Sweet Success: VP Dan Mohnshine on Leading Innovation at Hershey’s

[00:00:02] [SPEAKER_02]: Understanding different parts of the value chain is so critical.

[00:00:06] [SPEAKER_02]: You start with consumer, but then you back up to what needs to be true to win their purchase,

[00:00:11] [SPEAKER_02]: to win market share and to be profitable at the same time.

[00:00:15] [SPEAKER_02]: And it's a very comprehensive type of business role.

[00:00:19] [SPEAKER_02]: I enjoy it a ton.

[00:00:21] [SPEAKER_02]: It's challenging, but it's one of those things where I wouldn't really have it

[00:00:25] [SPEAKER_02]: any other way.

[00:00:27] [SPEAKER_00]: To thrive in a rapidly evolving landscape, brands must move in an ever-increasing pace.

[00:00:32] [SPEAKER_00]: I'm Matt Britton, founder and CEO of Suzy.

[00:00:35] [SPEAKER_00]: Join me and key industry leaders as we dive deep into the shifting consumer trends within

[00:00:39] [SPEAKER_00]: their industry, why it matters now and how you can keep up.

[00:00:42] [SPEAKER_00]: Welcome to The Speed of Culture.

[00:00:49] [SPEAKER_01]: Today, we're thrilled to be joined by Dan Mohnshine, the Vice President of Marketing

[00:00:52] [SPEAKER_01]: for US Confection at The Hershey Company, where he's been for nearly 13 years.

[00:00:56] [SPEAKER_01]: Dan, it's so great to see you today.

[00:00:58] [SPEAKER_01]: I'm a huge fan of The Hershey Company and I can't wait to dive into you and all things Hershey.

[00:01:03] [SPEAKER_01]: Grilled to be with you, Matt.

[00:01:04] [SPEAKER_01]: Thanks so much.

[00:01:06] [SPEAKER_01]: Absolutely.

[00:01:06] [SPEAKER_01]: So when you look at the category that you play in, what are some of the biggest

[00:01:10] [SPEAKER_01]: consumer trends that you have your eye on that maybe have appeared over the last

[00:01:14] [SPEAKER_01]: couple years that maybe have caused you to think about changing how you go to market

[00:01:18] [SPEAKER_01]: or innovating your approach?

[00:01:20] [SPEAKER_02]: I'd say there are three key trends that we're seeing across Confection.

[00:01:23] [SPEAKER_02]: One is, especially recently, people seeking value.

[00:01:27] [SPEAKER_02]: So we've gone through a high inflation period, folks define value in different

[00:01:31] [SPEAKER_02]: ways for some people, it's convenience, for others, it's a price point, for

[00:01:35] [SPEAKER_02]: others, it's price per house.

[00:01:37] [SPEAKER_02]: So we've got to figure out how do we deliver value?

[00:01:39] [SPEAKER_02]: The second is they're looking for innovation.

[00:01:42] [SPEAKER_02]: Post COVID, a lot of companies weren't doing a ton of innovation.

[00:01:46] [SPEAKER_02]: Innovation is back in a big way.

[00:01:48] [SPEAKER_02]: We're back in a big way with our own innovation.

[00:01:50] [SPEAKER_02]: And then third is we are seeing people look for some health and wellness

[00:01:54] [SPEAKER_02]: credentials within the category.

[00:01:56] [SPEAKER_02]: Most of the time, that means removing what they consider to be something they

[00:02:00] [SPEAKER_02]: don't want that might be sugar, for instance.

[00:02:03] [SPEAKER_02]: So we've had a lot of success with our zero sugar platform or for others,

[00:02:07] [SPEAKER_02]: it might be a plant based product.

[00:02:09] [SPEAKER_01]: Gotcha. So if I love to unpack those three, if that's cool, maybe talk

[00:02:13] [SPEAKER_01]: about the implications.

[00:02:15] [SPEAKER_01]: Tireshees, when you talk about value, when you look at the economy right now,

[00:02:18] [SPEAKER_01]: it's just so hard to unpack what's really going on.

[00:02:21] [SPEAKER_01]: I saw a post on LinkedIn, you say from a recruiter saying it's the

[00:02:24] [SPEAKER_01]: hardest job market ever, yet unemployment still remains at all time

[00:02:28] [SPEAKER_01]: lows, then you have the stock market at all time highs.

[00:02:31] [SPEAKER_01]: And then at the same time, you hear about many consumers where the

[00:02:35] [SPEAKER_01]: rising cost of goods has outweighed the rise in wages.

[00:02:39] [SPEAKER_01]: So are you seeing pressure from the consumer?

[00:02:42] [SPEAKER_01]: Because you talked about two types of value.

[00:02:43] [SPEAKER_01]: You talked about value in terms of price and you also talked about

[00:02:46] [SPEAKER_01]: convenience, which is more value in terms of time.

[00:02:49] [SPEAKER_01]: And I mean, convenience is normally like somebody in a higher

[00:02:52] [SPEAKER_01]: socioeconomic bracket that will pay for convenience, where ultimately

[00:02:57] [SPEAKER_01]: when you talk about value and cost, it's people generally on the lower

[00:03:00] [SPEAKER_01]: end of the socioeconomic bracket who can't afford things.

[00:03:03] [SPEAKER_01]: So how do you look at value relative to the current economic landscape?

[00:03:07] [SPEAKER_02]: You really do need to get it down to the consumer group you're talking to.

[00:03:10] [SPEAKER_02]: So let's start with a higher end of socioeconomic consumer.

[00:03:14] [SPEAKER_02]: Our DoorDash business is on fire.

[00:03:17] [SPEAKER_02]: It's a high growth for us and those are people willing to pay for convenience.

[00:03:21] [SPEAKER_02]: At the other end of the spectrum, you've got things like dollar

[00:03:24] [SPEAKER_02]: channel that continue to grow where consumers are looking for a

[00:03:28] [SPEAKER_02]: specific price point and then in between we continue to see really

[00:03:32] [SPEAKER_02]: strong growth in club where you've got dollars per ounce as the key proposition.

[00:03:38] [SPEAKER_02]: So we're seeing it in all of those different ways, different dynamics

[00:03:43] [SPEAKER_01]: among different consumer groups.

[00:03:45] [SPEAKER_01]: And when you talk about DoorDash, are you talking about through certain

[00:03:49] [SPEAKER_01]: partners that you're distributing products and because you're not

[00:03:51] [SPEAKER_01]: selling direct via DoorDash?

[00:03:54] [SPEAKER_02]: So typically the way the model works at DoorDash is a picker will go

[00:03:58] [SPEAKER_02]: in to one of our existing brick and mortar classes of trade, pick up

[00:04:01] [SPEAKER_02]: maybe it's a Reese's pork truck king sized, it's somebody added to their

[00:04:05] [SPEAKER_02]: order and it becomes part of their delivery.

[00:04:07] [SPEAKER_02]: Now as that quick commerce or convenient class of trade continues

[00:04:12] [SPEAKER_02]: to open up and expand, we want to be a part of that, be a very

[00:04:16] [SPEAKER_02]: incremental part of our business.

[00:04:18] [SPEAKER_01]: It's almost like the e-commerce version of the shells by checkout, right?

[00:04:22] [SPEAKER_02]: That's exactly what it is.

[00:04:23] [SPEAKER_02]: And being and figuring out how do I show up on that platform in

[00:04:27] [SPEAKER_02]: the right moment to prompt an impulse purchase is a critical priority for us.

[00:04:32] [SPEAKER_01]: Absolutely.

[00:04:32] [SPEAKER_01]: So the second area you mentioned is innovation and obviously there's a

[00:04:35] [SPEAKER_01]: lot of ways to innovate through flavors, through packaging, through

[00:04:38] [SPEAKER_01]: the form factor of the product itself.

[00:04:40] [SPEAKER_01]: What are some of the areas of innovation that you've been working on at

[00:04:44] [SPEAKER_01]: the Hershey company that you're most excited about and maybe some other

[00:04:46] [SPEAKER_01]: examples in the marketplace that have intrigued you as well?

[00:04:49] [SPEAKER_02]: Yeah, sure.

[00:04:50] [SPEAKER_02]: We are really excited about Reese's caramel bake-up.

[00:04:53] [SPEAKER_02]: So we had a big Superbowl ad, the launch is exceeding our expectations.

[00:04:57] [SPEAKER_02]: And ultimately what it came down to in that case is saying, okay, how

[00:05:01] [SPEAKER_02]: do you take the peanut butter and chocolate that people love about Reese's

[00:05:04] [SPEAKER_02]: and add something even more amazing to it, this creamy rich layer of

[00:05:08] [SPEAKER_02]: caramel to give a new experience.

[00:05:11] [SPEAKER_02]: And it's a very textural experience.

[00:05:12] [SPEAKER_02]: So we're seeing a lot of innovation on that front.

[00:05:15] [SPEAKER_02]: The category also typically has a lot of flavor innovation and Reese's

[00:05:20] [SPEAKER_02]: caramel bake-up basically brings you the best of both.

[00:05:23] [SPEAKER_02]: It's a new flavor variety, but also a new texture for the brand.

[00:05:27] [SPEAKER_01]: Yeah.

[00:05:27] [SPEAKER_01]: And the flavor, I guess, preferences of consumers probably change over time.

[00:05:32] [SPEAKER_01]: I'm sure you see like broader trends in terms of consumers gravitating

[00:05:35] [SPEAKER_01]: towards new flavor archetypes that you see coming into the category.

[00:05:39] [SPEAKER_02]: A hundred percent.

[00:05:40] [SPEAKER_02]: And there's a lot of those that are coming from other countries into

[00:05:44] [SPEAKER_02]: the U S and we'll see that influence, whether it's a creamier type

[00:05:48] [SPEAKER_02]: of chocolate or maybe a spicier type of non-chocolate sweets confection.

[00:05:54] [SPEAKER_02]: They're all infiltrating their country.

[00:05:56] [SPEAKER_02]: The one thing that I would point out, man, you talked a little bit

[00:05:59] [SPEAKER_02]: about, you know, crisis and pack and those types of things.

[00:06:03] [SPEAKER_02]: What's becoming critical in this ties back to value is what we refer

[00:06:06] [SPEAKER_02]: to as price path architecture.

[00:06:08] [SPEAKER_02]: And that means getting the right product form into the right package

[00:06:12] [SPEAKER_02]: format to hit the right price in a specific class of trade where you're

[00:06:16] [SPEAKER_02]: trying to differing shopper needs for both value and in some cases convenience.

[00:06:22] [SPEAKER_01]: Right?

[00:06:23] [SPEAKER_01]: So basically a lot of work goes into figuring out, am I going to put

[00:06:27] [SPEAKER_01]: three or four Reese's pieces, peanut butter cups in a package?

[00:06:31] [SPEAKER_01]: And also I would imagine sustainability plays into that

[00:06:34] [SPEAKER_01]: with packaging as well.

[00:06:36] [SPEAKER_02]: Absolutely.

[00:06:37] [SPEAKER_02]: So sustainability, recyclability while still trying to show up with a

[00:06:41] [SPEAKER_02]: strong footprint at shelf and having a design that pops are all critical

[00:06:45] [SPEAKER_02]: considerations as we develop a new proposition.

[00:06:49] [SPEAKER_02]: So one of the things that's interesting about the Reese's brand is.

[00:06:52] [SPEAKER_02]: Orange has become synonymous with Reese's within the gap.

[00:06:56] [SPEAKER_02]: So we've got this powerful, powerful, iconic asset with orange, with the

[00:07:01] [SPEAKER_02]: logo and with the cup shape that anywhere we put it, we know we can

[00:07:05] [SPEAKER_02]: easily be recognized regardless of the package dimensions.

[00:07:09] [SPEAKER_01]: It's interesting because I was reading a story that they just

[00:07:11] [SPEAKER_01]: about the rise of private label.

[00:07:13] [SPEAKER_01]: And obviously a lot of the big box retailers are entering

[00:07:16] [SPEAKER_01]: many categories in private label.

[00:07:19] [SPEAKER_01]: Do you see any pressure from the big box retailers entering

[00:07:22] [SPEAKER_01]: the private label space in terms of some of your brands?

[00:07:24] [SPEAKER_01]: Because that came to mind when you talk about just brand defensibility.

[00:07:28] [SPEAKER_01]: And obviously Reese's has such strong, I'm looking at the colors of

[00:07:30] [SPEAKER_01]: Reese's behind you right now.

[00:07:32] [SPEAKER_01]: And it is so iconic and obviously it eviscerates emotion from

[00:07:36] [SPEAKER_01]: consumers that I think is so strong does create a moat.

[00:07:39] [SPEAKER_01]: But that being said, do you see private label pressure coming from big box?

[00:07:44] [SPEAKER_02]: Historically in the cat word, private labels had a limited

[00:07:47] [SPEAKER_02]: presence and that has changed.

[00:07:48] [SPEAKER_02]: We've seen a lot of entry now so far it hasn't been

[00:07:52] [SPEAKER_02]: sourcing a lot of our volume.

[00:07:53] [SPEAKER_02]: So we've been able to defend our position with really strong brand assets,

[00:07:57] [SPEAKER_02]: ensuring we've got a good value in the marketplace.

[00:08:01] [SPEAKER_02]: And some of that value means not just those iconic assets, but also

[00:08:04] [SPEAKER_02]: the news we bring in terms of the partnerships, the innovation, the

[00:08:08] [SPEAKER_02]: strong communications plans that we have.

[00:08:10] [SPEAKER_02]: And those are the types of things you don't typically see from

[00:08:12] [SPEAKER_02]: a private label confector.

[00:08:15] [SPEAKER_01]: And are partnerships still a big thing in your category in terms

[00:08:18] [SPEAKER_01]: of partnering up with Disney or Marvel or some of these big

[00:08:21] [SPEAKER_01]: IP oriented products that speak to your key consumer segments?

[00:08:25] [SPEAKER_01]: Is that still a big part of strategy?

[00:08:27] [SPEAKER_02]: You see a ton of partnerships across the industry.

[00:08:30] [SPEAKER_02]: For us, what we found on Reese's is a lot of sports based

[00:08:34] [SPEAKER_02]: partnerships have been very successful.

[00:08:36] [SPEAKER_02]: So we're a long time partner to the NCAA.

[00:08:39] [SPEAKER_02]: We execute several windows throughout the year with that property successfully.

[00:08:44] [SPEAKER_02]: In addition, we're a team USA sponsor for the Olympics coming now.

[00:08:48] [SPEAKER_02]: And we're committed to the Olympics through 2028.

[00:08:51] [SPEAKER_02]: So it's been an exciting set of partnerships for us.

[00:08:54] [SPEAKER_02]: We continue to see strong audience engagement in live sports entertainment.

[00:08:59] [SPEAKER_01]: Totally makes sense.

[00:09:00] [SPEAKER_01]: I mean, that's really the only place where you can reliably garner

[00:09:04] [SPEAKER_01]: eyeballs at scale right now is when you're talking about linear

[00:09:06] [SPEAKER_01]: television is through live sports.

[00:09:09] [SPEAKER_02]: A hundred percent.

[00:09:09] [SPEAKER_02]: And then the other way we look at live sports is it's not just

[00:09:12] [SPEAKER_02]: the event itself, it's the surrounding activity.

[00:09:15] [SPEAKER_02]: So if you go get Super Bowl, it's a season.

[00:09:17] [SPEAKER_02]: It's not a date.

[00:09:17] [SPEAKER_02]: It's not an event.

[00:09:19] [SPEAKER_02]: And that season starts anywhere from four to six weeks before the Super Bowl and

[00:09:22] [SPEAKER_02]: extends a week or two after the Super Bowl.

[00:09:25] [SPEAKER_02]: So one of the reasons we felt like we should make a bet on the

[00:09:28] [SPEAKER_02]: Super Bowl this year was look, it's not an event.

[00:09:31] [SPEAKER_02]: It's a season.

[00:09:32] [SPEAKER_02]: We know how to leverage that full six, seven, eight

[00:09:36] [SPEAKER_02]: weeks of activity to our passion.

[00:09:38] [SPEAKER_01]: Yeah.

[00:09:38] [SPEAKER_01]: That's sort of the playbook for activating the Super Bowl is

[00:09:41] [SPEAKER_01]: it's not just running it out.

[00:09:42] [SPEAKER_01]: It's an entire campaign that you can extend well before and

[00:09:44] [SPEAKER_01]: well at the game.

[00:09:45] [SPEAKER_01]: A hundred percent.

[00:09:46] [SPEAKER_01]: So the third area you mentioned is health and wellness.

[00:09:49] [SPEAKER_01]: And at SUSE, we've been doing a lot of research on Ozempic and the

[00:09:53] [SPEAKER_01]: impact of that on consumers and their eating habits.

[00:09:57] [SPEAKER_01]: Have you seen any impact from the consumer, whether in terms of volume

[00:10:02] [SPEAKER_01]: or preference as a result of consumers adopting this new drug?

[00:10:06] [SPEAKER_02]: We haven't seen a lot of impact from weight loss drugs so far.

[00:10:11] [SPEAKER_02]: Now something that we're watching closely as a total enterprise, we're

[00:10:15] [SPEAKER_02]: keeping a close look at what the projections might be on adoption over

[00:10:18] [SPEAKER_02]: the years and importantly, how long consumers are going to stay on.

[00:10:22] [SPEAKER_02]: Do they come on?

[00:10:23] [SPEAKER_02]: Do they come off?

[00:10:24] [SPEAKER_02]: Actual behavior pattern of somebody who's on it right now, frankly,

[00:10:28] [SPEAKER_02]: it's too early to tell.

[00:10:29] [SPEAKER_01]: Makes sense.

[00:10:30] [SPEAKER_01]: And other areas of health and wellness you spoke about was no

[00:10:33] [SPEAKER_01]: or low sugar options.

[00:10:35] [SPEAKER_01]: I would also think that kind of portion size is another part of

[00:10:39] [SPEAKER_01]: overall health and wellness strategy.

[00:10:41] [SPEAKER_02]: Yeah.

[00:10:41] [SPEAKER_02]: A hundred percent.

[00:10:42] [SPEAKER_02]: When we look at people and their health and wellness habits within

[00:10:46] [SPEAKER_02]: the construction category, they basically fall on the spectrum.

[00:10:49] [SPEAKER_02]: And for those that are looking to moderate their consumption, they're

[00:10:52] [SPEAKER_02]: going to consume something smaller like Grease's Fits, and we've got

[00:10:56] [SPEAKER_02]: tons of options within our category and within our portfolio, whether

[00:10:59] [SPEAKER_02]: it's Hershey's Kisses, SnackSize All-In-Joy or anything else for them

[00:11:03] [SPEAKER_02]: to do that.

[00:11:04] [SPEAKER_02]: Now, when you move into actual sugar reduction or sugar restriction,

[00:11:08] [SPEAKER_02]: either for a medical condition or a lifestyle choice, we've seen a ton

[00:11:12] [SPEAKER_02]: of growth on our zero sugar platform.

[00:11:14] [SPEAKER_02]: We've restaged it several years ago.

[00:11:16] [SPEAKER_02]: Reeses is the leading brand within that platform for us, and

[00:11:20] [SPEAKER_02]: it continues to grow.

[00:11:22] [SPEAKER_02]: And then finally, a more emerging space for us is plant-based.

[00:11:26] [SPEAKER_02]: And plant-based is a winner for a couple of reasons.

[00:11:29] [SPEAKER_02]: One, you've got more people pursuing a plant-based or vegan

[00:11:32] [SPEAKER_02]: lifestyle, and then number two, you've got this whole group

[00:11:36] [SPEAKER_02]: of people that have a dairy allergy.

[00:11:38] [SPEAKER_02]: And a vegan or plant-based product is an easy cue for someone

[00:11:42] [SPEAKER_02]: like that could be.

[00:11:43] [SPEAKER_02]: When we look at Reeses, it spans all of those areas that I just

[00:11:48] [SPEAKER_02]: mentioned, portionability, a number of options, zero sugar, strong

[00:11:52] [SPEAKER_02]: momentum, and we have a new plant-based product that's seeing

[00:11:55] [SPEAKER_02]: a high amount of incrementality to our portfolio, really,

[00:11:58] [SPEAKER_02]: really strong repeat rates too.

[00:12:00] [SPEAKER_01]: That's great.

[00:12:01] [SPEAKER_01]: I mean, there's so much optionality now in terms of the

[00:12:04] [SPEAKER_01]: product that you're putting out into the market than there was a

[00:12:06] [SPEAKER_01]: decade ago.

[00:12:07] [SPEAKER_01]: You probably, I'm sure execs at Hershey 10, 15 years ago never

[00:12:10] [SPEAKER_01]: thought they'd be playing in the plant-based space.

[00:12:13] [SPEAKER_02]: No, and when you look at portfolio expansion for us as a

[00:12:16] [SPEAKER_02]: company, all of it is founded on this idea of a total snacking

[00:12:21] [SPEAKER_02]: landscape that we participate in.

[00:12:23] [SPEAKER_02]: So if we defined our frame of reference as just chocolate, we

[00:12:26] [SPEAKER_02]: wouldn't be as nearly successful as we are.

[00:12:29] [SPEAKER_02]: So what we do is say, look, we play within total snacking.

[00:12:33] [SPEAKER_02]: How do I expand snacky occasions based on that landscape?

[00:12:37] [SPEAKER_02]: And that's led us to things like the zero sugar, like the

[00:12:40] [SPEAKER_02]: plant-based, but also we've got a whole line of Reese's dipped

[00:12:45] [SPEAKER_02]: products.

[00:12:46] [SPEAKER_02]: They include pretzels, they include animal crackers, and

[00:12:50] [SPEAKER_02]: we've found ways to stretch the boundaries of where the

[00:12:52] [SPEAKER_02]: brand can go by using this snacking landscape as a frame

[00:12:56] [SPEAKER_02]: of reference.

[00:12:57] [SPEAKER_01]: Very cool.

[00:12:58] [SPEAKER_01]: And shifting gears a little bit just to the marketing side,

[00:13:00] [SPEAKER_01]: because we've talked a lot about product and innovation when

[00:13:02] [SPEAKER_01]: I think about Hershey's and its brand portfolio.

[00:13:06] [SPEAKER_01]: These are iconic brands that many of which were built during

[00:13:09] [SPEAKER_01]: the TV industrial golden age when you could just basically

[00:13:13] [SPEAKER_01]: write a check and garner eyeballs when there were things

[00:13:16] [SPEAKER_01]: more than live TV that people were tuning into every

[00:13:19] [SPEAKER_01]: single night.

[00:13:20] [SPEAKER_01]: And now it's a different world.

[00:13:22] [SPEAKER_01]: And obviously you have those brands, you have the power

[00:13:25] [SPEAKER_01]: of those brands, but you need to continue, especially with

[00:13:26] [SPEAKER_01]: younger generations, Gen Z coming in will remain relevant

[00:13:29] [SPEAKER_01]: because as good as the brands are, there's always risk

[00:13:32] [SPEAKER_01]: that there's going to be newcomers into the space.

[00:13:34] [SPEAKER_01]: How are you looking at digital transformation and kind of

[00:13:37] [SPEAKER_01]: the media mix to make sure you continue to get the

[00:13:39] [SPEAKER_01]: right message in front of the new consumer?

[00:13:42] [SPEAKER_02]: Sure.

[00:13:42] [SPEAKER_02]: So if you look back 10, 15 years ago, we were heavily

[00:13:45] [SPEAKER_02]: reliant on 16 second TV.

[00:13:48] [SPEAKER_02]: Now it is the minority of what we do about 70% of our

[00:13:53] [SPEAKER_02]: media plan is digital at this point, and that's across

[00:13:55] [SPEAKER_02]: all.

[00:13:57] [SPEAKER_02]: So we've made a huge pivot over the years to digital on

[00:14:01] [SPEAKER_02]: all of our brands.

[00:14:02] [SPEAKER_02]: And we're seeing tremendous success in doing so.

[00:14:05] [SPEAKER_02]: One of the things that enabled us to do that is a

[00:14:07] [SPEAKER_02]: process by which we basically have an advertising

[00:14:11] [SPEAKER_02]: innovation file where we go into the market nonstop

[00:14:16] [SPEAKER_02]: and test new things.

[00:14:18] [SPEAKER_02]: That's new messages, it's new platforms, and we

[00:14:21] [SPEAKER_02]: hold out a control market and we evaluate the

[00:14:24] [SPEAKER_02]: results.

[00:14:25] [SPEAKER_02]: And what we've found is that it's been a tremendous

[00:14:28] [SPEAKER_02]: lot for us in exploring new platforms, understanding

[00:14:31] [SPEAKER_02]: how to connect with consumers and it's driven our

[00:14:34] [SPEAKER_02]: media ROIs of year over year.

[00:14:36] [SPEAKER_01]: We'll be right back with the speed of culture after

[00:14:38] [SPEAKER_01]: a few words from our sponsors.

[00:14:40] [SPEAKER_01]: And what are some of the specific channels that

[00:14:43] [SPEAKER_01]: you're leaning more into within the digital realm

[00:14:45] [SPEAKER_01]: that you're finding that you're gaining at ROI?

[00:14:48] [SPEAKER_02]: So certainly we've had a ton of success with

[00:14:50] [SPEAKER_02]: YouTube and Meta as you might expect.

[00:14:53] [SPEAKER_02]: We've had a lot of success on TikTok and we've

[00:14:55] [SPEAKER_02]: had different ways of engaging on TikTok.

[00:14:58] [SPEAKER_02]: Some involve traditional advertising, some

[00:15:00] [SPEAKER_02]: involve encouraging influencers to engage with

[00:15:04] [SPEAKER_02]: us and use our products.

[00:15:06] [SPEAKER_02]: Right now, for example, we've got a group of

[00:15:08] [SPEAKER_02]: people out building as tall as s'mores as they

[00:15:11] [SPEAKER_02]: can during the summer.

[00:15:13] [SPEAKER_01]: That's cool.

[00:15:14] [SPEAKER_01]: Just like a consumer challenge that you're

[00:15:15] [SPEAKER_01]: putting out there.

[00:15:16] [SPEAKER_02]: Consumer challenge with s'mores.

[00:15:18] [SPEAKER_02]: We have success on Reeses with some dancing

[00:15:20] [SPEAKER_02]: skeletons that were both a 15 second video ad but

[00:15:24] [SPEAKER_02]: also inspired people to go and do the skeleton

[00:15:26] [SPEAKER_02]: dance on their own from TikTok last fall around

[00:15:28] [SPEAKER_02]: the Halloween season.

[00:15:30] [SPEAKER_01]: Yeah.

[00:15:30] [SPEAKER_01]: And when you do something like this s'mores

[00:15:32] [SPEAKER_01]: challenge, obviously on a platform like TikTok,

[00:15:35] [SPEAKER_01]: you're really trying to foster some type of

[00:15:36] [SPEAKER_01]: community as well.

[00:15:37] [SPEAKER_01]: Trying to bring your consumers together around

[00:15:40] [SPEAKER_01]: your brand.

[00:15:41] [SPEAKER_01]: How do you look at community as part of

[00:15:43] [SPEAKER_01]: your overall strategy?

[00:15:45] [SPEAKER_02]: We look at it as something that happens

[00:15:47] [SPEAKER_02]: organically as a result of what we do rather

[00:15:49] [SPEAKER_02]: than saying we're going to go recruit you

[00:15:51] [SPEAKER_02]: and we're going to say, hey, we're building

[00:15:52] [SPEAKER_02]: this Reeses community.

[00:15:53] [SPEAKER_02]: You've got to give people a reason to do it

[00:15:55] [SPEAKER_02]: on their own.

[00:15:56] [SPEAKER_02]: And that's the basic approach we take.

[00:15:58] [SPEAKER_02]: Now there are of course common threads and

[00:16:01] [SPEAKER_02]: insights on how and why we do it on

[00:16:03] [SPEAKER_02]: different brands.

[00:16:04] [SPEAKER_02]: If you look at the way we do it on the

[00:16:06] [SPEAKER_02]: Hershey brand versus Reeses, for example,

[00:16:08] [SPEAKER_02]: totally different.

[00:16:09] [SPEAKER_02]: Hershey much more family centered.

[00:16:11] [SPEAKER_02]: There's a wholesomeness to a lot of what

[00:16:13] [SPEAKER_02]: we do.

[00:16:14] [SPEAKER_02]: And s'mores occasion is a great example

[00:16:16] [SPEAKER_02]: of that.

[00:16:17] [SPEAKER_02]: When you look at Reeses, we've got this

[00:16:19] [SPEAKER_02]: freaky personality, a little bit more

[00:16:21] [SPEAKER_02]: behavior toward individual reward and

[00:16:24] [SPEAKER_02]: indulgence.

[00:16:25] [SPEAKER_02]: And we foster that and say, hey, look,

[00:16:27] [SPEAKER_02]: this is your moment.

[00:16:28] [SPEAKER_02]: Take a moment to indulge and feel free

[00:16:31] [SPEAKER_02]: to share that with others or just enjoy

[00:16:33] [SPEAKER_02]: it on your own.

[00:16:34] [SPEAKER_01]: Absolutely.

[00:16:35] [SPEAKER_01]: And the big part that it kind of keeps

[00:16:37] [SPEAKER_01]: coming up as a theme with folks like

[00:16:39] [SPEAKER_01]: yourself in roles at big CPJ earning

[00:16:41] [SPEAKER_01]: companies is the power of first party

[00:16:44] [SPEAKER_01]: data and the importance of collecting

[00:16:46] [SPEAKER_01]: data in a world where traditionally you

[00:16:49] [SPEAKER_01]: sold through other channels where you

[00:16:50] [SPEAKER_01]: haven't been able to have that data.

[00:16:52] [SPEAKER_01]: And that obviously does present some

[00:16:54] [SPEAKER_01]: disadvantages when you want to really

[00:16:56] [SPEAKER_01]: win in the digital realm.

[00:16:57] [SPEAKER_01]: How is Hershey's sort of approaching

[00:16:59] [SPEAKER_01]: that challenge?

[00:17:01] [SPEAKER_02]: We use a variety of data sources,

[00:17:03] [SPEAKER_02]: third, second, first party.

[00:17:04] [SPEAKER_02]: And I would say for a brand like

[00:17:06] [SPEAKER_02]: Reeses, first party is actually less

[00:17:08] [SPEAKER_02]: relevant.

[00:17:09] [SPEAKER_02]: If you look at our brand on a

[00:17:11] [SPEAKER_02]: two year basis, three quarters of

[00:17:13] [SPEAKER_02]: U.S. house loans were going to buy us.

[00:17:15] [SPEAKER_02]: And we often joke that, okay, who's

[00:17:17] [SPEAKER_02]: your target?

[00:17:18] [SPEAKER_02]: Well, everybody who eats.

[00:17:19] [SPEAKER_02]: A little bit more targeted than that.

[00:17:21] [SPEAKER_02]: And we do a lot of contextual.

[00:17:23] [SPEAKER_02]: That's a crazy number.

[00:17:24] [SPEAKER_02]: It's insane.

[00:17:25] [SPEAKER_02]: And if you look at our true super

[00:17:27] [SPEAKER_02]: fans, the amount of reasons they buy

[00:17:29] [SPEAKER_02]: in the year is truly remarkable.

[00:17:31] [SPEAKER_02]: So we consider purchase habits a lot.

[00:17:34] [SPEAKER_02]: We consider contextual targeting a ton.

[00:17:37] [SPEAKER_02]: But when you think about the

[00:17:39] [SPEAKER_02]: customization and the benefits of

[00:17:40] [SPEAKER_02]: customization, it's more limited for

[00:17:42] [SPEAKER_02]: a brand like this.

[00:17:44] [SPEAKER_01]: Yeah, totally makes sense.

[00:17:45] [SPEAKER_01]: And another big trend that we're

[00:17:47] [SPEAKER_01]: hearing about a lot is retail media

[00:17:49] [SPEAKER_01]: and how brands are putting more

[00:17:51] [SPEAKER_01]: dollars and resources back to their

[00:17:54] [SPEAKER_01]: channel partners to drive more volume

[00:17:56] [SPEAKER_01]: at the point of purchase.

[00:17:58] [SPEAKER_01]: Is that an area where you're

[00:18:00] [SPEAKER_01]: playing heavily in and what type

[00:18:01] [SPEAKER_01]: of success have you seen in that

[00:18:02] [SPEAKER_01]: area?

[00:18:03] [SPEAKER_02]: Sure, I'd say it's mixed.

[00:18:04] [SPEAKER_02]: So first of all, yes, are we

[00:18:06] [SPEAKER_02]: playing?

[00:18:06] [SPEAKER_02]: Absolutely.

[00:18:07] [SPEAKER_02]: Do I believe that having media

[00:18:10] [SPEAKER_02]: and having a strong presence close

[00:18:11] [SPEAKER_02]: to the point of purchase is

[00:18:13] [SPEAKER_02]: important?

[00:18:14] [SPEAKER_02]: Absolutely.

[00:18:15] [SPEAKER_02]: What we've done is trying to

[00:18:17] [SPEAKER_02]: foster a relationship with

[00:18:18] [SPEAKER_02]: retailers where we're measuring and

[00:18:20] [SPEAKER_02]: we're always getting better and

[00:18:21] [SPEAKER_02]: we're getting better together.

[00:18:23] [SPEAKER_02]: And the more data savvy

[00:18:25] [SPEAKER_02]: retailers are really, really good

[00:18:27] [SPEAKER_02]: at it and the others are catching

[00:18:29] [SPEAKER_02]: up.

[00:18:30] [SPEAKER_02]: So we've seen constant progress

[00:18:31] [SPEAKER_02]: and improvement.

[00:18:32] [SPEAKER_02]: We want to continue to make those

[00:18:34] [SPEAKER_02]: steps together with our retail

[00:18:35] [SPEAKER_02]: partners.

[00:18:36] [SPEAKER_01]: Totally makes sense.

[00:18:37] [SPEAKER_01]: So let's shift gears a little bit

[00:18:39] [SPEAKER_01]: to you and your career.

[00:18:41] [SPEAKER_01]: You started off, I believe, at

[00:18:42] [SPEAKER_01]: Kraft Foods, which is obviously

[00:18:44] [SPEAKER_01]: a great breeding ground.

[00:18:45] [SPEAKER_01]: I mean, a lot of people we talk

[00:18:46] [SPEAKER_01]: to start off at PepsiCo or

[00:18:48] [SPEAKER_01]: Kraft or P&G and they all say

[00:18:50] [SPEAKER_01]: it's such a great place to start

[00:18:52] [SPEAKER_01]: off in your career for obvious

[00:18:54] [SPEAKER_01]: reasons.

[00:18:54] [SPEAKER_01]: Did you always know that you

[00:18:56] [SPEAKER_01]: want to be in this space, in

[00:18:58] [SPEAKER_01]: the food and beverage space?

[00:19:00] [SPEAKER_01]: And kind of where did you get

[00:19:01] [SPEAKER_01]: that motivation from?

[00:19:02] [SPEAKER_02]: Yeah, it's a great question.

[00:19:04] [SPEAKER_02]: So believe it or not, when I

[00:19:05] [SPEAKER_02]: was an undergrad, I had a

[00:19:06] [SPEAKER_02]: professor, former executive at

[00:19:08] [SPEAKER_02]: Campbell's and he had a brand

[00:19:10] [SPEAKER_02]: manager come in and talk to

[00:19:11] [SPEAKER_02]: us one day.

[00:19:12] [SPEAKER_02]: I thought, wow, this is

[00:19:12] [SPEAKER_02]: amazing.

[00:19:13] [SPEAKER_02]: Never heard of this type of

[00:19:14] [SPEAKER_02]: position.

[00:19:15] [SPEAKER_02]: I thought this is really cool.

[00:19:16] [SPEAKER_02]: I knew I wanted to do something

[00:19:17] [SPEAKER_02]: in business, but I didn't know

[00:19:18] [SPEAKER_02]: why.

[00:19:19] [SPEAKER_02]: I thought, why not?

[00:19:20] [SPEAKER_02]: He gave me some advice at the

[00:19:22] [SPEAKER_02]: end of college, which was, Hey,

[00:19:24] [SPEAKER_02]: you're not going to be able

[00:19:25] [SPEAKER_02]: to just run out, do this, go

[00:19:27] [SPEAKER_02]: get some good experience.

[00:19:28] [SPEAKER_02]: That can be analytical

[00:19:29] [SPEAKER_02]: experience, sales experience,

[00:19:31] [SPEAKER_02]: market research experience,

[00:19:31] [SPEAKER_02]: and then go to business school.

[00:19:33] [SPEAKER_02]: And I took his advice.

[00:19:34] [SPEAKER_02]: My first position was the

[00:19:36] [SPEAKER_02]: dynamic pricing and airline.

[00:19:38] [SPEAKER_02]: So I did airline and cruise

[00:19:39] [SPEAKER_02]: line pricing, very, very

[00:19:41] [SPEAKER_02]: analytical.

[00:19:42] [SPEAKER_02]: Now it's, it's price.

[00:19:43] [SPEAKER_02]: It's one of the four P's, but

[00:19:44] [SPEAKER_02]: certainly not a comprehensive

[00:19:46] [SPEAKER_02]: marketing experience.

[00:19:47] [SPEAKER_02]: And then I went back to Duke

[00:19:49] [SPEAKER_02]: with the intention of getting

[00:19:50] [SPEAKER_02]: into brand management.

[00:19:52] [SPEAKER_02]: When I started at craft, now

[00:19:53] [SPEAKER_02]: this is old crash before it

[00:19:55] [SPEAKER_02]: became craft, Heinz and

[00:19:56] [SPEAKER_02]: environmental based on my

[00:19:57] [SPEAKER_02]: experience, I can with the

[00:19:59] [SPEAKER_02]: ton of analytical rigor,

[00:20:00] [SPEAKER_02]: which helped me on the

[00:20:01] [SPEAKER_02]: forecasting side of the

[00:20:02] [SPEAKER_02]: business.

[00:20:03] [SPEAKER_02]: I was very green on consumer

[00:20:05] [SPEAKER_02]: communications.

[00:20:06] [SPEAKER_02]: How do you turn insights into

[00:20:07] [SPEAKER_02]: compelling communications?

[00:20:09] [SPEAKER_02]: How do you make great

[00:20:09] [SPEAKER_02]: advertising?

[00:20:11] [SPEAKER_02]: And I got a great combination

[00:20:13] [SPEAKER_02]: of classroom instruction and

[00:20:15] [SPEAKER_02]: real life experience doing

[00:20:17] [SPEAKER_02]: that.

[00:20:18] [SPEAKER_02]: And I've been able to carry

[00:20:19] [SPEAKER_02]: that forward here to

[00:20:20] [SPEAKER_02]: Hershey as well.

[00:20:21] [SPEAKER_02]: The other thing I would say

[00:20:23] [SPEAKER_02]: is CPG more than some

[00:20:24] [SPEAKER_02]: others, you're the GM and

[00:20:27] [SPEAKER_02]: the marketer at the same

[00:20:27] [SPEAKER_02]: time.

[00:20:28] [SPEAKER_02]: So you've got to understand

[00:20:29] [SPEAKER_02]: different parts of the

[00:20:30] [SPEAKER_02]: value chain.

[00:20:31] [SPEAKER_02]: I think a lot of people

[00:20:31] [SPEAKER_02]: don't understand that.

[00:20:32] [SPEAKER_02]: So let me talk about that

[00:20:34] [SPEAKER_02]: a little bit more.

[00:20:35] [SPEAKER_02]: Understanding different

[00:20:36] [SPEAKER_02]: parts of the value chain

[00:20:37] [SPEAKER_02]: is so critical.

[00:20:39] [SPEAKER_02]: You start with consumer, but

[00:20:40] [SPEAKER_02]: then you back up to what

[00:20:42] [SPEAKER_02]: needs to be true to win

[00:20:43] [SPEAKER_02]: their purchase, to win

[00:20:44] [SPEAKER_02]: market share and to be

[00:20:46] [SPEAKER_02]: profitable at the same time.

[00:20:48] [SPEAKER_02]: And it's a very comprehensive

[00:20:50] [SPEAKER_02]: type of business role.

[00:20:52] [SPEAKER_02]: I enjoy it a ton.

[00:20:54] [SPEAKER_02]: It's challenging, but

[00:20:55] [SPEAKER_02]: it's one of those things

[00:20:56] [SPEAKER_02]: where I wouldn't really have

[00:20:58] [SPEAKER_02]: it any other way.

[00:20:59] [SPEAKER_01]: You're really an entrepreneur

[00:21:00] [SPEAKER_01]: within a large organization.

[00:21:01] [SPEAKER_01]: You have P&L responsibility

[00:21:03] [SPEAKER_01]: and I think what gets

[00:21:04] [SPEAKER_01]: lost often because I ran

[00:21:06] [SPEAKER_01]: an agency for 20 years

[00:21:08] [SPEAKER_01]: is that in the celebration

[00:21:09] [SPEAKER_01]: of creativity and ads,

[00:21:12] [SPEAKER_01]: sometimes people in the

[00:21:13] [SPEAKER_01]: advertising industry, I believe,

[00:21:15] [SPEAKER_01]: can lose sight of the

[00:21:16] [SPEAKER_01]: true business metrics

[00:21:17] [SPEAKER_01]: and results that move

[00:21:18] [SPEAKER_01]: the needle at the end of the day.

[00:21:20] [SPEAKER_01]: Like shelf space and volume

[00:21:22] [SPEAKER_01]: and retail relationships

[00:21:23] [SPEAKER_01]: and supporting the sales team.

[00:21:25] [SPEAKER_01]: You talk about all those

[00:21:26] [SPEAKER_01]: different things that kind of go

[00:21:27] [SPEAKER_01]: into what makes a brand

[00:21:28] [SPEAKER_01]: successful.

[00:21:29] [SPEAKER_01]: And obviously you need brand

[00:21:30] [SPEAKER_01]: and you need creativity,

[00:21:31] [SPEAKER_01]: but there are so many

[00:21:32] [SPEAKER_01]: other aspects on what

[00:21:34] [SPEAKER_01]: makes a modern marketer

[00:21:35] [SPEAKER_01]: and a modern brand manager

[00:21:36] [SPEAKER_01]: successful.

[00:21:37] [SPEAKER_02]: That's exactly right.

[00:21:38] [SPEAKER_02]: And what really requires

[00:21:40] [SPEAKER_02]: a collaboration across

[00:21:41] [SPEAKER_02]: functions within an

[00:21:43] [SPEAKER_02]: organization.

[00:21:44] [SPEAKER_02]: One of the pieces of advice

[00:21:45] [SPEAKER_02]: that I often give to people is

[00:21:47] [SPEAKER_02]: understand the full value chain

[00:21:49] [SPEAKER_02]: and be very, very curious.

[00:21:51] [SPEAKER_02]: So be curious about

[00:21:52] [SPEAKER_02]: how your product is made.

[00:21:53] [SPEAKER_02]: That means get out to a plant,

[00:21:55] [SPEAKER_02]: see how it's made.

[00:21:57] [SPEAKER_02]: Curious on how your salespeople

[00:21:58] [SPEAKER_02]: are dealing with your biggest customers.

[00:22:01] [SPEAKER_02]: Be curious with your R&D people

[00:22:03] [SPEAKER_02]: on how could I improve my product?

[00:22:05] [SPEAKER_02]: And when you understand

[00:22:06] [SPEAKER_02]: that value chain,

[00:22:07] [SPEAKER_02]: you're going to understand

[00:22:08] [SPEAKER_02]: better ways to meet

[00:22:10] [SPEAKER_02]: consumer's needs.

[00:22:11] [SPEAKER_02]: You might unlock value

[00:22:12] [SPEAKER_02]: for your P&L,

[00:22:13] [SPEAKER_02]: which is also your responsibility.

[00:22:15] [SPEAKER_02]: You're also going to learn

[00:22:16] [SPEAKER_02]: a ton of the process,

[00:22:17] [SPEAKER_02]: which is both fun

[00:22:19] [SPEAKER_02]: and you're going to earn

[00:22:21] [SPEAKER_02]: the credibility that you deserve

[00:22:24] [SPEAKER_02]: by taking interest in what they do

[00:22:26] [SPEAKER_02]: to deliver great

[00:22:27] [SPEAKER_02]: consumer experiences.

[00:22:30] [SPEAKER_01]: And a big part of success,

[00:22:31] [SPEAKER_01]: obviously as a marketer

[00:22:33] [SPEAKER_01]: and a brand manager is

[00:22:34] [SPEAKER_01]: understanding all these

[00:22:35] [SPEAKER_01]: technological changes

[00:22:36] [SPEAKER_01]: that are driving the consumer

[00:22:38] [SPEAKER_01]: and really changing

[00:22:39] [SPEAKER_01]: our society at large.

[00:22:40] [SPEAKER_01]: Obviously AI being the topic

[00:22:42] [SPEAKER_01]: of the du jour amongst

[00:22:43] [SPEAKER_01]: really all businesses.

[00:22:45] [SPEAKER_01]: How are you as a professional

[00:22:46] [SPEAKER_01]: able to keep your finger

[00:22:48] [SPEAKER_01]: on the pulse of where things are going?

[00:22:50] [SPEAKER_01]: Especially with the Gen Z audience,

[00:22:52] [SPEAKER_01]: which is changing so quickly

[00:22:53] [SPEAKER_01]: to make sure that you can really

[00:22:54] [SPEAKER_01]: continue to deliver

[00:22:55] [SPEAKER_01]: on behalf of these

[00:22:56] [SPEAKER_01]: really amazing brands.

[00:22:58] [SPEAKER_02]: Sure, I think one of the important

[00:23:00] [SPEAKER_02]: ways we leverage technology

[00:23:01] [SPEAKER_02]: is really upstream.

[00:23:03] [SPEAKER_02]: Understanding what trends are

[00:23:04] [SPEAKER_02]: and that can be via AI scrapes,

[00:23:07] [SPEAKER_02]: various listening tools

[00:23:09] [SPEAKER_02]: that we have,

[00:23:09] [SPEAKER_02]: but also doing proprietary research

[00:23:11] [SPEAKER_02]: and traditional research

[00:23:13] [SPEAKER_02]: certainly still has a role within that.

[00:23:14] [SPEAKER_02]: So it's really triangulating

[00:23:16] [SPEAKER_02]: to make sure you're identifying trends

[00:23:17] [SPEAKER_02]: that are going to be durable

[00:23:19] [SPEAKER_02]: that you can actually take action on.

[00:23:21] [SPEAKER_02]: So that's one way we deploy technology.

[00:23:23] [SPEAKER_02]: When we talk about

[00:23:24] [SPEAKER_02]: the other end of the spectrum,

[00:23:26] [SPEAKER_02]: this is less on consumer,

[00:23:27] [SPEAKER_02]: but it's more a capability.

[00:23:29] [SPEAKER_02]: We've got a huge retail sales force

[00:23:32] [SPEAKER_02]: that goes out to individual stores

[00:23:34] [SPEAKER_02]: and they're tech enabled.

[00:23:35] [SPEAKER_02]: They've got iPads

[00:23:36] [SPEAKER_02]: and we use augmented reality

[00:23:38] [SPEAKER_02]: to show what a display

[00:23:39] [SPEAKER_02]: would look like on the floor

[00:23:42] [SPEAKER_02]: and they can tell that store manager

[00:23:44] [SPEAKER_02]: what kind of lift

[00:23:45] [SPEAKER_02]: they should expect on our products,

[00:23:47] [SPEAKER_02]: how quickly they could sell it through

[00:23:49] [SPEAKER_02]: and then ideally replace another display

[00:23:52] [SPEAKER_02]: with that one moving forward.

[00:23:55] [SPEAKER_02]: So a couple of different

[00:23:56] [SPEAKER_02]: very exciting ways to deploy technology

[00:23:58] [SPEAKER_02]: end to end.

[00:23:59] [SPEAKER_01]: Yeah, and that's sort of like a leak

[00:24:01] [SPEAKER_01]: when people think about

[00:24:02] [SPEAKER_01]: augmented reality.

[00:24:03] [SPEAKER_01]: They think about doing something

[00:24:05] [SPEAKER_01]: at the Super Bowl

[00:24:06] [SPEAKER_01]: where you're putting

[00:24:06] [SPEAKER_01]: a Reese's Peanut Butter Cup

[00:24:07] [SPEAKER_01]: on the field with Patrick Mahomes.

[00:24:09] [SPEAKER_01]: But like this stuff

[00:24:11] [SPEAKER_01]: that you're talking about

[00:24:12] [SPEAKER_01]: in terms of like

[00:24:13] [SPEAKER_01]: having a store manager

[00:24:14] [SPEAKER_01]: see the merchandising

[00:24:16] [SPEAKER_01]: through the lens of AR

[00:24:17] [SPEAKER_01]: is like such a more practical use case

[00:24:20] [SPEAKER_01]: that it's so much more

[00:24:21] [SPEAKER_01]: connected to volume.

[00:24:22] [SPEAKER_01]: And I think that's how marketers

[00:24:24] [SPEAKER_01]: really need to rethink

[00:24:25] [SPEAKER_01]: the way they deploy

[00:24:26] [SPEAKER_01]: some of these technologies.

[00:24:27] [SPEAKER_02]: That's exactly right.

[00:24:28] [SPEAKER_02]: I mean, there are the Whizbang things

[00:24:29] [SPEAKER_02]: that can get you some headlines

[00:24:31] [SPEAKER_02]: and that points on the board

[00:24:32] [SPEAKER_02]: in terms of sales

[00:24:33] [SPEAKER_02]: and winning display space.

[00:24:35] [SPEAKER_02]: We always prioritize the latter.

[00:24:37] [SPEAKER_02]: It's not to say we don't want to go

[00:24:38] [SPEAKER_02]: do exciting things,

[00:24:40] [SPEAKER_02]: but at the end of the day,

[00:24:41] [SPEAKER_02]: this goes back to the general

[00:24:42] [SPEAKER_02]: management approach

[00:24:44] [SPEAKER_02]: that we have here, which is

[00:24:45] [SPEAKER_02]: I've got to be responsible

[00:24:47] [SPEAKER_02]: for winning in the marketplace.

[00:24:48] [SPEAKER_02]: How do we do that?

[00:24:50] [SPEAKER_01]: Absolutely.

[00:24:50] [SPEAKER_01]: And what role do you see AI

[00:24:52] [SPEAKER_01]: playing in terms of changing

[00:24:53] [SPEAKER_01]: the role of the marketer

[00:24:54] [SPEAKER_01]: in years ahead?

[00:24:55] [SPEAKER_02]: I think it's going to have

[00:24:56] [SPEAKER_02]: a profound impact on upstream

[00:24:59] [SPEAKER_02]: trend analysis,

[00:25:00] [SPEAKER_02]: learning about consumers

[00:25:01] [SPEAKER_02]: and figuring out how to meet

[00:25:02] [SPEAKER_02]: their needs in a better way.

[00:25:05] [SPEAKER_02]: Concepting, creating

[00:25:06] [SPEAKER_02]: innovation concepts

[00:25:07] [SPEAKER_02]: and rapidly adjusting.

[00:25:10] [SPEAKER_02]: Dynamic creative optimization,

[00:25:12] [SPEAKER_02]: another big opportunity for AI.

[00:25:14] [SPEAKER_02]: So all of these are, in my opinion,

[00:25:18] [SPEAKER_02]: immature at this point.

[00:25:19] [SPEAKER_02]: They're going to advance tremendously.

[00:25:21] [SPEAKER_02]: We're going to have to

[00:25:22] [SPEAKER_02]: advance with them,

[00:25:23] [SPEAKER_02]: not just to keep up,

[00:25:24] [SPEAKER_02]: but then figure out how do we leverage

[00:25:27] [SPEAKER_02]: better than the rest of the shield?

[00:25:30] [SPEAKER_01]: Absolutely.

[00:25:30] [SPEAKER_01]: And speaking of the future,

[00:25:31] [SPEAKER_01]: we have a lot of young marketers

[00:25:34] [SPEAKER_01]: that listen to speed of culture

[00:25:35] [SPEAKER_01]: podcasts that want to be

[00:25:36] [SPEAKER_01]: a brand manager,

[00:25:37] [SPEAKER_01]: that want to be officially

[00:25:37] [SPEAKER_01]: yours one day.

[00:25:38] [SPEAKER_01]: When you look at building

[00:25:39] [SPEAKER_01]: your team and looking for

[00:25:41] [SPEAKER_01]: emerging talent in this space,

[00:25:44] [SPEAKER_01]: what are some of the areas

[00:25:45] [SPEAKER_01]: that you look for that maybe

[00:25:47] [SPEAKER_01]: our younger listeners

[00:25:48] [SPEAKER_01]: could take the heart

[00:25:49] [SPEAKER_01]: and focus on themselves

[00:25:50] [SPEAKER_01]: to set themselves up for success?

[00:25:52] [SPEAKER_02]: I look for three things.

[00:25:54] [SPEAKER_02]: One sharp analytical skills.

[00:25:56] [SPEAKER_02]: You've got to understand

[00:25:56] [SPEAKER_02]: the situation,

[00:25:57] [SPEAKER_02]: understand a business.

[00:25:58] [SPEAKER_02]: Be data driven.

[00:25:59] [SPEAKER_02]: Of course.

[00:26:00] [SPEAKER_02]: You know, in a data driven world,

[00:26:01] [SPEAKER_02]: you've got to have skills

[00:26:03] [SPEAKER_02]: to understand the data

[00:26:03] [SPEAKER_02]: and then put it into practice.

[00:26:06] [SPEAKER_02]: Strategic thinking.

[00:26:07] [SPEAKER_02]: OK, how do I make choices?

[00:26:08] [SPEAKER_02]: How do I make bets?

[00:26:09] [SPEAKER_02]: What do I evaluate?

[00:26:11] [SPEAKER_02]: And then third, curiosity.

[00:26:13] [SPEAKER_02]: I talked a little bit about

[00:26:15] [SPEAKER_02]: being curious on all parts

[00:26:17] [SPEAKER_02]: of the value chain

[00:26:18] [SPEAKER_02]: and the opportunities

[00:26:19] [SPEAKER_02]: that can unlock.

[00:26:21] [SPEAKER_02]: So if you're headed in

[00:26:22] [SPEAKER_02]: to an interview

[00:26:23] [SPEAKER_02]: or a marketing company,

[00:26:24] [SPEAKER_02]: make sure you've got

[00:26:25] [SPEAKER_02]: a lot of questions ready.

[00:26:27] [SPEAKER_02]: It's normal for someone

[00:26:28] [SPEAKER_02]: to go in and be very curious

[00:26:29] [SPEAKER_02]: about consumers.

[00:26:30] [SPEAKER_02]: I think a way to distinguish yourself

[00:26:32] [SPEAKER_02]: is to be more curious

[00:26:33] [SPEAKER_02]: about the total business

[00:26:34] [SPEAKER_02]: and how it delivers for consumers.

[00:26:37] [SPEAKER_01]: It's so interesting

[00:26:38] [SPEAKER_01]: to say curiosity.

[00:26:38] [SPEAKER_01]: I mean, it's probably

[00:26:40] [SPEAKER_01]: the number one thing I hear

[00:26:41] [SPEAKER_01]: when I ask questions like this.

[00:26:43] [SPEAKER_01]: And I was thinking

[00:26:44] [SPEAKER_01]: about it the other day

[00:26:45] [SPEAKER_01]: in terms of why.

[00:26:46] [SPEAKER_01]: I think ultimately curiosity

[00:26:48] [SPEAKER_01]: in many ways is a difference

[00:26:49] [SPEAKER_01]: between like somebody who has a job

[00:26:52] [SPEAKER_01]: and somebody who has a career.

[00:26:53] [SPEAKER_01]: Because if you're just going in

[00:26:55] [SPEAKER_01]: and you're kind of coin

[00:26:56] [SPEAKER_01]: operated, so to speak,

[00:26:57] [SPEAKER_01]: and you're just going to get paid

[00:26:58] [SPEAKER_01]: and get your paycheck

[00:26:59] [SPEAKER_01]: and go home, that's fine.

[00:27:01] [SPEAKER_01]: But you're never digging deeper.

[00:27:02] [SPEAKER_01]: You're never trying to learn

[00:27:03] [SPEAKER_01]: more about the business.

[00:27:04] [SPEAKER_01]: And as a result,

[00:27:05] [SPEAKER_01]: you're never going to really

[00:27:06] [SPEAKER_01]: take initiative

[00:27:06] [SPEAKER_01]: or uncover new areas

[00:27:08] [SPEAKER_01]: we can grow in your career.

[00:27:09] [SPEAKER_01]: And with that curiosity,

[00:27:10] [SPEAKER_01]: you open up a world of possibility.

[00:27:12] [SPEAKER_02]: I can give you an example.

[00:27:14] [SPEAKER_02]: I mean, you're coming down

[00:27:15] [SPEAKER_02]: the home stretch on the development

[00:27:16] [SPEAKER_02]: of the Reese's Caramel Big Cup

[00:27:18] [SPEAKER_02]: and we had been at this for years.

[00:27:21] [SPEAKER_02]: And when you think about

[00:27:21] [SPEAKER_02]: the challenges of developing

[00:27:23] [SPEAKER_02]: a great tasting product,

[00:27:25] [SPEAKER_02]: you've got taste, of course,

[00:27:26] [SPEAKER_02]: but you've got texture.

[00:27:27] [SPEAKER_02]: You've got viscosity

[00:27:28] [SPEAKER_02]: through talking about caramel.

[00:27:30] [SPEAKER_02]: You've got shelf stability.

[00:27:32] [SPEAKER_02]: Right? The thing

[00:27:33] [SPEAKER_02]: needs to live over time.

[00:27:35] [SPEAKER_02]: I was looking at a group

[00:27:36] [SPEAKER_02]: of people developing

[00:27:37] [SPEAKER_02]: six different versions of it.

[00:27:39] [SPEAKER_02]: The test after we had been at this

[00:27:41] [SPEAKER_02]: for many, many years.

[00:27:43] [SPEAKER_02]: And I talked through the team

[00:27:44] [SPEAKER_02]: walking me through that process.

[00:27:45] [SPEAKER_02]: And it was just incredible

[00:27:47] [SPEAKER_02]: to learn about where we've been,

[00:27:49] [SPEAKER_02]: what we tested,

[00:27:50] [SPEAKER_02]: what we learned

[00:27:50] [SPEAKER_02]: that got us down to six

[00:27:52] [SPEAKER_02]: that ultimately produced

[00:27:53] [SPEAKER_02]: a winning product

[00:27:54] [SPEAKER_02]: that we have in market today.

[00:27:56] [SPEAKER_01]: There you go.

[00:27:56] [SPEAKER_01]: Without a process like that,

[00:27:58] [SPEAKER_01]: curiosity rather doesn't come

[00:27:59] [SPEAKER_01]: without a process like that.

[00:28:00] [SPEAKER_01]: It's kind of embedded within it.

[00:28:02] [SPEAKER_02]: Absolutely.

[00:28:03] [SPEAKER_02]: And the things you learn

[00:28:04] [SPEAKER_02]: in that process,

[00:28:05] [SPEAKER_02]: they not only help you

[00:28:07] [SPEAKER_02]: become a better marketer,

[00:28:08] [SPEAKER_02]: they help you become

[00:28:09] [SPEAKER_02]: a better leader overall.

[00:28:10] [SPEAKER_02]: You just understand the business

[00:28:11] [SPEAKER_02]: and people come to respect you more.

[00:28:14] [SPEAKER_01]: Absolutely awesome.

[00:28:15] [SPEAKER_01]: Well, this has been such a great chat.

[00:28:16] [SPEAKER_01]: And as we wrap up here,

[00:28:18] [SPEAKER_01]: you've obviously had a great career

[00:28:19] [SPEAKER_01]: and you continue to do great things.

[00:28:22] [SPEAKER_01]: And Hershey's is such an exciting company

[00:28:23] [SPEAKER_01]: with such iconic brands.

[00:28:25] [SPEAKER_01]: When you look back at your career,

[00:28:28] [SPEAKER_01]: what are some of the things

[00:28:29] [SPEAKER_01]: that you think you did right

[00:28:30] [SPEAKER_01]: and that you leaned into

[00:28:31] [SPEAKER_01]: that set you up

[00:28:32] [SPEAKER_01]: to be in a position that you are today?

[00:28:34] [SPEAKER_02]: Yeah, if I think back

[00:28:35] [SPEAKER_02]: to when I first started in this field,

[00:28:38] [SPEAKER_02]: like many people,

[00:28:39] [SPEAKER_02]: I thought I always wanted

[00:28:39] [SPEAKER_02]: to be on the big brains.

[00:28:41] [SPEAKER_02]: What I found is that

[00:28:42] [SPEAKER_02]: I learned more of what goes on

[00:28:44] [SPEAKER_02]: smaller, more challenged businesses.

[00:28:46] [SPEAKER_02]: I had to be scrappy with my resources

[00:28:48] [SPEAKER_02]: or it wasn't even

[00:28:49] [SPEAKER_02]: a brand assignment at all.

[00:28:51] [SPEAKER_02]: So, for example, at Hershey,

[00:28:52] [SPEAKER_02]: we've got entire marketing teams

[00:28:54] [SPEAKER_02]: dedicated to the four

[00:28:55] [SPEAKER_02]: traditional seasons.

[00:28:57] [SPEAKER_02]: Halloween, holiday,

[00:28:58] [SPEAKER_02]: Valentine's Day and Easter.

[00:29:00] [SPEAKER_02]: I spent time on that season team.

[00:29:03] [SPEAKER_02]: I'm now responsible

[00:29:04] [SPEAKER_02]: for that seasons team.

[00:29:05] [SPEAKER_02]: I would not have necessarily chosen it.

[00:29:07] [SPEAKER_02]: And now that I have that experience,

[00:29:09] [SPEAKER_02]: wow, it just expanded

[00:29:10] [SPEAKER_02]: my mind and my career

[00:29:12] [SPEAKER_02]: and maybe much more.

[00:29:13] [SPEAKER_02]: So what I've learned to do over time

[00:29:16] [SPEAKER_02]: is appreciate

[00:29:17] [SPEAKER_02]: Rodney assignments,

[00:29:19] [SPEAKER_02]: learn from them

[00:29:20] [SPEAKER_02]: and allow them to make me a better marketer.

[00:29:23] [SPEAKER_01]: Yeah.

[00:29:23] [SPEAKER_01]: And there's nothing

[00:29:24] [SPEAKER_01]: I think that's more fulfilling

[00:29:26] [SPEAKER_01]: than having walked through

[00:29:29] [SPEAKER_01]: the kind of challenges

[00:29:30] [SPEAKER_01]: and situations

[00:29:31] [SPEAKER_01]: that your team have yourself.

[00:29:32] [SPEAKER_01]: And then you can actually

[00:29:34] [SPEAKER_01]: really help them.

[00:29:34] [SPEAKER_01]: And I know it because

[00:29:36] [SPEAKER_01]: I manage a sales team

[00:29:37] [SPEAKER_01]: and I have done

[00:29:38] [SPEAKER_01]: a lot of sales in my career,

[00:29:39] [SPEAKER_01]: so I can truly empathize

[00:29:41] [SPEAKER_01]: with their challenges

[00:29:42] [SPEAKER_01]: because I was where they were.

[00:29:44] [SPEAKER_01]: And it really makes you

[00:29:45] [SPEAKER_01]: such a better leader

[00:29:46] [SPEAKER_01]: if you can do that.

[00:29:47] [SPEAKER_02]: And sales is another great example.

[00:29:49] [SPEAKER_02]: I had an assignment at Kraft

[00:29:51] [SPEAKER_02]: where I was on growth channels

[00:29:52] [SPEAKER_02]: and that meant having to develop

[00:29:54] [SPEAKER_02]: our club channel,

[00:29:55] [SPEAKER_02]: which meant going out side by side

[00:29:57] [SPEAKER_02]: with our sales guys

[00:29:58] [SPEAKER_02]: sitting in front of Costco or whomever

[00:30:01] [SPEAKER_02]: and sometimes getting your butt kicked.

[00:30:03] [SPEAKER_02]: I think what that feels like

[00:30:04] [SPEAKER_02]: and OK, although I want them

[00:30:06] [SPEAKER_02]: to come back better,

[00:30:07] [SPEAKER_02]: whether it's a better product,

[00:30:08] [SPEAKER_02]: a better value proposition

[00:30:09] [SPEAKER_02]: or a better story

[00:30:10] [SPEAKER_02]: to get back in

[00:30:12] [SPEAKER_02]: in a club customer.

[00:30:13] [SPEAKER_02]: Those are the types of experiences

[00:30:15] [SPEAKER_02]: that are absolutely priceless.

[00:30:17] [SPEAKER_01]: Absolutely, I totally understand that.

[00:30:19] [SPEAKER_01]: So finally here,

[00:30:20] [SPEAKER_01]: is there kind of quote

[00:30:21] [SPEAKER_01]: or mantra that you like to live by

[00:30:22] [SPEAKER_01]: that kind of sums up

[00:30:23] [SPEAKER_01]: your professional career

[00:30:24] [SPEAKER_01]: and all the stories

[00:30:25] [SPEAKER_01]: that we talked about today?

[00:30:27] [SPEAKER_02]: I recently read

[00:30:28] [SPEAKER_02]: The Wisdom of the Bullfrog

[00:30:29] [SPEAKER_02]: by Admiral William McRaven,

[00:30:31] [SPEAKER_02]: so he hits the graduation

[00:30:32] [SPEAKER_02]: speaker circuit this time of year.

[00:30:34] [SPEAKER_02]: I never heard of that book.

[00:30:35] [SPEAKER_02]: I got to check it out.

[00:30:36] [SPEAKER_02]: The wisdom of the bullfrog.

[00:30:37] [SPEAKER_02]: The bullfrog is the most

[00:30:39] [SPEAKER_02]: tenured Navy SEAL.

[00:30:41] [SPEAKER_02]: So frogman bullfrog,

[00:30:43] [SPEAKER_02]: tenured Navy SEAL

[00:30:43] [SPEAKER_02]: is what he was

[00:30:44] [SPEAKER_02]: at a certain point in time.

[00:30:46] [SPEAKER_02]: And he makes a point of saying

[00:30:48] [SPEAKER_02]: leadership is simple, but difficult.

[00:30:51] [SPEAKER_02]: And I think the same can be said

[00:30:52] [SPEAKER_02]: of leading a strategy.

[00:30:54] [SPEAKER_02]: You don't need a complicated strategy,

[00:30:57] [SPEAKER_02]: but you need to make

[00:30:58] [SPEAKER_02]: difficult decisions

[00:30:59] [SPEAKER_02]: and you need to be prepared

[00:31:01] [SPEAKER_02]: to do the difficult things

[00:31:02] [SPEAKER_02]: to execute it.

[00:31:03] [SPEAKER_02]: There's no need to complicate it.

[00:31:06] [SPEAKER_02]: So acknowledging what's simple,

[00:31:07] [SPEAKER_02]: but difficult has been really

[00:31:09] [SPEAKER_02]: helpful in my career.

[00:31:10] [SPEAKER_01]: That's a great framework.

[00:31:11] [SPEAKER_01]: I have never heard that before

[00:31:12] [SPEAKER_01]: and I have to check that book out.

[00:31:14] [SPEAKER_01]: Thank you so much for joining us today, Dan.

[00:31:16] [SPEAKER_01]: It's been a great discussion

[00:31:17] [SPEAKER_01]: and I love the work

[00:31:18] [SPEAKER_01]: that you're doing at Hershey's

[00:31:19] [SPEAKER_01]: and can't wait to see

[00:31:20] [SPEAKER_01]: what's next for you in the company.

[00:31:22] [SPEAKER_01]: Thanks so much, man.

[00:31:22] [SPEAKER_01]: It's been great chatting with you.

[00:31:24] [SPEAKER_01]: Likewise, on behalf of

[00:31:25] [SPEAKER_01]: Susan and the ARI team,

[00:31:26] [SPEAKER_01]: thanks again to Dan Moenchein,

[00:31:28] [SPEAKER_01]: VP of marketing at Hershey's

[00:31:29] [SPEAKER_01]: for joining us today.

[00:31:30] [SPEAKER_01]: Be sure to subscribe, rate

[00:31:31] [SPEAKER_01]: and review the speed of culture

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[00:31:34] [SPEAKER_01]: Till next time, see you soon, everyone.

[00:31:35] [SPEAKER_01]: Take care.

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