Dive Brief:
- Hershey is expanding its snacking products with in-house creation, Popwell, according to Bakery and Snacks. It’s a spin on classic popcorn, claiming to be half-popped. The marketing on the bag states that being half-popped gives it a unique texture that’s “not too hard, not too soft.”
- Hershey CEO Michele Buck, who assumed the role in March, said she wants the company to be a “snacking powerhouse.” This is the latest addition to achieve that goal. Hershey acquired Krave jerky in 2015 and barkTHINS in 2016.
- Popwell will cater to health-focused consumers. It has fewer than 200 calories per serving and is non-GMO, gluten-free and made from whole grains.
Dive Insight:
Hershey, a company synonymous with chocolate, has been branching out into the salty section of snacking under Buck's leadership. Not just salty, either. Salty and healthy.
As consumers become more aware of the downside of added sugar, it’s a smart move on Hershey’s part to diversify its products. Core customers will continue to purchase Hershey's Kisses and Reese’s Peanut Butter Cups, but what about ones who skip candy in search of a healthy alternative? If Popwell is successful, Hershey can retain some of those customers.
Unlike Hershey's other two big snack lines, Krave jerky and barkTHINS, Popwell was an in-house creation. Krave and barkTHINS both had proven track records of sales, so Hershey knew consumers wanted what they were selling. But will consumers want Popwell? If market trends continue, they will likely at least try it out.
Popcorn is having a moment in the food industry right now. According to IRI data, it’s the fastest growing segment of salty snacks on the market, growing close to 10% in the last year. Hershey isn't the only food manufacturer to take notice. The question is whether health-focused consumers will start grabbing Popwell over established brands like Skinnypop and Smartfood, or new offerings from competing brands
Hershey has an advantage over smaller startups trying to cash in on the popcorn craze. They have established relationships with grocery chains and convenience stores, so they will likely have a much easier time getting their products on store shelves. In addition, they have the spending power to saturate the market with advertisements on-air, on-line and on social media. Lastly, Hershey can tweak the product as needed. Hershey says it took only 10 months to go from conceptualization to store shelves, a feat that typically takes years.