Hershey expands confectionery offerings with Lily’s acquisition

Hershey is adding a new brand to its roster of confectionary offerings.

The company has entered into an agreement to acquire Lily’s, a low-sugar sweets brand with offerings that range from low-sugar dark and milk chocolate style bars, to baking chips and peanut butter cups.

“Hershey is focused on developing a BFY confection portfolio that offers a variety of choices to meet the evolving needs of our consumers,” Chuck Raup, President U.S., said. “Lily’s is a great strategic complement to our existing offerings in this growing segment of the confection category.”

Based in Boulder, Colo., Lily’s was founded co-founded by Cynthia Tice. The brand launched four chocolate-style bars back in 2012 at Whole Foods Market, and since then expanded its offerings and availability to several key retailers across the nation, the companies said.

“Cynthia had the vision that consumers wanted a better-for-you option in confections and today 80% of adults want to cut back on their sugar intake,” Jane Miller, CEO of Lily’s said. “By joining the Hershey’s family of brands, Lily’s will become a platform confection brand making BFY options easily accessible to all consumers.”

The acquisition will be financed with cash on hand, as well as short-term borrowings, and is subject to customary regulatory approvals.