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Diving overview:
- Hershey’s has acquired Sour Strips, a sour candy brand founded in 2019 by social media personality Maxx Chewning, the company said in a press release Friday. The purchase price was not disclosed.
- Sour Strips expand Hersey’s confectionery portfolio and enhance the company’s ability to reach new consumers with more snacking opportunities, the maker of Reese’s and Dot’s Homestyle Pretzels said. The Sour Strips brand, with the slogan ‘sour candy without the saltiness’, is sold at retailers such as Walmart, Amazon, and Target.
- Sour candies have proven particularly popular with younger consumers. The market size is expected to reach $2.7 billion by 2030, growing at a compound annual growth rate of 7.3%. Industry ARC.
Dive Insights:
Although Hershey’s acquisitions in recent years have strengthened its salty snack segment, the confectionery portion of the business remains a top priority. Mike Del Pozzo, Hershey’s president of U.S. confectionery, said the company is “relentlessly” accelerating growth in its confectionery category and that Sour Strips are playing a key role in that plan.
Hershey noted that Sour Strips has a “strong” presence on social media. The fledgling candy brand said on its website that it has amassed more than 400,000 followers across all platforms.
Hershey said Chewning will continue to lead the brand’s marketing and innovation efforts. Considering his role in innovation and engagement with young consumers through social media; Chewing For the confectionery giant that is consolidating and growing Sour Strips, involvement is critical.
Most of Hershey’s snack presence is in sugar-laden treats such as Kisses, Milk Duds and its namesake chocolate bar. But as the sour trend continued, Hershey added more products to meet consumer demand. Last September, Hershey released a new version of Shaq-A-Licious XL Gummies as part of a partnership with basketball star Shaquille O’Neal.
These products allow Hershey to diversify beyond chocolate, which has been hit hard by changing consumer preferences and long-term rising cocoa prices.
Sour Strips is a smaller brand compared to other popular products in the Hershey portfolio. Nonetheless, a hallmark of Hershey’s previous acquisitions has been leveraging innovation, marketing, and a large distribution network to expand the reach of its products. This is the process the company used after purchasing Dot’s and SkinnyPop. Hershey will probably implement the same strategy with Sour Strips.
This week, Hershey lowered its forecast for net sales growth this year after a series of price increases reduced demand for its sweet and salty products.
“We believe in the resilience of the snack category and the strength of our brands,” said Hershey’s CEO Michele Buck. “Our priorities are to drive sales and market share growth through in-store success with key customers and chocolate expansion. “It strengthens the portfolio, accelerates confectionery and maximizes seasonal strength.”
