Planet Money

Reese’s heir vs. chocolate skimpflation

34 min

Brad Reese, grandson of the Reese's Peanut Butter Cup inventor, launched a "skimshaming" campaign against Hershey's for replacing "milk chocolate" and "peanut butter" with "chocolate candy" and "peanut butter cream" in many products. This "skimflation" was driven by soaring cocoa prices and supply chain issues, leading Hershey's to use cheaper compound coatings and less peanut content. Despite initial claims of innovation, Hershey's ultimately announced a company-wide return to classic recipes by 2027.

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✨ Key Takeaways

1

Brad Reese, the grandson of the Reese's Peanut Butter Cup inventor, discovered that many Reese's products were no longer labeled with "milk chocolate" and "peanut butter" but instead used terms like "chocolate candy" and "peanut butter cream," indicating a degradation of ingredients.
2

The episode explains "skimflation" as a business practice where companies degrade product quality (e.g., using vegetable oil instead of cocoa butter) due to rising costs, which was a key factor behind Hershey's ingredient changes.
3

A global cocoa crisis, caused by extreme weather in West Africa and high tariffs, led to cocoa prices skyrocketing from $3,000 to $25,000 a ton, forcing chocolate makers to find cheaper alternatives.
4

Initially, Hershey's defended the ingredient changes as "innovation" for new shapes and consumer preferences, but later announced a company-wide commitment to return to classic milk and dark chocolate recipes in all Reese's and Hershey's products by 2027.
5

A taste test by the hosts confirmed a noticeable difference in quality between the classic Reese's Peanut Butter Cups and products made with the substitute ingredients, highlighting the impact of skimflation on consumer experience.

💬 Notable Quotes

"I mean, somebody took a dagger and stabbed it in my heart."

— Brad Reese
"If you don't see the words milk chocolate, then it's fake."

— Brad Reese
"Skimflation, it's a business practice in which companies degrade their goods and services. You know, like skimp on their quality often in response to inflationary pressures like higher ingredient costs or you know higher labor costs."

— Greg Rzalski