Hershey Co. is accelerating its push into functional foods as the 132-year-old confectionery giant seeks to align its portfolio with shifting consumer preferences toward health and wellness, CEO Kirk Tanner said.
Speaking at the company’s investor day in New York, Tanner said functional foods—products offering added nutritional or health benefits—will play a central role in Hershey’s long-term growth strategy as innovation cycles in the category outpace traditional confectionery.
“We’re investing in the space so that we can continue to be relevant for consumers,” Tanner said, adding that the company must move faster as demand for healthier snacking options evolves rapidly.
Hershey, known for brands including Reese’s and Hershey’s Kisses, has already entered the segment through products such as Fulfil protein bars. It is now stepping up investments as consumers increasingly prioritize protein intake, nutrition, and functional benefits in snacking.
The global functional foods market is valued at roughly $138 billion and grew about 4% over the past year. Adjacent categories showed stronger momentum, with shelf-stable candy rising 8.7% and snack and wellness bars increasing 11.8%, underscoring a convergence between indulgence and health-focused consumption.
Tanner said Hershey is exploring multiple avenues in functional ingredients, including expanding existing brands and pursuing acquisitions. The strategy follows its acquisition of better-for-you snacking platform LesserEvil last year.
The company also sees opportunity in brands such as Ice Breakers, particularly among consumers using GLP-1 weight-loss medications, who often rely on mints to manage nausea. Executives said functional ingredient additions could expand usage occasions.
Hershey is also working with VitaKey on time-released nutrients such as protein and fiber, aimed at delivering sustained nutritional benefits.
“Just imagine a snack that can deliver benefits where, when, and how your body needs them,” said Stacy Taffet, chief growth officer.
With $11.7 billion in 2025 sales, Hershey is positioning itself as a diversified player across indulgence and wellness categories as consumer preferences evolve.