Overview of Halloween meets GLP-1s: Hershey’s candy Super Bowl, with CEO Kirk Tanner
This episode features Hershey CEO Kirk Tanner discussing how the company is navigating a pivotal season for candy and snacks: Halloween. The conversation covers rising cocoa costs, how Hershey is adapting its portfolio to changing consumer habits, the impact of GLP-1 drugs on snacking, and how AI is reshaping retail execution. Tanner also reflects on lessons from his PepsiCo years, Hershey’s cultural relevance, and the company’s unusual ownership structure tied to the Milton Hershey School.
Key Topics Discussed
Halloween as Hershey’s biggest sales moment
- Halloween is described as Hershey’s “Super Bowl,” with the company already shipping seasonal products early.
- Tanner emphasizes that Halloween is less about one day and more about a full season of consumer occasions:
- trick-or-treater packs
- last-minute shopping packs
- broader seasonal merchandising with retail partners
- Hershey watches both daily sales and consumer sentiment to stay ahead of demand.
Cocoa inflation and chocolate pricing
- The company has faced significant inflationary pressure from soaring cocoa prices.
- Tanner says cocoa costs reached unprecedented levels, though prices have recently stabilized somewhat.
- Chocolate remains positioned as an “affordable luxury” or treat, not a meal replacement.
Consumer habits, snacking, and GLP-1s
- Tanner says Hershey’s category has remained resilient even among GLP-1 users.
- His view: consumers still want favorite foods, but may consume smaller amounts.
- Hershey is leaning into:
- portion control
- permissible snacking
- premium treat experiences
- He sees growing demand for “affordable experiences” and “little adventures” through snacks.
Innovation and portfolio strategy
- Hershey is prioritizing innovation within existing brands and adjacent categories.
- Examples mentioned:
- Reese’s + Oreo collaboration
- Hershey Creme bars, including an affogato-style premium entry
- Tanner says premium snacks are still a small part of the category, but growing faster than the category overall.
AI in retail execution
- AI is helping Hershey make sales teams more efficient and more targeted.
- Tanner describes a system that tells reps where the biggest opportunities are by store and customer, replacing manual data gathering.
- This makes retail activity more dynamic and opportunity-based.
“One Hershey” organizational integration
- Tanner has pushed for a more unified operating model across confectionery, salty snacks, and functional/snacking businesses.
- The goal is to show up to customers like Walmart, Target, Costco, and Sam’s Club as one integrated growth partner.
- He says better data integration and unified sales execution are key benefits of the approach.
Hershey’s ownership structure and long-term thinking
- Hershey’s controlling trust, tied to the Milton Hershey School, gives the company a long-term shareholder relationship.
- Tanner views this as a strength, not a constraint:
- fewer activist pressures
- more strategic patience
- alignment around long-term value creation
- He still emphasizes that performance pressure remains high because Hershey is in daily competition for consumers.
Cultural relevance and the Milton Hershey movie
- Tanner stresses that Hershey must stay culturally relevant or risk becoming irrelevant.
- He sees the upcoming Milton Hershey film as a chance to expand the brand beyond candy and tell the founder’s broader story.
- The movie highlights Milton Hershey’s entrepreneurial spirit, including his shift from caramels to accessible chocolate and his founding of the school.
Main Takeaways
- Halloween remains Hershey’s most important seasonal business driver.
- Cocoa inflation has pressured margins, but the category still thrives as an affordable treat.
- GLP-1 users are not abandoning snacks; they’re often changing portion size and occasion.
- Innovation is central to growth, especially through brand pairings and premium offerings.
- AI is becoming a practical retail tool, especially for prioritizing store-level execution.
- Hershey’s trust-based ownership structure supports long-term planning and mission alignment.
- Cultural relevance matters as much as product consistency for legacy brands.
Notable Insights
- Tanner on relevance: “The second you’re not culturally relevant with your brands like Hershey, then you should be worried.”
- On the category: Candy is a treat category, not a meal.
- On consumer behavior: Consumers want go-to brands they trust, but also want excitement and delight.
- On AI in sales: AI now helps tell reps where to go and what to do next instead of making them gather data manually.
- On long-term strategy: Hershey’s durable success depends on keeping the core brand healthy while expanding into high-growth categories.
Additional Context
- The episode also includes sponsor messaging about:
- Engine, a business travel platform, making the case that travel still creates measurable ROI for companies.
- Creative Planning and Pioneers of AI promotional spots.
- These sponsor segments are separate from the main Hershey interview but frame the episode’s broader business and technology focus.