Hershey CEO Kirk Tanner on Navigating Cultural Relevance, AI Innovation, and the Future of Snacking

For a legacy brand like Hershey, the primary existential threat is not necessarily a dip in quarterly sales or the rise of a new competitor; it is the slow, creeping loss of cultural relevance. According to Hershey CEO Kirk Tanner, the moment a company stops feeling like a part of the zeitgeist is the moment its leadership should begin to worry. In a candid conversation on the Rapid Response podcast—a spin-off of the Masters of Scale series hosted by former Fast Company editor-in-chief Robert Safian—Tanner outlined his strategy for keeping a 132-year-old candy giant agile in a world that is moving faster than ever.

The challenge, as Tanner sees it, is balancing the deep nostalgia associated with a historic brand with the need for constant, modern reinvention. While consumers look to Hershey for the same chocolate experience they have enjoyed for decades, the company cannot simply rest on its laurels. "The second you’re not culturally relevant with your brands, like Hershey, then you should be worried," Tanner explained. He pointed to recent marketing efforts, such as the company’s engagement during the Winter Olympics, as a blueprint for how to bridge that gap. By highlighting genuine moments of connection—specifically, the emotional recognition between parents and their child athletes—Hershey aims to anchor itself in the experiences that define modern life. Cultural relevance, Tanner argues, is not a static destination but a continuous effort to keep pace with the changing landscape of human connection.

Balancing Nostalgia and Modernization

Hershey’s long-standing status as a household name is a double-edged sword. Its history provides a well of consumer affection and brand loyalty that is the envy of many startups, yet that same history creates rigid expectations. Any deviation from the "classic" experience can be met with immediate pushback. This tension became evident earlier this year when the company faced public scrutiny over recipe adjustments in certain Reese’s products. The criticism was notable enough to reach the public eye through voices like Brad Reese, the grandson of H.B. Reese, who openly shared his dissatisfaction with some of the brand’s shifts.

Tanner is remarkably pragmatic when addressing these critiques. He views the friction not as a failure, but as a necessary part of the feedback loop for any brand that intends to remain global. "There’s always critics, Bob," Tanner noted during the interview. He emphasized that the most effective way to navigate such moments is to maintain an open dialogue with the consumer base. The strategy for Reese’s, he explained, is to double down on the brand’s global expansion, bringing the product into new markets including the U.K., Mexico, and Brazil. By broadening the reach, the company is not just selling a product; it is creating a global community of consumers, and the data gathered from that expansion helps the company refine its approach. According to Tanner, the company performs extensive research to understand the emotional landscape surrounding their products, ensuring that any changes are made with a clear understanding of what consumers value most.

Operational Agility Through AI

While the brand identity is rooted in nostalgia, the company’s operational backbone is increasingly defined by cutting-edge technology. One of the most significant shifts under Tanner’s leadership has been the integration of artificial intelligence into the company’s sales force operations. This is not a vague corporate initiative but a granular, real-time application of technology. Hershey is now utilizing AI to route its sales teams as they navigate large-scale retail environments like Target and Walmart.

The retail landscape is notoriously complex; ensuring that products are stocked, displayed, and priced correctly across thousands of locations is a logistical challenge that human teams alone struggle to optimize. By leveraging AI to provide real-time guidance, Hershey’s sales representatives can make data-driven decisions on the ground. This allows them to respond to inventory shortages, traffic patterns, or regional trends instantly, rather than relying on manual reports that could be days or weeks old by the time they reach a decision-maker. It is a prime example of how a heritage company leverages modern tools to maintain a competitive edge in a hyper-efficient retail market.

The Evolution of the Portfolio

Tanner’s tenure as CEO is also heavily informed by his previous experience at PepsiCo, where he worked under the leadership of Indra Nooyi. During her time at the helm, Nooyi famously bifurcated the PepsiCo portfolio into "good-for-you" and "fun-for-you" categories—a strategy that allowed the company to satisfy the consumer’s desire for indulgence while simultaneously capturing the growing market for healthier alternatives.

This framework appears to be a guiding light for Tanner as he shapes the future of Hershey. The company’s recent acquisitions, such as the organic snack brand LesserEvil, and its existing portfolio of products like SkinnyPop, suggest that Hershey is actively seeking to diversify beyond its traditional confectionery core. The goal is to ensure that the company remains relevant to a consumer who is increasingly conscious of their health, without abandoning the "fun" identity that built the company’s legacy.

Perhaps most interestingly, Tanner addressed the impact of GLP-1 (glucagon-like peptide-1) medications—such as Ozempic and Wegovy—on the confectionery industry. While industry analysts have spent much of the past year debating whether these appetite-suppressing drugs pose an existential threat to snack food companies, Tanner offered a more nuanced and surprisingly optimistic view. He suggested that, rather than being a deterrent, the widespread adoption of GLP-1s could actually be beneficial for the candy business. His reasoning suggests that these medications change the way people consume food, leading to a more intentional approach to snacking. For a brand like Hershey, which often occupies the "treat" or "indulgence" category, this shift toward quality over quantity can play into the company’s strengths. If consumers are snacking less frequently but choosing their moments of indulgence more carefully, they are likely to reach for the iconic, high-quality brands they trust, rather than settling for generic or lower-tier options.

Sustaining the Legacy

Ultimately, Tanner’s strategy is one of disciplined evolution. The challenge for a company like Hershey is to maintain the essence of its 132-year-old brand while ensuring that the infrastructure and the product portfolio are prepared for the next century of consumption. This requires a delicate balance: listening to the critics who hold the brand to high standards, embracing the technological advancements that optimize retail presence, and recognizing the shifting dietary habits of a global population.

Whether through the strategic acquisition of healthier snack alternatives or the implementation of real-time AI to assist the sales force, Tanner’s vision is clearly focused on adaptability. He remains convinced that as long as the brand stays in conversation with the culture—whether through high-profile events like the Olympics or by evolving to meet the needs of the health-conscious consumer—Hershey will maintain its place at the center of the snacking industry. For Tanner, the work of a CEO is not to change the company entirely, but to ensure that the company remains an essential part of the world, even as that world transforms around it. Through this blend of tradition and technological pragmatism, he hopes to guide Hershey into its next chapter of growth, proving that even the most established brands can remain as vital today as they were a century ago.