Hershey taps AI to dominate s’mores season

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Hershey is leaning on artificial intelligence and augmented reality to sharpen its retail play for s’mores season. The candy maker says new tools are helping it place eye-catching displays, read shopper behavior in near real time, and boost sales of chocolate, marshmallows and graham crackers during the busy spring and summer months.

AI and AR in the aisles: how Hershey maps shopper behavior

Hershey developed an internal platform that blends computer vision and augmented reality. Field teams use the tool to visualize three-dimensional displays inside real stores.

AR visualization showing a 3D retail display mockup in a grocery store aisle
AR tools let Hershey visualize how displays perform in different store locations before rollout.

The system analyzes photos from sales reps and pairs them with point-of-sale data. That lets analysts identify where a display drives the most engagement and which store zones convert best.

  • Image recognition flags execution gaps and visual merchandising quality.
  • AR mockups show retailers how a new display would look in different store aisles.
  • Combined data points produce recommendations for relocating or resizing displays.

Seasonal lift and sales impact: what the numbers reveal

Hershey reports strong seasonality for s’mores-related items. The company estimates s’mores generate between $200 million and $250 million during peak season.

Internal figures indicate s’mores product sales have climbed in the double digits year over year so far this season. Third-party merchandising data shows spikes around major holidays.

  • Circana found lifts as big as 300% in peak holiday weeks.
  • Pallet trains outperformed end caps by 101% during s’mores promotions.
  • Retail media return on ad spend rose roughly 20% year over year for s’mores-focused campaigns.

Display strategy that drives impulse and occasion-based buys

Hershey emphasizes situating displays where shoppers are already thinking of summer activities. The company found displays near camping gear and outdoor sections generated higher interaction.

Grocery store aisle with s'mores and camping supplies displayed side by side
Placing s’mores near camping gear taps into shopper mission and drives higher engagement.

Rather than just asking merchants for more shelf space, Hershey collaborates on placement that lines up with shopper missions.

Formats that worked

  • Pallet trains and standalone floor displays to create an instant destination.
  • End caps and cross-merchandising with seasonal items.
  • Shared displays featuring Hershey chocolate alongside marshmallows and graham crackers from other brands.

Retail partners that match display content with seasonal needs saw the best returns, according to industry analysts.

Turning data into faster marketing and merchandising choices

Hershey also updated its marketing mix approach with AI. The model ingests social, search and streaming signals and standardizes them for quick analysis.

What used to take months of spreadsheets now becomes an overnight insight process. That speed lets teams reallocate ad dollars based on live market activity.

  • Real-time signals reveal where consumers shop and when they buy.
  • Marketing budgets shift toward channels showing immediate lift.
  • Retail media investments are adjusted to follow consumer spikes.

Creative product moves and social listening for the s’mores crowd

Hershey tested limited-time flavors this season, including a caramel chocolate bar that performed well. The brand plans to study whether such launches should return in future s’mores seasons.

Social polling also played a role. A quick consumer vote on preferred s’more texture showed a clear leaning, giving Hershey a signal to tailor creative and messaging.

Scale, collaboration and execution in stores

The AI-driven display tool has been deployed across thousands of locations. Hershey shares visualized results with retail buyers so merchants can see performance evidence.

Field teams photograph displays, feed images into the platform, and use the insights to recommend placement changes. The goal is to avoid burying displays in low-traffic spots or next to irrelevant neighbors.

  • Photos plus POS data pinpoint in-store hot spots.
  • Recommendations include moving displays closer to complementary categories.
  • Retail partnerships are central to iterating display plans quickly.

What this means for grocery retailers and brands

Industry experts say aligning displays with shopper missions trumps simply adding more shelf space. Emotional, occasion-driven merchandising taps into needs beyond the package.

Brands that combine visual execution with rapid data feedback can optimize placement and media in weeks, not months. For seasonal occasions like s’mores, that speed can make the difference between an average and a standout season.

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