Hershey establishes joint venture with a2 for its first chocolate milk
US confectionery giant Hershey has made a key diversification move into a new segment for the business in gearing up to release a co-branded chocolate milk series with The a2 Milk Company for its American market, writes Neill Barston.
The move comes as the business continues to expand its core range of products, with the company recently confirming its largest ever range of Christmas themed confectionery, amid resilient sales figures for the firm.
Hershey’s latest venture is set to use a 2% reduced fat milk and is scheduled to hit retailers’ shelves beginning in January 2022 in 59 oz refrigerated cartons as well as in 8 oz shelf stable single, 6-pack and 18-packs.
Notably, a2 Milk (main image) comes from cows that naturally produce only the A2 protein rather than the combination of A1 and A2 proteins contained in most dairy products. Published research suggests a2 Milk that naturally contains the A2 protein may help avoid stomach discomfort in some people. That feature, as well as strong sales in the overall premium milk category, have helped the company achieve multiple years of double-digit growth including a remarkable 30% growth rate in the U.S. in its last fiscal year.
Coupling a2 Milk with Hershey’s cocoa creates a chocolate milk with Hershey’s classic taste, 8 grams of protein per serving, and no artificial flavours, colours or preservatives.
“Premium milk buyers appear to want three things from chocolate milk: taste, quality and natural ingredients,” said Blake Waltrip, CEO of The a2 Milk Company U.S. “Partnering with the iconic Hershey’s brand, and using Hershey’s well known cocoa in this new product guarantees great chocolate taste… pairing this with high quality a2 Milk seals the deal in terms of delivering a delicious product that may help some consumers avoid stomach discomfort, and that all consumers can feel good about giving their families. With this partnership, we have taken chocolate milk to a whole new level.”
“This new chocolate milk is the latest example of how we are expanding The Hershey Company in to expanded better-for-you categories,” said Ernie Savo, Senior Director of Global Licensing, The Hershey Company. “Partnering with The a2 Milk Company not only aligns us with a brand that is synonymous with quality and rapid growth but also selling a product that is a staple in almost every family’s refrigerator. It’s an excellent co-branding opportunity that we expect to yield strong results.”
