In the ever-evolving landscape of the candy industry, MrBeast, the 25-year-old YouTube sensation, is making bold moves by challenging the established giants like Hershey’s. Beyond the viral challenges and extravagant giveaways that have garnered him a massive following of 169 million subscribers, MrBeast, whose real name is Jimmy Donaldson, has ventured into the world of confectionery with his brand, Feastables.
Last year, Feastables emerged as MrBeast’s response to what he perceived as shortcomings in American snacks, coupled with his belief in the need for innovation within the industry. His recent tweet, cautioning against shorting a company, hints at a brewing competition that promises to unfold over the next few years between Feastables and Hershey’s.
In a recent article titled “Issues at Hershey,” featured in “The Bear Cave” newsletter, Donaldson responded with a tweet, underscoring the potential challenges faced by Hershey’s. The article suggests that Feastables, projected to reach up to 50,000 locations by the end of the upcoming year, poses a significant threat to the producers of Reese’s Pieces and Hershey’s Kisses.
Donaldson’s outspoken disdain for short selling might attract meme stock traders who, in 2021, rallied behind stocks like GameStop and AMC Entertainment, attempting to retaliate against hedge funds betting on the failure of these companies.
While MrBeast exudes confidence in his ability to compete with Hershey’s, the task may prove more formidable than anticipated. Warren Buffett, whose company Berkshire Hathaway owns See’s Candies, has previously warned that old habits die hard in the candy industry. The renowned investor has observed that the top-selling chocolate bars in the U.S. have remained essentially unchanged for decades.
Buffett’s challenge to Elon Musk to disrupt the candy industry a few years ago resulted in Tesla’s CEO attempting but failing to create a premium candy. Nevertheless, Buffett emphasized the crucial role of a strong brand, allowing a business to raise prices without losing customers to competitors.
If MrBeast can successfully elevate Feastables into a standout brand, he might overcome these challenges and capture a significant share of the candy market. As the clash between Feastables and Hershey’s unfolds, the outcome will not only determine the fate of these confectionery contenders but will also signify a potential shift in the age-old dynamics of the candy industry.
