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Hershey Bets on Agentic AI to Rethink $2B in Marketing Spend

https://www.adweek.com/brand-marketing/exclusive-hershey-bets-on-ai-agents-to-fix-its-2-billion-marketing-blind-spot/
15•mooreds•1h ago

Comments

chuckadams•57m ago
Maybe they could have spent some of that money making chocolate that doesn't taste like vomit.
ubercore•50m ago
They could, easily, but then it wouldn't taste like Hershey's chocolate and people don't like that.
Simulacra•41m ago
I think that's the core issue, they are using this technology to invest in making chocolate as a business, cheap and unfulfilling as possible.
coro_1•24m ago
Their products are probably not cherished for any genuine candy-chocolate delicacy across all channels.

By now they should know their place is more "corporate candy bowl" or "look, my date for the night is here" where people about the dopamine pop and fun-chatter.

steveBK123•54m ago
They should have just listened to Don Drapers pitch
cmiles8•49m ago
They would get a lot more ROI by just investing in making products that don’t taste like shit.

Note that some of their products have been enshitified so much that they can’t even legally be called chocolate in some jurisdictions. It’s cheap filler designed to simulate chocolate.

Agentic AI is not going to solve that.

arealaccount•41m ago
Not with that attitude
iugtmkbdfil834•41m ago
Well, F just got a boost for an analyst noticing that have a connection to AI based on their batteries and boom.. AI pivot. All of it makes me super nervous about the market.

Zero disagreement on Hershey. It got a lot worse since my childhood days.

cmiles8•38m ago
Yes, it’s a product of the typical game of gradually swapping out expensive ingredients for less expensive ones and hoping folks don’t notice the gradual change. Over time the product ends up being nothing like what it once was.
seanhunter•36m ago
This is an example of the same sort of phenomenon as shrinkflation, which they seem to have dubbed "skimpflation"[1] in this article although I've never heard that term used before.

https://www.which.co.uk/news/article/shrinkflation-the-brand...

cmiles8•28m ago
The technical term is “enshitification.” Gradually making a product worse to squeeze out more profit.
seanhunter•37m ago
That is it. I heard a possible urban legend that the reason Heshey tastes like that is back in the olden times before the internet they also didn't have refrigerated transport for dairy produce so the milk would go slightly sour when it was transported from the farm to the chocolate factory. This led to the "distinctive"/vomit-like taste of their chocolate and they decided to artificially sour the milk to stick with that flavour even after refrigerated dairy trucks were invented (for some reason).
cmiles8•32m ago
The “vomit” flavor in Hershey’s base chocolate (which is quite strong for those with good pallets) is butyric acid which comes from aggressive processing of the milk before it’s put in the chocolate. There’s also very little actual chocolate in the final product (compared to other products) which allows these flavors to come out strong vs the chocolate dominating the pallet.

So folks aren’t wrong when they say it tastes like the chocolate is spoiled/off. They’re tasting heavily processed milk.

rayiner•25m ago
“Processed” is a nonce word. Butyric acid is also in Parmesan cheese, which is “processed.”
1970-01-01•32m ago
That's specious to state and not at all how marketing works. What if Hershey finds their chocolate is the best thing for specific ailments or an edge case?

"Our Kisses are all you need to send in this pandemic"

All they need to discover is some edge case and take it to the moon. That's how you move shit product.

kotaKat•41m ago
> “Most companies don’t have an AI problem. They have a data readiness problem,” said Sarah Martinez, chief commercial officer, Tracer.

She's right. Companies are too afraid to face the real data from their customers, so they need to hallucinate the data they wanted to imagine instead.

krapht•40m ago
<article excerpt>

What AI actually does Mutinex has built what it describes as a “multi-agent system,” where each agent acts as a domain specialist. For example, one agent understands marketing econometrics, another understands competitive pricing theory, another diagnoses model failures.

By combining Tracer, which cleans and makes sense of Hershey’s data infrastructure, with Mutinex’s AI system, Hershey is now able run models in as little as three weeks.

In practice, that means faster iteration on how marketing spend is evaluated and adjusted, rather than waiting for lagging historical reads.

“Most companies don’t have an AI problem. They have a data readiness problem,” said Sarah Martinez, chief commercial officer, Tracer.

</article excerpt>

Instead of the headline, it sounds like they've hired an external company to clean up their ETL pipelines. That seems useful.

I'm going to doubt spooling up <massive LLM> with <appropriate system prompt> is going to be the thing that reduces their analysis time.

kleiba2•39m ago
Wait, does their logo actually end with a picture of a pile of poop, complete with gray stink lines and everything?? Amazing...

https://static-www.adweek.com/wp-content/uploads/2026/04/Her...

OtherShrezzing•32m ago
> “We were getting the full read of 2024 [data] midway through 2025, while we were planning for 2026,” said Vinny Rinaldi, vp of media and marketing technology at Hershey. “That alone is just not conducive to where marketers need to be.”

Irrespective of AI, it's astounding that companies have been throwing $2bn/yr at marketing, and their analytics data on that spend is delayed 6-18 months. That's nearly 15% of their annual revenues spent on guesswork. What's been going on over at Hersheys?

nathanaldensr•27m ago
Waste and grift.
Lionga•24m ago
To be replaced by AI, waste and grift.
morley•14m ago
$2bn is their entire marketing spend, so it includes media buying, creative, in-store displays, PR, research, and anything else involved in the marketing mix.

FTA:

> The confectionery giant, home to brands like Reese’s and Skinny Pop, is working with the analytics platforms Mutinex and Tracer to automate marketing mix modeling — a statistical technique that measures how media spending and other variables drive sales — making it faster and more frequent.

So this system doesn't cost $2bn, it goes into the decision-making of where to spend the $2bn.

I agree that when you have a $2bn budget, it's hard to fathom tolerating a 6-mo analytics lead time, but I'm sure it's not alone, and I'm sure that's why this vendor lobbied Ad Age to cover this project.

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Hershey Bets on Agentic AI to Rethink $2B in Marketing Spend

https://www.adweek.com/brand-marketing/exclusive-hershey-bets-on-ai-agents-to-fix-its-2-billion-m...
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