Nov 7 (Reuters) - Hershey trimmed its annual

revenue and profit forecasts on Thursday after missing Wall

Street estimates for third-quarter, as repeated price hikes have

dampened demand for its chocolates, confectionery, and salty

snack products.

WHY IS IT IMPORTANT?

Chocolatiers, including Hershey, have raised prices to

maintain profit margins amid rising raw material costs,

particularly cocoa leading to a consumer pushback.

Additionally, shifting trends, including a generational

pivot to non-chocolate confections, have eroded the

Pennsylvania-based company's chocolate-dependent sales.

MARKET REACTION

Shares of the Jolly Rancher-owner fell about 2.5% in

premarket trading.

CONTEXT

Packaged food peer Kraft Heinz ( KHC ) also cut its annual

forecast last Thursday, despite a third-quarter profit beat, as

consumers shifted to cheaper, private-label alternatives.

Hershey aims to generate $300 million in savings by 2026

through cost-cutting measures and price hikes to offset rising

cocoa prices and boost margin growth.

KEY QUOTE

"While year-to-date results have been affected by

historically high cocoa prices and a challenging consumer

environment, we are laser-focused on controlling what we can,"

CEO Michele Buck said.

BY THE NUMBERS

The company, one of the largest chocolate manufacturers

in the world, anticipates full-year net sales growth to be flat,

a revision from its prior estimate of about 2%.

Hershey forecasts annual adjusted earnings per share to

decrease by mid-single digits, rather than the slight decline

previously expected.

In the third quarter, organic prices rose 2%, while

organic volume decreased by 3%, while total net sales fell 1.4%

to $3 billion, missing analysts' average estimate of $3.08

billion, according to data compiled by LSEG.

Excluding certain items, the company earned $2.34 per

share in the third quarter, below estimates of $2.56.