Hershey adds new products to move beyond chocolate | Official Website of Louis Velazquez, entrepreneur, finance guy and tech innovator

Hershey has been dropping insane chocolate combinations lately, and there’s a surprising reason behind all its recent launches.

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Food costs have increased across all categories over the last few months due to supply chain disruptions, rising operating costs, inflation, and tariffs, among other factors.

These pressures have made it harder for businesses to remain profitable.

To some people’s surprise, cocoa was one of the heavily affected foods, and this time, the U.S. tariffs on foreign goods were not the only cause, despite around 80% being imported from West Africa.

Since the beginning of last year, unpredictable weather fluctuations have caused excessive rainfall and hotter temperatures, making it difficult to maintain consistent cocoa production.

Hershey develops new strategic candy combinations.

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Hershey suffers the repercussions of the cocoa shortage

The Hershey Company (HSY) is one of the largest chocolate manufacturers in the world. It owns over 90 brands of snacks and confectionery, including Reese’s, Kisses, Kit Kat, and more.

Although it’s known primarily for chocolate, it has branched out to other revenue sources over the last few years by expanding its portfolio and forming partnerships, making it less dependent on cocoa.

Still, Hershey has not been immune to the consumer slowdown and cocoa shortage.

The company’s total net sales were down nearly 14% during the first quarter of fiscal 2025, with its North America Confectionery sector declining 15%.

However, Hershey’s new strategy helps mitigate these challenges and continue growing its business without abandoning its chocolate focus.

Hershey unveils a plan focused on strategic innovation

Hershey has begun relying less on its main ingredient and focusing on product innovation in response to a recent consumer trend. Well, at least partly.

The company started introducing other ingredients into its chocolate products — such as peanut butter, caramel, and wafers — as customers have shown interest in these additions.

It turns out that this consumer trend comes at the perfect time, as cocoa costs have led chocolate companies to raise prices on their main products.

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Adding other ingredients decreases the amount of chocolate used per product, making it less dependent on cocoa and preventing costs from skyrocketing. This allows Hershey to remain competitive in the market.

As part of its strategy, Hershey recently launched more innovative and seasonal products, including its new Hershey’s bar filled with caramel, Reese’s Jumbo Cup (which contains more peanut butter), and seasonal Kit Kat flavors that replace the chocolate coating, to name a few.