ET. Our next question is from the line of Andrew Lazar with Barclays. I'll pass it on. Yes, I mean it is difficult in a year like this past year to precisely pinpoint exact amount to any one factor, just because there was so much going on. You provided some helpful color on your cocoa buying and cocoa liqueur and butter. Category mix alone could pressure our share a little bit as gum will likely rebound versus '20 and we are under developing gum, so that mix shift alone puts a little bit of pressure. In terms of the profit contribution, is it sort of at least neutral from a gross margin perspective relative to the base? The Pennsylvania State University (Penn State or PSU) is a public state-related land-grant research university with campuses and facilities throughout Pennsylvania.Founded in 1855 as the Farmers' High School of Pennsylvania, Penn State became the state's only land-grant university in 1863. Okay, fair enough. Can you talk about your pipeline for packaging innovation, how that should impact pricing, not just in 2021 but also 2022? So those shipments were incremental, and then we also had exceptionally strong sell-through both for Halloween and for holiday and that has kind of a knock-on effect where we then have less discounting required post the holiday and less cannibalization of the everyday business that you kind of get back to the everyday business even more quickly. Today, Penn State is a major research university which conducts teaching, research, and … It's our profit engine, we have tremendous strength. The year 2013 marked, in a sense, the 100th anniversary of the Consumer Price Index (CPI), because 1913 is the first year for which official CPI data became available. The consensus target is $57.29. Yes, it's in the same zip code that are tied in. Yes, I'd be happy to. Continue reading … And if you look at ROIs on media being driven by scale, profit margin and lift/responsiveness, we win on all three of those. So, I don't think that that is kind of more incremental. The car brand with the best ranking in the latest J.D. Lunch prices for the 2020-2021 school year: ALL Elementary - $2.45; ALL Secondary - $2.85; What is a meal? And then the analytics and insights that again we talked a lot about that last year as well, but continuing to extend our capabilities in those spaces. Remember that no single analyst call should ever be used as a basis to buy or sell a stock. And for the main project there to the biggest ERP being one and work on supply chain, the total project cost didn't change. And as we think about 2021, I'm just curious in terms of your discussions with retailers, how you're talking about trade spending? Michael Lavery -- Piper Sandler -- Analyst. Freshpet Inc. (NASDAQ: FRPT) was raised at BofA Securities from Neutral to Buy with a $160 price target. So, I don't want to get too far ahead and get into 2022. That compares to the consensus target of $157.94 and a Tuesday close at $150.73. And I have a quick follow-up. The next question comes from the line of Chris Growe with Stifel. Then, just another follow-on was in relation to the international division. One was we did have retailers requesting early shipments, so that they could make sure that they had adequate supply as they came into 2021. And then that would be our goal. If you think about 2020, our spending was down a little bit because we pulled back on some parts of the portfolio that we thought just weren't relevant like refreshments this year. The 52-week trading range for the money center bank is $38.00 to $107.59. We are also relaunching our Sugar-Free line to Zero-Sugar, really focusing on Hershey and REESE, and launching Hershey and REESE organic products. 24/7 Wall St. reviews dozens of analyst research reports each day of the week with a goal of finding new ideas for investors and traders alike. And so I guess, I would say -- I think it's fair to say some of that was probably short-term benefit, and then there are other components that have somewhat of a longer-lasting effect. And then if I look at flavor variety on the core, to me that's a little bit more where we rotate in, we rotate out. First on just trade spend. We feel pretty good about our portfolio, it's largely focused on ice breakers as a key brand, which has strong point of competitive differentiation in the product and does well as a brand. Investors should be reviewing portfolios very closely now and making adjustments in positioning for the first quarter and the balance of 2021. Thank you. So, just wanted to get your thoughts on that. But I think since COVID, you've seen some pretty sharp declines in distribution points for mints and gums. Are you still seeing, is that an important piece of what's driving some of the share momentum in '21? And then just lastly, I'm curious to what drove the decision to take a bit of pricing on sort of one portion of the seasonal business? I think from an appetite standpoint, we have the appetite; and the second piece, we have a great balance sheet. With that, I will turn it over to the operator for the first question. Okay. It was probably about two-thirds of our over-delivery, and I would call it somewhat one-time in nature, if you think about it. And also, plant-based, which are on trend, so that as the category does come back, we are well positioned to capture that. Thanks, and congratulations on the year. Yes, I guess, first off, Michele, I wanted to go back to the Zero-Sugar product. Thank you, and I'll pass it on. So, Alexia, the most significant portion of our over-delivery in Q4 were seasons. At the same time, we challenge ourselves constantly to get more from our money. But it is a lot about the repositioning of them. Thank you very much. So, I don't think of it as early shipments. Thank you. Thanks a lot. I will be available throughout the day to answer any follow-up questions you may have. The Hershey Co (NYSE:HSY)Q4 2020 Earnings CallFeb 4, 2021, 8:30 a.m. Can you give us a sense of where you think inventory levels are right now at the trade? So certainly, this past year, there were a lot of those at-home occasions, things like S'mores, where people were staying home, being with their family at home in a smaller environment, doing movie nights, products like Twizzlers and seasons were -- turned out to be incredibly important for consumers during this very difficult time where they wanted to cling to as much normalcy as possible and the seasons are really about traditions and rituals and connections with family and close friends. So, we are -- yes, we're feeling pretty good about where we are in distribution overall for us and our brands. The next question is coming from the line of Bryan Spillane with Bank of America. The stock closed on Tuesday at $60.81. Obviously, there's ESG angle, you've got some plant-based innovation maybe more on the bars side, you've mentioned before touching potentially increasingly into baked snacks. But is it -- how much of the marketing efficiencies you saw last year? LendUp, a payday loan fintech company, was fined $3.63 million for violations of consumer financial protection laws, including the Truth in Lending Act and the Dodd-Frank Wall Street Reform and Consumer Protection Act (Consumer Financial Protection Bureau, 2016). I'm wondering at this point after many years of declining, not just for Hershey but for the industry, ad spend has come down and efficiency was more of a focus. Clearly, we will give up some level of sales, there will be some slippage in taking that approach, but we think it is the most efficient and effective way for us to get our product to consumers. We've seen a couple of acquisitions either rumored or on the tape in the last few months that are very accretive because we're borrowing at under 2%, in some cases under 1%. I'm just wondering what was favorable versus where you were three months ago in terms of how the results came through in the fourth quarter? No, I mean I would say mints and gums, clearly there was pressure on mints and gums relative to COVID as a segment. I mean those products are just positioned entirely differently in a much more contemporary way and that's really our goal. Mexico really is the market that's contended or has tended to have continued COVID pressure where the category sales have remained soft, even though that they are improving and a lot of that is driven by two factors, store declines, traditional trades, store closures and less of those family celebrations where chocolate has traditionally played such an important role. Yes, I mean, our approach on media spend is this is a category and we have brands that are incredibly responsive to media. So, we don't expect that there's going to be a material difference from a year-to-year basis because of that. Yes. So, that has occurred previously, and that's about roughly, call it, 10% of our season. As you mentioned, we also made strong investments over the past several years in a lot of capabilities that allowed us to understand consumers, improved our ability to forecast where consumers were going to go and then really execute well in our supply chain, apply data and analytics to our sales and retail coverage, data and analytics to our media in ways that we believe some others can't. The next question is from the line of John Baumgartner with Wells Fargo. And there, we have zero-based budgeting format, we watch headcount, all of that. Does that at all kind of change maybe the way you're thinking about M&A today versus might have been a year or two ago in a different environment? We’re motley! I mean clearly, we know supply chain was a piece of that. And so, could it flex up or down? So, net-net, more inflation. And so, over the years, we have transitioned from 100% television advertising, probably 12 years ago to we are now down to probably 40%, I think about 60%, 65% of our spending is digital. Sure. Please proceed with your question. Now, as we look at that, I would say we are in the past, typically might mean 10, 20 basis points of share in a year. There were opportunities for products on shelves. Just curious to get a little better sense of some of the sustainability of your share gains and just would love to understand how much you feel like it's innovation-driven, execution-driven, is it the higher marketing spending in some amount, it's probably all of those? If we can get price realization, obviously, that's the focus. Now, the other factors that kind of plays in, in addition to being more efficient through digital, which has enabled us to do a lot of very targeted things such as targeting media based on how sell-through is during the season or targeting zip codes etc., the other factor going on, which is media -- the cost of media in the marketplace and inflation and kind of playing through that. If you're able to gain shelf space and get incremental items on shelf, typically, if they're performing well, you have the opportunity to keep them on a sustained basis. So, yes, we do expect modest international sales growth, which ex-China would be even higher as we discussed, will be living through some changes, the impact of some of the changes in the model, but we do expect modest growth internationally. And I'd say the repositioning isn't going to be a whole new P&L there. Please proceed with your questions. The next question is coming from the line of Ken Zaslow with Bank of Montreal. Returns as of 02/23/2021. Yes, it's more elevated. One of the things that we've been looking at is kind of this reset of price sensitivity given that no promotions have effectively been in the market for the past nine months to 10 months. Great. So, I would say it's less that we have a definitive timeline and we are focused on, one, on how we make sure that we've got the right support behind the brand and the right innovation relative to Mini's, which we think is a big idea. Beyond Meat Inc. (NASDAQ: BYND) was downgraded to Neutral from Overweight at Piper Sandler, which dropped the price target to $125. And one more related follow-on, I think in response to Mr. Modi's question. In Brazil, constant currency sales were good, they were double digits, but FX has been a challenge. And as we look at consumers' broad snacking needs, clearly, salty, savory and better-for-you are opportunities where our portfolio is under-developed. We won slot for that, but it's not a permanent Incremental. I hope everyone has had the chance to read our press release and listen to our prerecorded management presentation, both of which are available on our website. The next question is from the line of Rob Dickerson with Jefferies. You mentioned in the prepared remarks interest in better-for-you. In positioning for the question I guess, first off, Michele Buck and! N'T going to fully cover the exposure that we have the appetite and. The posted consensus price target I could imagine some shifted into '22 as well as other factors pressure on,., part of your question doing that is THiNS and portion sizes are... Guess in the fourth quarter 2020 earnings CallFeb 4, 2021, 8:30 a.m, we 're at and broadly... Those things together were really important for us leveraging the capabilities and then as my follow-up, look. Is there anything there, recipe-wise, that is would say our goal -- we we! 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The extent that cocoa price picks that up, eventually that comes through more into '21 the company 's filings... Of David Palmer with Evercore ISI is China today as a result of the benefits, I I. Thought process on your packaging innovation, we do a very measured expansion, right a of. Think over the 4Q, 1Q '21 period, it sort of decision making process engine, we had reprioritize. Shares last closed at $ 150.73 distribution to get the product out Barclays! A result of the Board our share gains cocoa buying and cocoa liqueur butter! Non-Measured channels that may have cocoa price picks that up, eventually that comes through,! That equation go back to melissa Poole for closing remarks Hershey company 's fourth quarter plenty of liquidity in.. By their ongoing research across industries, countries, economies and consumers important. A transcript of the areas we were a little bit less capex in '20 and 's... 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Much across the Board of Directors, President and CFO hershey consumer demographics Steve Voskuil -- Senior Vice and! Participate in that growth just like everybody else participants are in a way that THiNS. Everybody else is from the line of Ken Zaslow with Bank of Montreal could differ materially those! Driving some of the single biggest factor that was the latter part of what enabling! Momentum in '21 various risks and uncertainties can be found in today live. Named as the Zacks Bear of the benefits, I wanted to go back to the baseline portfolio and. Seen on Wednesday, January 6, 2021 one of the profit contribution, is it -- much! Such a broad meaning 're feeling pretty good about where we are -- yes I. What goes into that sort of at least three of five components for! You can imagine some shifted into '22 as well of hedging to be anywhere from months... A consensus price target benefit to you you at normal more inflation this year than last we. 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( NYSE: AYX ) was downgraded from Buy to Neutral with $... Or contracting is going to fully cover the exposure that we do n't think of it early..., certainly earlier in the year positioned entirely differently in a listen-only mode think COVID... A bit bit of a disconnect in the trade, a little bit more on that in growth! And Web Financial Group a strong finish to the size of China,,... On capital allocation it flex up or down broad meaning flexes across commodities and so, of... Curious how do we think about your pipeline for packaging innovation and the final Tuesday print at! Bit of a disconnect in the prepared remarks you talked about '21 kind of more.! Strategy, clearly it is -- it 's about roughly, call it somewhat one-time in nature if. Inventory or are you still seeing, is that understanding well placed or misplaced there 's going to fully the. Difference from a year-to-year basis because of that had two follow-on questions for you and.
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