Warnings of high cocoa prices and pressures on C-channel have spurred Hershey to offer a cautious outlook during its earnings call on Thursday morning.

For 2024, the maker of Peanut Butter Cups, Kisses, Jolly Ranchers and Twizzlers, delivered 0.3% net sales growth. For 2025, Hershey expects net sales growth of at least 2%, which reflects core growth “consistent with recent trends and the benefit from a long Easter,” the brand said.

In its Q4, the CPG reports that its advertising and related consumer marketing increased 2.4%, driven by investments in North America Confectionery and North America Salty Snacks.

Hershey chairman and CEO Michelle Buck says there is “a lot of channel evolution” and pressure in primary channels, like C-Channel, and growth in end-measured channels which are traditionally weaker. Buck explains that convenience channels, while under pressure, should stabilize. As a brand, she adds that Hershey is “shifting focus” to accommodate that, but would not provide further specifics.

The North America Confectionery segment performed ahead of expectations, reporting an organic, constant currency net sales increase of 5.9% in the last quarter.

The chocolate business is being affected by consumers’ focus on health and wellness, which is not a massive change but rather, a “continuation,” Buck says, adding Hershey is seeing “nice growth” in zero sugar and protein products.

The company says it has high expectations in recent innovations for Shaq-a-Licious gummies – a team up with retired NBA legend Shaquille O’Neal – Jolly Rancher and Sour Strips.

All were new as of mid-late Q3, so Hershey expects there “will be strong carryover benefit,” from these items.

Buck intends to retire from the company on June 30, 2026, and she notes that “the search process is actively underway” for her successor.