MrBeast Vs. Hershey: 'The Bear Cave' Reveals A Potential Shakeup In The Snack Industry

A report published on Thursday by "The Bear Cave" titled "Problems at Hershey" details the competitive landscape faced by the iconic chocolate manufacturer. The American snack industry titan is experiencing a surprising challenge from Feastables, a newcomer company founded by the popular YouTuber, MrBeast.

Edwin Dorsey, author of "The Bear Cave" newsletter, argues that the narrative underscores that Hershey Co (NYSE: HSY), despite its long-standing market dominance, is experiencing fresh competition from a company that enjoys a robust fanbase. As Dorsey states, "While Hershey has customers, Feastables has fans."

This is epitomized by a tweet from Jimmy Donaldson, a.k.a. MrBeast, asking fans to tidy up Feastables displays, which garnered over 144,000 likes and a whopping 44 million views. In contrast, Hershey's latest tweet only collected 178 likes.

Hershey didn't immediately respond to Benzinga's request for comment.

Also Read: The Recent MrBeast Burger You Savored Could Truly Be Your Last — Here's Why

This mounting pressure on Hershey is not only digital but physical as well. As Dorsey cites MrBeast saying, "The biggest problem has been keeping the shelves in Walmart stocked." The surge of Feastables is spreading rapidly to other retail giants such as Albertson's, 7-Eleven, Safeway, Speedway, and most recently, Target Corp (NYSE: TGT).

Feastables products are often found in prime retail spaces right next to Hershey’s, indicating its increasing popularity.

In the face of this disruptive competitor, Hershey's market strategy is facing questions. Michele Buck, Hershey’s CEO, highlighted in a March 2023 CNBC interview that the company is perpetually evaluating market trends to drive its business efficiently. Dorsey's report emphasizes that the potential threat from Feastables could make this more relevant than ever.

However, the Feastables challenge to Hershey extends beyond just popularity. As Dorsey notes, a podcast interview with Reed Duchscher, MrBeast’s manager, revealed that Feastables is intentionally positioning itself to take on Hershey in key seasonal markets, like Halloween. Dorsey quotes Duchscher saying, “We don’t know how Hershey’s is going to compete with us seasonally... Like Halloween is going to be big for us this year…”

Following the release of "The Bear Cave" report, MrBeast responded, tweeting that it "seems lame" to recommend shorting a company, but also acknowledging that the "next few years between Feastables and Hershey's will be interesting once I actually ramp up."

Now Read: MrBeast: 'Willy Wonka Of YouTube' Applies Content Creation Tactics For Good, Wins Over Skeptical Author

This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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