What dominates the section
- Hershey’s risk profile is dominated by concentrated U.S. manufacturing and supply-chain exposure.
- Commodity costs, pricing pressure, changing consumer demand, and intense confectionery competition threaten margins and sales.
- International growth, technology security, and the multi-year ERP rollout create additional execution risks.
The risks most specific to Hershey
- Risks Related to Our Business and Operations
Disruption to our manufacturing operations or supply chain could impair our ability to produce or deliver finished products, resulting in a negative impact on our operating results
About 74% of manufacturing capacity is in the United States, leaving production and deliveries exposed to disasters, disease, fires, terrorism, and other disruptions.
- Risks Related to the Industry in Which We Operate
We use many different commodities for our business, including cocoa products, sugar, corn products, dairy products, wheat products, peanuts, almonds, natural gas and diesel fuel
Volatile cocoa, sugar, corn, dairy, wheat, nuts, natural gas, and diesel costs or supply could pressure Hershey’s profitability.
- Risks Related to the Industry in Which We Operate
Price increases may not be sufficient to offset cost increases and maintain profitability or may result in sales volume declines associated with pricing elasticity
Price increases or smaller products may not cover higher input costs and could reduce sales volume or consumer consumption.
- Risks Related to the Industry in Which We Operate
Market demand for new and existing products could decline
Demand may weaken if Hershey misses changing consumer preferences, retail execution, advertising, marketing, or shelf-space requirements.
- Risks Related to the Industry in Which We Operate
Increased marketplace competition could hurt our business
Large confectionery companies, retailers, and other well-resourced competitors could intensify competition in packaged snacks and confectionery.
- Risks Related to Strategic Initiatives
Our international operations may not achieve projected growth objectives, which could adversely impact our overall business and results of operations
International sales were 12.8% of 2024 net sales, while approximately 15% of long-lived assets were outside the United States.
- Risks Related to Digital Transformation, Cybersecurity and Data Privacy
Disruptions, failures or security breaches of our information technology infrastructure could have a negative impact on our operations
Information-technology disruptions or security breaches could interrupt manufacturing, logistics, finance, sales, marketing, and communications.
- Risks Related to Digital Transformation, Cybersecurity and Data Privacy
Complications with the design or implementation of our new enterprise resource planning system could adversely impact our business and operations
Problems implementing the new global ERP system, including its North America Confectionery rollout, could disrupt operations and reporting.
All 17 risk factors
Headings as the filing states them, in filing order.
Risks Related to Our Business and Operations
- 01Disruption to our manufacturing operations or supply chain could impair our ability to produce or deliver finished products, resulting in a negative impact on our operating results
- 02We might not be able to hire, engage and retain the talented global human capital we need to drive our growth strategies
- 03Activities related to identifying, recruiting, hiring and integrating qualified individuals require significant time and attention. We may also need to invest significant amounts of cash and equity to attract talented new employees, and we may never realize returns on these investments
- 04Risks associated with climate change and other environmental impacts, and increased focus and evolving views of our customers, stockholders and other stakeholders on climate change issues, could negatively affect our business and operations
Risks Related to the Industry in Which We Operate
- 05We use many different commodities for our business, including cocoa products, sugar, corn products, dairy products, wheat products, peanuts, almonds, natural gas and diesel fuel
- 06Price increases may not be sufficient to offset cost increases and maintain profitability or may result in sales volume declines associated with pricing elasticity
- 07Market demand for new and existing products could decline
- 08Increased marketplace competition could hurt our business
Risks Related to Strategic Initiatives
- 09Our financial results may be adversely impacted by the failure to successfully execute or integrate acquisitions, divestitures and joint ventures
- 10The Hershey Company | 2024 Form 10-K | Page 12
- 11Our international operations may not achieve projected growth objectives, which could adversely impact our overall business and results of operations
- 12We may not fully realize the expected cost savings and/or operating efficiencies associated with our strategic initiatives or restructuring programs, which may have an adverse impact on our business
- 13The Hershey Company | 2024 Form 10-K | Page 13
Risks Related to Governmental and Regulatory Changes
- 14Changes in governmental laws, regulations and policies could increase our costs and liabilities or impact demand for our products
- 15Political, economic and/or financial market conditions, including impacts on our business arising from the ongoing conflict between Russia and Ukraine, could negatively impact our financial results
Risks Related to Digital Transformation, Cybersecurity and Data Privacy
- 16Disruptions, failures or security breaches of our information technology infrastructure could have a negative impact on our operations
- 17Complications with the design or implementation of our new enterprise resource planning system could adversely impact our business and operations
Other Hershey 10-Ks
- 2026 10-K risk factors
19 risks. Supply chain concentration in the US at 74% and reliance on diverse commodities like cocoa and sugar dominate risks. International net sales represent roughly 12.3% in 2025.
Filed Feb 17, 2026
About this page
Item 1A of the 10-K on EDGAR was split into its risk factors and, where the company's previous 10-K is on file, each heading was matched to last year's and the text compared word for word. The headings are the filing's own. The one-line readings and the overview were written by a language model from the text of the new, dropped, and rewritten risks; they refer to risks by position and cannot misquote a heading.