The Strategist

Hershey`s takes on protein bars

04/26/2016 - 15:23

The largest US manufacturer of chocolate bars Hershey`s goes a healthy lifestyle along with the recent trend noticed among Americans and entire world. The company is going to start releasing meat-based and vegetarian protein bars.

Andy Melton
Andy Melton
The largest US manufacturer of chocolate bars The Hershey Company will take care of people maintaining a healthy diet. Having caught the recent trend of Americans’ preferences, one of the country’s oldest chocolate factories will start producing protein bars made of dried meat.

Apparently, Hershey`s decided to diversify its manufactured products some time ago. At the beginning of last year, the company bought for these purposes beef jerky manufacturer Krave Pure Foods Inc., which produces snacks with very extravagant tastes: sweet cherry with barbecue, citrus basil and pineapple orange. This is where Hershey`s is going to start the production of protein bars, which will consist of dried meat and berries. The new product’s market launch is scheduled for August.

Once Hershey Company acquired Krave, sales of the latter had doubled. At the same time, demand for chocolate products in the United States has declined markedly in recent years. Americans began to avoid eating junk food, such as fast food and chocolate bars. Since 2010, the rate of sales growth in this segment falls consistently from year to year. According to IRI, a market research firm, the average sales growth amounted to only 4.2% over the past five years. At the time, the demand for meat bars increased by 10.4% in the US over the same period.

As a result of lower sales, Hershey`s capitalization decreased by 14% in 2015. Access to the new market seems to be a logical step in this situation. At the same time, the company plans to start producing snacks for vegetarians in addition to dried meat bars. They will be called SoFit and consist of sunflower seeds and almonds coated with protein. Another new product will be protein shakes with different fruit flavors. Hershey`s management has not yet disclosed tastes of the new Krave bars.