The Hershey Company has entered into a definitive agreement to acquire Lily’s, the high-growth, better-for-you (BFY) confectionery brand. Lily’s low-sugar products include dark and milk chocolate style bars, baking chips, peanut butter cups, and other confection products that fit Hershey’s multi-pronged better-for-you snacking strategy.
Lily’s will add a key better-for-you confection brand to Hershey’s portfolio of iconic chocolate and candy favorites. The acquisition is subject to customary regulatory approvals and is expected to close in the next few months.
“Hershey is focused on developing a BFY confection portfolio that offers a variety of choices to meet the evolving needs of our consumers,” says Hershey U.S. President Chuck Raup. “Lily’s is a great strategic complement to our existing offerings in this growing segment of the confection category.”
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BFY snacking continues to grow faster than mainstream segments across snacking categories, such as potato chips, ice cream, and cookies. BFY offerings, however, are still underdeveloped in confection, and the Lily’s acquisition will enable Hershey to accelerate this growth and reimagine the future of the candy aisle in partnership with retailers.
Based in Boulder, Colo., Lily’s traces its roots to co-founder Cynthia Tice’s decision to raise awareness about better-for-you foods by opening Center Foods, a natural foods store, in Philadelphia in 1978. In 2012, Cynthia launched four Lily’s chocolate style bars nationally in Whole Foods Market, and today, the expanded line of bars, baking chips, and other confections can be found across the country at key retailers. The brand’s mission is to offer consumers a range of great tasting, low-sugar treats.