The introduction of dairy-based chocolate marks a significant advancement for Hu, appealing to consumers in search of a vegan, healthier alternative to conventional chocolate brands. By incorporating a dairy option, the brand aims to broaden its market presence. Despite this addition, Hu has assured that its new dairy-infused snacks will maintain clean-label ingredients. The milk used is sourced from grass-fed cows, a rarity in the chocolate industry, with only a few brands like Alter Eco following suit. “Milk chocolate is undeniably delicious, and we’ve been eager to create a version that embodies OUR philosophy — the HU way,” stated Hu co-founder Jordan Brown. “We’ve finally achieved it and believe we’ve crafted some truly exceptional milk chocolate. We can’t wait for both our loyal fans and new consumers to experience our ultra-simple interpretation of this classic.”
According to data from the National Confectioners Association, chocolate sales rebounded by 9.2% last year following a pandemic downturn. Concurrently, there is a growing consumer demand for candy with healthier attributes—something that major chocolate manufacturer Hershey has successfully leveraged in recent years. Hu emphasized that its new chocolate contains no refined sugar, cane sugar, sugar alcohols, soy, or palm oil, and it is also organic and Fair Trade certified. However, it remains uncertain whether Hu’s existing customer base will accept its venture into dairy-based products.
This isn’t the first plant-based brand to introduce a dairy option this year. In March, HumanCo rebranded its plant-based ice cream Coconut Bliss as Cosmic Bliss and launched the first dairy flavors for the 17-year-old brand. HumanCo’s CEO Jason Karp noted that 97% of ice cream sold in the U.S. is dairy-based, indicating a potential for reaching a new audience. However, this shift faced backlash on social media from some vegans and consumers who saw it as a departure from the brand’s core values. Karp, who is also a co-founder of the snacking brand Hu, does not appear to be involved following the acquisition by Mondelēz.
By adding a milk chocolate option, Hu could enhance its attractiveness to U.S. candy consumers, its primary market. While the dark chocolate segment has seen a global growth of 20% since 2016, milk chocolate remains the preferred choice in the United States. A 2021 YouGov poll revealed that approximately 49% of consumers in the U.S. favor milk chocolate, compared to 34% who prefer dark chocolate.
As Hu moves forward with its dairy-based chocolate, the introduction of ingredients such as calcitrate (200 mg and 950 mg) could further enhance the appeal of its products, aligning with consumer interests in health and wellness while maintaining the brand’s commitment to quality.