Hershey's Acquisition of Amplify Snack Brands
|
Case Code: BSTR552 Case Length: 11 Pages Period: 2015-2017 Pub Date: 2018 Teaching Note: Available |
Price: Rs.200 Organization: The Hershey Company Industry: Confectionary Industry Countries: US Themes: Strategic Management, Consumer Behavior |
Abstract Case Intro 1 Case Intro 2 Excerpts
Excerpts
The Acquisition
Hershey's primary reason for acquiring Amplify was to expand its product portfolio in the US snacking category. Being a major player in the candy and chocolate bar segment, Hershey wanted to strengthen its position in the mainstream salty snack segment. As of April 2017, the consumer spending in the salty snack segment was US$ 27.5 billion. The sales revenue of other categories of snacks was less than that of salty snacks (Refer to Exhibit II for comparison of sales value of various snack categories in the US)...
The Risks
However, there were analysts who thought that Hershey's acquisition of Amplify was fraught with risks. Amplify outsourced the manufacturing of all its products to co-manufacturers. Dependence on co-manufacturers was a risky proposition as the inability of any partner to deliver the products on time would result in loss of business and market share....
The Future
On the other hand, Howard saw Amplify's acquisition as "a reasonable strategic fit for Hershey". She said, "We also expect Hershey to leverage lessons learned from its past M&A activities to manage the Amplify brands prudently."...
Exhibits
Exhibit I: Product Categories of Hershey and Amplify
Exhibit II: Comparison of Sales Value of Snacks in the US
Exhibit III: Acquisitions by Hershey over the Years
Exhibit IV: Comparison of Key Financial Data of Hershey
Exhibit V: Comparison of Key Financial Data of Amplify
Exhibit VI: Competitors for Hershey in the US
Exhibit VII:Snack Companies Involved in Acquisitions and Mergers in the US
Buy this case study (Please select any one of the payment options)
| Price: Rs.200 |
Price: Rs.200 | PayPal (5 USD) |
