Dive Brief:
- The Hershey Company is introducing a new candy bar called "Hershey's Gold" in time for the Winter Olympics. The product features caramelized creme with peanuts and pretzels. It took 18 months to develop and test, according to Ad Age.
- Hershey will be an official sponsor of the United States Olympic Committee for the 2018 Winter Olympics being held in February. The sweets maker plans to send a tweet with a link to a Hershey's Gold coupon each time Team USA wins a gold medal at the event in South Korea, the publication reported.
- The company mentioned in its recent third-quarter earnings report that it planned to debut the gold product before the end of the year and that, along with seasonal plans for Halloween and Christmas, it should help deliver on net sales growth targets for the year.
Dive Insight:
Hershey plans to have 1.4 ounce and 2.5 ounce versions of the new golden bar available in stores in December. The formula, which doesn't contain chocolate and has been described as smoother and less crunchy than the company's traditional chocolate bars, comes with a sweet and salty taste. It should be a hit with millennials and other consumers who appreciate interesting, new and complex flavors in their snacks. As more consumers eat on the go and look to indulge in a treat now and then, Hershey should be ideally positioned to benefit.
In a recent investor presentation, Michele Buck, Hershey's CEO, said that despite growing demand for healthy foods, consumers are still hungry for indulgent sweet and salty snacks. The Pennsylvania-based company has the nation's second-largest share of the snacking market at 7.5%, and Buck said she hopes M&A will help diversify the company's profile and transform it into "an innovative snacking powerhouse."
While Hershey has branched out into healthier, on-the-go snacks through its 2015 purchase of jerky maker Krave — known for trendy flavors like grilled sweet teriyaki and garlic chili pepper — and barkTHINS, a maker of chocolate pieces with nuts, seeds and fruit, a year later, it has not given up on the sweets that made the small-town company famous.
Hershey has been a leader in the sweet and salty flavor area with its "snackfection" initiative, which includes the complex textures offered by Reese’s and Hershey’s Crunchers Candy, Reese’s and Hershey’s Dipped Pretzels, Hershey’s Popped Snack Mix and Reese’s Popped Snack Mix.While the company has tweaked existing brands, it hasn't released a new bar under the Hershey name since Cookies & Cream in 1995.
Hershey also has reportedly expressed an interest in Nestle's U.S. confectionary business, which includes popular brands such as Butterfinger, BabyRuth, SweeTarts and Nerds, that was put up for sale in June. The roster of well-known candy brands would nicely complement Hershey's line of sweets that already includes its iconic bars and Kisses, Milk Duds, York Peppermint Patties and Almond Joy.
With the debut of "Hershey's Gold," the company is capitalizing on its involvement in the Winter Games, support for Team USA and social media presence by tweeting coupons whenever the team wins a gold medal. If the new candy bar is a hit, that kind of smart positioning is likely to score sales and brand awareness for the company long after the games are over.