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Hershey’s is trying to win over health-conscious consumers with a new protein powder — and figure out how to get people on weight-loss drugs snacking again.
The 132-year-old candy company is working to entice consumers who have soured on sweets with a protein powder coming out in January.
With shares recently hitting a 52-week low, Hershey’s CEO Kirk Tanner has reportedly been talking one-on-one with consumers about weight loss drugs and snacks.
“They still love the products they love,” he told Bloomberg in an article published Friday. “They’re just eating less of them.”
With nearly 30% of obese adults in the US expected to be on appetite-suppressing GLP-1 drugs by 2035, Tanner wants to know how the company can innovate.
He pointed to rival Mars as an example.
“Today’s consumer wants new products and Mars has been delivering,” Tanner told Bloomberg.
The biggest “Payday” for Hershey’s might come from its venture into protein powder.
It partnered with protein-powder company VitaKey on the project. Details remain scarce.
Since Tanner came to Hershey last year, he’s upped research and development spending by 25%, with the goal of pumping out “Good & Plenty” ideas, according to Bloomberg.
Hershey’s is also expanding its gum-and-mints division to accommodate consumers battling “Ozempic breath” – the bad-breath side effect of the pound-shedding drug. Bloomberg reported gum sales at the company went up 8% earlier this year.
Hershey’s – which makes Skinny Pop, Dots Pretzels, and Pirate’s Booty – is looking to increase its savory offerings and is working on portion-controlled packaging.
The protein snack bar market has been bursting at the wrapper — it’s expected to go from $21.94 billion to $32.66 billion by 2031, an 8.2% growth rate. Rxbar, the company behind the popular golden ticket-wrapped David bars, hit a $2.25 billion valuation this year, in the biggest deal of the year in the industry, according to Forbes.
GLP-1s have posed challenges throughout the food business. Food giant Conagra has been scouring consumers’ credit-card data, social media posts and fast food orders to try to figure out what people still want to eat, according to the Wall Street Journal.