HERSHEY, Pa. -- As part of its continued focus on the convenience-store class of trade, The Hershey Co. is recommending that retailers add or expand their offering of seasonal and take-home packages, among other sales strategies for the candy category.
“We have put together a winning formula for retailers based on our best-in-class consumer insights and shopper-first mindset,” said David Nolen, senior director of consumer and shopper insights (CSI) for Hershey. “Priority No. 1 is getting the in-line set correct followed by ensuring confection is present under the counter and in secondary locations. Lastly, we’re recommending growing take-home package type space--take-home packtypes are growing at twice the category because consumers are increasingly shopping smaller-format stores for everyday items.”
Hershey said it has the ability to synthesize numerous data sources to provide a full picture of trends for its brands, the category and the full retail environment.
“While key category strategies are applicable across the channel, we know that each c-store is different for a number of reasons” said Nolen. “The age of ‘one-size-fits-all’ solutions is over. We are on a journey to use multiple, disparate data sources to understand the unique demographics around every single c-store in the United States, so that we can bring high-impact, customized solutions to our retail partners.”
Hershey is seeing continued growth is the holiday themed Reese’s one-pound Peanut Butter Cup, which it said is the third bestselling seasonal item in the convenience-store channel. This season, novelty items are expected to have a larger impact in 2015 due to increased distribution, the company said, citing Nielsen.
Those customers purchasing the Reese’s one-pound Peanut Butter Cup typically added another one-pound item such as Hershey's one-pound Milk Chocolate Bar or a gift card to their basket, spending an average of $22 on the shopping trip, the company said.
Seasonal novelty items provide additional sales opportunities and garner excitement and anticipation for customers.
“Seasonal items are special to consumers and have been a unique growth driver in convenience stores,” said Nolen. “These limited-time only products are often on front counters in stores and become additions to the planned purchases. We strive to provide unique and distinctive products with ties to the seasons.”
Hershey is focused on growing its core confection business, but also understands consumer tastes are changing. The company is listening and responding to this shift in consumer desires and preferences. This has allowed the company to build its core business to include a broader range of snacks. Hershey has some of the most recognizable and beloved confection brands, but as snacking and “on the go” are becoming more prevalent with consumers, the company is looking at ways to expand our portfolio across the snacking continuum.
Some of Hershey’s most recent innovations that deliver a differentiated snacking experience include:
- Brookside Fruit & Nut Bars. New Brookside Fruit & Nut Bars are made with real fruit, whole roasted almonds, rolled oats, pumpkin seeds and signature Brookside dark chocolate.
- Hershey’s, PayDay and Mr. Goodbar Snack Bites.
- Hershey’s and Reese’s Snack Mixes. Hershey’s Snack Mix is packed with almonds, pretzels, and Hershey’s Milk Chocolate. Reese’s Snack Mix combines salty, crunchy peanuts and pretzels with Reese’s Pieces Candy and Reese’s Minis.
In addition to Hershey’s expanding snacking portfolio, the company is focused on growing its core confection business. New-product and packaging updates include:
- Allan Candy. Allan Candy is a non-chocolate line that offers both traditional and unique flavors to meet the growing consumer demand for gummy candy. These various gummy candies will be available in 5-oz. peg bags.
- Ice Breakers Cool Blasts Chews. Ice Breakers Cool Blasts Chews will be available in a new wintergreen flavor in a 0.8-oz. innovative slide pack.
- Kit Kat Big Kat Bar. The same Kit Kat treat consumers know, only bigger, the Kit Kat Big Kat Bar features five layers of wafers and milk chocolate.
- New Look: Take5 Layer Candy Bar. A “bold, contemporary” look is coming to Take5 Candy Bars. Take5 Bars combine pretzels, caramel, peanuts and peanut butter covered with chocolate.
The Hershey Co., with headquarters in Hershey, Pa., is a global confectionery leader with more than 80 brands around the world that drive more than $7.4 billion in annual revenues, including Hershey's, Reese's, Hershey's Kisses, Jolly Rancher, Ice Breakers and Brookside.
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