In today’s ever-changing consumer landscape, innovation has become a key focus for companies looking to stay ahead of the curve. Hershey, the maker of popular treats like Kisses, Reese’s, and Dot’s, is no exception. With consumer tastes shifting and economic uncertainty on the rise, Hershey is placing a larger emphasis on innovation to meet the evolving needs of its customers.
Last year, Hershey reported $11.2 billion in net sales, and the company is now tightening its approach to product innovation. This includes being more selective about which consumer trends to invest in and pay attention to. Not only is Hershey focusing on the products themselves, but also on the packaging and display of their sweets and salty snacks in stores.
Tiffany Menyhart, Hershey’s chief customer officer, recently discussed the company’s approach to innovation at the Sweets & Snacks Expo in Indianapolis. Menyhart, who joined Hershey in March after working at Kraft Heinz and Mars Wrigley, highlighted the importance of bringing new and different products to market to drive incremental sales.
One example of Hershey’s innovative approach is their investment in technology around filled bars. This trend is on the rise globally, and Hershey recently launched Hershey’s Caramel as part of their s’mores program. The company has already seen high demand for these products from customers, indicating a successful innovation strategy.
Innovation becomes even more critical in the face of inflation and changing consumer spending habits. Menyhart emphasizes the importance of offering value in the marketplace through various strategies, including upsizing products and offering value price points. Hershey is working closely with retailers to ensure that their products remain accessible to consumers.
In addition to product innovation, Hershey has also focused on improving its packaging. The introduction of stand-up pouches for their take-home chocolate business has led to a significant increase in sales. The company is now planning to expand this packaging strategy to their snack size products, further enhancing their visibility on store shelves.
Hershey’s decision to display both their sweet and salty offerings together on end caps in grocery stores has also proven successful. By merchandising these products together, the company has seen a higher overall sales lift compared to when they are displayed separately. This integrated approach has resulted in increased sales for both the sweet and salty categories.
Overall, Hershey’s commitment to innovation and strategic product development is helping the company navigate the changing consumer landscape and stay competitive in the confectionery market. As consumer trends continue to evolve, Hershey will undoubtedly continue to adapt and innovate to meet the needs of their customers. Hershey, like many other companies, is facing challenges due to tariffs and inflation. However, Hershey has strategies in place to navigate these obstacles and emerge successfully.
One of the key strengths of Hershey is its commitment to manufacturing products in the U.S. This not only supports local jobs and the economy but also provides a level of control over the supply chain. Hershey continuously evaluates its suppliers and looks for alternate sources when necessary to mitigate any potential disruptions.
From the perspective of retail partners, Hershey’s ability to deliver products to the shelves is crucial. Retailers rely on Hershey to provide a variety of products that meet the needs and preferences of their customers. Whether it’s offering value, introducing innovative products, or running limited-time promotions, Hershey ensures that it can meet the demands of its retail partners.
In times of uncertainty, such as those caused by tariffs and inflation, Hershey’s reliability and commitment to its partners set it apart. Retailers can trust Hershey to be a dependable partner in filling their shelves and meeting the needs of their customers. This level of trust and collaboration is essential for Hershey to navigate the challenges ahead and continue to thrive in the market.
