UPDATE 3-Hershey profit beats estimates, shares up

* Q4 EPS of 59c ex-items; Wall St estimate 54c

* Stands by 2009 sales, EPS forecast

* Sees commodity costs up $175 million in 2009

* Shares up 4.5 pct (Adds company and analyst comments, stock move, byline)

By Brad Dorfman

CHICAGO, Jan 27 (Reuters) - Hershey Co (HSY.N) posted higher-than-expected quarterly profit as it lifted sales of its namesake candy and Reese's brands by spending more on marketing, sending its shares up 4.5 percent.

The company also stood by its 2009 sales and earnings forecast on Tuesday, saying that higher costs for commodities like cocoa and sugar, rising pension costs and weak consumer spending would weigh on results.

The maker of Reese's peanut butter cups and Hershey's Kisses has been overhauling its supply chain to save money. Hershey also increased advertising to gain market share against rivals like Mars Inc, which bought Wm Wrigley Jr Co in October to become the world's largest confectionary company.

"They are taking important steps to prepare for a more competitive future," Thomas Russo, a partner in Gardner Russo & Gardner, said of Hershey. Gardner Russo & Garner owns a small amount of Hershey shares, as well as shares of competitor Cadbury Plc (CBRY.L)

Hershey said net profit rose to $82.2 million, or 36 cents a share, in the fourth quarter from $54.3 million, or 24 cents share, a year earlier.

Excluding costs for the supply chain overhaul and asset impairment charges, the chocolate maker earned 59 cents share. Analysts on average forecast 54 cents, according to Reuters Estimates.

Sales rose 2.6 percent to $1.38 billion.

DELAYED EFFECT OF PRICE INCREASES

In August, the company announced a 10 percent price increase in the United States to help cope with higher costs.

Much of the impact from that increase will not be seen until later this year because the company had prior agreements with retailers on holiday candy prices for Halloween and Christmas in 2008 through Valentine's Day and Easter in 2009.

Hershey spent 26 percent more on advertising in the United States in the fourth quarter. The company's market share, which had fallen in recent years, rose 0.5 percentage points in the quarter at locations where such data is measured.