In 1900, Hershey launched its first chocolate bar, turning what was once a luxury into an affordable and accessible gift.
For the past 125 years, the candy company has continued that innovation, bringing items like Reese’s, Twizzlers, and Jolly Rancher to our candy drawers. But now it appears the retailer is ready to change course.
In recent years, Hershey has expanded into other categories, acquiring snack brands such as Skinny Pop, Pirate’s Booty and One Protein Bars. Former CEO Michele Buck led much of that transition in the early 2020s.
“Our plan was to expand further into snacks, not diversify away from sweets,” he told Harvard Business Review in 2022. “We wanted to build the portfolio in a way that capitalized on our strengths and gave consumers more occasions to snack.”
Newly appointed CEO Kirk Tanner recently told investors that he is committed to continuing that growth path, further expanding Hershey’s reach outside the candy aisle.
Functional foods are typically defined as those that offer specific benefits beyond basic nutrition. The phrase covers a wide range of ingredients and attributes that can affect everything from the consumer’s mental health to their physical well-being.
It’s a space that’s ripe for expansion as consumers increasingly focus on wellness.
Functional nutrition is one of the fastest-growing segments of the $2 trillion wellness market, a recent McKinsey & Company study reports. In 2025, about 50% of the US population and 66% of Generation Z purchased functional nutrition products.
“This trend has been driven by the shift toward food as preventive medicine, as consumers become more aware of how food and beverage choices affect their health,” the McKinsey & Company report says.
“Instead of only thinking of healthy foods as foods free of certain components, such as gluten or sugar, consumers are now looking for foods that include high-value components, such as protein, nootropics or turmeric.”
In the future, the consultancy expects to see the greatest demand for products that support energy, gut health and immunity.
Sensing a growth opportunity, Hershey’s CEO Kirk Tanner recently told investors that the confectionery company was looking for ways to invest in the functional foods market.
“We’re investing in the space so we can remain relevant to consumers,” he said in an interview at the company’s recent investor day in New York City, Food Dive reports. “To be in space, it’s fast, it moves quickly… You actually have to go faster than the rest of our portfolio.”