By Evie Liu

Hershey said it is hiring a new executive to create growth by expanding and transforming its snacks portfolio, two months after the appointment of two other executives to lead critical parts of the business.

The moves highlight that the company is committed to change over the long term. But investors should still expect volatility in the stock in the coming months.

Stacy Taffet, with 15 years of experience in the consumer packaged-goods industry, was appointed as Hershey's chief growth officer on Tuesday, starting on April 14. Taffet will help the chocolate and snacks company accelerate growth and strengthen its position in the global market, the company said.

In her most recent job, Taffet served as senior vice president of beverage portfolio strategy and marketing at PepsiCo, helping to lead marketing overhauls and business growth for brands like Pepsi and bubly.

"With deep expertise in brand strategy, innovation and commercial growth, Stacy brings strategic capabilities to accelerate our vision to become a leading snacking powerhouse," said Hershey CEO Michele Buck in a statement.

Two months ago, the company named Andrew Archambault and Veronica Villasenor to lead its North American confectionery and salty snacks departments, respectively.

Archambault joined from Keurig Dr Pepper, while Villasenor is a Hershey veteran of 22 years. "The combination of fresh perspective and deep internal knowledge will be powerful in advancing our strategic ambitions and taking our business to the next level of growth," Buck said on a call to discuss Hershey's earnings in February.

Things haven't been going well at Hershey. Pressure on consumer spending and GLP-1 drugs that suppress users' appetites have dragged on sales. Rising costs for ingredients and other essentials -- cocoa prices have taken off -- have squeezed margins. The stock is down 9% over the past 12 months.

Although the snack company has a portfolio of famous brands like Hershey's and Reese's, its market position isn't very diversified. More than 80% of Hershey's sales come from its North America confectionery segment, with salty snacks and international sales making up the remainder.

Sweet snacks have been under pressure as more consumers become aware of their calorie and sugar intake. In 2024, North American confectionery sales were flat from the previous year. While prices for the products sold increased 4%, sales volume declined by the same percentage.

Hershey has been betting on growth from salty snacking, which currently makes up one tenth of its total sales and grew by 4% in 2024. Two of the salty brands -- SkinnyPop popcorn and Dot's Pretzels -- rank among the top 10 brands at the company.

The company is also expanding its array of better-for-you products -- an increasingly important category that often features higher protein and low sugar. "In addition to having our fabulous array of indulgent products, we wanted to diversify and get permissibility in our portfolio as well, to meet those changing health and wellness trends," said Buck at a conference in February.

Hershey is also changing how it is reaching consumers. Spending on digital media has more than doubled from 2017 to 2024, according to the company.

Still, the company is facing an uphill battle. For 2025, Hershey expects sales to grow at least 2%, but driven primarily by higher prices instead of improving volume. Adjusted earnings are expected to fall in the mid-30% range, partly because of higher costs for raw materials such as cocoa beans.

Expect the stock to stay volatile until real growth shows up.

Write to Evie Liu at evie.liu@barrons.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

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March 11, 2025 13:43 ET (17:43 GMT)

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