Watch Out Nutella! There’s a New Hershey Spreads in Town

by Christopher Freeburn | January 16, 2014 11:09 am

Watch Out Nutella! There’s a New Hershey Spreads in Town

nutella Watch Out Nutella! There's a New Hershey Spreads in Town[1]Chocolate giant Hershey (HSY[2]) is launching a bid to challenge Nutella in the food spread sector[3].

Hershey will launch a variety of chocolate-flavored snack spreads. Along with Nutella, Hershey will join J.M. Smucker (SJM[4]), which entered the spread business in 2012 through its Jif brand. Nutella has seen its U.S. sales soar to more than $240 million a year, the Associated Press notes.

The new chocolate-flavored Hershey spreads are being positioned as a “snack enhancer.” They will compete with the hazelnut-flavored Nutella, which is made by Italy’s Ferrero.

In October, Hershey launched a new caramel candy called “Lancaster[5],” its first new candy brand in 30 years.

Hershey’s best-selling Reese’s Peanut Butter Cups are facing their own competition from Nestle’s (NSRGY[6]) new Butterfinger Peanut Butter Cups[7].

Shares of Hershey rose modestly in Thursday morning trading.

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2012/11/nutella.jpg
  2. HSY: http://studio-5.financialcontent.com/investplace/quote?Symbol=HSY
  3. challenge Nutella in the food spread sector: http://www.nbcnews.com/business/hershey-battle-nutella-new-chocolate-spreads-2D11934914
  4. SJM: http://studio-5.financialcontent.com/investplace/quote?Symbol=SJM
  5. a new caramel candy called “Lancaster: http://investorplace.com/2013/10/hershey-launches-first-new-candy-brand-30-years/#.UtgB_3m1Kf0
  6. NSRGY: http://studio-5.financialcontent.com/investplace/quote?Symbol=NSRGY
  7. new Butterfinger Peanut Butter Cups: http://investorplace.com/2014/01/video-racy-super-bowl-ad-kicks-butterfinger-peanut-butter-cups-launch/#.UtgDaXm1Kf0

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