Embracing New Trends in Snack Innovation
While chocolate has always been a cornerstone of Hershey’s business, the renowned snacks maker is embracing a shift towards incorporating trendy ingredients like peanut butter, wafers, and more in its new product launches to cater to evolving consumer preferences, as highlighted by a top executive in a recent interview.
Despite facing challenges from soaring cocoa costs, Hershey and other chocolate manufacturers have been compelled to raise prices to counter the impact of these escalating expenses.
This surge in costs has incentivized companies to explore product innovations that rely less on cocoa, thereby diversifying their offerings.
Tiffany Menyhart, Chief Customer Officer at Hershey, emphasized that while chocolate remains a crucial component of their product portfolio regardless of commodity prices, the company is proactively responding to changing consumer demands by introducing new products that reduce their reliance on cocoa.
“We are committed to preserving our core chocolate business by continuing to deliver high-quality cocoa-based products that resonate with our consumers,” Menyhart affirmed. “Moreover, we are exploring innovative flavors that align with current trends and enable us to expand our product offerings.”
In recent years, Hershey has introduced a variety of limited-time Kit Kat flavors featuring unique twists such as vanilla and pink lemonade coatings, deviating from the traditional chocolate-covered wafer bar.
The company has also launched novel products like a Hershey’s milk chocolate bar infused with crunchy waffle cone bits, offering consumers a different texture experience while reducing the chocolate content slightly. Additionally, Hershey unveiled a milk chocolate bar enriched with caramel, catering to s’mores enthusiasts.
Besides chocolate, Hershey has established a strong association with peanut butter through its popular Reese’s brand, expanding into various snacking categories with innovative offerings like peanut butter-filled pretzels, chocolate-coated animal crackers, and peanut butter-drizzled popcorn.
“We are collaborating closely with our Consumer Insights and R&D teams to identify key consumer preferences and develop products that address those needs effectively,” Menyhart elaborated. “While chocolate remains a pivotal focus for us, we are exploring ways to leverage our iconic brands within the chocolate portfolio to create exciting new offerings.”
Hershey is not alone in diversifying its product range with popular ingredients like peanut butter and wafers. Ferrero, for instance, introduced B-Ready, a crispy wafer shell filled with Nutella, in the U.S. in 2023 and plans to launch Nutella Peanut, a tantalizing blend of cocoa hazelnut spread and roasted peanuts, next year.