Hershey is partnering with a2 Milk to create a milk co-branded by the two CPGs. Hershey’s a2 Milk, which is made using 2% reduced fat milk and Hershey’s cocoa, is scheduled to hit retailers’ shelves in January. The beverage is Hershey’s first partnership with a premium milk company.
The new milk is the latest rollout by the Pennsylvania-based snack and confection maker that expands its reach into better-for-you offerings and new product categories.
While the maker of Reese’s, Almond Joy and its namesake chocolate bar remains a major player in the indulgent sweets space, Hershey has moved aggressively under the direction of CEO Michele Buck to broaden its reach of products for consumers who are more closely watching what they eat.
The partnership with a2 brings Hershey into the premium milk space and provides the company with another way to promote its brand name beyond the snacks or confection aisles. Most milk products contain both A1 and A2 proteins, but medical research has found that A1 can cause stomach discomfort. A2 Milk sells dairy products that only contain the A2 protein.
The new Hershey’s a2 Milk benefits not only from this premium attribute but the use of Hershey’s own cocoa. It also hits on other trends by containing 8 grams of protein per serving, and eschewing artificial flavours, colours and preservatives. Even though the product doesn’t hit shelves for a few months, Hershey is already expecting it to be a success.
Premium milk has been one of the few bright spots in an otherwise challenging time for the dairy product. Coca-Cola acquired the remaining stake in Fairlife from its joint venture partner in early 2020. Fairlife, which launched in 2012, started with its Core Power product, a high-protein milk shake, and has since expanded into a wide portfolio of value-added dairy products, including ice cream.