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Hershey’s New CEO Is Fine. And That’s the Exact Problem
Who Ordered the Plain Chocolate?
Hershey’s announcement sounded like a Fortune 500 press release got cloned in ChatGPT and deep-fried in PR jargon. Kirk Tanner, longtime Pepsi exec and current Wendy’s CEO, will replace Michele Buck this August. He’s got experience, sure. But the problem is—it’s all the same kind of experience.
Safe. Predictable. Pleasantly beige.
And for a company that says it wants to be a “Leading Snacking Powerhouse”, it’s just… underwhelming.
The Good (But Boring) Résumé
Let’s be clear: Tanner isn’t unqualified.
- Ran PepsiCo Beverages North America ($28B in sales)
- Held key Frito-Lay and global Pepsi roles
- Currently CEO at Wendy’s, driving franchise growth and digital modernization
This guy’s got operational chops, brand experience, and boardroom mileage. But here’s the catch…
None of that screams breakout snack innovation.
None of it signals a strategic reset for a company bumping into the limits of candy growth.
What Hershey Could Have Done
Instead of tapping another CPG warhorse, Hershey could’ve:
- Reached into direct-to-consumer e-commerce for someone bold on brand extension
- Chosen a food-tech disruptor with global scale ambitions
- Brought in someone from global emerging markets to turbocharge non-U.S. expansion
- Promoted someone internally who truly understands the Hershey brand’s soul (and didn’t sell soda for 30 years)
Instead, we got a franchise-minded operator whose biggest innovation lately was Frosty-ccinos and ghost kitchens.
Why This Matters for Investors
Hershey is a rock-solid business, yes. But it’s not priced like a sleepy value stock—it’s priced like a growth machine:
- Trading at ~27-28x forward earnings
- Margins already near peak (19–20% EBIT)
- Organic growth slowing in the core chocolate biz
- SkinnyPop and Dot’s can only carry so much future
You don’t hire a steady hand when what you need is a visionary chef.
The Real Risk: Stuck in “Nice Company” Mode
Tanner’s hiring signals that the Board may be prioritizing:
- Safe hands over bold bets
- Incrementalism over disruption
- A Pepsi-style playbook over real strategic reinvention
That’s fine… if you’re okay with “fine.”
But if Hershey wants to compete with Mondelez, PepsiCo, or even emerging snacking challengers from Asia and Latin America, it’ll need more than another cola veteran who knows how to run a warehouse and shake hands.
Final Bite
Hershey had a golden opportunity to rebrand itself not just as America’s candy company—but as a global, digital, omni-channel snacking juggernaut.
Instead, they hired a guy who sold Mountain Dew and Baconators.
Kirk Tanner may be a capable operator. He might even do a good job.
But “good” wasn’t the bar.
Hershey needed someone game-changing. Instead, it chose someone familiar. And that’s why potential investors like myself are underwhelmed.
DISCLAIMER: This analysis of the aforementioned stock security is in no way to be construed, understood, or seen as formal, professional, or any other form of investment advice. We are simply expressing our opinions regarding a publicly traded entity.
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