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Brief Published: 29 May 2013

Hershey Launches New Candy in China


American chocolate brand Hershey is set to launch a new chocolate brand in China. Known as Lancaster in English and Yo-man in Chinese, the chocolate bar will target the world’s fastest-growing candy market.

This is the first time Hershey has launched a new brand outside the US. The Lancaster candy will be distributed in the Chinese cities of Wuhan, Hangzhou and Chegdu in June 2013. The brand expects to expand throughout China later in the year.

Hershey hopes to gain a share of China’s milk chocolate market, which it says is estimated to be worth 7.5bn yuan ($1.2bn), accounting for one quarter of the total candy market. The company also expects a shift towards China will help it reach its goal of $10bn in annual sales by 2017.

Hershey has crafted three flavours specifically for Chinese consumers using a milk-condensing process called nai bei. The flavours are original pure nai bei, pure nai bei filled with rich nai bei, and pure nai bei filled with strawberry.

Hershey officially opened its Shanghai-based Asia Innovation Centre last Wednesday (May 22) to further develop its research in catering to Chinese tastes.

For further inspiration, see New Market Potential in Chocolate Innovation: Breaking the Mould. The report highlights the importance of brands adjusting flavours to suit consumers’ palettes in the East Asian market.