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Better-For-You · Hershey · Snacks · Sugar Reduction
The Hershey Company is aggressively pursuing a "Better-For-You" (BFY) growth strategy, focusing on sugar reduction and expanding snacking occasions, which has already seen its Zero Sugar line sales double, adding $30 million, and its acquired Lily's brand grow 27% in 2021.
Hershey's strategy, announced in February 2021, aims to lead the BFY confection segment over the next decade, leveraging core brand innovation, partnerships, research and development, and mergers and acquisitions. With approximately 50% of adults seeking BFY options and over 70% aiming to reduce sugar, Hershey is addressing a significant market need where BFY candy currently accounts for less than 10% of category sales.
Key initiatives include in-market tests for 25% less sugar options for iconic brands like Reese's and Hershey's, a partnership with Honest Beverages for organic juice gummies, and an equity investment in rare sugar alternative startup Bonumose alongside ASR Group. The June 2021 acquisition of Lily's, a low-sugar confectionary brand, further solidified this commitment, demonstrating strong post-acquisition growth.
Hershey also expands into permissible salty snacks such as Dot's Pretzels and SkinnyPop, creating "sweet and salty" twists like Reese's Drizzled Popcorn, to capture new consumption moments beyond traditional confectionery.
