Hershey (HSY) Buys Krave Foods, Expanding Reach in Snacks Category - Stocks in the News
It’s hard to imagine the possibility of producing chocolate covered beef jerky. This may not sound so crazy though, as The Hershey Company is buying Krave Foods, a meat snack producer, specializing in making gourmet all natural jerky.
The company offers a variety of flavors for turkey, pork, and beef jerky. These flavors include Black Cherry Barbecue, Basil Citrus, Garlic Chili Pepper, Pineapple Orange, and more! The premium quality, unique flavors, vibrant packaging, as well as the price tag ($7 per 3.25 oz bag) are what makes Krave Food’s product stand out.
Obviously chocolate covered jerky is too outlandish, so why is Hershey (HSY) interested in the purchase? According to the company, it seeks to “tap into the rapidly growing meat snacks category and expand into the broader snacks space”. That’s a broad space alright. It will be interesting to see where Hershey expands from here, as there is a lot of space to cover between meat snacks and chocolate.
While there is no definite number just yet as to how much Hershey is buying Krave Foods for, Reuters reports that negotiations are in talks, around a ballpark of $200-$300 million. This may play out well for Hershey, as Krave has established a nice niche for itself in the gourmet jerky space.
Hershey (HSY) reported a disappointing earnings report for the 4th quarter, with sales and earnings misses. The stock dipped down about 4% today, so clearly many investors do not like the purchase.
However, the stock is currently a Zacks Rank #2 (buy), so earnings estimates have at least been trending in the right direction. It has a $23.78 billion market cap, with a beta of .22. Expect rockier trading for Hershey in the short term, though the company generally has little stock volatility associated with it.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
HERSHEY CO/THE (HSY): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
