For many consumers, Hershey is synonymous with its eponymous chocolate bars, iconic Kisses and other indulgent sweets, but the CPG giant increasingly is focused on better-for-you confections and snacks with added benefits – a pivot that is paying off by creating new usage occasions, consumer groups and retail placements.
Under an umbrella “One Hershey” strategy that spans chocolate, salty snacks, protein bars and other better-for-you offerings, the 130-year-old company is working closely with retailers to rethink how to best merchandise the modern snack set.
“We are all about expanding across a broad snacking landscape – confection, salty snack and our protein bar business all participate in a broad range of snacking occasions, and we are looking to secure more of those occasions and more consumers,” said Dan Mohnshine, vice president, demand creation strategy and innovation for The Hershey Company.
This means balancing indulgence and better-for-you benefits by bringing its iconic brands across categories into unexpected places where they can surprise and delight consumers.
“What you’ll see is a range of flavors, textures, experiences, and in some cases, functional health benefits, and those are of increasing importance to consumers, and we are a lot more focused on them than we have been,” he said.
An example of how the company is executing its One Hershey strategy is the diversification of its iconic Reese’s brand beyond the indulgent chocolate and peanut butter cups.
The brand now offers a range of new confection concoctions, such as a new Reese’s Oreo cup and an LTO Reese’s Marshmallow cup, and better-for-you options, like the One X Reese’s Peanut Butter Chocolate Layered protein bar launching this month with 18 grams of protein and 2 gram of sugar.
“Hershey is another great example. We are present in baking, we are certainly present in the confection category, but we also have co-branded One Plus Hershey items in the protein bar business,” said Mohnshine.
He added the goal of the One Hershey strategy is to “bring the force of that scale to market and partner with retailers to win. I think that is an exciting thing for us to unveil.”
Two trends lead the change in better-for-you confections
The strategy is founded in part on the recognition that consumers want permissible indulgence, but they also want better-for-you products that help them meet their health goals, such as more protein and less sugar – two areas of significant importance to Hershey.
“Most people are looking to add protein to their diet, and they’re looking to do so for a variety of reasons. Yes, certainly for fitness, but also satiety. People want to stay full. They want to have good energy. Many people will come and look for a midday boost or a meal bridge to get them through the day, and that is often provided by a protein-rich snack,” said Mohnshine.
He explained that many consumers are looking for 15-20 grams of protein per serving, but increasingly they are interested in the source and quality of that protein – from whey to plant-based.
“Understanding the consumer is really critical to making sure that we’ve got the formulas that deliver across a range of needs,” he said.
Flavor and texture also are important – especially in the protein bar category, he added, noting that the One X Reese’s Peanut Butter Chocolate Layered bar stacks the iconic flavor of Reese’s peanut butter and chocolate coating together with 18 grams of protein for combination of smooth, melty and crunchy.
The bars also restrict sugar to 2 grams – delivering on another top consumer demand.
Hershey more than triples zero-sugar offerings
Hershey is reducing sugar across its portfolio to help more consumers meet their health goals while still enjoying a moment of indulgence, Mohnshine said.
“Our zero-sugar confection lineup has more than tripled in size over the last five years, and we remain focused on offering great tasting chocolate and sweets products that have no sugar,” he said. “There is tons of momentum there.”
He explained there are two main drivers behind consumer interest in low and no sugar products: medical conditions and lifestyle choices.
“There are more people trying to avoid sugar, or at least moderate their consumption,” Mohnshine said, noting 15% of US households buy reduced sugar confections yearly and almost all of those households also buy full sugar confection items.
“What that tells us is it is either a member or two of the household that needs the zero sugar item, or they’re moderating their consumption and going back and forth,” he explained.
To meet these needs without compromising taste, texture and the overall eating experience consumer expect, Mohnshine said Hershey uses a range of sweetener systems in combination with other ingredients that can “reestablish that structure and make sure the products hold firm,” and also deliver the creaminess and melt that consumers want.
Examples of low and no sugar innovations include Zero Sugar Jolly Rancher Gummies, which the company says is one of the first sugar-free gummies in the category, Hershey’s Zero Sugar Cookies ‘n’ Crème candy, which will become available this summer, and Reese’s Zero Sugar.
“Zero Sugar has been very successful for us,” Mohnshine concluded.
Hershey prioritizes choice and transparency
Ultimately, Hershey’s innovation and expansion strategy boils down to delivering choice and transparency.
“For people who have either a preference or a requirement for a certain set of ingredients, transparency is always there and you can typically access that through not just the ingredient lines but also our website and QR codes,” Mohnshine said.
He added: “When it comes to choice, we basically have to balance what does it take to actually deliver something that people are going to enjoy and how do we make sure that they can enjoy it across a range of audiences that is broad enough to get scale and appeal.”
Looking forward, he said, Hershey sees significant runway still for multi-textural experience and international flavor inspiration.
