Chocolate maker Hershey on Friday announced the departure of CEO Michele Buck on 30 June 2026.
Buck has been at the helm of the company for more than seven years.
A consumer packaged goods veteran with nearly two decades at the company will continue to serve as CEO until a successor is appointed.
She will then transition to a senior adviser role until her retirement, the company said.
The CEO transition comes soon after leadership changes at food companies including Campbell’s Souop Co. and frozen food supplier Lamb Weston.
Hershey faces pressure from soaring cocoa costs – which nearly tripled in 2024 – and a slowdown in demand from repeated price hikes.
An analyst from TD Cowen Rober Moskow said, “We believe that a new CEO will need to reset the 2026 earnings per share base due to weaker category dynamics and higher cocoa costs.”
Outlook
The maker of Reese’s peanut butter cups trimmed its annual revenue forecast and missed its third-quarter sales expectations in November.
It reiterated its 2024 forecast on Friday and indicated that its 2025 outlook would be provided when it reports earnings on 6 February.
The board has appointed a special committee to assist in the search for a new CEO, which will evaluate both internal and external candidates for the position.
Cocoa prices have been on the rise as crop losses in top cocoa-producing countries Ivory Coast and Ghana – caused by adverse weather, bean disease, smuggling and workers shifting to illegal gold mining.
Earlier this week, Bloomberg News reported that Hershey sought permission from the Commodity Futures Trading Commission (CFTC) to purchase up to 90,000 metric tonnes of cocoa from ICE-certified stocks, exceeding the typically allowed maximum amount.
The stock – down 6.4% this week – was largely unchanged in trading after the bell.
Read More: Cocoa And Coffee Futures Post Strong Gains In 2024
