Source: Fortune
Summary
Brad Reese, grandson of H.B. Reese, the inventor of Reese’s Peanut Butter Cups, has criticized The Hershey Co. for changing the recipe of some Reese’s products, using cheaper ingredients such as compound coatings and peanut crème instead of milk chocolate and peanut butter. Hershey acknowledges some recipe changes, citing consumer demand for innovation and high cocoa prices. However, Brad Reese claims that the changes have affected the taste and quality of the products.
Our Reading
The numbers tell one story. Brad Reese, grandson of H.B. Reese, is not pleased with Hershey’s recipe changes. He claims that the company has replaced milk chocolate with compound coatings and peanut butter with peanut crème in some Reese’s products. Hershey says it’s innovating, but Reese thinks it’s sacrificing quality. The company’s CFO, Steven Voskuil, has mentioned making changes to formulas, but claims there’s been no consumer impact. Meanwhile, Brad Reese has been getting complaints from people who say Reese’s products don’t taste as good as they used to. The strategy enters a familiar phase: cost-cutting measures masquerading as innovation.
Author: Evan Null
