Hershey CEO Discusses GLP-1 Users, AI, and Brand Relevance

Hershey CEO Kirk Tanner emphasized the critical importance of maintaining cultural relevance for an iconic brand like Hershey, stating that a decline in this area would be a cause for concern. He outlined strategies to ensure the 132-year-old company remains connected with contemporary culture, drawing parallels to moments of celebration during events like the Winter Olympics where brands can resonate with current societal experiences. Tanner highlighted that while the core product may remain consistent, the method of engagement and selling must evolve to keep pace with cultural shifts.

Tanner also discussed the unexpected positive impact of users of glucagon-like peptide-1 (GLP-1) medications on the candy business. Contrary to potential assumptions that these weight-loss drugs might reduce confectionery consumption, Tanner indicated that GLP-1 users represent a beneficial demographic for Hershey. He elaborated on how AI is being actively deployed to optimize Hershey's sales force operations in real-time, specifically within major retail environments like Target and Walmart. This AI integration aims to enhance efficiency and responsiveness in sales strategies.

The conversation, featured in an abridged transcript from the "Rapid Response" podcast hosted by Robert Safian, delves into how an established brand like Hershey can continuously find new avenues for energy and engagement. Tanner, who previously spent a significant portion of his career at PepsiCo, reflected on the challenge of selling enduring products year after year. He stressed that the key lies not in altering the fundamental product, which consumers seek, but in innovating the approach to selling and connecting with the audience. Hershey, a company with a rich history dating back 132 years, benefits from its iconic status, which evokes nostalgia, but also faces the challenge of adapting to modern consumer expectations and perceptions. The company recently encountered some public criticism regarding recipe modifications in certain Reese's products, underscoring the delicate balance required when making changes to beloved items. Brad Reese, grandson of the company's founder H.B. Reese, was mentioned in relation to this criticism, highlighting the legacy and stakeholder considerations involved in brand management.