Quest for a New Chocolate Bar

Product Phase - Refinement / Improvement

In a memo addressed to David Conn in the middle of October 1981, findings, conclusions and recommendations were summarized regarding the "Hershey Lite III & IV" consumer test. In conclusion, this was the first time, other than the original consumer test with Groen crumb, that parity with Jersey Milk was achieved, and therefore the minimum objective was met. For Larry, this was a small but important victory. However, he opted to act cautiously. To him, the test results were clear on which direction the project should go. Armed with the new evidence, Larry insisted that if the cost restrictions were maintained, any improvements in the formula would be very limited and the chances of beating Jersey Milk would be very slim.

After much discussion, it was agreed that "Hershey Lite IV" needed to be improved. Consumer data analysis suggested the following improvements:

1. Increase the chocolate flavor.
2. Improve the grayish-brown color.

The previous formulae made progressive increases in chocolate liquor, milk solids, cocoa butter, milkfat and total fat. All of these changes had the inescapable result of increasing the cost. In addition, the sugar percentage progressively decreased. Judy was handed down the list of modifications necessary to achieve the new objectives. They called for higher liquor and sugar levels, and lower milk and cocoa butter levels than "Hershey Lite IV." Judy immediately prepared lab samples.

In addition to all the formula changes, competitive samples were also analyzed to study composition versus sales trends and relative ingredient costs.

By mid-January, 1982, a plant trial of a refined and improved version of "Hershey Lite IV," called "Hershey Lite V, " was completed. An excellent crumb was produced. The crumb was processed into paste and refined according to specifications. It was tempered and molded into 106-gram unmarked bars. Nielson Jersey Milk products was purchased, melted down, hand tempered, and then moulded into similar bars. All bars were placed in storage for consumer testing at one and six month.

After one month of aging, "Hershey Lite V" was consumer tested against Nielson Jersey Milk in February. The results were surprising: With only two-thirds of the data considered, "Hershey Lite V" bars beat the market leader, Nielson Jersey Milk. Hershey Canadian personnel were ecstatic! They immediately reported some preliminary results.

When Larry received the results, he was a happy man. Three and a half years had come to pass after having being charged to deliver a new product that would revitilize the Canadian operation. He could not know for sure whether this new chocolate flavor would be turned into the chocolate bar he had always dreamed of. At this point, he simply felt pleased that the product Hershey Canada desperately needed to beat the competition had been delivered. A lot of work still remained to be done. As Larry would recall some years later, "We knew we had the formula. But we also knew it could take well over a year to get it to market." Larry immediately requested Judy to provide Smiths Falls Quality Assurance personnel with information regarding formula and batch weights of raw materials as well as key processing points.

Larry continued to offer leadership with all the issues that lay ahead. But it was up to the Canadians, particularly Don Thomson, to decide what to do with this impressive win. Immediate and long range plans needed to be laid out. Many decisions had to be made regarding the management of this new product. Marketing and sales considerations needed to be addressed. Critical paths needed to be determined. Production plans needed to be designed...