Short seller Bear Cave warns of competition for Hershey from MrBeast's Feastables
Investing.com | Author Davit Kirakosyan
Published Jul 20, 2023 05:25PM ET
Short seller Bear Cave warns of competition for Hershey from MrBeast's Feastables
Hershey Co (NYSE:HSY) was mentioned cautiously by short seller Bear Cave. Hershey, a leading chocolate company in the U.S., has traditionally been considered a safe and reliable investment, with a long history of consistent growth and a strong brand. However, according to the Bear Cave report, the landscape is changing, and Hershey now faces rapidly growing competition from MrBeast, a highly influential 25-year-old YouTube star.
MrBeast has recently launched his own chocolate brand called Feastables, which was launched in January 2022 and directly competes with Hershey in the market. This brand has rapidly gained popularity and, according to Bear Cave, will soon take a major bite out of Hershey’s profits.
Feastables' marketing strategy has been particularly effective, capturing public attention by offering ten lucky chocolate bar purchasers the opportunity to compete for ownership of a chocolate factory in a highly publicized MrBeast YouTube video.
The success of this marketing campaign has translated into significant growth for Feastables. By the end of 2022, Feastables was stocked in every Walmart (NYSE:WMT) and “selling a couple hundred thousand bars a week.”.
In contrast, Hershey's revenue in 2022 relied heavily on its sales to McLane Company, the primary distributor of Hershey products to Walmart, accounting for approximately 28% of its $10.4 billion in revenue.
“One important nuance for investors to understand is that while Hershey has customers, Feastables has fans. For example, a March 2023 tweet from MrBeast asking for help cleaning up Feastables display cases has over 144,000 likes and over 44 million views,” mentioned the report.
Get The News You Want
Written By: Investing.com
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.