Hershey’s launch of a chocolate spread under its iconic Hershey’s label at the end of 2013 marked its entry into a fast growing category in the US. Chocolate spreads in the US is anticipated a near 7% CAGR over the 2013-2018 forecast period, but the category is heavily dominated by Ferrero’s Nutella brand, which held around a 70% value share in 2013. In the US, the chocolate spreads category grew rapidly over the 2008-2013 review period as consumers were increasingly drawn to chocolate spreads with hazelnut. This move is a good one for Hershey given its strength in chocolate confectionery and strong brand equity. The challenge will be how to tackle the competition and claim share from the well-established Nutella brand.
Source: Hershey Co