Hershey is reaching for a new product category as a growing number of Americans on weight-loss drugs eat fewer sweets. The 132-year-old candy maker plans to release a protein powder in January, part of a broader push to win over health-conscious consumers, according to a report by the New York Post that drew on a Bloomberg interview published Friday.
The timing is pointed. Hershey shares recently hit a 52-week low, and CEO Kirk Tanner has reportedly been talking one-on-one with consumers about weight-loss drugs and snacking. His takeaway, as he told Bloomberg: “They still love the products they love. They’re just eating less of them.”
The stakes are large. Nearly 30% of obese adults in the U.S. are expected to be on appetite-suppressing GLP-1 drugs by 2035, according to the figures cited in the report. Tanner said he wants to understand how the company can innovate around that shift. “Today’s consumer wants new products and Mars has been delivering,” he told Bloomberg, a nod to a rival confectioner.
Hershey has partnered with protein-powder company VitaKey on the launch. Details remain scarce. Since Tanner joined Hershey last year, he has raised research and development spending by 25%, according to Bloomberg.
The powder is not the only response. Hershey is expanding its gum-and-mints division to serve consumers dealing with “Ozempic breath,” the bad-breath side effect associated with the drug. Bloomberg reported that gum sales at the company rose 8% earlier this year. Hershey, which also makes SkinnyPop, Dots Pretzels and Pirate’s Booty, is looking to grow its savory offerings and is working on portion-controlled packaging.
The protein play puts Hershey in a crowded and fast-growing lane. The protein snack bar market is expected to climb from $21.94 billion to $32.66 billion by 2031, an 8.2% growth rate, according to the figures cited. Rxbar, known for its David bars, reached a $2.25 billion valuation this year in the biggest deal of the year in the industry, according to Forbes.
Hershey is not alone in scrambling. GLP-1 drugs have created challenges across the food business. Conagra has been scouring consumers’ credit-card data, social media posts and fast food orders to figure out what people still want to eat, according to the Wall Street Journal.
For investors, the question is whether new categories can offset softer demand for core confectionery. With the protein powder still weeks from shelves and few product details public, the January launch will be an early test of whether Hershey can reach consumers whose appetites, and shopping habits, are changing.
Frequently Asked Questions
Why is Hershey launching a protein powder?
Hershey is responding to declining candy sales as Americans on GLP-1 weight-loss drugs eat fewer sweets. The protein powder, developed with VitaKey, is part of a broader push to win over health-conscious consumers.
When will Hershey’s protein powder be released?
Hershey plans to release the protein powder in January. Few product details have been made public so far.
Who is Hershey partnering with on the protein powder?
Hershey is partnering with VitaKey, a protein-powder company, on the launch.
What are GLP-1 drugs and how are they affecting snacking?
GLP-1 drugs are appetite-suppressing medications used for weight loss, and Hershey’s CEO says consumers still love their favorite products but are eating less of them. The article notes that nearly 30% of obese U.S. adults are expected to be on these drugs by 2035.
Why is Hershey expanding its gum and mints division?
Hershey is expanding its gum-and-mints division to serve consumers dealing with ‘Ozempic breath,’ a bad-breath side effect associated with GLP-1 drugs. Gum sales at the company rose 8% earlier this year.
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