Sweet Success: VP Dan Mohnshine on Leading Innovation at Hershey’s
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Dan discusses the evolving consumer trends influencing Hershey’s strategies, the importance of innovation—like the launch of Reese’s Caramel Big Cup, and how Hershey’s is embracing health and wellness for the total snacking experience.
“We've seen a ton of growth on our zero sugar platform . . . Reese's is the leading brand within that platform for us, and it continues to grow.” - Dan Mohnshine
The Hershey Company, an undisputed leader in the confection industry, continues to innovate and adapt in a rapidly changing market. Known for iconic brands like Reese’s, Kit Kat and Hershey’s, the company is not just about chocolate but the total snacking experience. With a focus on consumer trends, digital transformation, and health-conscious products, Hershey’s is setting new standards in the industry. In this episode, we explore these themes with Hershey’s Vice President of Marketing, US Confection, Dan Mohnshine, offering insights into how the brand stays relevant and ahead of the curve in the industry.
Dan Mohnshine is a seasoned marketing leader with extensive expertise in consumer products, brand strategy, and multi-billion dollar P&L management. As the Vice President of Marketing, US Confection at The Hershey Company, Dan oversees an impressive portfolio, including iconic brands such as Hershey's, Reese's, Kit Kat, Twizzlers, Jolly Rancher, and Ice Breakers. Before joining The Hershey Company, Dan honed his skills at Kraft Foods, further solidifying his reputation as a thought leader in the industry.
Tune into the latest episode or read the transcript below to learn more. Here are some top takeaways:
Top Consumer Trends - According to Dan, there are three key trends driving the confectionery industry: value, innovation, and health and wellness. With the recent high inflation period, consumers define value differently—some prioritize convenience, others price points. Post-COVID, there has been a significant return to innovation, with Hershey’s leading the charge. Lastly, health and wellness trends focus on removing unwanted ingredients like sugar, leading to successful zero-sugar platforms and plant-based products. Understanding these diverse consumer needs to deliver value effectively is crucial in today's ever changing snacking industry.
Embracing Convenience and Quick Commerce - With DoorDash experiencing significant growth, convenience remains paramount, particularly for higher socio-economic consumers. Dollar Channel also continues to grow at the other end of the spectrum, with consumers looking for a specific price point. For The Hershey Company, this translates to seamlessly integrating products like Reese’s King Size Cups into delivery orders, making it effortless for consumers to enjoy their favorite treats. This strategy highlights the importance of utilizing quick commerce platforms to drive impulse purchases and fulfill consumers’ demands for convenience and accessibility.
Innovative Product Launches - Highlighting the successful launch of Reese’s Caramel Big Cup, Dan explains how adding a rich layer of caramel to the classic peanut butter and chocolate combination created a new, textural experience for consumers. This innovation reflects broader trends of flavor and texture innovations infiltrating the US market. For instance, influences from international flavors, such as creamier or spicier varieties, are being incorporated to meet evolving consumer preferences. Innovation in product formulation can significantly enhance consumer engagement and satisfaction.
Focus on Health and Wellness - Hershey’s has seen significant success with their zero sugar and plant-based lines in response to the growing demand for health-conscious products. The zero sugar platform, led by Reese’s, is a hit among consumers looking to reduce sugar intake. Plant-based products are also a success, tailored for vegan consumers and those with dairy allergies. By offering diverse options such as portion-controlled Reese’s Thins, zero sugar, and plant-based products, Hershey’s effectively meets the wide-ranging health and wellness preferences of today’s consumers.
Redefining Snacking with Innovation - Hershey’s is expanding its brand beyond traditional chocolate. As a leading snacking powerhouse, The Hershey Company has launched a variety of new products in the snacking landscape, such as Reese’s Dipped Pretzels and Animal Crackers. This broad perspective has enabled Hershey’s to create new snacking occasions, appealing to a wider range of consumer preferences and pushing the brand into exciting new territories. Its innovative strategy highlights the company’s commitment to meeting evolving consumer needs and staying ahead in the competitive snacking industry.
Digital Transformation and Media Strategy - With about 70% of Hershey’s media plan now digital, Dan explains the shift from traditional 15-second TV ads to digital platforms such as YouTube, Meta, and TikTok. This transformation has enabled Hershey’s to stay relevant, especially with younger generations. By continuously testing new messages and platforms through their advertising innovation file, Hershey’s has driven significant improvements in media ROI. The pivot to digital underscores the importance of adapting media strategies to connect with modern consumers more effectively.
Understanding the Value Chain - To succeed as a marketer, one must understand every aspect of the value chain. Dan advises marketers to be curious about how products are made by visiting plants, understanding sales strategies by spending time with sales teams, and collaborating with R&D to improve products. This comprehensive understanding helps marketers meet consumer needs more effectively, unlock value for their P&L, and gain credibility within their organizations. By taking an interest in all parts of the value chain, marketers can deliver great consumer experiences and drive business success.
Listen to Dan on the Speed of Culture podcast and gain insights into the future of consumer trends and innovation in the confectionery industry.
