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Nestlé USA takes on Hershey’s Reese’s with Butterfinger cups

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By Oliver Nieburg+

Last updated on 18-Oct-2013 at 16:03 GMT2013-10-18T16:03:18Z

Nestlé Butterfinger Peanut Butter Cups take on Hershey's Reese's

Nestle USA has announced plans to launch its Butterfinger brand in peanut butter cups to challenge category leader Reese’s, made by Hershey.

A Nestlé USA spokesperson said: “America’s candy industry has had one giant brand in the peanut butter cup category – but not anymore.”

Nestlé will introduce Butterfinger Peanut Butter Cups across US retail stores in January 2014.

Serving sizes and price

The cups will come in 1.5 oz (42.5 g) single size with two cups per pack, a 3 oz (85 g) share pack with four cups per pack and a 40 oz (1,134 g) assorted fun size bag that includes regular Butterfinger, Butterfinger Crisp and Butterfinger Peanut Butter Cups.

The serving on single packs is 0.5g greater than Reese’s single serves and contains 20 more calories. The Nestlé single bags carry a 230 calories mark front of pack.

The suggested retail price for singles is $0.89-$1.19, share packs $1.69-$1.89 and 4.99-$5.99 for 40oz. assorted fun bags.

Supported by Super Bowl ad

The Nestlé spokesperson called Butterfinger Peanut Butter Cups one of the biggest candy launches from Nestlé USA.

“So big in fact, it will be the first time in the company’s US history when one of its brands will be featured in a Super Bowl commercial.”

Nestle rival Mars has exclusive rights to use the NFL Super Bowl logo on chocolate products and recently said that that sporting event attracted 165 million viewers, equivalent to 52 million households.

Reese's was created in 1928 by H.B. Reese, an ex-foreman of a Hershey plant, who left the Hershey company to set up his own business. The Reese's brand joined Hershey's portfolio when the H.B. Reese Candy Company merged with Hershey in 1963*. The Butterfinger brand was created by the Curtiss Candy Company of Chicago in 1923. Nestlé acquired the brand from Nabisco in 1990.

Another Reese’s alternative fairly new to the market is Unreal Candy’s ‘The Double One’, peanut butter cups that are free from GMOs, corn syrup and trans fats.

In 2011, Hershey dropped a trademark lawsuit against Mars that alleged the packaging for Mars' Dove peanut butter Promises was similar to that of Reese’s Peanut Butter Cups.

*EDITED - This article previously said that Hershey introduced Reese’s in 1928.

1 comment (Comments are now closed)

H.B. Reese invented Reese's Peanut Butter Cups

Hershey's did NOT introduce Reese's in 1928.

H.B. Reese a former manager of the Hershey Round Dairy Barn and a foreman in the Hershey plant left his employment with Hershey and founded in 1923 the H.B. Reese Candy Company based in Hershey, PA.

In 1928 H.B. Reese invented Reese's Peanut Butter Cups and became the 2nd largest purchaser of bulk chocolate from Hershey, only Mars bought more chocolate from Hershey than H.B. Reese.

On July 2, 1963 seven years after the May 16, 1956 death of H. B. Reese, his six sons Robert, John, Ed, Ralph, Harry and Charles Richard Reese (sole owners of the company) merged the H.B. Reese Candy Company with the Hershey Chocolate Corporation in a tax free stock-for-stock merger with the 6 Reese Brothers receiving 666,316 Hershey commons shares valued in 1963 at $23.5 million (in 2013 after 50-years of stock splits those original 666,316 shares now represent 16 million Hershey common shares valued in excess of $1 billion paying $31 million in annual cash dividends). The H.B. Reese Candy Company is maintained as a subsidiary of Hershey because the Reese plant workforce is not unionized, unlike the main Hershey plant. As of September 20, 2012 Reese's is the #1 selling candy brand in the United States with sales of $2.603 billion and is the #4 selling candy brand globally with sales of $2.679 billion (amazingly, the Reese's brand is ranked #4 globally with just a mere $76 million of its sales outside the United States). Additionally, the non-union H.B. Reese Candy Company manufactures the Kit Kat in the United States which had 2012 U.S. sales of $948 million. Reese's is by far the most popular Hershey's brand on Facebook with over 10 million likes.


Brad Reese

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Posted by Brad Reese
17 October 2013 | 23h512013-10-17T23:51:06Z

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