Paul LaMonica (CNNMoney, Hershey)

00:05:17

Transcript - Not for consumer use. Robot overlords only. Will not be accurate.

I. This segment of the financial James brought you on par five meter bank. It's not to wait to get a great rate on home mortgage and leader back at some of the most competitive rates around. Call 8776917900. Or visit liter bag dot com for more information. We to bank is an equal housing lender member FDI CNN Dallas 449. 250. Paul Monica joins us on the line now as he does every single Friday and Paul thank you for joining us. What we're talking about Hershey today. Releasing his company don't. Yeah out there's the problems for Hershey you know why analysts it UBS that downgraded to date now which is. Pretty rare readings some joke it's kind of like want to. Four lettered dirty word that George Carlin used to talk about you know. And effort he but the analyst at UBS think that their problems for Hershey on two fronts they face. Upper competition I got. Oddly he's switched and I Hersh a couple of years got you don't Cadbury. Wayne is tough competitor the rarity got. Stronger by buying US this is the athlete but people are also. Eating less. You know sugary sweet and you know trying to have a healthy respect. Acts as well so that's a problem also on the lower end and you know Hershey's trying to out. Makes some moves with you know acquisitions to diversify that in May be too little too late. What we've seen him get into skinny pop they've got to jerky company do part time are being brought fans a couple of those working out Paul. It's too soon to tell on on any topic she just bought that late last year you know company. Brands which you know where it went public you know not that long ago when dad you know kind of flock and I think that's why it won't be cheap enough for Hershey. To buy it you know a lot of people balls that particular brand but I think that other issue that they're going to face it that. Popcorn for whatever reasons seems to be an area that a lot of food companies are rushing it Campbell just bought. Or plants which is you know no analog and urged pretzel special pop secret. Bootcheck popped up Bob I can at ground in popcorn Indiana was bought by private equity furcal also that also if you knew it you know. The popcorn companies in itself getting off a larger rivals so any any person. By owning you know what if you pop. Weigh in all these other. Ball is there any chance that her she takes a page out of every other food companies playbook and buys a dog food company. That would be interest media. Have feel that I don't believe that Hershey would go with that particular route I think obviously can't rule anything. Help but that would surprise me a pat urged that. You know humans are so well twentieth century ago. Oh it. How things look internationally for her she at this point I know we've talked about you know food trends inside the US what's the picture internationally for the. I think there's the potential for war growth internationally but it Hershey's milk by and large. Very very exposed to the US market so as long as people are our. Saying try me eat more helpfully. In the US I think that can be a big big problem they. The scale scope as much as other companies have died internationally at their big competitors that could mark as well you. Back. A lot of data on about. You previously mentioned that Mon police had a failed acquisition attempt for Hershey back in 2016 is there any chance that someone comes knocking this year or next year for them. It's possible would you consider and keep in mind that person does have bat share structure where the out and we trust that I'll. I'll peek chunk of the voting rights so I eight don't know if there Hershey Stanley really interest is getting read there like that things that he. Obviously you know companies like out Johns is definitely run for along time and eventually they ask succumbed to the the winds of Rupert Murdoch and sold out to it was the dot news just News Corp. before the fox split off. So he can't rule anything out but it doesn't strike me is that if the companies that want off they wanted to sell it at the chance that. A few years ago at a higher valuation and. Yeah I was real interest policy when they rolled out the Hershey gold no chart out at this caramel pretzels in its. Do you get indications from the company how wall that's selling. And I think it is to this day how well donated a relatively recent product and I would expect war new product which is like that where. 82 to emphasize chocolate and respect to try and pushed the fact that they are making you know help the Ers actually. Are they aren't going to be just you know chocolate in the debate but terrible. It's really healthier and try. Caramelized creep. Very good Paul we're gonna let you go enjoy the weekend and we'll catch up to the next week. And here I don't.
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