Investors are cheering after chocolate maker Hershey Co. (HSY) announced that it will return to the classic recipe for its popular Reese’s Peanut Butter Cups.
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Pennsylvania-based Hershey had faced criticism from consumers and the grandson of the Reese’s Peanut Butter Cup founder for switching to cheaper ingredients. Reese’s Peanut Butter Cups had always been made with real milk chocolate and peanut butter. But a portion of Reese’s products are now made with a cheaper coating that contains less chocolate.
Hershey said it was forced to move to cheaper ingredients as the cost of cocoa, the main ingredient in chocolate, soared in recent years. But following a backlash from consumers, Hershey said that, starting in 2027, it will shift back to its “classic milk chocolate recipe.”
Family Fight at Hershey
In addition to complaints from consumers, Brad Reese, the grandson of the inventor of Reese’s Peanut Butter Cups, caused controversy with a public letter he sent to Hershey’s corporate brand manager on Valentine’s Day this year.
“How does The Hershey Co. continue to position Reese’s as its flagship brand, a symbol of trust, quality and leadership, while quietly replacing the very ingredients (Milk Chocolate + Peanut Butter) that built Reese’s trust in the first place?” Reese wrote in the letter, a copy of which he posted on social media.
H.B. Reese invented Reese’s Peanut Butter Cups in 1928. His sons sold the recipe for the popular chocolate bar to Hershey in 1963.
Is HSY Stock a Buy?
Hershey stock has a consensus Hold rating among 18 Wall Street analysts. That rating is based on four Buy and 14 Hold recommendations issued in the last three months. The average HSY price target of $231.67 implies 13.51% upside from current levels.
