Hershey buys candy brand Sour Strips for undisclosed amount

Diving overview:

• hershey bought sour stripsis a sour candy brand founded in 2019 by social media personality Max Cheuning, the company said in a press release Friday. The purchase price was not disclosed.
• Reese’n.Dot’s homestyle pretzel maker said Sour Strips expands Hershey’s candy portfolio and enhances the company’s ability to reach new consumers through more snacking opportunities. The “Sour Strips” brand has the slogan “Sour Candy That Doesn’t Suck” and is sold at retailers such as Walmart, Amazon, and Target.
• Sour candy has proven particularly popular with younger consumers. The market size is estimated to reach $2.7 billion by 2030, growing at a compound annual growth rate of 7.3%. According to a report from IndustryARC.

Dive Insight:

Although many of Hershey’s acquisitions in recent years have strengthened its salty snack division, the sweets side of the company’s business remains paramount. Mike Del Pozzo, president of Hershey’s U.S. confectionery division, said the company is “relentlessly” accelerating its growth in sweets, and Sour Strips plays a key role in this effort. .

Hershey noted that Sour Strips has a “strong” presence on social media. The emerging sour candy brand says on its website: Gathered over 400,000 followers Across all platforms.

Hershey said Cheuning will continue to lead the brand’s marketing and innovation efforts. Given his role in innovation and connecting with young consumers through his social media presence; bite This involvement is critical for the leading confectionery company as it integrates and grows Sour Strips.

A large part of Hershey’s presence in sweets lies in sugar-heavy treats such as Kisses, Milk Duds, and its namesake chocolate bar. But as the harsh trends took hold, Hershey added more products to meet consumer demand. In September, Hershey launched a sour version of its Shaka Licious XL gummies as part of a partnership with basketball star Shaquille O’Neal.

Such products allow Hershey to diversify beyond chocolate, which has been hit hard by changing consumer tastes and long-term high cocoa prices.

Sour Strips is a small brand compared to many of the other popular products in Hershey’s portfolio. Still, a hallmark of Hershey’s previous acquisitions is that it leverages the company’s innovation, marketing, and large distribution network to expand the reach of its products, something the company adopted after acquiring Dot’s and SkinnyPop. It’s a process. Hershey will likely implement the same strategy with Sour Strip.

this week, Hershey lowers its net sales growth forecast for this year This is because a series of price hikes has reduced demand for sweet and salty products.

“We believe in the resiliency of our snack category and the strength of our brand,” said Michelle Buck, CEO of Hershey. “Our goal is to win and expand our chocolate offering to drive sales and market share growth.” Strengthen your portfolio, accelerate your sweets, and make the most of your seasonal strengths. ”