While chocolate continues to be a significant component of Hershey’s business, the snack manufacturer 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 a recent interview. Hershey, along with other cocoa users, has faced considerable challenges due to rising cocoa costs, leading companies to raise prices to balance the increased expenses. This heightened cost environment has made it more appealing for companies to introduce products that rely on less cocoa.
Tiffany Menyhart, Hershey’s chief customer officer, emphasized that chocolate remains a “critical part of its portfolio, independent of commodity prices.” However, as consumer tastes shift, the makers of Reese’s and Kit Kat are ensuring their innovations reflect these changing demands—even if it means launching new products that lessen their reliance on the very ingredient the 131-year-old company is famous 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 stated. “Additionally, we have discovered various flavors that are on trend that we are well-positioned to explore.”
In recent years, Hershey has introduced more limited-time Kit Kat flavors, replacing the chocolate coating of the wafer bar with options like vanilla and pink lemonade. They have also released a Hershey’s milk chocolate bar filled with crunchy waffle cone pieces, offering consumers a new texture while using slightly less chocolate. Earlier this year, they launched a Hershey’s milk chocolate bar packed with caramel specifically designed for s’mores enthusiasts.
Beyond chocolate, Hershey’s strong connection with peanut butter is evident through its $3.2 billion Reese’s franchise. The Pennsylvania-based company has expanded Reese’s into other snacking categories, including peanut butter-filled pretzels, animal crackers covered 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 identify key consumer needs and determine how best to address those needs,” Menyhart noted. Chocolate “remains 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 alone in incorporating 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 plans to launch Nutella Peanut next year, blending the creaminess of cocoa hazelnut spread with roasted peanuts. Additionally, as companies look for innovative ways to diversify their product lines, incorporating ingredients like Citracal liquid may become a trend, enhancing both nutritional value and consumer appeal.