Reese’s heir vs. chocolate skimpflation

Key takeaways

Brad Reese, grandson of the inventor of Reese's, discovers ingredient changes in several Reese’s products, leading to a personal quest to restore quality.
The concept of ‘skimpflation’ is introduced, illustrating how companies can lower ingredient quality while maintaining price points.
Cocoa price surges due to climate issues have led chocolate-makers to find creative, often cheaper alternatives to traditional ingredients.
Advocacy from consumers like Brad Reese can lead to significant corporate changes in product formulations.

Summary

The Tale of Brad Reese and Reese’s Chocolate

In this episode of Planet Money, we meet Brad Reese, 70, and grandson of H.B. Reese, the creator of the iconic Reese's Peanut Butter Cup. Brad’s love for Reese’s is put to the test when he tries a new product, Reese’s Peanut Butter Mini Hearts Unwrapped, only to find it displeasing and devoid of real chocolate and peanut butter. This prompts him to investigate other Reese’s products, revealing alarming ingredient changes where terms like ‘milk chocolate’ and ‘peanut butter’ have been replaced with ‘chocolate candy’ and ‘peanut butter cream’.

The Skimpflation Conundrum

The episode introduces the concept of ‘skimpflation’—a term coined by Greg Rosalsky—which refers to companies cutting corners on quality in response to rising ingredient costs instead of raising prices outright. Brad accuses Hershey’s of this practice, sparking dialogue about ingredient integrity and the legacy of the Reese’s brand. He expresses his disappointment and feelings of betrayal over the perceived degradation of his family’s legacy.

Inside the Chocolate Industry

To gain insight into the chocolate industry’s pricing and ingredient decisions, the hosts speak with Judy Gaines, a commodities consultant. Judy explains how the global cocoa supply chain, including reliance on West African cocoa farms, affects chocolate production. Due to recent climate challenges and soaring cocoa prices, companies are adapting by using alternative ingredients that lack the necessary cocoa content. Notably, the discussion touches upon federal regulations regarding chocolate labeling and the challenges faced by companies like Hershey’s.

Brad Reese’s Advocacy and Hershey’s Response

Fueled by his disappointment, Brad begins a campaign to challenge Hershey’s practices through open letters and media appearances, expressing hope that if consumers are aware of ingredient changes, they will demand better quality. The podcast culminates in an important announcement by Hershey’s that they plan to revert to classic recipes for certain products by 2027, highlighting that consumer feedback and scrutiny can influence corporate decisions.

Show notes

Live event info and tickets here.

When ingredient costs skyrocket, companies have three basic options: They can raise their prices (a sort of product-specific inflation), shrink the size of the products (often called “shrinkflation”), or, sometimes, find more creative ways to reduce costs by degrading the quality of their products - which our very own Greg Rosalsky has dubbed as “skimpflation.” The latest alleged culprit? Hershey’s.

The Hershey Company is using ingredients in some of their Reese’s candies that — legally — they cannot call milk chocolate or peanut butter. This has infuriated Brad Reese, a grandson of H.B. Reese, the inventor of the Reese’s Peanut Butter Cup.

On today’s show, why chocolate makers might be skimping on chocolate and peanut butter, what else might explain these ingredients, and how Brad Reese has launched a skimp-shaming campaign to get Hershey’s to go back to using classic Reese’s ingredients.

And – EXCLUSIVE – you’ll hear Planet Money break some big news to third-generation peanut butter cup scion Brad Reese.

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This episode was hosted by Greg Rosalsky and Sarah Gonzalez. It was produced by James Sneed. It was edited by Kenny Malone, fact-checked by Sierra Juarez, and engineered by Cena Loffredo. Alex Goldmark is Planet Money’s executive producer.

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