Many would agree that snacks are better than consuming actual meals because they are convenient, less expensive, require no preparation, and can easily align with most people’s dietary needs.
However, a lot of snacks are unhealthy and contain a huge ingredient list of additives and hard-to-pronounce chemicals designed to make the products taste good.
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Consumers have grown more aware of the importance of their health and have begun making more conscious decisions about their eating habits. They are often choosing healthier alternatives to the original high-calorie, low-nutrient options.
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The global healthy snack market was estimated to be worth nearly $96 billion in 2023 and is expected to reach around $145 million by 2030, with an annual growth rate of 6.1%, according to a study by Grand View Research.
Shoppers have become more conscious of their eating habits, opting for healthier snack alternatives.
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Hershey expands its portfolio with the acquisition of LesserEvil
The Hershey Company has entered a definitive agreement to acquire the organic snack brand LesserEvil to expand its portfolio and invest further in the better-for-you snack sector.
“Investing in LesserEvil brings a multi-category, better-for-you snacks platform to extend our offerings into new categories and forms, reaching new consumers in more eating occasions,” said The Hershey Company President and Chief Executive Officer Michele Buck.
LesserEvil is an organic snack brand that makes healthier alternatives for popcorn, puffs, curls, and more by using better ingredients, removing unnecessary additives, and reducing the caloric content.
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Although Hershey is set to become LesserEvil’s new owner, the company said the brand’s original team will continue leading the business. It has yet to disclose if any layoffs will result from the new ownership.
Hershey’s latest acquisition is a win-win situation for both parties. Together, they will reach a wider audience, meet consumers’ ever-evolving needs, and better adapt to product demand with Hershey’s supply chain capabilities.
“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 Buck.
The exact terms of the agreement have yet to be revealed, and the transaction remains pending regulatory approval. However, the acquisition is expected to be completed later this year.
Big food companies follow the healthy snack trend to grow
Acquiring emerging better-for-you brands seems to be a trend followed by some of the biggest food manufacturing companies.
Last year, PepsiCo (PEP) acquired the Mexican-American food brand Siete Foods for $1.2 billion, and Flowers Foods (FLO) , Wonder bread’s parent company, bought the healthy snack brand Simple Mills for $795 million in January.
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However, Hershey may have been the company that began the better-for-you snack trend before all others. In 2017, it acquired Amplify for $1.6 billion, the biggest purchase in the company’s history.
Amplify owned the brand SkinnyPop before Hershey’s takeover, which is one of the most popular healthy snack brands on the market today.
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