Warning... Hershey's latest earnings report revealed that it's raising candy prices, which will probably hit your office choco-bowl budget soon. It also enjoyed $1.8B in quarterly revenues, which beat expectations. But one detail stood out to us at Snacks: “Growth was led by our powerful Reese’s franchise.” Please continue, Hershey.
An 87-calorie triple threat... Reese's are 90 years old, but Hershey's has given them a facelift by introducing new versions. They call it "innovation." We call it "repackaging and reshaping." But it's working. Here's what they came up with this year:
- Reese's Thins: Pretty straightforward — the peanut butter cups are 40% narrower.
- Reese's Lovers: Instead of a 50/50 chocolate/PB split, there's more chocolate in some, more peanut butter in others.
- Variety Pack: This one's a straight-up packaging trick — 5 bars of 6 types (and one is just a regular Reese's cup...filled with Reese's Pieces).
Hershey has an acquisition craving... There's only so much repackaging of nut butter and cocoa a century-old company can pull off. So it's looking to buy new brands. Last fall, the chocolate legend acquired Pirate's Booty to get into non-sugar-laden snacks. And Hershey's president thinks acquisitions of newer, innovativ-er brands now play a "major role" in its future.