Hershey Acquires Sour Strips to ‘Relentlessly Accelerate’ Growth in Sweets

The Hershey Company announced today it has acquired sour candy brand Sour Strips, expanding the snacking and confectionery giant’s growing sweets portfolio. Financial terms of the deal were not disclosed.

Founded in 2019 by YouTuber and powerlifter Maxx Chewning – who is known for his fitness tips – Sour Strips produces a portfolio of strips and bites in a wide array of flavors like Cotton Candy, Pink Lemonade, Blue Raspberry, Strawberry, and Green Apple. The candy is sold online for $17.99 per 4-pack of 6.35 oz. Bites bags and $19.99 per 6-pack of 3.4 oz. Strips bags. Additionally, according to Sour Strips’ website, the products are available at over 16,000 stores nationwide, including Target, 7-Eleven and Hobby Lobby.

Leveraging Chewning’s reach, Sour Strips has amassed an audience of over 400,000 followers across Instagram, TikTok, X (formerly Twitter), and Facebook. For the brand, which also has a presence in Canada, the acquisition by Hershey provides a prime opportunity for global expansion.

“Our partnership with The Hershey Company represents a significant step in our mission to innovate and set new standards within the confection category,” said Chewning in a press release. “Hershey’s exceptional track record making iconic brands worldwide aligns perfectly with our vision for Sour Strips.”

The Jolly Rancher and Kit Kat producer views the transaction as an opportunity to expand its offerings outside of chocolate amidst record high cocoa prices and weakened consumer demand that have cut into earnings.

Yesterday, Hershey posted not-so-sweet third quarter earnings that caused the company to downgrade its fiscal year 2024 guidance. In the quarter ended Sept. 29, the Reese’s and Skinny Pop maker saw consolidated net sales drop 1.4% year-over-year to $2.9 billion as net price realization was “more than offset” by decreased volumes across all categories.

During a Q&A session with securities analysts yesterday, Hershey president and CEO Michele Buck said the company will also accelerate growth in sweets with recent launches like Jolly Rancher Freeze Dried, Jolly Ranchers Ropes, and Shaq-a-licious Gummies.

There is ample opportunity for growth in the non-chocolate candy category. According to a report from the National Confectioners Association, the segment – which spans gummies, chewy candy, hard licorice, lollipops and marshmallows – remains a consumer favorite through prosperous, inflationary and pandemic times.

What’s more, the sour candy category has seen a boom in activity as of late. Just last week, Final Boss Sour – the gaming-themed sour snack brand developed by Science Inc. – raised $3 million in a seed round that included participation from DJ Steve Aikoi’s venture fund Aioki Labs and entrepreneur Jason Calacanis’ LAUNCH Fund. Additionally, Better Sour has partnered with Walt Disney Animation Studios to a launch a new Passion Fruit flavor of its sour gummies featuring “Moana 2”-inspired packaging.

“The acquisition of Sour Strips expands Hershey’s offerings within our growing sweets portfolio with a product that is beloved by consumers,” said Mike Del Pozzo, president of U.S. confection at The Hershey Company, in a statement. “We’re energized to welcome Maxx and the Sour Strips team to Hershey as we relentlessly accelerate our growth in sweets.”