Hershey real chocolate strategy – summary
- Hershey will reintroduce real chocolate to select Reese’s and Hershey’s products
- Move affects under three percent of Reese’s items across portfolio
- CEO says changes align brand consistency and improve ingredient authenticity
- Company also reformulating KitKat for creamier chocolate and cleaner labels
- Shift signals wider industry pressure towards quality upgrades and transparency
The Hershey Company has announced it’s returning to real chocolate.
The confectionery giant has faced mounting backlash over ingredients switching, in recent years. Most notably from the grandson of Reese’s founder, Harry Burnett Reese, who accused the company of changing essential ingredients in Reese’s products, which are now owned by Hershey.
Is it possible that negative feedback has led to a major u-turn?
During the company’s Investor Day on Tuesday, the maker of big-name brands including Twizzlers, Hershey’s Kisses, and Reese’s Peanut Butter Cups said it will change the chocolate in a small portion of its Reese’s products.
It will swap out a chocolate compound coating as part of a return to using “classic milk and dark chocolate recipes” in all Reese’s and Hershey’s products by 2027.
What is chocolate compound coating?
Chocolate compound coating is a chocolate substitute, made from cocoa powder, sweeteners, and vegetable fats (such as palm kernel and coconut oil) instead of cocoa butter.
It does't require tempering, sets quickly, and remains stable at room temperature, making it increasingly popular with confectionery manufacturers.
But, while this might seem like a significant shift by the multinational, it amounts to less than 3% of Reese’s products and a fraction of Hershey’s overall portfolio.
Why such a small percentage?
Because, as it turns out, classic Hershey’s chocolate bars and Reese’s Peanut Butter Cups already use pure milk and dark chocolate. The products requiring change make up a small section of the portfolio – mini Reese’s cups and shapes, the Reese’s Fast Break candy bar, and certain foil-wrapped Reese’s shapes.
Moreover, Hershey CEO Kirk Tanner said the decision to return to real chocolate on these products was made shortly after he took the role last summer – before Brad Reese voiced his concerns.
“Right when I started with the company, we did a deep dive across our portfolio,” said Tanner. “We’re going to make some small investments to really align the portfolio to what the brand stands for.”
He went on to say that “consistency” across the brand is important.
Hershey has also said it’s changing its KitKat recipe – a product it produces under a licence agreement with Nestlé – for a “creamier-tasting chocolate” and is “on track” to remove all artificial colours from its products by the end of 2027.
“Hershey is committed to making products consumers love and that means continually reviewing our recipes to meet evolving tastes and preferences,” said a spokesperson for Hershey. “A series of enhancements taking effect in 2027 reflect that commitment.”
Hershey’s strategy
The significance of Hershey’s move lies less in the scale of the reformulation than in what it signals about the company’s direction.
Reintroducing real chocolate indicates a strategic move towards quality ingredients, with consumer trust in mind.
And, if successful, it could encourage other brands to follow suit, as Hershey is certainly not the only company to make moves away from real chocolate.
