Key facts
- Hershey is increasing its selection of savoury snacks for Halloween.
- The company is responding to a consumer shift towards healthier eating habits.
- Chocolate sales have shown resilience despite the trend towards healthier options.
- Sugar-free candy sales are experiencing significant growth.
- Hershey is leveraging AI to speed up product innovation.
Hershey is adjusting its Halloween product strategy to cater to a growing segment of health-conscious consumers, who are increasingly seeking alternatives to traditional sugary treats. The company is expanding its offerings of savoury snacks, including popcorn, cheese puffs, and pretzels, under brands like Lesser Evil, Skinny Pop, and Pirate's Booty. This move reflects a broader industry trend influenced by the popularity of GLP-1 weight-loss drugs and a general shift in eating habits towards products with more protein, smaller portions, and fewer calories.
Despite this pivot, Hershey's vice president for demand creation, strategy and innovation, Dan Mohnshine, noted that chocolate remains a resilient category for Halloween, with snack-size chocolate and sweets sales seeing double-digit growth year-over-year. The company is also focusing on sugar-free options, with its Zero Sugar candy business projected to grow significantly. Hershey is employing artificial intelligence to expedite its product development process, reducing the time from consumer insight to approved concept by approximately three months and expanding its innovation pipeline by 75% in the last nine months.
AI has also helped Hershey identify 'trunk-or-treat' parties as an emerging trend, which the company is prepared to support with its expanded range of small, individually wrapped treats, considered key to remaining relevant. Research indicates that Halloween is a significant period for confectionery sales, with Americans spending billions on treats, and many consumers begin purchasing items months in advance.