Brad Reese, grandson of Reese's Peanut Butter Cups creator H.B. Reese, has publicly criticized The Hershey Company, owner of the Reese's brand, for allegedly altering ingredients in some products. Reese's complaint centers on 'skimpflation,' a term describing companies reducing the quality of goods or services to save money, rather than raising prices or shrinking package sizes.
The Heart of the Complaint
In February, Reese purchased Reese's Mini Hearts and observed a significant deviation from what he considered the traditional recipe. He found they were made with 'chocolate candy' and 'peanut butter creme' instead of the expected milk chocolate and peanut butter. He described the taste as inferior and inedible.
Following this discovery, Reese launched a public campaign, including an open letter to a Hershey's executive and a revamped personal website, to advocate for the brand's original formulation.
His open letter stated that his grandfather built Reese's on a "simple, enduring architecture: milk chocolate + peanut butter" and expressed concern that this identity is being rewritten by "formulation decisions."
Hershey's Official Stance
The Hershey Company responded by asserting that their "iconic" Reese's Peanut Butter Cups maintain their original recipe. However, the company acknowledged that some products within the expanded Reese's line feature "product recipe adjustments" to create new shapes, sizes, and innovations. Hershey's further stated that ingredient information is always reflected accurately on product packaging.
Industry Pressures and Regulatory Framework
Chocolate companies have faced various challenges, including supply chain disruptions, labor issues, and price volatility for cocoa. Cocoa prices experienced significant increases in late 2024 due to production disruptions in West Africa and financial speculation, though prices have since fallen. Tariff policies also impacted costs for manufacturers like Hershey's.
Federal regulations strictly define what can be labeled as "milk chocolate," requiring products to contain at least 10% "chocolate liquor" (a paste from ground cocoa beans). Investigations have noted that some chocolate companies, including Hershey's with products like Almond Joy and Mr. Goodbar, have replaced "milk chocolate" with "chocolate candy" on labels, indicating a change in formulation that may no longer meet the federal definition.
The Broader Impact of 'Skimpflation'
Skimpflation is one of several corporate strategies to manage profitability during cost pressures, alongside standard inflation (raising prices) and shrinkflation (reducing quantity while maintaining price). Quantifying skimpflation is difficult due to its focus on quality rather than quantity.
Concerns about skimpflation extend beyond quality deterioration, potentially including health implications if cheaper ingredients lead to more processed products. The concept of "asymmetric information" in markets, where buyers lack complete information, is relevant here, justifying government regulations like The Fair Packaging and Labeling Act. These laws require companies to disclose ingredients and adhere to specific labeling criteria.
Experts suggest that federal authorities could further examine labeling practices to enhance consumer transparency. Consumer advocacy, as demonstrated by Brad Reese, also plays a role in prompting companies to consider ingredient decisions.