While chocolate remains a major part of Hershey’s business, the snacks maker is adding more peanut butter, wafers and other trendy ingredients into its new product launches to tap into top consumer trends, a top executive said in an interview.
Hershey and other cocoa users have been hit hard by high costs for the commodity, prompting companies to increase prices to offset the run-up in costs. The elevated expense has made it more attractive for companies to launch products that depend on less cocoa.
Tiffany Menyhart, Hershey’s chief customer officer, said chocolate remains a “critical part of its portfolio, independent of commodity prices.”
But as consumer preferences evolve, the Reese’s and Kit Kat manufacturer is making sure its innovation is reflective of those demands — even if that means launching some new products that reduce its dependence on the very ingredient the 131-year-old company is known for.
“We’re protecting our core chocolate business. We will always continue to make quality products with cocoa. That’s what our consumers love,” Menyhart said. “The other thing I will say is that we have found there are different flavors that are on trend that we have the right to own.”
In recent years, Hershey has launched more limited-time Kit Kat flavors that replace the chocolate coating around the wafer bar with flavors including vanilla and pink lemonade.
It also rolled out a Hershey’s milk chocolate bar loaded with crunchy waffle cone bits, giving consumers a new texture option while incorporating slightly less chocolate. And earlier this year, it introduced a Hershey’s milk chocolate bar loaded with caramel aimed at consumers making s’mores.
In addition to chocolate, Hershey has a close association with peanut butter through its $3.2 billion Reese’s franchise. The Pennsylvania company has extended Reese’s into other snacking categories with peanut butter-filled pretzels, animal crackers coated in peanut butter and chocolate, and popcorn drizzled with peanut butter and milk chocolate.
“We’re working with our Consumer Insights and R&D teams to understand the key consumer needs and then how we best address those needs,” Menyhart said. Chocolate “is still an important area for us but how do we take the iconic brands that people love in our chocolate portfolio and create something new out of them?”
Hershey is not the only company to bring peanut butter, wafers and other popular ingredients into its portfolio.
Ferrero rolled out B-Ready, a crispy wafer shell filled with Nutella, to the U.S. in 2023. And next year, it plans to launch Nutella Peanut that combines the creaminess of the cocoa hazelnut spread with roasted peanuts.
