Hershey Bets on Agentic AI to Rethink $2B in Marketing Spend
17 points
1 hour ago
| 7 comments
| adweek.com
| HN
OtherShrezzing
36 minutes 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?

reply
xnx
1 minute ago
[-]
Companies waste 80% of their marketing spend. They just don't know which 80%.
reply
morley
18 minutes 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.

reply
nathanaldensr
31 minutes ago
[-]
Waste and grift.
reply
Lionga
28 minutes ago
[-]
To be replaced by AI, waste and grift.
reply
krapht
43 minutes 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.

reply
soco
7 minutes ago
[-]
Didn't we run into the same wall with the data lakes? When was that hype... 201x something?
reply
cmiles8
52 minutes 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.

reply
1970-01-01
35 minutes 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.

reply
iugtmkbdfil834
45 minutes 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.

reply
cmiles8
42 minutes 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.
reply
seanhunter
39 minutes 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...

reply
cmiles8
32 minutes ago
[-]
The technical term is “enshitification.” Gradually making a product worse to squeeze out more profit.
reply
seanhunter
41 minutes 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).
reply
cmiles8
36 minutes 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.

reply
rayiner
29 minutes ago
[-]
“Processed” is a nonce word. Butyric acid is also in Parmesan cheese, which is “processed.”
reply
arealaccount
45 minutes ago
[-]
Not with that attitude
reply
steveBK123
58 minutes ago
[-]
They should have just listened to Don Drapers pitch
reply
chuckadams
1 hour ago
[-]
Maybe they could have spent some of that money making chocolate that doesn't taste like vomit.
reply
coro_1
27 minutes 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.

reply
ubercore
54 minutes ago
[-]
They could, easily, but then it wouldn't taste like Hershey's chocolate and people don't like that.
reply
Simulacra
44 minutes 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.
reply
kotaKat
45 minutes 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.

reply
rirze
4 minutes ago
[-]
> they need to hallucinate the data they wanted to imagine instead.

Isn't that what they were doing before AI anyways? It's natural, then.

reply
kleiba2
43 minutes 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...

reply