Hershey has reported a notable increase in sales of its mints and gum, attributing this growth to the rising use of GLP-1 drugs such as Ozempic, Wegovy, and Mounjaro. CEO Kirk Tanner stated, "We've also seen strong demand for gum and mints, as the category benefits from functional snacking tailwinds, including GLP-1 adoption" [1]. Specifically, retail sales for Hershey's third-largest confection brand, Ice Breakers, rose by over 8% in the quarter [1].
The company also experienced a 17% jump in sales of its protein bars, contributing to a more than 10% increase in quarterly revenue for the first quarter [1]. Despite these positive sales figures, Hershey's shares were down more than 2% in morning trading following the earnings report [1].
The article notes that while the CEO did not specify the exact reasons for the GLP-1-driven boost in gum and mint sales, some users of these medications report experiencing halitosis, or bad breath, which may be linked to dry mouth caused by the drugs. However, "Ozempic breath" is not an officially listed side effect [1].
Other companies in the confectionery and snack industry are also seeing similar trends. Lindt & Spruengli reported in March that U.S. sales of premium chocolate rose faster among GLP-1 users compared to non-users last year [1]. The Magnum Ice Cream Company told investors that the adoption of GLP-1 drugs is likely to boost sales of premium products, especially those in smaller portions or with added protein or real fruit, citing a "premium treat substitution effect" [1]. Magnum's CEO, Peter ter Kulve, stated that as GLP-1 users cut out lower-quality snacks, categories like premium chocolate, premium ice cream, and protein snacks could gain market share [1].
CONCLUSION
Hershey's latest results highlight a shift in consumer snacking habits driven by the adoption of GLP-1 drugs, with increased demand for mints, gum, and protein bars. While this trend has boosted sales and revenue, the market reaction was muted, as reflected in the company's share price decline. The broader snacking industry may continue to benefit from these changing preferences, particularly in premium and functional snack categories.