How Hershey Turns Trends into Bestsellers

Key Concepts

• Velocity Labs: An internal Hershey capability designed to accelerate innovation by moving at the "speed of culture" to test products with real-time consumer feedback.
• Democratization of Chocolate: A core brand philosophy rooted in founder Milton Hershey’s mission to make high-quality chocolate accessible to everyone.
• Total Snacking Vision: Hershey’s strategic shift to diversify beyond traditional candy into salty snacks and protein-based products.
• Trend-to-Market Cycle: A rapid development framework that can take a product from concept to store shelf in as little as two months.

1. Innovation Framework: Velocity Labs

Dan Moshine, VP of Marketing at The Hershey Company, emphasizes that the company’s ambition to lead "next-generation snacking" requires extreme agility. The Velocity Labs framework is the engine for this, operating on a three-step methodology:

1. Trend Identification: Using AI-enabled tools and direct consumer observation to spot emerging cultural trends.
2. Brand Alignment: Evaluating whether a trend fits the brand’s identity and if the brand can authentically participate in that specific "moment."
3. Rapid Execution: Once a fit is identified, the company leverages R&D and retail partnerships to launch products quickly for real-time market feedback.

2. Real-World Applications & Case Studies

• The "Dirty Soda" Trend: Hershey identified that young consumers were hosting watch parties and creating "dirty sodas" (soda mixed with various ingredients). Recognizing that consumers already used Twizzlers as straws, Hershey developed a lime and coconut-flavored Twizzler straw specifically designed to complement the drink, turning a social media trend into a branded product experience.
• The "Dubai Chocolate" Craze: To capitalize on the viral popularity of Dubai-style chocolate bars, Hershey launched its own version. They maintained brand integrity by incorporating the classic "Hershey’s pip" design and upheld the founder’s legacy by pricing the product affordably, effectively "democratizing" a luxury trend.

3. Marketing & Retail Strategy

• Social Media as a Launchpad: Hershey utilizes platforms like TikTok to identify trends and partners with influencers to amplify their presence in specific cultural moments.
• Retail Scaling: To scale ideas quickly, Hershey utilizes:
  • Owned Channels: Digital platforms and physical retail locations (e.g., the Times Square store).
  • Strategic Partners: Retailers like GoPuff that allow for rapid distribution.
• Holistic Idea Testing: Moshine notes that the goal is to test an "idea" rather than just a product, ensuring the concept resonates across all consumer touchpoints.

4. Managing Failure and Future Outlook

• Perspective on Failure: Moshine frames failure as a necessary component of learning. By launching products quickly, the company can identify "failure points" early, allowing them to pivot or refine the concept for future iterations.
• Diversification: Hershey is aggressively expanding beyond traditional confectionery:
  • Salty Snacks: Growth is led by brands like Dots and Skinny Pop, alongside the recent acquisition of Lesser Evil.
  • Protein Bars: The One and Fulfill brands have seen a 14% growth in the latest year.
• Future Pipeline: Moshine confirmed that three new Velocity Labs experiences are currently in the pipeline, slated for release in the second half of 2026.

5. Notable Quotes

• "Our ambition is to lead next-generation snacking and that requires agility and speed." — Dan Moshine
• "We don't want to chase things if we're going to force ourselves into the conversation." — On the importance of brand authenticity.
• "Milton Hershey, our founder, democratized chocolate. We wanted to democratize Dubai." — On the strategy behind their viral chocolate bar launch.

Synthesis

The Hershey Company is successfully transitioning from a traditional candy manufacturer to a diversified "total snacking" powerhouse. By utilizing Velocity Labs, they have successfully shortened their innovation cycle to two months, allowing them to participate in viral trends like "dirty soda" and "Dubai chocolate" without compromising their brand heritage. Their strategy relies on a blend of AI-driven trend analysis, influencer-led marketing, and a willingness to treat product launches as iterative learning opportunities, ensuring they remain relevant across multiple snacking categories.