Hu’s venture into the dairy-based chocolate sector represents a significant development, appealing to consumers in search of a vegan, healthier alternative to conventional chocolate brands. By introducing a dairy option, Hu aims to broaden its market reach. The brand has assured that its dairy-infused snacks will still feature clean-label ingredients, with milk 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 long awaited the chance to create a version OUR way — the HU way,” stated Hu co-founder Jordan Brown. “We’ve finally achieved this and believe we have crafted some truly exceptional milk chocolate. We are eager for both our existing supporters and new customers to experience our ultra-simple approach to this classic treat.”
According to data from the National Confectioners Association, chocolate sales rebounded from a pandemic-induced decline last year, growing by 9.2%. Simultaneously, consumers are increasingly seeking candies with better-for-you attributes—something that chocolate giant Hershey has successfully tapped into over recent years—and snacks that resonate with their values. Hu emphasized that its new chocolate contains no refined sugar, cane sugar, sugar alcohols, soy, or palm oil, and is both organic and Fair Trade certified. However, it remains to be seen whether Hu’s consumer base will embrace its transition to dairy-based products.
This isn’t the only brand producing plant-based treats to unveil a dairy version this year. In March, HumanCo rebranded the plant-based ice cream Coconufe as Cosmic Bliss, introducing dairy flavors for the first time in the 17-year-old brand’s history. HumanCo’s CEO, Jason Karp, explained that the shift was prompted by the fact that 97% of ice cream sold in the U.S. is dairy-based, allowing the brand to tap into a broader consumer demographic. This change, however, faced backlash on social media from some vegans and consumers who perceived it as a compromise of the brand’s values. Karp, who is also a co-founder of Hu, appears to be uninvolved with Hu following its acquisition by Mondelēz.
The addition of a milk chocolate option could significantly enhance Hu’s appeal among U.S. candy consumers, which is the brand’s main market. While the dark chocolate segment has seen a global growth of 20% since 2016, according to a FONA report from last year, 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 ventures into this new category, it will be interesting to see how their use of clean-label ingredients and natural factors, such as calcium, resonates with consumers who prioritize health and ethical considerations in their snack choices. The introduction of dairy could potentially attract a wider audience, as long as it aligns with the growing demand for products that are not only delicious but also mindful of their sourcing and ingredients.