Hershey To Acquire LesserEvil Snacks For Reported $750M
Hershey is acquiring organic popcorn and healthy snack brand LesserEvil, adding to the Pennsylvania food maker’s growing portfolio of salty snacks. Terms of the deal were not disclosed, but the Wall Street Journal reported the price tag around $750 million.
Rumors that the Connecticut-based popcorn and snack maker was exploring a sale started in February, with reports circulating that LesserEvil was working with financial advisors and expecting a $1 billion valuation.
“This high-growth brand not only complements our beloved confection and salty snack brands but also brings additional manufacturing capabilities and capacity to meet growing consumer and retailer needs,” said The Hershey Company president and CEO Michele Buck in a press release.
LesserEvil will join Pirate’s Booty, SkinnyPop and Dot’s Homestyle Pretzels in Hershey’s portfolio. The multinational strategic also added to its candy offerings with the purchase of Sour Strips in November, reducing some of its reliance on the volatile pricing in cocoa.
Hershey has been the subject of its own acquisition recently. It shook off a second offer to be acquired by Mondelez International late last year.
The potential deal follows an upsurge in M&A activity by food and beverage strategics including Mars’ proposed acquisition of Kellanova, PepsiCo’s high-dollar purchase of Siete Foods and Flowers Foods adding Simple Mills to its portfolio.
Founded in 2004, LesserEvil was bought by former Wall Street trader Charles Coristine in 2012 who went on to scale the company’s manufacturing plant and the brand identity into a better-for-you snacking platform. The snack maker started in popcorn but has expanded into adjacent categories like cheese balls and extruded puffs.
Along with unique flavor combinations – such as Watermelon Hibiscus and Pumpkin Spice popcorn varieties – the company has collaborated with other brands like RIND, 4th & Heart and PopUp Bagel on products to draw new consumers to the brand. LesserEvil also recently entered a licensing agreement with Disney’s “Toy Story,” bringing recognizable characters to the packaging.
Over the years, the brand has leaned into its better-for-you credentials, helping found the “Clean Oil Crew” to advocate for healthy fats like ghee, avocado oil, coconut oil, olive oil and nut oil.
In April 2022, the brand acquired protein bar maker R.E.D.D. (however, the product is no longer on the LesserEvil website and is unavailable currently on Amazon and Walmart.com).
LesserEvil closed a $19 million funding round in September 2023, which included a “significant” minority stake by new investor Aria Growth Partners, Coristine reported at the time, as well as add-on investments from existing investors Touch Capital and Invest Eco.
As part of the Hershey deal, LesserEvil’s leadership team will stay on “to lead its innovative commercial model, speed-to-market capabilities and manufacturing operations,” the press released stated.
“LesserEvil has always been built on a foundation of clear purpose, constant innovation and a deep commitment to our people—fostering a vibrant culture rooted in mindfulness and better-for-you snacking using organic ingredients,” Coristine said about Hershey in a statement. “Joining a company that shares our passion for responsible business, giving to a cause greater than oneself, and long-term vision makes this an incredible opportunity for our brand and our team.”
