While consumers still treat themselves to decadent sweet treats and indulgent salty snacks, the interest in making healthier purchases continues to grow. Producers like the Hershey Co.—which has made interesting moves in BFY, both through product innovation and strategic acquisitions—is one of the company’s that’s keenly focused on the trend. 

Snack Food & Wholesale Bakery had the opportunity to check in with Nathan Johnson, marketing director for Better-for-You with the Hershey Co. The expert outlined how consumer interest and producer efforts have evolved, and trends industry professionals might want to be mindful of.

Jenni Spinner: Could you please talk about the BFY trend and how it’s evolved in recent years?

Nathan Johnson: There is broad interest in snacks with wellness attributes. One of our recent proprietary studies showed that interest in better-for-you (BFY) snacking has tripled from 2016 to 2022. Our longitudinal research shows that about 64% of U.S. adults are on a continuum as health-conscious snackers. Additional research reinforces the broad interest in wellness:

  • 71% of U.S. adults report that living a healthy lifestyle is important to them. 78% believe that eating healthy is an important factor in holistic health.
  • The 2022 International Food Information Council report showed that 52% of American adults follow a diet or specific eating pattern, a significant increase over previous years.

The idea of wellness is broad and spans from mental and emotional to physical health. Consumers make food choices throughout the day depending on the need and occasion. Sometimes we reach for a fully indulgent treat that meets our mental or emotional wellness needs. It’s worth noting that chocolate is the top snack for stress relief. At other times we seek better-for-you alternatives of our favorite brands, like those with less sugar, more protein, and plant-based ingredients.

JS:  Specifically, how have more prominent producers evolved, compared to some of the smaller/startup companies?

NJ: Gone are the days when “healthy eating” simply means eating more fruits and vegetables. Today, consumers are finding ways to incorporate wellness into savory and sweet snack foods they enjoy. In other words, consumers are choosing snack foods in favorite categories that offer a reduction of sugar, fat, calories, and sodium; have authentic ingredients; added benefits or fortification; and/or ingredient or allergen avoidance. Brands that consumers already love and trust can play an important role in consumer adoption.  

Each company has its own approach, but we generally see large companies or brands expanding their offerings to provide BFY options. Consumers want both BFY and indulgent snacks and make trade-offs between BFY and indulgent for different occasions, creating a bow tie effect on each end of the spectrum.  

JS: Over the past several years, Hershey has made known its intentions to increase its presence in the salty snack realm. Could you please talk about the ways in which the company has made good on those promises, with acquisitions of brands known in that area and other ways?

HersheyFulfil.jpgNJ: Since Hershey acquired the SkinnyPop brand in 2017, followed by Pirate’s Booty and Dot’s Homestyle Pretzels, our salty business has grown to make up 10% of company sales.

Popcorn and pretzels are the two most permissible categories in salty snacking. At an average of 39 calories per cup, SkinnyPop is a tasty, permissible snack free of GMOs, peanuts, soy, tree nuts, MSG, gluten or preservatives. In the puffs category, Pirate’s Booty is our core brand, and over the last two years, we’ve focused on its growth, achieving our goal of becoming the No. 1 better-for-you puff. Parents love Pirate's Booty snacks because they are kid-requested and made with real, simple ingredients.

JS: Then, please talk about the long list of BFY products Hershey has released in the past year, and how they’re on trend with the BFY consumer.

NJ: Here are a few of our recent BFY product introductions:

  • In 2021, we relaunched our Zero Sugar line with new branding and packtypes for iconic brands such as Hershey’s and Reese’s and have continued to expand that platform.
  • Also in 2021, we acquired Lily’s, which specializes in no-added sugar confectionary products made with stevia, an alternative sweetener. We’ve since launched new chocolate, baking and gummies under the Lily’s brand.
  • In spring 2023, and in partnership with The Coca-Cola Company, we launched Honest Organic Gummies, made with Honest Organic fruit juice and natural flavors and no high-fructose corn syrup or artificial sweeteners.
  • Earlier this year, The Hershey Company launched two plant-based confections nationwide: Hershey’s Plant Based Extra Creamy with Almonds and Sea Salt and Reese’s Plant Based Peanut Butter Cups.
  • In 2019, Hershey purchased protein-bar maker ONE Brands, and this month we’re launching protein-packed ONE Puffs, a fun savory snack with fantastic flavors that helps consumers get that extra protein in their day.
  • We are also launching the FULFIL Triple Chocolate flavored bar. This is FULFIL’s most chocolatey flavor yet with a rich, multi-textural experience of a candy bar.

JS: Can you share a glimpse of what you have planned for the coming months/years?

NJ: We’re continuing to execute our BFY strategy by bringing more innovation like Zero Sugar and Plant Based on our core brands, investing in partnerships like The Coca-Cola Company on Honest Organic Gummies, leading research and development to discover new wellness-focused technologies, and exploring mergers and acquisitions that can expand our ability to develop more moments of goodness for consumers.  

JS: Any advice you might have for producers and retail buyers looking to connect with a consumer base increasingly interested in snacking better?

NJ: Retailers can harness their basket-building potential as shoppers look for BFY alternatives during their wellness journeys.

BFY confection has seen accelerated growth for four of the past five years, and there’s more room to grow. BFY confection is under-represented compared to other center store categories. And all shoppers of BFY confection also purchase conventional confection; there is no exclusivity. Shoppers buying BFY are also buying various other brands, both within confection and across snacking categories.

We seek to place our portfolio in the center of the aisle to be at eye level and arms reach across classes of trade. BFY products on feature or display see the greatest dollar lifts across all classes of trade. Finally, our shopper testing has found that placing BFY confection nearer to conventional confection helps bring attention to these items, which leads to greater conversion.

At its core, the success of our BFY strategy is grounded in listening to consumers, proactively identifying market opportunities, and leveraging key partnerships and acquisitions to create more moments of goodness by offering consumers more choices for more occasions.  

The Hershey Co. is on the current Candy Industry “Global Top 100 Candy Companies” list. Click here to view the current “Global Top 100” rankings.