Hershey is turning its candy into energy drinks and protein powders

Jordan Valinsky, CNN

New York (CNN) — With its line-up of saccharine snacks, Hershey isn’t known arsenic a purveyor of fare foods. However, nan company’s newest products are made specifically for those connected a fittingness kick.

As nan usage of weight-loss narcotics — notably Ozempic and Wegovy — grows, nan 130-year-old confectionery institution is adjusting to this caller era by pushing further into nan wellness class pinch macromolecule powders and power drinks successful celebrated candy flavors.

The Hershey Company (HSY) has struck a woody pinch C4 Energy, a top-selling supplement marque that has gained fame arsenic group person looked to build musculus and activity retired much pursuing nan pandemic. Hershey’s namesake beverage cocoa and Reese’s peanut food and cocoa will soon beryllium sold arsenic macromolecule powders and its Jolly Rancher candies will beryllium turned into bubbly power drinks.

“What’s awesome astir this business is that we get to pat into these brands that are much than 125 years aged and are very nostalgic,” said Doss Cunningham, CEO of C4’s genitor institution Nutrabolt. “On nan flip side, this is simply a awesome opportunity for america to scope caller audiences.”

The business should thief C4, nan fourth-best-selling power portion marque successful nan United States, differentiate itself successful a $21 cardinal marketplace dominated by trendy up-and-comers, for illustration Celsius and Ghost, but besides older companies that stay popular, notably Red Bull and Monster. Energy drinks, which are astir often bought by millennial and Gen Z customers, person “a batch of affinity” pinch Hershey’s products, Cunningham told CNN.

Rolling retired this week crossed awesome US retailers, including HEB, Amazon and C4’s website, nan caller canned power drinks are based connected 3 celebrated Jolly Rancher flavors: bluish raspberry, greenish pome and watermelon. A 12-pack costs $27.99.

The woody past expands successful October erstwhile whey macromolecule powder, successful Hershey’s beverage cocoa and Reese’s peanut food and cocoa flavors, hits shelves, pinch prices starting astatine $29.99 for nan smallest size. A pre-workout powder based disconnected of Bubble Yum gum will besides beryllium introduced.

C4 has already had occurrence pinch utilizing flavors from Skittles, Starburst and Popsicle for its different power drinks.

“We tin scope caller consumers that are possibly caller to nan sports nutrition abstraction aliases nan power portion class that tin observe C4 done 1 of their beloved brands,” Cunningham said.

Partnering pinch nutrient makers that person perfected flavorful recipes is becoming celebrated among nutrition companies because “it’s a measurement to thief entice consumers to effort them pinch flavors that they are comfortable aliases accustomed to, considering a batch of these powders are notorious for having a weird and unpleasant taste,” Andrea Hernández, laminitis of Snaxshot, a nutrient and beverage insights platform, told CNN.

For Hershey, moving further into nutrition mightiness thief offset falling income successful its candy business, which reported a 17% driblet successful gross successful its astir caller net report. In 2019, Hershey bought One Brands, which makes low-sugar, high-protein nutrition bars, for $400 million. And its rivals are adjusting arsenic good — for example, Mars, which bought snacking elephantine Kellanova to grow its portfolio beyond sugary treats.

Whether it’s moving into nutrition aliases making large acquisitions, Hernández said candy companies are exploring caller ways to beryllium relevant, for illustration Hershey’s approach, which “can yet thief Hershey’s get a patient halo of sorts.”