Hershey is transforming its candies into energy beverages and protein supplements.
As the use of weight loss medications, like Ozempic and Wegovy, becomes more common, the 130-year-old chocolatier, Hershey's Company (HSY), is adapting by delving deeper into the health and wellness sector. They're introducing protein powders and energy drinks in popular candy flavors, such as milk chocolate and Reese's peanut butter and chocolate.
Hershey's has teamed up with C4 Energy, a widely recognized supplement brand, which has skyrocketed in popularity as individuals have focused on strengthening their muscles and working out more due to the pandemic. Soon, Hershey's famous milk chocolate and Reese's peanut butter and chocolate will be available as protein powders, and Jolly Rancher candies will be transformed into bubbly energy drinks.
Doss Cunningham, CEO of Nutrabolt (C4's parent company), expressed his excitement about the collaboration, stating, "It's fantastic to have access to these brands that have a rich history and hold a lot of sentimental value." This partnership also opens up new opportunities for C4.
C4, the fourth-best-selling energy drink brand in the United States, aims to stand out in the $21 billion market, which is dominated by up-and-coming brands like Celsius and Ghost, as well as established ones, such as Red Bull and Monster. Energy drinks, which are typically purchased by millennials and Gen Z customers, share a "strong affinity" with Hershey's products, according to Cunningham.
The new canned energy drinks based on Jolly Rancher flavors, including blue raspberry, green apple, and watermelon, will be available this week at major US retailers, like Kroger, Amazon, and Walmart. A 12-pack costs $27.99.
In October, whey protein powder in Hershey's milk chocolate and Reese's peanut butter and chocolate flavors will hit the shelves, priced starting at $29.99 for the smallest size. A pre-workout powder inspired by Bubble Yum gum will also be introduced.
C4 has previously experienced success with flavors from Skittles, Starburst, and Popsicle for its other energy drinks.
"This partnership allows us to attract new consumers who may be new to the sports nutrition field or the energy drink category and discover C4 through their beloved brands," Cunningham explained.
Collaborating with flavor experts from the food industry is becoming a trend among nutrition companies, as Andrea Hernández, founder of Snaxshot, a food and beverage insights platform, explained to CNN. "It's an excellent strategy to encourage consumers to try new products with flavors they're familiar with, considering many powders have a strange and unpleasant taste," she added.
Moving into nutrition may help offset declining sales in Hershey's candy division, which reported a 17% decrease in revenue in its latest earnings report. To adapt, Hershey bought One Brands, which manufactures low-sugar, high-protein nutrition bars, for $400 million in 2019. Its competitors, such as Mars, which purchased snacking giant Kellanova to expand beyond sweet treats, are also adjusting.
Whether it's venturing into nutrition or making significant acquisitions, candy companies are exploring creative ways to remain relevant, such as Hershey's approach, which "can ultimately give Hershey's a healthier image," Hernández concluded.
Hershey's Company is expanding its business into the health and wellness sector to cater to the increasing trend of individuals focusing on fitness and health. With the collaboration with C4 Energy, Hershey's aims to enter the $21 billion energy drink market, leveraging the strong affinity of energy drinks with its products.
