Hershey hinted last summer that it might be making a bigger play for plant-based sweets. it applied for a patent on a method of using roasted grain flour — made from rice, wheat, oats, corn, sorghum, or millet — as a substitute for milk in a dairy-free alternative to milk chocolate.
Now, Hershey is introducing two plant-based confections to the market. Made with oats, the new products are the storied confectioner’s first permanent offerings in the category Reese’s Plant-Based Peanut Butter Cups and Hershey’s Plant-Based Extra Creamy with Almonds and Sea Salt bars are not Hershey’s first foray into the space. In 2021, it started trialing a plant-based chocolate bar in select markets called Hershey’s Oat Made. It was available through June 2022.
Still, plant-based chocolate could become a huge category as consumers look to eat healthier and reduce their environmental footprint. Hershey has focused more attention in recent years on innovating several of its core brands to address consumer needs, rolling out smaller portions, no sugar added, zero sugar, high protein, and now plant-based options.
When it comes to sweets, sugary indulgences will likely always command the lion’s share of Hershey’s revenue in the category. But with more consumers turning to smaller, but rapidly growing niche categories, such as plant-based or low sugar, it makes sense for Hershey and other companies to have a presence in those spaces with some of their top brands.
A failure to at least come close to replicating what consumers expect in these brands could hurt the plant-based offerings and potentially damage the brand’s overall reputation.
Hershey will be joining a small but growing number of big confectioners in the plant-based chocolate space.