US chocolate giant Hershey has announced plans to team up with retailers in a bid to drive profits in its domestic market.
Hershey president and CEO Dave West unveiled the “Insights Driven Performance” initiative at the CAGNY conference in Florida yesterday (16 February).
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The confectioner said the scheme would “leverage the company’s deep knowledge of consumer behavior and shopper preferences to deliver profitable confectionery growth”.
West said Hershey had started tests with selected retail customers and that the confectioner would look to launch more pilots of the scheme this year.
The Hershey boss said a focus on aisle merchandising would boost sales in the confectionery category.
“Tests with one retailer indicated a mid single-digit increase in category sales simply from aisle architecture changes,” West said. “This has long been an issue for the category, ass the average trip into the confectionery aisle lasts less than a minute – and one in four leave without purchasing as the consumer doesn’t find what they wanted.”
West insisted the IDP initiative would be a “competitive advantage” for Hershey.
He added: “We plan to remain the thought leader and preferred partner in the category for years to come.”
Click here for Dave West’s remarks to CAGNY on how Hershey can grow internationally.
