Thinking beyond the bar: Hershey enters the hot cocoa market
The Hershey Company is launching a new licensing partnership with Kent Precision Food Groups to create its Candy Shop Cocoa, a collection of cocoa mixes. The global chocolate brand will launch eight cocoa mixes in various Hershey-inspired flavours, including Hershey’s Milk Chocolate, Reese’s Peanut Butter Cup, York Peppermint Pattie, and Hershey’s Cookies ‘N’ Creme.
“Candy Shop Cocoa brings innovation and excitement to the category through cocoa mixes infused with the taste of our iconic products,” says a spokesperson for The Hershey Company on what inspired its latest launch.
Hershey’s latest products will reach supermarket shelves in major retailers throughout the US in September 2024.
Cocoa: Not just for cosy, cold winter nights
Mixingnostalgia withmodern ingredients, flavours or campaigns is gaining popularity in confectionery, with many leading brands like Cadburys and Nestle bringing back classics with a contemporary twist. “Cocoa mixes attract consumers of all ages who seek feelings of comfort, relaxation and a sweet treat brought by a cup of cocoa,” says Kent Precision Food Group spokesperson.
At-home cocoa consumption is certainly a huge sector. In 2024, revenue generated in the cocoa market in supermarkets and convenience stores is set to hit $13.5bn (€12.2 bn), Statista reports. This is significantly higher than the amount amassed out-of-home in restaurants and bars, which currently sits at almost $9bn (€8bn).
Consumer demand for hot cocoa peaks during key seasons. “There’s increased demand during colder months and during the fall and winter holidays,” says Kent Precision Food Group’s spokesperson. But cocoa fans can also enjoy these flavours in warmer months as cold cocoa, iced or blended.
Flavour innovation is also popular with shoppers. “Hot cocoa fans are looking for new and unique flavours to try,” says Kent Precision Food Group’s spokesperson. “Candy Shop Cocoa brings an innovative take to cocoa and will spark excitement to an evergreen category,” adds the US manufacturer and distributor.
Brands with cocoa mixes on the market
Global chocolate companies, smaller startups, retailers and coffee shops are all getting in on the cocoa mix action. Here are some of the cocoa brands consumers are bringing into their homes.
- Specialist hot chocolate supplier Whittard has released its 70% cocoa hot chocolate
- Chocolate giant Cadbury has its Bournville cocoa
- Mars-owned Galaxy has launched instant hot chocolate
- British chocolate company Green & Blacks has unveiled its organic hot chocolate
- Global coffee shop and retailer Starbucks has released its signature chocolate with 42% cocoa hot chocolate powder
- Fellow leading coffee shop retail brand Costa has unveiled its hot chocolate product
Creating a new collab
The chocolate giant has teamed up with Kent Precision Food Group for the first time to launch its cocoa mixes. Kent Precision Foods Group will manufacture and distribute the cocoa mixes, which are under licence by Hershey. The choc giant will use its cocoa and milk to create its Candy Shop Cocoa flavours.
Through their partnership, Hershey hopes to add its chocolate-leading presence to the cocoa beverage category and produce tasty, indulgent, sweet cocoa treats that consumers can drink either hot or cold. Kent Precision Foods Group is a diversified, family-owned company specialising in food and beverage products. It has been selling cocoa mixes for over 20 years.
Along with manufacturing and distributing Kent Precision Foods Group products, the company also owns the trademark for Candy Shop Cocoa. Its R&D team developed these formulas, which all use Hershey’s cocoa to deliver the same flavour experience consumers are familiar with.
Continuing the occasion-eating trend, at-home
Hershey and Kent Precision Food Group’s new launch signals a shift towards innovation in at-home and DIY confectionery among consumers for the brands. The cost-of-living crisis, lingering pandemic fatigue and calls to reminisce over childhood memories are seeing at-home eating and indulgence experiences remaina key trend in 2024.
“People enjoy putting their own spin on delicious cocoa treats,” says Kent Precision Food Group’s spokesperson. These cocoa mixes are infused with the taste of Hershey products and hope to provide fans with another way to enjoy sweet treats.
