Hershey Pledges to Swap Compound Coatings by 2027 and Upgrade KitKat Recipe

HSYHSY

Hershey will replace compound chocolate coatings in Reese’s and Hershey’s products by 2027, revert to classic milk and dark chocolate recipes and use natural color sources. The company also plans to enhance its KitKat recipe for a creamier chocolate after Brad Reese publicly criticized use of cheaper ingredients.

1. Ingredient Controversy

Grandson Brad Reese accused Hershey of replacing milk chocolate with chocolate compound coatings and swapping real peanut butter for peanut butter-style crème across multiple Reese's products, arguing these changes undermined brand quality and consumer trust in an open letter to Hershey management.

2. Commitments at Investor Day

During an investor day presentation, Hershey’s chief growth officer Stacy Taffet announced plans to revert Reese's and Hershey’s offerings to their classic milk and dark chocolate recipes, transition confectionery colors to natural sources, and enhance the KitKat recipe for creamier chocolate, while pledging to complete compound coating replacements by 2027.

3. Heritage and Brand Impact

The dispute highlights tensions over preserving Reese's legacy after Hershey acquired the brand in 1963; Brad Reese’s public pressure underscores governance concerns and potential reputational risks as Hershey balances cost efficiencies with consumer expectations.

Sources

F