The Hershey Company will revert to using real milk and dark chocolate in its Reese’s and Hershey’s products, abandoning substitute ingredients.
This shift marks a reversal of cost-cutting measures taken during a period of high commodity volatility. The move signals a return to original formulas for two of the most popular confectionery brands in the U.S.
The transition is slated to be completed by 2027 [2]. The company originally announced the change in 2024, moving away from the substitute ingredients that had been integrated into the products.
Market conditions have shifted significantly to make this change viable. Cocoa bean prices have slumped nearly 70% since 2024 [1]. This price drop has made the procurement of real chocolate more affordable for the company's large-scale production needs.
While the price of cocoa is a primary driver, the company also faced pressure from its customer base. Reports indicate that the reversal was driven in part by viral social-media backlash and a public campaign regarding the previous formulations [2].
Hershey is implementing the change across its primary market in the U.S. The company said the rollout will occur as cocoa prices continue to stabilize.
The decision to move away from substitutes suggests a priority on product quality and brand loyalty over the maximum cost savings achieved through alternative ingredients. By returning to real chocolate, the company aims to satisfy consumers who criticized the taste, and composition of the substitute-heavy recipes.
“Cocoa bean prices have slumped nearly 70% since 2024”
This reversal illustrates the direct impact of global commodity volatility on consumer goods. When cocoa prices peaked, the company prioritized margins by using substitutes; as prices crashed, the financial risk of using premium ingredients vanished, allowing the company to address consumer dissatisfaction without sacrificing profitability.
