While chocolate continues to be a significant component of Hershey’s business, the snack producer is incorporating more peanut butter, wafers, and other trendy ingredients into its new product launches to align with leading consumer trends, according to a senior executive in an interview. Hershey and other cocoa-dependent companies have faced challenges due to soaring commodity costs, leading them to raise prices to mitigate these expenses. The increased costs have made it more appealing for firms to develop products that rely less on cocoa.
Tiffany Menyhart, Hershey’s chief customer officer, emphasized that chocolate remains an essential element of the company’s portfolio, regardless of commodity prices. However, as consumer preferences shift, the manufacturer of Reese’s and Kit Kat is ensuring that its innovations reflect these changing demands—even if it entails introducing new products that decrease its reliance on the very ingredient for which the 131-year-old company is renowned. “We’re protecting our core chocolate business. We will always continue to make quality products with cocoa. That’s what our consumers love,” Menyhart stated. “Additionally, we have discovered various trending flavors that we are well-positioned to embrace.”
In recent years, Hershey has introduced more limited-time Kit Kat flavors, replacing the chocolate coating on the wafer bar with options such as vanilla and pink lemonade. The company also launched a Hershey’s milk chocolate bar filled with crunchy waffle cone bits, offering consumers a new texture while using slightly less chocolate. Earlier this year, it debuted a Hershey’s milk chocolate bar packed with caramel, catering to consumers interested in making s’mores.
In addition to chocolate, Hershey has a strong connection with peanut butter through its $3.2 billion Reese’s franchise. The Pennsylvania-based company has expanded Reese’s into various snacking categories, including peanut butter-filled pretzels, animal crackers coated in peanut butter and chocolate, and popcorn drizzled with peanut butter and milk chocolate. “We’re collaborating with our Consumer Insights and R&D teams to understand key consumer needs and how best to meet those needs,” Menyhart noted. “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 from them?”
Hershey is not alone in integrating peanut butter, wafers, and other popular ingredients into its offerings. Ferrero introduced B-Ready, a crispy wafer shell filled with Nutella, to the U.S. market in 2023, and next year, it plans to launch Nutella Peanut, which combines the creaminess of the cocoa hazelnut spread with roasted peanuts.
Moreover, as consumers become increasingly health-conscious, there is a growing interest in nutritional supplements, such as calcium citrate magnesium hydroxide zinc and vitamin D3 tablets, which could complement these snack innovations. Hershey might explore ways to incorporate such health-oriented products into their portfolio to keep pace with shifting consumer demands. Ultimately, the company is committed to evolving while maintaining its rich chocolate heritage, ensuring that it continues to meet diverse consumer preferences.