How Accenture will help Hershey grow
Hershey wants to become an innovative snacking powerhouse and to get there it is relying on help from Accenture and SAP.
The Hershey Company selected Accenture to support its growth plans and accelerate the pace of innovation that are expected to come from the implementation of a new enterprise resource planning system known as SAP S/4HANA. The implementation is part of a program to help Hershey streamline manufacturing and supply chain processes, gain real-time customer insights to inform decision making and accelerate revenue-generating innovation to drive growth.
“Our collaboration with Accenture will enable us to increase competitive advantage and support our growth ambition through greater collaboration and innovation, as well as service delivery built around the needs of our customers,” said Terry O’Day, Hershey’s Chief Product Supply and Technology Officer. “We selected Accenture for its understanding of our industry, technology credentials and proven track record in delivering enterprise transformation at scale.”
The decision to enlist Accenture’s expertise follows a year in which Hershey was challenged to drive top line growth while it sought to become a more meaningful player in the snacking category with the $1.6 billion acquisition of Amplify Brands.
Hershey’s sales last year increased 1% to slightly more than $7.5 billion while adjusted earnings per share grew 7.9% to $4.76 from $4.41 on full year net income that topped $1 billion compared to $948.5 million in 2016. The company is eyeing faster top line growth this year in the range of 5% to 7% as it benefits from a full year of Amplify Brand sales offset somewhat by a shorter Easter selling season that is expected to hurt candy sales.
"We will continue to invest in our core brands and build on our capabilities and strategies to drive growth as we work towards our vision of being an innovative snacking powerhouse," Hershey CEO Michelle Buck explained when the company offered its 2018 outlook. “We believe these initiatives will benefit the company over the long term and enable us to achieve our goals. We have a good balance of variety, news and innovation in 2018, including the launches of Hershey's Gold Bar, Hershey's Cookie Layer Crunch Triple Chocolate Bar and Reese's Outrageous Bar. We are excited about our innovation on these core chocolate brands and platforms, as well as new advertising campaigns and in-store merchandising that should drive consumer engagement and growth across our portfolio."