While chocolate continues to play a significant role in Hershey’s business, the snacks manufacturer is incorporating more peanut butter, wafers, and other trendy ingredients into its new product launches to align with leading consumer trends, as stated by a senior executive in a recent interview. Hershey, along with other cocoa-dependent companies, has faced substantial challenges due to rising cocoa costs, which has led to increased prices to counterbalance these expenses. The heightened costs have made it more appealing for companies to introduce products that rely less on 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 preferences shift, the manufacturer of Reese’s and Kit Kat is ensuring that its innovations reflect these changing demands—even if this means launching new products that decrease its reliance on the very ingredient for which the 131-year-old company is famous. “We’re protecting our core chocolate business. We will always continue to make quality products with cocoa. That’s what our consumers love,” Menyhart remarked. “Moreover, we have identified various trending flavors that we have the potential to dominate.”
In recent years, Hershey has introduced more limited-time Kit Kat flavors that swap the traditional chocolate coating for alternatives like 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 unveiled a Hershey’s milk chocolate bar infused with caramel, targeting s’mores enthusiasts.
Beyond chocolate, Hershey has a strong connection to peanut butter through its $3.2 billion Reese’s brand. 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 identify key consumer needs and determine the best ways to meet those needs,” Menyhart explained. Chocolate “remains an important area for us, but how can we take the iconic brands that people cherish in our chocolate portfolio and innovate 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. Additionally, the company plans to launch Nutella Peanut next year, combining the creaminess of cocoa hazelnut spread with roasted peanuts. As consumers increasingly seek products that provide lifetime calcium magnesium benefits, Hershey and its competitors must adapt to meet these evolving preferences.