Hershey tops estimates as GLP‑1 users drive demand for mints, healthier snacks

By Juveria Tabassum and Alexander Marrow

April 30 (Reuters) - Hershey HSY.N beat first-quarter earnings estimates, helped by strong demand for its healthier snack brands such as LesserEvil popcorn and its mints, as eating habits shift with the growing use of GLP‑1 weight‑loss drugs.

Hershey describes this trend as "functional snacking," products designed to meet specific health or lifestyle needs, and said it is increasingly shaping its product innovation strategy.

The company said the adoption of GLP-1 drugs helped drive an 8% retail sales growth for its Ice Breakers brand as users increasingly turn to mints and chewing gum to fend off Ozempic breath, a condition that arises in GLP-1 users due to reduced saliva or nausea.

Ice Breakers is Hershey's third-largest confection brand after Reese's and its namesake label.

GLP-1 drugs are changing the way consumers buy food and beverages and plan their meals, prompting big food companies to ramp up investment in new products and pack sizes.

"It (functional snacking) is a small but mighty part of our growth and you'll see the investment in innovation," said Hershey's CEO Kirk Tanner, who took charge in August last year.

Organic volumes in the North America salty snacks segment rose 5%, with a 20-percentage-point contribution from the LesserEvil brand, known for popcorn and snacks without seed oils, which Hershey acquired last year.

Packaged food makers are focusing on these categories at a time when lower-income households are tempering spending due to higher gasoline prices as well as changes to food stamp benefits that restrict access to sugary snacks and candy.

Volumes for Hershey's North America confectionery segment fell 4%, following a 5% decline in the fourth quarter of 2025.

The company reiterated its annual sales and profit growth targets, and the guidance now implies a deceleration in the remainder of the year, analysts said.

The company reported quarterly net sales of $3.10 billion, beating estimates of $3.03 billion, according to data compiled by LSEG.

Its adjusted earnings per share came in at $2.35, topping estimates of $2.04.