HERSHEY. Pa. -- The Hershey Co. saw positive sales trends in the convenience store and dollar store channels in the third quarter, including a healthy chocolate marketplace performance, where the candy-maker gained 0.4 market share points driven by core brands and new products.
“The Hershey Co. delivered another good quarter of core-brand growth driven by solid performance within key retail channels,” said John P. Bilbrey, president and CEO of Hershey Co., in reporting third-quarter results. “Importantly, Hershey U.S. candy, mint and gum (CMG) retail takeaway for the 12 weeks ended Oct. 6, 2012, in the expanded all outlet combined plus convenience store channels, which accounts for approximately 90% of our U.S. retail business, was up 5.9%, resulting in a market share gain of 1.1 points.”
Consolidated net sales for the third quarter ended Sept. 30 were $1.747 billion compared with $1.624 billion for the third quarter of 2011. Reported net income for the third quarter of 2012 was $177 million or $0.77 per share-diluted, compared with $197 million or $0.86 per share-diluted for the comparable period of 2011.
“Our performance was solid in the convenience and dollar store channels with volume and unit trends positive,” Bilbrey said. “Overall, Hershey’s results were balanced as we gained market share within all segments of CMG. I’m particularly pleased with our chocolate marketplace performance, where we gained 0.4 market share points driven by core brands and new products.”
“As it relates to breath refreshment within convenience stores, we gained mint market share for 56 consecutive quad weeks or about 4.3 years and now have about a 42-share of category in this channel,” he said on an earnings conference call. “We have pretty consistently said that we don't believe gasoline prices in our category have really negatively impacted how we've been doing.”
The Hershey Co., Hershey, Pa., is the largest producer of chocolate in North America. With revenues of more than $6 billion, Hershey offers confectionery products under more than 80 brand names, including Hershey's, Reese's, Kisses, Kit Kat, Twizzlers and Jolly Rancher.