by Christopher Freeburn | January 16, 2014 11:09 am
Chocolate giant Hershey (HSY) is launching a bid to challenge Nutella in the food spread sector.
Hershey will launch a variety of chocolate-flavored snack spreads. Along with Nutella, Hershey will join J.M. Smucker (SJM), 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,” 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) new Butterfinger Peanut Butter Cups.
Shares of Hershey rose modestly in Thursday morning trading.
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