Hershey snaps up minority stake in snacking businesses Fulfil Nutrition and Blue Stripes
20 Aug 2019 --- The Hershey Company has announced its minority investments in emerging snacking businesses Fulfil Nutrition and Blue Stripes Cacao Shop. The deals are facilitated through C7 Ventures, Hershey’s venture model, responsible for the deployment of small capital investments in “disruptive or emerging” platforms focused on “new occasions, new technologies and new go-to-market opportunities.” Hershey is not disclosing the full investment value in either company, but the move is part of its wider strategy to expand into the wellness and snacking categories.
“For more than two years, we have focused on growing our confectionery brands and expanding our portfolio to include broader snacking occasions, specifically in the better-for-you space and creating compelling consumer experiences,” a Hershey spokesperson tells FoodIngredientsFirst. “For example, in 2018, Hershey acquired Amplify and Pirate Brands, both of which offer consumers better-for-you products that taste great.”
Oded Brenner, Founder of Blue Stripes Cacao Shop.Fulfil, a specialist in vitamin fortified, high protein nutrition bars in the UK and Ireland, builds on Hershey’s ambitions to diversify its nutrient-enriched snacking portfolio. The company was founded in 2016, when its sales amounted to €12 million, before doubling in value last year.
Blue Stripes Cacao Shop, founded by Oded Brenner, cacao entrepreneur and creator of Israeli chocolate restaurant Max Brenner, is pegged by Hersheys as enabling further go-to-market opportunities by offering experiential retail that “combines the goodness of cocoa with a unique customer experience.”
When asked about the most attractive aspect of the new investment, Brenner notes, “The ability to share our innovation with Hershey’s market knowledge, its access to consumers trends and data, and its distribution and marketing power in this industry in the US and worldwide.”
“We’re the first company in the world that is using all the unknown parts of the amazing cacao fruit – its pulp and shell to create a line of very healthy consumer packaged goods,” says Brenner. “In parallel, we create this experience in our quick service stores. This enables people to eat chocolate in an everyday environment that is way more appealing to the modern consumer. These are the factors that attracted Hershey to collaborate and partner with us.”
“Successful companies evolve and engage consumers in new and different ways,” adds Mary Beth West, Chief Growth Officer. “As we continue to expand our snacking portfolio, our innovation agenda takes a balanced approach across investing in core brands and experimenting with new business models. This includes the creation of new platforms through R&D, strategic acquisitions and investments in businesses that are sitting at the cross section of new consumer snacking needs.”
This rise in a so-called “fourth meal” culture has increased demand for quick and convenient yet healthy solutions for busy consumers. This is creating opportunities for wholesome, satisfying and sustaining snacks to fulfill the role of mini meals and play a more meaningful role in contributing to refueling and nutritional needs throughout the day. According to data from Innova Market Insights, there has been a 14 percent average annual growth in food and beverage launches with a snacking claim (Global, CAGR 2014-2018).
Hershey, which celebrates its 125th anniversary this year, oversees more than 80 brands that drive more than US$7.8 billion in annual revenues, including brand names such as Hershey’s, Reese’s, Kit Kat, Jolly Rancher, Ice Breakers, SkinnyPop and Pirate’s Booty.
By Benjamin Ferrer
