High Levels of Banned PFAS Detected in Hershey's (NYSE: HSY) Packaging. Independent Tests Reveal Widespread Presence of Cancer-Linked "Forever Chemicals" in its Biggest Brands

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Highlights of Grizzly Research's Investigation into The Hershey Company:

* We commissioned the mass testing of packaging of about 40 different food products for U.S. consumer retail. We used a novel test method based on light-spectroscopy and a Reese's Pieces pouch tested positive of strong PFAS contamination on the packaging inside in an "inhomogeneous pattern."-One of only two flagged products in total.

* We commissioned four different test labs in the U.S., Germany and China with four different testing methods to independently test HSY's best-selling chocolate candy products against competitor's best-selling plastic-wrapped products by Mars, Nestle and Ferrero. All four labs found heightened traces of PFAS in various HSY's products but none or negligible amounts in products by Mars and Nestle. The U.S. sales of affected brands represent about 43% of HSY total revenue and much larger portion of income, with further brands likely being also affected.

* Among all tested products, surprisingly high amounts of the PFAS over 10 mg/kg were found in wrappers of Hershey's Milk Chocolate bar (by HSY), Hershey's Cookies' n' Creme bar (HSY), Reese's Pieces pouch for the U.S. market (HSY), Reese's Pieces pouch for the E.U. market (HSY), Almond Joy bar (HSY), Mounds bar (HSY), Reese's Peanut Butter Cups (paper cups, HSY), Reese's Peanut Butter Cups (wrapping foil, HSY), Hershey's Kisses (HSY), KitKat (HSY) and in one test each but none of the replication tests, Butterfinger bar (Ferrero). In 50 tests, the labs found 20 cases of high contamination over 10 mg/kg, of which 19 were in HSY's wrappers. The highest reading was 81.5 mg/kg of total fluorine. All three comparison best-selling products by Mars, and the one comparison best-selling product by Nestle were free of heightened PFAS levels in all tests.

* Experts we talked to were very surprised about the high levels of PFAS we found in HSY candy wrappers, because plastic wrappers do not need anti-stick or anti-grease treatment. Experts suggested the data might be explained by illegal foil dusting with PFAS for easier production processes or unclean uses in the food treatment process.

* PFAS, or "forever chemicals", are carcinogenic and a ban in candy packages was introduced in 2024 in the US. Children are especially vulnerable to PFAS toxins. PFAS originates from anti-grease and anti-soak coatings, but companies must have gotten rid of them by now.

* In the U.S. alone, PFAS polluting companies already paid a total of $11.5 billion [https://time.com/6292482/legal-liability-pfas-chemicals-lawsuit/] in fines and settlements with many cases still being outstanding. PFAS expert attorney R. Bilott [https://en.wikipedia.org/wiki/Robert_Bilott], who was instrumental in a $4 billion PFAS settlement case against DuPont [https://www.bloomberg.com/news/articles/2021-01-22/dupont-and-chemours-in-4-billion-forever-chemicals-cost-pact], estimates that PFAS-related damages claims in total are "potentially much larger in scope and scale" than the tobacco settlements of $200 billion.

* According to our understanding, the use of PFAS despite the ban must be authorized by the FDA via the Food Contact Notifications process. As of today, the Inventory of Effective Food Contact Substance (FCS) Notifications database does not show any authorization of PFAS use for HSY

* Hershey's, Reese's and other HSY brands having severe PFAS contamination that the direct competition can avoid will materially affect these brand's recognition and adds severe reputational and litigation risk to HSY.

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