Here's a brief look at what may have attracted the maker of Chips Ahoy, Oreos and Cadbury, among many other well-known brands, to Hershey.
1. Hershey is reinventing its business.
Hershey recently acquired "snacking chocolate" brand Barkthins. TheStreet recently sampled several versions of Barkthins and can confidently report they are absurdly addicting and have a much better nutrition profile than a regular dark chocolate bar. Further, Barkthins have gobbled up some prime shelf space at major retailers such as Walmart (WMT) lately as they play into the broader consumer trend toward snacking.
Barkthins joined another interesting acquisition made by Hershey of Krave beef jerky last year. Krave has some of the most innovative flavors in the premium beef jerky market, and similar to Barkthins is receiving prime shelf space at major retailers due to their snacking qualities.
Mondelez may appreciate the diversification beyond core chocolate bars.
2. Core Hershey products are being reinvented.
Walk down most candy aisles today and you're likely to come across two new snack mixes from Hershey's -- the Reese's snack mix (peanut butter cups mixed with nuts in a 2-ounce package size), and the Hershey's snack mix (mini-Hershey bars mixed with pretzel and almonds in resealable plastic containers). These new products make ridiculous amounts of sense in this new snacking-crazed world.