$Hershey(HSY)$  

(HERSHEY, A GREAT AMERICAN COMPANY)

I bought some Hershey because I believe it is a solid long term investment, due to the fact that the company has decent management in a competitive sector, and the stock has been oversold.

However Hershey does face quite a few struggles; price volatility, supply chain disruptions, and sustainability concerns. While all these things make such a company a potentially risky investment. I particularly like the way Hershey has gone about handling them 

1. Pricing Strategies

Incremental Price Increases: Hershey has adjusted product prices to offset rising cocoa costs while balancing consumer demand.

Premium Product Offerings: The company has introduced higher-margin premium and specialty chocolates to boost revenue.

2. Supply Chain Diversification

Sustainable Cocoa Sourcing: Through its Cocoa For Good program, Hershey has invested in sustainable cocoa farming to improve yields and stabilize supply.

Diversified Suppliers: Hershey sources cocoa from multiple regions, reducing reliance on any single country affected by supply disruptions.

3. Cost-Cutting & Efficiency Improvements

Supply Chain Optimization: The company has streamlined operations to reduce transportation and storage costs.

Ingredient Substitutions: In some products, Hershey has adjusted formulations to use less cocoa or alternative ingredients without affecting quality.

4. Product Innovation & Diversification

Expanding Non-Chocolate Portfolio: Hershey has acquired and expanded brands in non-chocolate segments, such as salty snacks (Reese's Dipped Pretzels, SkinnyPop, and Pirate's Booty).

New Product Lines: The company continuously develops new flavors, limited-edition products, and healthier alternatives to appeal to changing consumer trends.

5. Strategic Acquisitions

Acquiring Snack Brands: Hershey has acquired brands like Amplify Snack Brands (SkinnyPop) and Dot's Pretzels to diversify revenue streams beyond chocolate.

Investing in Alternative Sweets: Hershey has explored lower-cocoa and non-chocolate products to mitigate risks tied to cocoa price volatility.

6. Sustainability Investments

Farmer Training Programs: Hershey funds agricultural training to help cocoa farmers improve yields and efficiency. This is useful and shows long term planning by reinvesting to protect the delicate future of cocoa farming.

Deforestation-Free Commitments: The company works to ensure its cocoa supply is sourced responsibly and sustainably. Keeping the company free from controversy and the stock out of the news.

The main thing I'm keeping an eye on is Hershey's free cash flow growth and from the past 10 years while it has volatile growth, the overall trend shows signs of growth so I think if Hershey can keep doing what its doing and maintain its progress in 10 years the company will definitely gorw despite cocoa challenges.

$Berkshire Hathaway(BRK.B)$  

$Mondelez(MDLZ)$  $General Mills(GIS)$  $Tyson(TSN)$  

@TigerWire  @Optionspuppy @Daily_Discussion  @TigerTradingNotes  @Buffett Investment Tracker