Shelley E. Kohan (00:01)
Hi, everybody. Thanks for joining our weekly podcast. I’m Shelley Kohan, and I’m very excited to welcome back Stephanie Berman, Vice President of Retail at Hershey Company. Welcome back, Stephanie.

Stephanie (00:12)
Thank you, Shelley. It is great to be back with you and excited to spend some time talking to you about Halloween and how we at Hershey partner with our customers to ensure that we’re delivering to their expectations around the moments that matter and around our exciting Halloween season.

Shelley E. Kohan (00:29)
It’s so exciting. It’s to be honest, it’s a little weird talking about this in summer, but I am shocked that sixty seven percent of parents have already bought Halloween candy this summer. That’s a crazy statistic.

Stephanie (00:41)
It really is, but you know what? People are excited.

to talk about the season, to engage with the season, to think about the traditions that really matter and to anticipate the fun of what’s to come with Halloween. And another fun stat is about 55% of parents are in Halloween mode well before October. And so as we think about it, this moment to celebrate Halloween really does start in July. So it’s about a third of the year that consumers are engaging in those moments throughout the duration of the season until we lead up to that October thirty first Halloween day.

Shelley E. Kohan (01:15)
It’s really interesting because we always talk about holiday creep, you know, the holiday season getting earlier and earlier, but I kind of like Halloween creep. It sounds more appropriate, right?

Stephanie (01:26)
Yeah.

It fits perfectly Halloween creep. And you know, what we try to do as we think about this season and bring it to life starting in July is we try to ensure that those moments that we bring to life for the consumers, whether it’s in store or online, are those moments throughout the season that matter most. So early in the season, it’s that treat for me, it’s the instant consumption. We’ve brought innovation in some of our shapes this year with the Reese’s shapes Kit Kat shapes. And then we move into that middle part of the season where it’s more about assortments.

And how consumers are thinking about celebrating and having parties. And then of course the latter part of the season is all about that trick-or-treat occasion.

Shelley E. Kohan (02:04)
Yeah, it’s kind of like n it’s not just a one day event anymore. It’s kind of like an elongated event. And I love you kind of coined the you guys Hershey just came out with a great report about Halloween and consumer behavior trends and what’s happening, which is really fascinating and interesting. But you call it Summerween. And so is that more of a generational kind of thing? Is it the younger folks that are really out there early with this mindset?

Stephanie (02:29)
It’s really grounded in the broad consumer as well as with our retailers. And so what we try to do with our retailers is bring forth that consumer sentiment so that we can bring the season to life most meaningfully with our retailers. And so broad consumer understanding around our core consumer stated that they are celebrating earlier, they’re anticipating the season. So it really is grounded in our broad consumer base. And we brought that to life then with our retailers.

Shelley E. Kohan (02:56)
So Stephanie, when you look at this Halloween versus Halloween years in the past, do you think it’s even earlier than it has been in the last year or two years?

Stephanie (03:06)
It really is earlier. This notion of bringing it to life in July again is done in partnership with our retailers. And so how do we create these moments that matter for the consumer and really elongate so that as the consumer’s engaging, they’re brought in early, and again it’s those moments that matter. So right after it’s sort of that back to school parents are thinking about getting ready for school, they also are starting to think about and anticipate this Halloween season and again those relevant pack types with our instant consumables and shapes.

Matter most, as well as some of our snack size offerings for again that back-to-school moment, which really does integrate with that early July timeframe.

Shelley E. Kohan (03:45)
A from a consumer perspective, like a mindset, I feel like there’s a lot going on with consumers right now. There are the rising gas prices, you know, being able to affordability, like there’s so many like microeconomic things that are I feel are weighing at the heart of every consumer. Do you think that Halloween kind of brings us out of this mindset?

Stephanie (04:07)
The fun about Halloween and the fun about seasons in general is that consumers are excited and eager to engage, to have those moments with family, to bring those memories to life. And so, yes, there’s a lot of external factors, but that’s where seasons really do play a meaningful role. And consumers are excited and looking forward to it because they have not pulled away from engaging in those meaningful moments. They actually matter more.

Shelley E. Kohan (04:33)
And when you are working with your retailer, so obviously you have to work around a calendar of merchandising in stores and their shelf space and other considerations. how do you justify bringing in Halloween so early in the year for the retailers? Are they like displacing other items? Are they actually, you know, earning more profits when it’s brought in earlier? Can you speak to anything about the merchandising aspect from a retailer perspective?

Stephanie (05:01)
Absolutely. You know

how we operate is all about partnerships and bringing those insights to our retailers. And so this consumer sentiment is what helped us bring forth how we set stores early and how the consumers are shopping. And so we’ve aligned with all of our retailer calendars. And so we are looking at how do we set the aisle early and sort of bring this season to life even earlier with some of those meaningful displays while they’re still executing their seasons that they’re coming out of so that we can ease into

to and get consumers excited for the Halloween season.

Shelley E. Kohan (05:37)
That’s exciting and I love your terminology. I’ve never heard this before and I found it very interesting. Treat economics. I love the idea of treatonomics. So tell us a little bit about what treatonomics is and why it’s so important this year over past years.

Stephanie (05:51)
Yeah, again, it is about having those meaningful moments. It is about how consumers treat themselves and spend these special times with family in those moments that matter most. And then again, for us, we do have a broad assortment so that you can offer value to our consumers in the ways that matter most, whether that’s value through broad assortment, through instant consumables, through big party bags, you have that full price ladder, and so we’re able to meet the consumers where they are.

And we still have a portfolio that 75% is still under that $4 mark, so still able to meet the consumer that is looking to have value as well as those that are looking at the higher price points.

Shelley E. Kohan (06:34)
And it’s interesting because I think that consumers today, we’ve been talking about this, I don’t know, for probably a year or two years, but I really see it kind of unfolding now, especially as more AI is put into our, you know, lives every day. Like every time I do anything, I have to have my phone and be authenticated, like anything I do. And I think this this mindset of the consumers, they want to take a step away from technology and they want to immerse themselves in something memorable, experience and

So do you have any insights? D is that kind of where some of this might be coming from?

Stephanie (07:07)
Yeah, Shelley’s a great point. I think there’s a lot going on in the mind of the consumer, quite honestly, right? We do have sort of this macro landscape as you mentioned earlier, with things happening around the economy, around what’s happening globally, around kids being back to school, this, you know, insurgence, if you will, of online interaction and social interaction. So seasons in general, again, provide that escape. And what I’d say for us is that we’re actually working to help capitalize on how consumers are engaging digitally because they are.

And so how do you bring these moments to life as consumers are digitally engaging, whether they’re on a social platform or they’re shopping online? So we’re still meeting the consumer where they are, but leveraging what’s happening with the evolution of technology. You know, we’ve talked a lot about AI and so how we show up when consumers are doing their search. How do we show up when consumers are interacting with you know platforms where we have a high index for our consumers that we can show up meaningfully?

And then the tools and technology, I mean, it’s how we get more real-time to actually be closer to the consumer. And so using things within our marketing mix to have more real-time insights to meet the consumer where they are. And then, of course, with my team being the field execution team and stores, you know, in the 75,000 doors that we’re covering, we’re able to bring those real-time insights so we can actually be closer to the consumer and adapt and adjust as we need to to be really agile in this environment because that’s what consumers are.

are looking for, right? They want ease, they want convenience, and they want to feel like each retailer is meeting their needs and that they’re able to find what they’re looking for. And so we’re able to leverage that more to to our advantage again just to be that much closer to the consumer in real time.

Shelley E. Kohan (08:53)
find really interesting, which is mind-boggling to me, is the 75,000 locations that, and then you mentioned 75,000 locations and then agility, which to me is doesn’t make sense to have that many locations and be agile at the same time. And then also localization. So what I think I heard you said was, you know, of those locations really being able to cater to a specific market, right?

Stephanie (09:17)
That’s right.

That’s right. It’s the perfect blend, you know, for our team. with our field-based team of over a thousand people, they are provided real-time insights down to the store level so that as we’re engaging with our operators, we’re able to be in the store when they need us most, and that we’re able to bring forth the solutions that matter most to their consumers. And every operator has a different demographic, a different consumer makeup. And so we’re able to take insights, provide real-time solutions that matter most to each.

door that we cover based on what the data tells us as well as based on the retailer strategy and how the retailer is looking to meet their consumer. It’s that sort of intersection that makes our partnership really special and makes it work in stores.

Shelley E. Kohan (10:01)
Okay, so now I have to ask you a very important question, which I think I know the answer to, but I always like to know this. What’s the number one candy on Halloween?

Stephanie (10:10)
we’ve got a very strong brand with our Reese’s, so you know Reese’s is gonna be on top for this season. you know, was looking at some of our insights around what we do for this season, and it is mind-blowing. Over a $900 million season for us. We have 160 SKUs just for the season. And then as I mentioned, Reese being one of our, or the top brand, 26 million pounds of Reese’s shapes are produced in the season.

Shelley E. Kohan (10:38)
That’s unbelievable. And I think Hershey owns a disproportionate amount of that Halloween market. Is that a correct statement as well?

Stephanie (10:46)
That is,

we are the number one manufacturer for the season, which does help us as we partner with retailers, right? We are leaders in the category. And so as we bring forth solutions, as we bring forth strategies and recommendations, they do lean on us and trust us as being the leader in the Halloween season.

Shelley E. Kohan (11:04)
It’s interesting because if you think how big Hershey is and how many outlets you have and how many partners and all these things, you’re kind of leaning into these small moments of joy, you know. So for me, I when I think about what you’re doing and the strategy in the stores and all of that, it really goes back to that consumer and it goes back to not mass production, although you clearly have mass production, but

Stephanie (11:27)
Sure.

Shelley E. Kohan (11:28)
the consumer’s just seeing these, you know, personal, you know, shapes and new stuff and

I think that resonates with the consumer when they’re actually in their shopping.

Stephanie (11:38)
That’s exactly right, they do, and that’s the beauty of what

We’re able to do for our consumers. We are always grounded in insights. We are always learning and always iterating so that we can be more agile to really meet the consumers where they are. If we look at our lineup for this season, we have 20 new SKUs across our broad portfolio. And so again, based on consumer insights, we’ve iterated with some of the shapes that are meaningful. We’ve also broadened our portfolio around suites, which we know is where consumers have been trending. And then we also are able

to bring in our salty line for this Halloween season, so ensuring that we’re bringing that broad portfolio to the consumers.

Shelley E. Kohan (12:18)
Yeah, one of the questions I wanted to ask you is about, you know, the the healthy trends, the wellness, health and all of that. And have you seen any movement away from, you know, the traditional chocolates in Halloween season going more towards healthier choices?

Stephanie (12:33)
Yeah, I think as we look at the season, consumers are making choices and it’s what matters most to them. I mean, our portfolio really does support any and all consumers. you know, we’ve got our chocolate portfolio, which again provides that really special emotional connection. We have salty offerings, we have that broad portfolio to meet the consumer where they are. And, you know, for those that are looking for different options, our portfolio does provide that. So you’ve got that broad offering across

salty, sweet, functional and and the core portfolio with even some unique shapes that really do meet that consumer wherever they are, depending on that life stage as well as what they’re looking for from a health benefit.

Shelley E. Kohan (13:16)
And have you seen in your salty snacks, are you doing Halloween size s salty snacks? Is Dots one of those fun?

Stephanie (13:23)
We certainly

are. We’ve got some Pirates Booty, we’ve got Skinny Pop, and then we’ve got Lesser Evil, which is gonna have a a seasonal flavor this s season. so we have certainly brought in those core brands into the season for Halloween.

Shelley E. Kohan (13:37)
What what’s the flavor? Are you allowed to tell us? Have you is that has it been unveiled and is it in the marketplace?

Stephanie (13:41)
It is a pumpkin

spice flavor of Lesser Evil, which we are very excited about.

Shelley E. Kohan (13:47)
that’s great. so that’s a lot of fun too, doing those different recipes that you have as well. So

Stephanie (13:53)
And that’s one of the

things that happened during these seasons. I’m sorry, Shelley, is that you know

Shelley E. Kohan (13:56)
No, there you go.

Stephanie (13:57)
it’s those moments that matter. So you’re baking, you’re having fun at home, and so that broad portfolio now allows for more of those unique experiences and again providing those moments that matter, which is what the fun of the season really, really provides and what consumers are looking for.

Shelley E. Kohan (14:13)
So as you’re like working with your retail partners, how far in advance are you planning Halloween? Like when do you start planning Halloween twenty seven?

Stephanie (14:22)
Great question. So we’re in the plans for the season well before the the 26th season executes and then we have conversations throughout the season and then as soon as the season ends we’re having conversations with our retailers, really dialing in and understanding what happened during the season so that we’re closest to the season and then can best plan for what we anticipate in the season to come. So it’s right after the season we really get into the depth of doing our post-analysis work, making recommendations, and then finalizing our strategy for the next season to come.

Thank you.

Shelley E. Kohan (14:52)
‘Cause then

you go into Valentine’s Day and you have Easter, right?

Stephanie (14:56)
We have

Halloween, goes into holiday, then goes into, we have sort of some micro seasons in between, if you will, because we’ve got our game time, of course we’ve got our special Milton Hershey movie that’s coming out this year, and then we’ll go into Valentine’s, and then into Easter and then into our summer. So we are constantly engaging with the consumer again with those moments that that matter, and we’re consistently bringing those forward through our seasonal intent pool moments.

Shelley E. Kohan (15:23)
And are you able to share so you gather a lot of insights and so how does that feedback to the retailer so they can make good decisions based on what where

Stephanie (15:32)
Sure.

Shelley E. Kohan (15:32)
the markets that they’re in?

Stephanie (15:34)
Sure, so we’ve got dedicated customer teams, and then we’ve got expertise with our category teams. So we have several category advisorships, and so we are constantly engaging with our retailers to bring them real-time insights. How’s the season progressing? Where are we seeing trends? Where do we need to potentially be agile and iterate in the midst of the season? And then my team, again, being that unique differentiator, being the feet on the street, is providing that feedback loop on what’s happening in store and how are we merchandising.

And are the plans coming to life as expected? And then using that feedback loop back to our customer teams, then back down to the field, so that again it’s that real-time connection to what’s happening both from our team up and then through our category and advisor teams and then back down to the field. It’s that really powerful feedback loop that does help us ensure that we’re staying connected and we’re delivering a successful season alongside our retail partners.

Shelley E. Kohan (16:29)
So you have all the raw data that you’re collecting and you have that rich data and obviously with all the touch points that you have, there’s a lot of that. But are you also looking at social media? Are you able to, you know, take things

Stephanie (16:39)
Absolutely.

Shelley E. Kohan (16:40)
that you’re learning on social media and apply them either to strategy or to new shapes or new products?

Stephanie (16:45)
Absolutely. We look at what’s happening in the market broadly, right? So it is what’s happening socially, how are consumers engaging? We’re also looking at the performance in markets and then leveraging the depth of our targeted and local meat localized media to reach those markets a bit differently.

share that with our teams that our teams can leverage that down at store level to make sure that we’re capitalizing on the investments we’re making to reach those markets uniquely where there could be a differentiated need, whether we want to amplify a brand, whether we want to amplify, you know, a certain promotion, we’re able to do that in more real time with the strength of our of our capabilities.

Shelley E. Kohan (17:26)
Which is great. So have you also seen, looking at what’s happening now, are you seeing like the fund sizes? Are they still popular? Is it full size bars? Is it, you know, kind of it depends

Stephanie (17:36)
Yeah.

Shelley E. Kohan (17:37)
on the market?

Stephanie (17:39)
It does. It’s a little bit of everything. It does depend on the market. It depends on the consumer and it depends on the occasion.

You know, early in the season again, it is a bit more of that treat for me or those snack size offerings. You get into that middle part of the season, it’s a little bit more about assortments. You might be having some trunk or treats, and then when it comes down to the actual trick or treat, then you have all the options, right? you’ve got the full bars depending on how you like to engage with your trick or treaters. some want to do an assortment, right, of of different offerings, and so you’ll have a lot of different small pieces of of snack size. But the core snack size item does make up.

A good portion of the business and then is also included in many of the assortment bags that we offer because it’s one of the benefits for us is the strength of our portfolio and the broad brand up that we have, and so those assortments allow us to really capitalize on that, and then even in doing some of our chocolate and sweet mixed assortment bags together, which is something we’ve done as of recent, and so we’re trying to make sure that that broad assortment is available, and then again we meet the consumer in that part of the season or part of their journey where.

Yeah.

Shelley E. Kohan (18:46)
What’s interesting is you mentioned trunk a treat. Did I say that right? Trunk trunk a treat. That’s a tongue twister. And I believe,

Stephanie (18:49)
Trunk or treat, yes. You got it.

Shelley E. Kohan (18:54)
but correct me if I’m wrong, I believe that came from the consumer. That was a trickle up, right? So I I’ve

Stephanie (18:57)
That did. That did. That did.

Shelley E. Kohan (19:00)
I’m sure a lot of our listeners know what trunk a treat is, but maybe you just briefly explain what that is and why

Stephanie (19:04)
Sure.

Shelley E. Kohan (19:05)
that’s important today.

Stephanie (19:06)
Sure. It’s a great one. It is. It’s one that we learn from the consumer in real time. And so, it is where communities or or

Groups might come together and put some fun snacks in your trunk, and then community members, children will all do their trick-or-treat around the trunk, hence the trunk or treat. And so that tends to happen usually before Halloween. And so it’s parties, it’s get-togethers, it’s kind of celebrating the anticipation of the actual October 31st trick-or-treat day.

Shelley E. Kohan (19:39)
That is just so fun, I love that.

Stephanie (19:39)
So you should try a trunk or treat. They’re a lot

of fun. You can I’ve done some in my neighborhood. but it’s fun to bring communities together in a bit of a different way with a trunk or treat. So hopefully you’ll get to try

Shelley E. Kohan (19:50)
But it goes

Stephanie (19:50)
one and have a lot of fun.

Shelley E. Kohan (19:52)
absolutely. And it goes back to the tree dynomics, right? So when you do the trunk and tree, again, that’s the experience, right? That’s the

Stephanie (19:59)
Yep, absolutely.

Shelley E. Kohan (20:00)
you know, people are really have this emotional connection. And that’s I think how Halloween just has gone beyond just that one, you know, date in October thirty

Stephanie (20:08)
It really has.

Shelley E. Kohan (20:09)
first.

Stephanie (20:09)
It is. It is about how you treat yourself, how you engage with others and provide that moment of feeling treated. So trunk or treat, trick or treat. we’re doing some fun things with this neighborhood social engagement this year. So we’re gonna do some trickiest street fun with consumers to really bring sort of that treat element to life and have some fun with it using some of the social engagement we’ll we’ll have for this season.

Shelley E. Kohan (20:34)
Yeah, that’s so fun. Okay, so put on your crystal ball and look at next Halloween and tell me what do you see? Like what what are you seeing now that you think’s really gonna be a big

Stephanie (20:42)
Yeah.

Shelley E. Kohan (20:43)
hit next year or trends you see going into next year, maybe

Stephanie (20:46)
Sure.

Shelley E. Kohan (20:46)
early in the year.

Stephanie (20:47)
Yeah, certainly we’ll continue to see the presence of online and with seasons we do tend to see a higher percentage of the volume done online because it is a bit more of that planned purchase. So the continued advancement of online. And then how do you make sure that there’s that full 360, whether what you see in store you see online, and it doesn’t feel like there’s any differentiation in when you’re exposed to the season again online or in store, it should feel seamless. I think we’re going to continue to see this.

Evolution of assortment and how you bring multiple brands and offerings to life because people want to have assortment and they want to ensure that their brands are best represented. And then I think again for us, we get to have that broad portfolio bringing sweet and salty together, you know, chocolate sweets and our full salty portfolio. I think the in-store experience continues to be really important. Consumers want to be brought into the season. And for Halloween, when we think about this July.

Summer ween, it’s that anticipation, it’s the fun of so how do we continue to make sure that at every phase of the season we’re engaging the consumer most meaningfully and sort of bringing them along that journey of what we’re calling that summer ween, but early, middle, and late should feel different, but we want to engage them throughout the season. So I think that’ll continue. And then for retailers, it’s how do we help bring those strategies to life grounded in the consumer? How do we continue to bring solutions that help them drive, you know.

Sales and margin, consumer engagement, basket size, I think all those things will continue to remain top of mind and relevant for our retail partners.

Shelley E. Kohan (22:26)
Yeah, I definitely think Halloween is now a season. And I do believe there’s like this j passing generations. Like it just it passes from one generation to the next. And

Stephanie (22:36)
It does.

Shelley E. Kohan (22:37)
it I think one of the big success stories and what retailers can really think about is you have to have those, you know, stand in products that you’re, you know, those are your go-to products. You gotta have them on the shelf. But I think what really drives purchasing is that newness. So you walk in in the summer and you see a new shape.

know Reese’s new shape and you’re like, my god, this is so cool, I have to get it now. And so that helps everyone. It helps the margins of the retailers, it makes a customer feel joy.

Stephanie (23:05)
And that’s what the retailers expect from partners like us. Like we need to be that thought leader to help bring forth the new elements that are gonna bring surprise and delight for consumers, that are gonna intrigue them, get them excited about the season. And so our shapes this year again were that moment to be able to do that early on. And so we’ll continue to iterate in those parts of the season, as I was mentioning, bringing forth those fun ideas for what’s to come early, middle, and late.

Shelley E. Kohan (23:32)
Yeah, delight and surprise. That’s what consumers are looking for when they go into the store. So what’s your favorite

Stephanie (23:36)
That’s right.

Shelley E. Kohan (23:37)
shape this year? Are you allowed to pick a favorite?

Stephanie (23:40)
You know, it’s a tough one for me because you can’t go wrong with any Reese’s shape, my opinion. And but I do. I think the the Kit Kat shapes are great. There it’s gonna be a tie for me. I can’t choose. I would love your perspective. Hopefully you’ve had a chance to try both, but you know, there’s something very different in each one. The shape with Kit Kat is something new and different. It still has a break. And then again, the the Reese’s shapes are just that perfect balance. Peanut butter and chocolate, you can’t go wrong with.

Shelley E. Kohan (24:09)
You can’t go wrong with that.

Stephanie (24:09)
How about you?

Shelley E. Kohan (24:10)
Yeah, that Reese’s is my favorite. I always have it in the freezer. And but I I’m like I don’t eat a ton of candy. So I’m I parse it out like I I’ll eat like I like the little Reese’s because they’re just bite-sized Reese’s perfect for me. But I usually buy, you know, on Halloween, but I don’t I don’t eat a lot of candy, so I usually put it in the freezer. But that and Kit Kat are probably the top.

Stephanie (24:34)
Perfect. You got your top two. Same as as myself. Yeah, it’s it’s a lot of fun. The shapes really bring my daughter and I went shopping and she was so excited and she actually asked, Does the Kit Kat still break? I need to make sure. So

Shelley E. Kohan (24:44)
Ha

Stephanie (24:46)
it it’s a lot of fun to engage with the new shapes and bring some fun and excitement to the season.

Shelley E. Kohan (24:51)
That’s great Stephanie. Anything else you wanna add before we leave? It’s been it’s always a treat, no pun intended, to have you on.

Stephanie (24:56)
It well

said, it is always a treat. no, I appreciate so much the opportunity to speak with you again, Shelley. This is always a lot of fun. I’m excited for this season. again, we’ve started strong. This summer ween is really energizing for the consumer. So excited to progress the season and get to celebrate October 31st with a strong season and have some fun with family and friends.

Shelley E. Kohan (25:21)
Well, that’s great, Stephanie. Thank you so much for being here.

Stephanie (25:23)
Thank you as well, Shirley. Great to see you. Thanks for having me.

Shelley E. Kohan (25:26)
Of course.