, Ace Hardware, and Orville Hardware, as well as Holiday launches at Albertsons" said Claudia Goldfarb, CEO of Sow Good. "While ...

Elevating your s'more game with more melt, more drip, more WOW HERSHEY, Pa., May 13, 2025 /PRNewswire/ -- Just in time for summer, there's a new treat in town: HERSHEY'S Milk Chocolate with Caramel bar. This delicious twist on the iconic HERSHEY'S Milk Chocolate bar adds new texture with a luscious caramel center to the classic – making snacking even sweeter, especially when there's a campfire around. The new HERSHEY'S Milk Chocolate with Caramel bar is now available at retailers nationwide in 6-packs for a ...

Financial Data and Key Metrics Changes - The company expects net sales growth of at least 2% in 2025, aligning with its long-term growth algorithm [11] - The three-year cost savings target has been increased to $350 million from $300 million due to a transformation program aimed at operating more efficiently [15] Business Line Data and Key Metrics Changes - The acquisition of Lesser Evil is expected to enhance the company's presence in better-for-you snacking and extend offerings in ready-to-eat popcorn [3][4] - The company has introduced several new products, including Reese's Caramel and Shackalicious extra-large gummies, which have resonated well with consumers [19][20] Market Data and Key Metrics Changes - The company is actively monitoring tariff policies and optimizing its supply chain to mitigate the impact of tariffs on cocoa sourcing [13][14] - Elevated cocoa costs are being addressed through aggressive actions, including price increases on half of the US confection portfolio [15][16] Company Strategy and Development Direction - The company is focusing on innovation, expanding its chocolate variety brand portfolio, and enhancing seasonal execution to drive sales growth [11][12] - A partnership with VitaKey is being pursued to create a suite of health and wellness products, reflecting the ongoing health and wellness trends [10] Management's Comments on Operating Environment and Future Outlook - Management emphasized the importance of product safety and quality, ensuring compliance with regulations while adapting to consumer behavior changes [6][9] - The leadership team is committed to maximizing value creation through bold actions and organizational changes [24] Other Important Information - The company has a proactive approach to product changes in anticipation of regulatory developments, maintaining consumer trust [8] - The upcoming film about Milton Hershey is set to be released in 2026, highlighting the company's commitment to social good [21][22] Q&A Session Summary Question: Why is the CEO and named executive officer compensation considered fair? - The compensation is aligned with performance, with 89% of CEO pay and 78% of named executive officer pay at risk, and the entire board approves the package [1][2] Question: What is the strategy behind acquiring Lesser Evil? - The acquisition aims to expand the company's presence in better-for-you snacking and complement its salty portfolio [3][4] Question: How is the company addressing recent regulatory changes regarding food dyes? - The company prioritizes product safety and compliance, actively monitoring regulatory developments [6][8] Question: How is the company adapting to health and wellness trends? - The company is adjusting its product portfolio to include low sugar and high protein options, reflecting consumer preferences [9][10] Question: What new strategies are being implemented for growth after a challenging 2020? - The strategy includes a focus on innovation, broadening investments in chocolate, and driving seasonal execution [11][12] Question: What impact do tariffs have on the business? - The company is closely monitoring tariff policies and optimizing its supply chain to mitigate impacts, particularly on cocoa sourcing [13][14] Question: How is the company managing elevated cocoa costs? - Aggressive actions are being taken, including price increases and a transformation program to enhance efficiency [15][16] Question: What new products can consumers expect? - New products include various innovative flavors and partnerships, with more exciting launches planned for the year [19][20]

Financial Data and Key Metrics Changes - The company expects EPS to decline about 30% for the first half of 2025, with Q2 expected to be down less than Q1, which was down over 30% [13][14] - Gross margin for Q2 is expected to decrease by approximately 700 basis points, influenced by tariff components and increased SG&A expenses [14][15] Business Line Data and Key Metrics Changes - The company reported a 10% increase in its business, with a 100 basis point gain in market share, particularly in the sweets category [22] - Seasonal chocolate is expected to be strong in the first half, with plans for low single-digit growth in everyday chocolate in the second half [36] Market Data and Key Metrics Changes - The company has seen strong growth in international markets, particularly in Brazil, with double-digit growth driven by Easter and innovation [98] - The competitive environment in the U.S. chocolate market remains stable, with no significant changes noted in competition from smaller players or private labels [124] Company Strategy and Development Direction - The company is focused on becoming a snacking powerhouse, leveraging its core capabilities to maximize consumer reach and snacking occasions [80] - There is an emphasis on innovation and investment in iconic brands to meet consumer demands, with significant plans for new product launches in the fall [70] Management's Comments on Operating Environment and Future Outlook - Management acknowledges a weak consumer environment but notes that chocolate and salty snacks have held up well, with everyday chocolate pricing up 8% and volume down 4.5% [32] - The company remains optimistic about a path to earnings growth in 2026, even with current tariff levels, emphasizing the importance of mitigation actions [20][85] Other Important Information - The company does not anticipate a material impact from potential SNAP restrictions, as only about 2% of SNAP purchases are candy [48] - The company is not planning any buybacks for the year but remains open to reengaging in buybacks if the tariff headwind diminishes [99] Q&A Session Summary Question: What is the risk of tariff expenses in Q2? - Management indicated that the unmitigated impact could be up to $100 million per quarter for Q3 and Q4, primarily from cocoa and Canadian retaliatory tariffs [10][11] Question: How should investors think about the magnitude of EPS decline in Q2? - EPS for the first half is expected to be down about 30%, with Q2 expected to be less impacted than Q1 due to strong net sales [14][15] Question: What is the outlook for balanced growth in 2026? - Management maintains a path to earnings growth next year, despite challenges, emphasizing the need for mitigation actions [20] Question: How is the company addressing changing consumer preferences? - The company has seen improvements in its instant consumable business and anticipates continued market share growth in the second half of the year [22] Question: What is the impact of cocoa prices on capacity expansion? - The new plant allows for greater agility and control over the supply chain, enabling the company to meet demand effectively despite high cocoa prices [42] Question: How does the company view the competitive landscape in the U.S. chocolate market? - The competitive landscape remains stable, with no significant changes noted in competition from smaller players or private labels [124] Question: What is the company's approach to pricing in light of cocoa inflation? - Pricing is expected to increase in Q2 and Q3 as seasonal pricing and price pack architecture are implemented [128]

Financial Data and Key Metrics Changes - The company expects EPS to decline about 30% for the first half of the year, with Q2 expected to be down less than Q1, which was down over 30% [12][13][14] - Gross margin for Q2 is expected to decrease by approximately 700 basis points, influenced by tariff components and increased SG&A expenses [14][13] Business Line Data and Key Metrics Changes - The company reported a 10% increase in its business, with a 100 basis point increase in market share, particularly in the sweets category [23] - The company anticipates low single-digit growth in everyday chocolate for the second half of the year, driven by strong innovation [35] Market Data and Key Metrics Changes - The company has seen strong growth in international markets, particularly in Brazil, where organic sales grew double digits [98] - The competitive environment in international markets has normalized, aiding the company's performance [98] Company Strategy and Development Direction - The company is focused on mitigating tariff impacts through various strategies, including lobbying and operational adjustments [10][9] - The company aims to continue growing its chocolate business while expanding into the salty snacks and sweets categories, targeting younger and more diverse demographics [79][78] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in a path to earnings growth next year, despite current tariff challenges [20][21] - The company is actively monitoring consumer sentiment and adapting its strategies to maintain market share amid a weak consumer environment [31][30] Other Important Information - The company is not planning any buybacks for the year but remains open to capital allocation opportunities depending on how the year unfolds [99] - The company is investing in innovation and marketing to ensure long-term growth, particularly in the chocolate category [113][114] Q&A Session Summary Question: What is the risk of tariff expenses in Q3 and Q4? - Management indicated that unmitigated tariff impacts could reach up to $100 million per quarter, primarily from cocoa and Canadian retaliatory tariffs [8][9] Question: How should investors think about the magnitude of EPS decline in Q2? - Management expects EPS to be down about 30% for the first half, with Q2 showing a decline less than Q1 due to strong net sales [12][14] Question: What is the outlook for earnings growth next year? - Management maintains a positive outlook for earnings growth next year, despite the challenges posed by tariffs [20][21] Question: How is the company addressing consumer trends towards healthier eating? - Management noted that while consumer sentiment is weak, the chocolate category remains resilient, and they are focusing on premium and permissible products [31][30] Question: What is the competitive landscape in the U.S. chocolate market? - Management reported no significant changes in the competitive landscape, with smaller players softening and larger players increasing innovation [124] Question: How will the company approach pricing in light of cocoa prices? - Management confirmed that pricing will increase in Q2 and Q3 as part of their seasonal pricing strategy [128]

Financial Data and Key Metrics Changes - First quarter net sales reported a decline of 13.8% year-over-year, impacted by a 90 basis point headwind from foreign currency translation and a 30 basis point benefit from the Sour Strips acquisition [22][23] - Adjusted earnings per share decreased by 32% in the quarter, with expectations for a less severe decline in the second quarter as seasonal impacts reverse [29] - Adjusted gross margin decreased by 370 basis points, primarily due to commodity inflation and negative sales mix, with expectations for further compression in the second quarter [26][27] Business Line Data and Key Metrics Changes - North America Confectionery segment net sales declined by 15%, in line with expectations, with volume down nearly 18% [23][24] - North America salty snacks segment net sales increased by 1%, with volume growth of nearly 4% driven by brands like Dots and Skinny Pop [24][25] - The salty snacks portfolio showed strong performance, with Skinnypop consumption increasing by 5.4% and Dots retail takeaway growing by 20.6% [14][22] Market Data and Key Metrics Changes - International segment organic constant currency net sales declined by 7.9%, with performance ahead of expectations in key markets [24][15] - Constant currency net sales increased mid-teens in Brazil and mid-single digits in Mexico, driven by improved category dynamics [15] - The global cocoa grind declined by 3.4% in Q1, marking the eighth consecutive quarter of declines [19] Company Strategy and Development Direction - The company is focused on becoming a leading snacking powerhouse, with strategic acquisitions like Lesser Evil and Fulfill to enhance its portfolio [6][7] - Plans to build momentum in everyday business through innovation and programming, including new product launches and partnerships [12][13] - Continued investment in brands is expected to drive long-term growth, with a full-year advertising spend increase projected in the mid-single digits [16] Management Comments on Operating Environment and Future Outlook - Management noted heightened cost pressures but emphasized a strong balance sheet that allows for continued investment [6] - The company anticipates total net sales to increase by more than 20% in Q2, reversing the impacts seen in Q1 [22] - Cocoa prices are expected to build cost pressure each quarter, with robust planning underway to mitigate inflation and protect margins [19][20] Other Important Information - The company is pursuing an exemption request for cocoa tariffs, which cannot be mitigated through sourcing strategies [20][31] - Capital expenditures in Q1 were $146 million, lower than the prior year, with full-year expectations of $425 million to $450 million [30] - The company did not repurchase any shares in Q1, prioritizing capital for announced acquisitions [31] Q&A Session Summary Question: What are the expectations for net sales growth in the upcoming quarters? - The company expects total net sales to increase by more than 20% in Q2, reversing the impacts from Q1 [22] Question: How is the company addressing cocoa price pressures? - The company is implementing robust planning to mitigate inflation and protect margins, with a focus on pricing and sourcing strategies [19][20] Question: What is the outlook for advertising spend this year? - The company anticipates a mid-single digit increase in full-year advertising spend, reflecting a commitment to brand investment [16]

Group 1 - The core message of the campaign is to emphasize the importance of taking breaks in a busy world, with KIT KAT® positioning itself as a brand that facilitates these moments of pause [1][2][3] - The Break Brothers are introduced as characters that symbolize the brand's commitment to helping consumers enjoy distraction-free breaks, reinforcing the idea of a "real, crispy, creamy break" [2][3] - The campaign will debut during the NCAA Men's Championship Game on April 7, highlighting the brand's strategy to reach a wide audience through a major sporting event [4][5] Group 2 - The Hershey Company is a leading snacks company with over $11.2 billion in annual revenues, operating in approximately 70 countries and employing more than 20,000 people [6] - The company's portfolio includes well-known brands such as Hershey's, Reese's, Kisses, and Kit Kat®, as well as popular salty snacks like SkinnyPop and Dot's Homestyle Pretzels [6] - Hershey has a long-standing commitment to social responsibility, focusing on education and community support, which has been part of its mission for over 130 years [7]

Group 1 - SOUR PATCH KIDS is collaborating with J Balvin to launch the SOUR PATCH KIDS® Sour Eggs x J Balvin Back to the Rayo Tour Sweepstakes, allowing fans to win various prizes including signed merchandise and candy [1][3] - The sweepstakes runs from April 3rd to April 20th, 2025, with winners announced on April 21st [1] - SOUR PATCH KIDS will have a presence at the Back to the Rayo Tour performance in Houston on April 17th, 2025, providing attendees with the opportunity to try SOUR PATCH KIDS Sour Eggs [4] Group 2 - The SOUR PATCH KIDS Sour Eggs are designed for Easter celebrations, featuring a black raspberry flavor and Easter-themed graphics, available for a suggested retail price of $3.49 for a 7.97 oz bag containing 18 snack-sized packs [5] - Mondelēz International, the parent company of SOUR PATCH KIDS, reported net revenues of approximately $36.4 billion in 2024, highlighting its position as a leader in the snacking industry with a diverse portfolio of brands [8]

Core Insights - The Hershey Company has launched Reese's PB&J Big Cups, combining the classic flavors of peanut butter and jelly with chocolate, available in both strawberry and grape flavors [1][4][5] - The launch coincided with National PB&J Day and was preceded by a playful April Fool's prank suggesting the company would enter the sandwich business [3][5] - Reese's PB&J Big Cups are available in various pack sizes, including standard, king, and snack size multipacks, for a limited time [5][6] Company Overview - The Hershey Company is a leading snacks company with over 20,000 employees globally, generating more than $11.2 billion in annual revenues [7] - The company's product portfolio includes well-known brands such as Hershey's, Reese's, Kisses, Kit Kat®, and Jolly Rancher, as well as popular salty snacks like SkinnyPop and Dot's Homestyle Pretzels [7] - Hershey has a long-standing commitment to corporate responsibility, focusing on education and community support since its founding [8]

Core Insights - The launch of Hershey's Kisses Cinnamon Toast Crunch™ flavored candies targets the growing demand for unique flavor combinations among Gen Z and Millennials, with 75% of this demographic expressing interest in such snacks [1][3] - The new product features a blend of smooth white creme, cinnamon sugar, and graham-flavored cookie bits, promising a delightful taste experience [2][3] - The limited-edition candies are positioned as ideal for various snacking occasions, enhancing the brand's appeal for family and social gatherings [3][4] Company Overview - The Hershey Company is a leading snacks company with over 20,000 employees globally, generating more than $11.2 billion in annual revenues [6] - The company's product portfolio includes well-known brands such as Hershey's, Reese's, Kisses, and Kit Kat®, alongside popular salty snacks like SkinnyPop [6] - Hershey has a long-standing commitment to corporate responsibility, focusing on community support and educational initiatives since its founding [7]