Hershey is looking to divest its high-flying jerky brand KRAVE along with its artisan chocolates Scharffen Berger and Dagoba, Hershey CEO Michele Buck told analysts. KRAVE, a high-end jerky and meat snack company that Hershey acquired for $220 million in 2015, had failed to meet company’s expectations.
These are great brands that continue to resonate with consumers, but they require a different go-to-market model. These brands are are far more niche with much smaller market shares.
Hershey is best known for its mainstream brands that resonate with a broader segment of consumers. It makes sense for Hershey to focus its attention in areas where it has far more expertise and can promote and innovate the brands to ensure they resonate with a broader-range of consumers. The company needs to better prioritize its resources moving forward.
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