Hershey CEO Reportedly Planning Exit Amid Cocoa Crisis

A day after Bloomberg reported that US chocolate giant Hershey Co. sought approval from the Commodity Futures Trading Commission for a massive cocoa bean hedge, Semafor revealed that CEO Michele Buck plans to step down.

Three sources familiar with Buck's departure plans said she will remain in her role and on the board until the Pennsylvania-based company finds a replacement. The transition is expected to be completed by July 2026.

Buck's tenure, which began in 2017, has been marked by serious headwinds in the last few years, including soaring inflation straining cash-strapped consumer and skyrocketing cocoa bean prices, which forced the company to slash its full-year sales outlook.

Hershey has warned several times that record-high cocoa prices would pressure consumers and, therefore, "limit earnings" this year.

• Hershey CEO Warns 'Earnings Limited' As Cocoa Prices Hyperinflate

• "Not So Transitory": Hershey Hit With Downgrade As Cocoa Crisis Hyperinflates Prices

• Americans Can't Even Afford Chocolate: Hershey Sales Crater, Guidance Melts

• Hershey Cuts Full-Year Sales Outlook As Americans Dial Back On Snack Consumption

In November, Goldman's Leah Jordan told clients that Hershey's third-quarter earnings report pointed to a dismal demand story for the company. He reiterated a "sell" rating on the stock.

Shares in the company are down 42% since peaking around $275 in May 2023. However, shares are up 65% since she became captain of the candy ship. 

Semafor noted:

By one measurement — Hershey's once-soaring stock — Buck's tenure was a success, but the past year has been bruising. Hershey didn't diversify businesses like its peers did, leaving it exposed to soaring cocoa prices, inflation-weary consumers who have shifted toward healthier foods, and the looming threat from Ozempic and its competitors.

Whoops. 

Meanwhile...

Instead of selling candy, Hershey shifted its focus to DEI ads.

Great job, Hershey. Nice one, Buck.