Hershey focuses on creating healthier sweets
The goal of The Hershey Co. is to expand into the healthier chocolate market. The company intends to increase the number of reduced sugar, organic, and plant-based options it offers by expanding its portfolio, building on its strength in portion-controlled options.
The CEO of Hershey, Michele G. Buck, stated, “We’re primarily focused on sweet indulgence, though that is growing and evolving over time,” in a presentation given virtually on February 17 at the Consumer Analyst Group of New York. “Better-for-you is one of the areas where we have opportunity, and within that, there is a space that falls under our own category. A higher percentage of healthier products can be found in many other decadent product categories on the market.
With the launch of Kit Kat Thins in February, the company will broaden its Thins platform. Additionally, it will look into new ways to distribute portion-controlled snacks in a range of pack formats for its main brands.
Additionally, it will add more low-sugar products to its recently redesigned sugar-free platform.
“We are relaunching our zero-sugar sugar-free platform, which was first introduced as a product for diabetics many years ago,” Ms. Buck stated. “Hershey’s, Reese’s, and a few other varieties will be available.”
Ms. Buck stated that the relaunch is comparable to what is being done in beverages and other sugar-free categories during an earnings call with analysts earlier this month.
“Those products are simply positioned in a much more modern way, entirely different,” the spokesperson stated. That is actually our objective.
Four products will be available when Hershey’s organic line debuts this year: Hershey’s, Hershey’s Special Dark, Reese’s, and Reese’s Dark. Additionally, new plant-based goods are in the works, starting with a vegan Kit Kat.
Kristen Riggs, chief growth officer at Hershey, stated, “Our consumers rely on us to understand their needs for everyday moments, seasons, and special occasions.” “The next big category opportunity for us to lead is expanding our expertise, developing new capabilities, and offering more choices in better-for-you confection.”
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Hershey collaborated with West Palm Beach, Florida-based sweetener company ASR Group to co-lead an equity investment in Bonumose, Inc., a startup that focuses on plant-based ingredients, including rare and natural sugars, as part of its better-for-you confection strategy. The investment, which is a part of Hershey’s C7 Ventures, will support a research and development collaboration that aims to improve the flavors of Hershey’s future line of better-for-you snacks and its zero- and reduced-sugar chocolate.
Additionally, the business will search for fresh license and partnership opportunities with healthier brands in order to jointly develop and introduce new products. The goal of M&A activity will be to reach new audiences and occasions that the company’s core brands do not currently serve.