Hershey CEO Says GLP-1 Boom Fuels Demand For Gum And Mints

Hershey reported first-quarter sales and earnings that exceeded Bloomberg-tracked analyst expectations, driven by higher candy prices and resilient consumer demand.

Beyond the earnings report, CEO Kirk Tanner made one very notable comment in prepared remarks: demand for gum and mints remains strong, with the category benefiting from "functional snacking" tailwinds tied to GLP-1 adoption.

"We've also seen strong demand for gum and mint products as the category benefits from functional snacking tailwinds, including GLP-1 adoption," Tanner said.

GLP-1 drugs suppress appetite and slow digestion, so it appears that many users who no longer want a full calorie-packed snack or meal are gravitating toward gum and mints instead.

That is an unexpected positive for Hershey, a company best known for Reese's, Kit Kat in the U.S., Almond Joy, Mounds, York, Twizzlers, and other confectionery brands.

While weight-loss drugs have raised concerns about reduced calorie intake and lower food purchases, Hershey's gum and mint portfolio appears to be benefiting from a shift toward lower-calorie gum and mints.

Tanner told analysts on the earnings call, "It is a treat, not a meal," adding that the company is spending a lot of time researching the expanding use of GLP-1 drugs and incorporating that into its outlook. "The confection category is relatively insulated compared to other food categories."