Case Study:
Navigating Uncertainty: How Hershey Strengthened Investor Confidence at CAGNY
Project Overview
CLIENT
Project
CAGNY Conference Presentation,
February, 2025
Project Duration
5-6 weeks
In early 2025, Food Business News reported that The Hershey Company was preparing for record-high cocoa prices and evaluating strategies to manage commodity volatility. On February 18th, Hershey took the stage at the CAGNY Conference, a key investor event for major CPG companies, to address these challenges.
For Hershey’s Investor Relations team, this was a critical moment to communicate strategy and instill confidence.
Hershey has trusted Outkreate to support its CAGNY presentations for three years in a row. For 2025, while the Hershey IR team led the vision, we provided external perspective, strategic guidance, and design expertise to build an impactful presentation.
So, how did Hershey approach this challenge? Let’s break it down.
The Context: Facing Market Uncertainty
CEO Michele Buck acknowledged the impact of rising cocoa prices, stating, “We expect the surge in cocoa prices to continue to put significant pressure on earnings in 2025… Our teams are readying opportunities for quick execution, and we are prepared to adjust our pricing, price pack architecture, formulations, demand shaping, and investment strategies.”
At CAGNY 2025, Hershey had a key opportunity to clarify its strategy and set expectations for the year ahead. The conference attracts major CPG players like P&G, Coca-Cola, and PepsiCo, making it a crucial platform to engage investors.
The Challenge for Hershey’s IR Team
With economic uncertainty and rising costs, Hershey’s IR team needed to:
- Reinforce Confidence in Category Leadership
- Provide Clarity on Profitability
- Demonstrate Strategic Resilience
The goal was to instill confidence and ensure investors left with a clear view of Hershey’s long-term strategy.
The Solution
Hershey’s IR team rose to the challenge, crafting a forward-looking, proactive message that reinforced confidence in an uncertain market. We focused on three key areas:
1. Playing Offense: Controlling the Narrative in an Uncertain Market
Rather than reacting to external pressures, Hershey set the agenda by focusing on what it could control:
- Reinforcing confidence in long-term category growth despite near-term tailwinds.
- Showcasing proactive strategies to mitigate commodity cost pressures.
Takeaway for IROs:
Don’t just explain—lead. In uncertain times, investors want to hear about what you control, not just what’s happening to you.
2. Strengthening Scenario-Based Messaging
To provide clarity in an unpredictable market, Hershey focused on:
- Historical trends vs. projected performance to provide realistic benchmarks.
- EPS recovery scenarios illustrating different cocoa pricing impacts.
Takeaway for IROs:
Bridge uncertainty with clarity. When the future is uncertain, lean on scenario-based messaging to manage investor expectations rather than leaving them to speculate.
3. Elevating the Presentation: Story Flow, Data Visualization & Design
We worked closely with Hershey’s IR team to refine the structure, flow, and visuals.
- Story flow & investor perspective: We stepped into the shoes of an investor to bring an objective POV and improve clarity and flow.
- Effective visuals & data presentation: Charts, graphics, and imagery were chosen strategically to highlight key points and reinforce the narrative.
Takeaway for IROs:
If you are intentional about story flow and visual design, you make your presenters look good and ensure your story is memorable.
Final Thought: Lessons for IROs in Uncertain Times
Hershey’s approach at CAGNY was a lesson in tackling uncertainty with confidence. Instead of avoiding tough conversations, they:
✔ Played offense: Framed a future-focused strategy around what they can control.
✔ Walked the talk: Used results and progress to reinforce confidence in their roadmap.
✔ Played defense: Addressed gaps head-on and used scenario planning to manage concerns.
Frankly, these three principles—playing offense, walking the talk, and playing defense—have worked in almost every investor communication I’ve seen, whether it’s earnings, investor day, or beyond. It’s a simple but solid way to approach messaging when the stakes are high.
Learn more about OUTKREATE’s Investor Relations Solutions
We help Investor Relations teams to ELEVATE presentations for any occasion – be it your Investor Day, General Overview, Quarterly Earnings, Investor Conferences, ESG Updates.
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