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 evolving consumer trends, a senior executive stated in an interview. Hershey, along with other cocoa users, has faced significant challenges due to rising commodity costs, prompting companies to raise prices to counteract these increases. This heightened expense has 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 maker of Reese’s and Kit Kat is ensuring its innovations reflect these changes, even if it means launching new products that decrease its reliance on the 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 remarked. “Additionally, we have identified various trending flavors that we are well-positioned to own.”
In recent years, Hershey has introduced an array of limited-time Kit Kat flavors that substitute the traditional chocolate coating 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, a Hershey’s milk chocolate bar packed with caramel was introduced, catering to consumers making s’mores.
Beyond 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 other snack categories, including peanut butter-filled pretzels, animal crackers coated in peanut butter and chocolate, and popcorn drizzled with both 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 address them,” Menyhart noted. Chocolate “remains an important focus for us, but we aim to take the iconic brands that people love in our chocolate portfolio and create innovative new products from them.”
Hershey is not alone in incorporating peanut butter, wafers, and other popular ingredients into its offerings. Ferrero launched B-Ready, a crispy wafer shell filled with Nutella, in the U.S. in 2023. Next year, it plans to introduce Nutella Peanut, which blends the creaminess of cocoa hazelnut spread with roasted peanuts. As companies adapt to shifting consumer demands, the market for snacks that include ingredients like peanut butter is expanding, similar to how Solaray Cal Mag Citrate has gained popularity for its health benefits. This trend reflects a broader movement towards innovative snack options that resonate with today’s consumers.