HSY - Earnings call transcript Q3 2021

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Operator

Greetings and welcome to The Hershey Company’s Third Quarter 2021 question-and-answer session. At this time, all participants are in a listen-only mode.

As a reminder, this conference is being recorded. I would now like to turn this call over to your host, Ms. Melissa Poole, Vice President of Investor Relations for The Hershey Company. you. Thank

begin. may You

Melissa Poole

press Thank available third joining session. quarter had both read everyone everyone. pre to The management our -recorded I today website. Hershey has discussion, our to chance Company’s XXXX which the and you morning, listen us our are for of for hope release on Good earnings Q&A

today's subsequent assumptions that as replay forward-looking to session, statements expectations the performance, future In Company's pandemic. The projected as of of note These Company undertakes transcript conclusion of the the risks and -recorded we remarks. be could materially and addition, today's we statements Company's At the COVID-XX expectations release Please have the other call. post posted live that this Q&A no on a uncertainties well of we financial press include during impact session, related and may pandemic and such are from Q&A found COVID-XX and differ statements transcript and various the and also audio make of assumptions regarding subject the the obligation pre as detailed to operations will these uncertainties. in can factors. SEC to a based those of risks results Actual listing events. update including filings. result A today's

results in presentation in GAAP. for be The to financial or to financial to this presented accordance that measures isolation a press investors. will this not refer included useful GAAP non-GAAP Reconciliations release. we for certain as please morning's may information that with the in the Finally, note we believe information information are considered provide substitute intended of is

turn are Michele and question. over Hershey today first it Chairman Vice will to With Voskuil. Buck me President and that, Operator the the CEO, I Hershey for Joining CFO, Steve Senior and

Operator

we poll a and we'll follow-up. for time, while be conducting one question questions. Instructions] question-and-answer one yourself One limit [Operator to moment this session. At Please

Our line Goldman of from the Sachs. English comes Jason first question with

with You your may proceed question.

Jason English

Good morning, in. folks. me Thanks for stepping

Michele Buck

morning. Good

Steve Voskuil

Morning.

Jason English

little, a you're particularly on can't Congrats snacks the the morning. that COVID rejuvenated that their your to straight, volumetric sweetness suggest pre strong has Good expansion any, you prior demand the strength to if clearly effort remember given growth. capacity demand. is lost -COVID, but in stick. (ph) quarter, some Shivery with that help Congrats. In believe that going have year. of But I despite cycling seems

is year out that it's why? that So, we or Why next sorry, manage -- my that in that's the two? you back leak to question for believe shouldn't going

Michele Buck

as regions; that been category Yeah. cut at look growth really Jason, we the we've it's cut It's really broad-based. across cohorts. the growth across seen, pretty has

that that As sustain. occurred with of and degree to of COVID, we their to the which consumers, those not Perhaps routines of we some some elevation hear during stick were some and there. about, pretty out of homes, strength but what increases people those on that see do believe and seeing and good stay we're and balance we're seeing. stick around we that new that they leave and shouldn't behaviors some are will we speak suggested of do of that will a hearing those mobility all take-home that that and also And not people them, based continued as

the thing happy associated that continuing. light good somewhat is category see we years repeatedly to have And pandemic, starting other of people, with end I those as with, the in increase, as they emotional to happiness we're happy moments believe moments and a how tunnel the of over the see consumers are us the working at The heard think, the fits really we've continue seen we've moment. it that from those and of aspect through of

some can't of of we perfectly just -- and unknown. none think perspective; is us predict any our That continue there really a the knew future. into that's -- So which this lot happen, of certainly said, the of lot so to routines, future. will we We going a know those are of was

constant is be do investment, capacity really investment what our we've tried prudent a As to strategy. in

is we've for we a on where point, and we pay It had great future. thought into a held sustained leaning but guarantee time learned bullish that capacity we seen of are of a that there bit there's the we places we growth elevated we could have example So, really bit couple before is clearly act, at are in of over Frankly, capacity places balancing in point a where demand that. that will and until points lot other this on of a a where off brands were ROI. we proof a at the Reese's

Jason English

categories. of both That's for helpful you. on. collaborate What's too it provide you elaborate retailers on going touched acceleration changes maybe resulting I'll retailers? are enacted pass prepared like pass specifics In the the being you happy and question the Thank by than you. with on. it and One Thank initiative your planning on I'll context. on that your that? And growth Can I on and moments. you more some remarks, space And your

Michele Buck

missed? very the of I'm part you first the I sorry, can just repeat question

Jason English

retailers. planning Well, for your collaborative space

Michele Buck

Yes.

Okay.

Jason English

happened, Give it, being are of an end talking what's that more were what in the the your specifically. it changes remarks. prepared on us What are it? asset about back is You

Michele Buck

Yes, absolutely.

thus, to category of or and and years that a ways store a shortage presence from a partnership analytics, when people lot around their more the growth. or checkout stores, category of there. back the had the So, in category particularly travel and partnered Recently, underutilized found that's with and convenience retailers, time, push big retailers put in focus the given stores how under at with always we through heat about and strong maps with optimize face I there's we we've around of to say our Whether of we've would convenience confection our looking even lot over management for self-checkout. placement counter a expertise retailers how think terms focus of labor been

with presence really self-checkout those checkout the mean to presence miss impulse retailers having and category of with self-checkout. a of and around make some closely partnered so, struggles And a maximize to labor sure those and to it's to to chance out perfect the up purchase. the and particularly increase leading they're category don't in the there I fit great at lines queuing that the have that opportunity people get last we've that

fortunately, to the some help our in layout. address of need they them been are So, always on environment retailers terms think we've that. what's able that with on their to store in And going I focused of

Jason English

lot Thank a you. sense. Makes of

Operator

Our of next Andrew Lazar question comes with Barclays. from the line

with proceed may You your question.

Andrew Lazar

hoping because moves you talk Thanks much. seeing just about the that a in well that off, that I first Great. to on expectations what thus in early, elasticity bit the seem impacts Maybe of competitive response terms you've how to while and your would you've trends respect could taken. announced pricing up you're pricing volume was little obviously like response far so held with remarkably have

Michele Buck

Sure.

we to rational be category, tends to always relative pricing. it As seen this category a very have in

pricing on changes pricing in on track, actions changes competitors really weeks that don't and competition, see we etc. versus any most several we'll expect recent are have shelf the and several pricing Our in take GAAP, past over this we the any actions year, including seen material

Andrew Lazar

certainly specific for Steve. a very trends guess consumption take moving it a chain the Great. which years supply overly But inventories depleted a makes more more the remained got and And on to right I from in we of then all elevated, through, be, top-line, on if pricing 'XX, guess, the row. I what really will coming I Hershey it's challenge. had X 's certainly understand now, parts getting right bit

least So, Again, would line good missing and I'm on an am. of -- things reasonably taper point on I sort out these to year, think all I sales eye 'XX. in it something, if sight algorithm of unless at please a least provide at

you've I be at question guess you half chain pricing side and first expect say, in there'll our severe to what improve this year-over-year about, a gross the as sequentially would my the and to half you're understand through you in you pressures the is, of margin it let's half to already I On first is year, profitability pressure the first obviously, supply year. seeing the gross supply improvements as the talked potentially pressures least flows chain expect next through margin of the as, or the be the maybe make you back through half move year?

Steve Voskuil

line as top the started. with you start just I'll Maybe Sure.

right. think you're I

long look at momentum. something don't year, hard you we've don't we Coming it top Easter. have algorithm As to an say that have this you got line, on to would point of today, out it's

this inventory was And of be You see bigger next And us mentioned improvements would which some some also see year, we hoped give to some call, -- will replenished. year think it we'd over had the to a capacity that year. at course then next that factor of some but expect hard point, we certainly that that's would than upside. I pricing,

And but volatile, are with I moving as gross still the a So you pieces. I of agree then into margin, premise. think lot first still get there's

this to, at things The the I a as material big obviously inflation will us wasn't tailwind margin think raw the on for gross a look can directionally we of material. point pricing Some raw we have factor year.

activity -- for prepared said demand additional we're as as we of now, to to next of we the we've have look be at next increased still to We through particularly don't spot seeing respond be, see see Logistics at quarter. of Packaging in year. some reason we'll We'll think we a less positioned we labor the consumer expect that And I in some the least inflation. a market some that headcount half better third will demand. the resins. were yet factor at say, it first the we expect inflation remarks, inflation stronger the bigger some break to for of because year. than

other keep we probably lower moderated, back for but to or break think reverted hasn't waiting I levels levels. to and that it it's

first we're point those and plays implications. of that challenges network. and think how then a see The capacity had I we with all through at least labor remain supply the trucks, to in warehousing, So, chain see out the half going pressure will and logistics broader still we've

of margin moving has So, lot back of step pieces. is when say piece gross still all a you the that, from I'd

we a guidance. of the think when half those to clarity, costs’ give see full the obviously, particularly, say, I But will get in and going year, I'd place. to of right we're February now, lot more first for provide pressures

Andrew Lazar

Thanks much. Great. so

Operator

Our Robert Credit line Moskow Suisse. comes the of with next from question

You may proceed with your question.

Robert Moskow

doing the But wanted chain supply inventory challenges the the of you done the the this did and to and guess because your makes just gains. share have you it risk to I market same you reduce so context matter? decision. you want, why well to think of where erosion I to think of advertise? won't competitors get that? market done in Michele, the I Do are And reward decision the ask if there's How and wanted know from advertising stock's the year. evaluate risk share thing, for you about Hi. can't it well sales your sense if

Michele Buck

Yes.

all, our of remain to change there would levels in brands the of first I So say is investing group. We business across industry strategic a our committed the at in peer some to model. highest not

So, want that so clear I about the be strategy, that. nothing changed there's about has to

now, also, fulfill at wouldn't chain. we share issues. supply able chain more And we're fact ROI given impactful that and didn't that that And market the really that we share we demand. challenges had that further not through looked to enable pressure we incremental think we If such good create supply us QX. be to just the sense. demand that at challenges the just make executed the advertising be our we have cuts able chain advertising, the ones it driven was impacted we our would having meet by right a don't to decision, that on in put only because As demand. supply And elevated very get it the probably wouldn't look It we the our wouldn't

to the think industry, optimizing the continue overall, even We'll across board, on of supply focus I a people manage seeing advertising So we're a in it. to lot as challenge.

agile can we We as going in much will handling we're we're we we as and our as investing very brands. Certainly, invest are capacity support think we as much behind how forward sell. in can,

Robert Moskow

on for update inventory Okay. right And just can you Halloween or you any us blow were give also Halloween? Halloween like to challenged other fulfill Will just products? through demand

Michele Buck

top had, ever Halloween that growth we've It the Yes. of strong season, on a double-digit year. is the very had last with strengths biggest very we strong that

out would the both get our in But a product of the as our excited year-to-date, that done category, supply aspect very seen out that in we're have to Certainly, business, as season the the really growths hit flock send We very tallying really possible. from every there business, of that. as own piece would much so it'd be pressures say I because there of [Indiscernible] stores be and purchased best people picked-over we've as back as consumers trick-or-treat, as I'm a well good seeing I'm we've well to lots everything as out behavior. about they

Robert Moskow

Okay, very thank much. you

Operator

question next the line from Ken Goldman comes with of Morgan. Our JP

question. proceed your You may with

Ken Goldman

food-at-home in labor wanted to right so of thanks asking had couple your strikes the a obviously perception your now. I relations We've by Hi, much. start industry. about of

you forth. there see risks I'm how just the any curious updates so So, and for

Michele Buck

Yes. Absolutely.

our and and acknowledge our manufacturing on the first thank want focused I to very publicly foremost, employees. are labor again, just and We would

our We growth and deliver been in XX during the their to beginning, very their been XX dynamic environment. we've And have the dedication the Company that demonstrate XX plants very with folks this that has have it's to able focus, us who enabled years, years, from years. for really

operated very of we advocate in have focus we for for needs So, our we and have the people. long way best believed and the a advocates believe that

rates, with are all routinely know on have employee We But competitive communication proposition these flexibility being on We then softer to management, that. especially employees, our our of able factors employees. constant important employees. we're benefits, we during we're time in And we supply very excellent get to that in global very those really with have also and the focused are highly benchmark challenge, chain of value wage focused includes, hours, off. that balance, total that our and times stress work-life we

and lot strategies really a And to so, acted we with have of an that. try help

efforts We have also most through We've leveraged this amplified manage be I really we analytics have to workforce. the recruiting our an to our increase approach understand of and important successfully headcount. and challenges always on to able recruiting our said, the year things the as to, some net

focused very that. we're So, on

look needs prioritizing at we focused very of that are and situation of and the We group ways on can that in the terms to optimize supply continuing demand.

pretty So, good we that. feel about

Ken Goldman

that meaningfully Steve. we realized XXXX been we corporate has And think that. corporate Steve, a that that ongoing grows your then should in thinking expense we from a is one I'm Are an for to modeling maybe as other for sales. both you go I one-time headwinds year runway line potential about and of when away be somewhat should kind quick Thank about? number next any line year-to-date, is, think or for line Great. up But annual XXXX. this fairly with think XXXX. especially how good about there curious about

Steve Voskuil

to as one some year planned next item talked that We We'll I ERP digital. of You'll the page Otherwise, next as kinds of not and turn of incentive investments much that'll pieces expect see in this about year, change. there's some there, is resets. compensation we and had in the one those we year. investments big have be

also a year COVID. and heavier bit had of medical We off little this benefits claims impacts coming

start we that change the next the or be probably continue year, So but the incentive as will reset biggest year. may year-over-year not may next

Ken Goldman

Thank you.

Operator

with comes Bank next of of America. from Our the Bryan question line Spillane

You may proceed with your question.

Bryan Spillane

everybody. morning, Good Hi.

Michele Buck

Good morning.

Bryan Spillane

our some my there I I below interest expense one so Steve, be I terms just year just and being we're Is operating in has puts there models year maybe is the line, lower. there? the from line. tie takes looking below And in up just we at profit just So, -- guess 'XX. on about to the more next that anything we're thinking operating should profit And, looking is benefit question been and this guess of

Steve Voskuil

major. Nothing Yeah.

where I recur that we relatively quarter look will think from quarter this to about extent, this year. guidance I had year, this and look as the a to year some level tax final was if year. the it tax at in one-timers standpoint We and I some not We but has similar I'd if year to next lumpy, been expect at second next for next look set for I well. talked the year

tax take at And those finishing interest I see I change same So, can't out. year-over-year. the expect position look flat a they I the lot I don't of expense. by

other I that than Not the So, much helps. movement year-over-year, hope one-timers.

Bryan Spillane

on type And expansion. you're is of of two product manufacturing, capacity? the it? or a investments lines, actual physical a trying is, like that's just I type down One packaging Meaning adding. guess get sense Just the then follow-up questions capacity investment production what capacity is to is helpful. related further it of No, actually that. it what in Yeah. to

Michele Buck

in as Yes, across capacity packaging terms we're on adding of production, both. product Both, well as multiple brands.

is building spoke about we agile think before center. I fulfillment up coming online. our and That

So, it's the really board. across

Bryan Spillane

or the then couple going of you cycle going you are feel And this us adding of to in we've -- is, capacity capacity. or in about to to could to get this whether like flexibility we a getting give stay to just of enough you're available have question over terms sense we're point an years, the just trying what's my thinking capacity in of that understanding incrementally and add for to CapEx you're now or stand the last a elevated if underneath where while capacity? you to utilization been I planning And where now we're guess, if

Michele Buck

have to invested least by at But by for you position. utilization of and want more more each several that varies do slightly little in is so hundred business, a X brand have certainly start we planned bit about Steve, brand and install capacity where 'XX. to dollars piece and in investment? for million the since do saying lines talk We are we pandemic I'd 'XX different new total began, a the

Steve Voskuil

Yeah.

back have look the infrastructure really done last spending. you If year, and we X a lot this years of

talked got component course, and of fulfillment DC the a we process, agile We've center. is well. about transformation, Canadian So, big that's as in the which ERP a

Now, towards pivoting projects side. finish the we our capacity those to more I'd have of say

So, about packaging. talked machines I we think like

versus really about had we buildings sort. So we far, as build year, the from we slight of year a need increase But that to next talked the and anything as we more timing look guidance project I at further, next more then, haven't a look than we as else. total, CapEx infrastructure year. as this that, due this standpoint, get And on year into to know get we

Bryan Spillane

leave I'll Thanks. everyone. it there. Thanks, Okay.

Operator

the of with Our next from Nick line question Markets. RBC Capital comes Modi

may You question. proceed your with

Nick Modi

Hershey morning, ask was a Thank and how months wanted if question you. just give a some taken. of to has was Good taken. quite has had big share, market how like I everyone. share over you the XX Looks of us bit about much -- Michele, to XX last context. Obviously, gains think I the could you been, much that

just are you can talk have the you place taking most retrenched. allocation. And see discussions stickiness, XXXX then things obviously about So where shelf where now about

get think wanted there. you'll some how Just on to you thoughts early your of progress

Michele Buck

gains realized. XX% the see market the Since of been able Take-home we XXX also has in where of to had business We mentioned we have hold XX% had held been basis pandemic, terms on strong of we share of in are to to on very retention. that. very areas sure. seasons gained numbers those We Yeah, and our in remarks. about certain as that we particular, our points strong about the

see that to able going of and more that we been we've what continue hold forward. onto. as with And to we pleased we're continued some capacity advertising, believe strengths we'll unlock some reinstate So,

Nick Modi

assortment follow-up I a have just all been focused chain big area then retailers been that a that's on know on the supply given And because challenges.

retailers thinking assortment engage with overall shelf? some So, as initiatives, with regarding you of your are you guys on your space the how about

Michele Buck

Yes.

sellers the that during that, And consumers. there's particularly during would assortment are with and So, big Halloween. I bags trend especially been know really a seasons we say, towards

to relative we've facing the item or And and items a prioritized really been the tier that in look third where core based what So, we're consumer SKU we've demand as to that have items focusing highest category is will bag. is presence we up what now portfolio which our at assortments of second on and core some to of do the If the on definitely items, some the on-the-shelf, to opposed velocity perhaps trying are of capacity. of the availability what items. tick core places, shelf point double assortment those demand I of for is, is, of seen lot optimize our part of broadly the right the even you of where core see to

approach lot has demand this, we've really taken a on maximize that we've the supply. positive So, us we available at on capacity that time, very have to we spent of and and that time generate same on the enabled think smart a output and

Nick Modi

Excellent. on. you. pass Thank I'll it

Operator

next the Lavery of line Piper Our with comes Sandler. Michael from question

You may question. proceed with your

Michael Lavery

Good morning. Thank you.

Steve Voskuil

morning. Good

Michael Lavery

know you've come wanted Just relief. of back trajectory to reload hit for this year. I the to capacity quantified the

reloading terms of see of just all can year, it, relief start retailer you you're how least how that's expect give to unfold you you a that and how sense in for inventories? soon for Just to and us planning set assuming can next at

Michele Buck

about Steve, you to that. talk want

Steve Voskuil

Yeah.

it's consumer We'll coming to that our and better hard talked as I in going about got capacity year. phase the remarks, to to year. online call over We've that's quarterly between I hear got think picture we've point. demand next We've at more a think, challenge -- exactly prepared February. I come And more in coming that's how got have year. next to this we've it's a online going that. online, be will capacity profile

Michael Lavery

issue both? and is it or labor lines production the is or But more the

Steve Voskuil

of from hiring attrition increased again a lot seen we've prepared in We've remark. this talked Like about the year. it more past. a done availability. of had bit Labor but in than also both. It's the we've headcount We only we've everyone,

capacity component. also a machine a there's but labor So, component, there's

Michele Buck

as we've also able logistics been seen there actions although and a been have that. some component, and say some to on take I'd shipping improvement And well, has

Michael Lavery

remarks strength in just channels how is sense mentioned that Thanks. and how any sustainable might Okay. prepared of measured you it give see the than we channels or a unmeasured if And your driving in products what there's stronger be? channels. in the certain total you the sell-through just in about particular Can and

Michele Buck

I Yeah. mean, what seeing a versus normal. And pre it would we're the up over it's think X-year, in with the I levels. we relatively line call -pandemic

growth single-digit you low should thinking be there. of what is So, kind

Michael Lavery

Okay. lot. Thanks a

Operator

next with Our question comes Bernstein. from the line Howard of Alexia

question. You with may proceed your

Alexia Howard

Good morning, everyone.

Michele Buck

Good morning.

Steve Voskuil

Morning.

Alexia Howard

Right. X questions from me.

you all those the you some in India, of Mexico. remarks if the I a that Firstly, up holding us well. long main are collectively emerging wonder tour a areas? still are Brazil, give follow-up. And markets then How what initiatives the in prepared mentioned do have I and are and they that quick could of

Steve Voskuil

Yeah.

Michele Buck

do to about and size the you Steve, want talk --

Steve Voskuil

Sure. The X markets are doing well.

share we X as the gaining markets in those but second brands. of all we call, think, quarter think in are started on our I I the point, same key

the with we're And pleased that so, we're making. progress

can to including see model line China efficiencies continue of markets. in of the You the benefits work, go-to-market a other the in from the the some to but top also due fact

pleased are and things the markets. X fourth to gains. those those So, -- velocity across with as really But going seen we're share the the markets of to distribution are U.S. have America on and the with with North the We some that capacity impact same pleased We've challenges going with. some seen we've the look the in pleased quarter, way well.

Michele Buck

would say of across core. I'd of in key investing it is I terms in probably bucket terms the the in them initiatives,

In portfolio well in and sweets So, India, Brazil our focused have portfolio. I across in the came Rico out Halloween the while chocolate continuing strong Brazil dark very fill And area expansion those we for a Pelon been broadening We a launched chocolate as distribution Pelo both line really Brazil had that still we're the as on a to all of continue are time. the to build Mexico, that. and in key and out brands that's priorities in to investing there. back those markets, premium successful. to think build first We

Alexia Howard

as around. and And just the during follow-up. whether of and the see wondering Has time that that's channels happening then e-commerce becoming slowed focus to this any I'm the Great. year? channel less it I elevated was remarks in a what's didn't a Obviously, down this pandemic materially? very over reference there prepared maybe

Michele Buck

Yes.

totally unexpectedly, shop dollar in mortar. we year. to their e-commerce not largely e-commerce, are those from up But in trips seen last go back and have they omni-channel. purchasing many overall more perhaps trip XXXX think versus as maintained rebounded the pre into were I shifted have of bricks consumer seen per exclusively Most level. who and what of down is a perspective, both spend of both are e-commerce, consumers broad much XXXX. more the shoppers not the exclusively stores, to have and trips And brick-and-mortar overall, the we've trips So e-commerce, e-commerce versus pretty In-store -pandemic

significant shifting growth that omni-channel our despite in And as significant saw Relative sales ago. our year the seeing with had that e-commerce last the we partners, bricks-and-mortar retail up we are business year to of also, versus that growths So, occur. particular, our well. some we're in despite

Alexia Howard

very I'll you it Great. pass Thank much. on.

Operator

of Powers, with comes the Steve Our next Deutsche question from Bank. line

may You your proceed with question.

Steve Powers

Thanks. Good morning.

on could competitive long continue, wanted capacity and be how back just backdrop. this I you for get talked run-rate it to comfortable question, how -- alleviate marketing of guess about be to Rob's lower constraints just the With most letting sense capacity of to think given a to timing back cycle you'd just hard to the the long I those run, just on you brands might you as Michael, question. call pressure with when with exactly Again, the able

Michele Buck

-- new adjustments investment, core marketing the as because to by additional had flexible. are or relative agile think of I reducing focus done operating, a how and SKU. focusing bring -- we've just we And we on like capacity online capacity we're by to in either up are changeovers, we're able to continuously lot going being in things we've make freeing

and investment of maximizing both we're say period in capacity I'd So, in the have. continuous we improvement capacity of a terms

So, do accordingly. quickly we our as so can reassess that we monitor closely then spending upticks, and adjust we see that

Steve Voskuil

All we that capabilities. add a our talked the about investment, when media I out put past we analytics analytics Yeah. would and that building lot we is have own in in our investment around the of

It's think tests areas butter very the and sort So don't core media surgical, as peanut high precise constraints the very we have ROI the protective approach. where of brand to a of advertising. very capacity of

Steve Powers

makes That sense. Yeah.

your those and versus, you internal how the in and spot. that like Just your right? it by competitive all internal right a if are competitors control your and I aspects are those of kind could, considerations similar versus to are on driven much analytics sounds now, backdrop, of -- you So, that capacity

capacity that back, how share how things picking And you that? capacity And that so, voice or up up, them saw -- you overly as would felt about about if you? affect maintain you got marketing of you're offside of you just relative lost, on being more voice pull etc. on think be ahead do were does you ramping of to if share and you concerned But to not competitors

Steve Voskuil

promoted. air start our presence strong Yes. the I retail know on very and what's to sales what's on-shelf week. what's and being team, Between has

into happening very have from the what's how optimize set. on about and we good marketing to We we're competitive all our back feed data as does of spend. And that a media going decision coming think

Steve Powers

great. Okay,

if I one question last could. Just

going can sense. expectation your it there in expect any good year's to of throughout cadence context price play makes U.S. net-realized Just would it Thank does You which bigger the the next you in build? just and terms color there flow? Is to for be executed even of role growth, any pricing helpful. increase how to called relatively the Is is provide a in price you. it year, recently -- you the out be

Steve Voskuil

going earlier have 'XX. first we first kick from increases We're price about in Yeah. in this to the the have more announced plus most half price increase the will recent carryover the in of we'll that Think quarter year.

price will to half have back-half. the So, first relative more the

Steve Powers

you. Thank Perfect.

Operator

Consumer Our with next Feeney the Edge. line Jonathan from of comes question

proceed You your with may question.

Jonathan Feeney

thanks. Hey, morning good and

by is in X, and -- very off And your and you is ahead And on a significant I few numbers that bit, scanner a understand, kind tell possibility pricing Just X broadly pricing to little retail standard and probably about for have expect of up least us pricing at Thanks something QX, a what's mine, clearly, of you'd operations. I'm to flow would but pricing any quick through? going for to measured consider channels. one to for are what pricing in days be, I'm margining when retailers at relative -- wholesale QX U.S. much. me. appears trying the your numbers, they're that that's what there does is

Steve Voskuil

really level, margin retailers mix you to you We're not when a a see up in click seeing of and retail lot material got of impact to What do way. is what's get get at when down than at down to see just And you you what you down the happening. see level. and it's type to pack More top that consistent. look when

Jonathan Feeney

you. Got

then? more So, mix of you say, a it's phenomenon

Steve Voskuil

right. That's

Jonathan Feeney

much. very Thanks Cool.

Steve Voskuil

You bet.

Operator

today's turn of end this have remarks. back we Ms. session. question-and-answer for Poole call over reached the I to would gentlemen, Melissa like closing and to Ladies

Melissa Poole

available the for day. We'll so us throughout a questions additional be for any joining certainly you may day Have this great Thanks much have. morning.

Operator

This concludes today's conference.

may the and for at enjoy Thank participation day. You your time. this you rest lines your your of disconnect

The Hershey Company (HSY) 28 Oct 212021 Q3 Earnings call transcript