Hershey's Chocolate Crisis: Cocoa Shortage Sparks Recipe Changes and Consumer Backlash
Brad Reese, a devoted fan and grandson of the founder of Reese's, has voiced strong criticism against Hershey's after trying a new product that contained less than 2% cocoa. He described the experience as tasteless and inedible, sparking a broader discussion on how chocolate makers are phasing out real cocoa due to market volatility.
The Disappointing Discovery
Just before Valentine's Day, Brad Reese purchased Reese's Unwrapped Peanut Butter Creme Mini Hearts from a store in West Palm Beach, Florida. As an aficionado who tries every new release, he was shocked to find the product nearly unpalatable. "I took two bites and had to spit it out," Reese said. "There was no taste. It was inedible." Upon inspecting the packaging, he discovered the candy used a chocolate-flavored coating primarily made of sugar and vegetable oil, with minimal cocoa content.
Industry-Wide Shifts in Chocolate Production
This incident is not isolated. Hershey and other companies are increasingly using replacement ingredients like sugar, oil, milk, and nuts in their products. The volatile cocoa market, driven by climate crises in Ghana and Côte d'Ivoire—which produce 70% of the world's cocoa—has led to supply shortages and soaring prices. Cocoa prices surged from $2,000-3,000 per ton to $12,000 by 2024, forcing manufacturers to adopt creative strategies.
- Reformulation: Companies are replacing cocoa with alternatives such as almonds or lab-grown substitutes like ChoViva.
- Shrinkflation: Selling smaller candy bars at the same price, a tactic popular in Europe.
- Regulatory Loopholes: In the US, items with as little as 15% cocoa can still be labeled as "chocolate candy," unlike stricter EU standards.
Consumer Reaction and Corporate Response
Reese expressed his frustration in an open letter on LinkedIn, questioning Hershey's commitment to quality. While the company defended its flagship Reese's Peanut Butter Cups as unchanged, it acknowledged experimentation in other products. Hershey cited cocoa bean volatility as a key factor, but Reese argues this is a profit-driven move. "They're squeezing every last penny they possibly can," he stated.
Economist Alexis Villacis, who studies the chocolate industry, notes that demand for chocolate remains high despite health trends. He explains that companies are testing consumer tolerance for reformulated products. "These big companies are testing how consumers react, and they will adjust accordingly," Villacis said.
Future Outlook for Chocolate Lovers
Although cocoa prices fell slightly in late 2025, experts predict no return to cheaper chocolate soon. Companies are still using higher-priced cocoa stocks and rebuilding margins. Additionally, ethical concerns and regulations against deforestation and child labor in cocoa farming are limiting supply. Younger farmers are leaving plantations for urban jobs, further straining production.
Consumers are becoming more savvy, reading labels to distinguish between "milk chocolate" and "chocolate candy." Some may turn to premium brands like Tony's Chocolonely or Pacari, which use ethically sourced ingredients and higher cocoa content. However, mass-market chocolate's appeal has always been its affordability.
Reese has sworn off buying Reese's products again, calling it "blasphemy" for a family descendant. He believes consumer trust has been betrayed and urges vigilance. "I just can't see how Hershey's going to succeed long term with Reese's consumers," he concluded. The industry's future may hinge on whether enough customers join him in demanding better quality.
