Hershey’s salty snacks sales rose 22.3%, but capacity fell short

By Tom Whitfield
Oct. 30, 2026

Hershey reported that net sales in its salty snacks segment rose 22.3% in the third quarter. The company said supply constraints involving Dot’s Pretzels and multipacks limited sales and pressed operating profit.

How severe is the supply constraint?

Supply challenges in Dot’s and multipacks have affected production for at least two quarters, according to Hershey. Third-quarter service levels improved from the prior three months, but the recovery came slower than expected.

CEO Kirk Tanner told analysts: “Demand is definitely outstripping supply, but we are catching up.” The gap limits how much of the segment’s demand Hershey can convert into sales, despite improving service.

What changes in 2027?

New manufacturing lines are expected to start running in the first half of 2027, according to Hershey. The company is also investing in automation to meet demand for single-serve and multipack options.

Tanner said: “A lot of this is behind us, but there is still this capacity coming online that will give us good growth in 2027 on our salty business and a more efficient way to get to market.” For buyers, the additions target both production volume and packaging flexibility.

How large is the salty-snack business?

Best known for Reese’s, Kisses and other confections, Hershey has assembled a portfolio of popcorn, puffs and pretzel brands. The company wants that range to support its goal of becoming a snacking powerhouse.

Its salty-snack portfolio includes:

• LesserEvil
• SkinnyPop
• Pirate’s Booty
• Dot’s Pretzels

The segment generated $1.3 billion in sales during Hershey’s fiscal 2025 year, representing roughly 11% of the company’s business. Circana data showed that Dot’s generated $626 million during the last year, making it by far the largest salty-snack brand in the portfolio.

Dot’s is targeting $1 billion in sales by entering additional categories such as snack mixes, which Hershey considers ripe for disruption. Hershey identifies the pretzel brand as central to its salty-snack strategy.

Which brands powered the quarter?

Dot’s third-quarter retail sales rose 9%, according to Hershey. CFO Dave Hulays said LesserEvil continued to outperform year-to-date expectations.

Pennsylvania-based Hershey’s total net sales rose 3% to $3.28 billion in the third quarter. The company forecast 2026 fiscal-year net sales growth of 4.5% to 5%, with organic net sales growth of 3% to 3.5%.

The contrast matters for category buyers: salty snacks grew 22.3% while companywide sales rose 3%. That suggests availability, rather than consumer interest, remains the principal limit on segment sales.

How will Hershey support demand?

Tanner said Hershey is investing further in marketing and innovation to build brand awareness and stimulate demand. He placed that push against growing consumer caution amid elevated gas prices, inflation and rising interest rates.

For retailers and brand teams, the first half of 2027 is the practical recovery marker, when new lines should start and automation should support single-serve and multipack options. Until then, the supply gap remains the main limit on converting Hershey’s salty-snack momentum into sales.