MrBeast, the popular 25-year-old YouTuber, is gearing up for a showdown with Hershey’s (NYSE: HSY) as he expands his Feastables brand. In a recent tweet, he made it clear that he doesn’t endorse betting against the chocolate giant’s stock, stating that shorting a company “seems lame.”
Despite this stance, MrBeast is confident that the upcoming years will be filled with intrigue as Feastables goes head-to-head with Hershey’s.
Jimmy Donaldson, known as MrBeast, has garnered an astounding 169 million subscribers on YouTube with his eccentric competitions and extravagant giveaways. Last year, he ventured into the chocolate industry, launching Feastables chocolate bars. His motivation stemmed from a distaste for certain ingredients in American snacks and a belief that the industry lacked innovation.
The catalyst for his recent tweet was an article titled “Problems at Hershey,” published by “The Bear Cave” newsletter. According to the article, Feastables, expected to be available in up to 50,000 locations by the end of next year, poses a significant threat to Hershey’s Reese’s Pieces and Hershey’s Kisses.
Notably, MrBeast’s aversion to shorting companies might resonate with meme-stock traders. These traders famously rallied behind stocks like GameStop and AMC Entertainment in 2021 to challenge wealthy hedge funds betting on the companies’ failure.
While MrBeast is confident in his ability to take on Hershey’s, the road ahead may prove challenging. Renowned investor Warren Buffett, whose conglomerate Berkshire Hathaway owns See’s Candies, cautioned that the candy business clings to tradition. The list of best-selling chocolate bars in the US has remained largely unchanged for decades.
Buffett once challenged Elon Musk to revolutionize the candy industry, an endeavor that the Tesla CEO attempted but ultimately failed.
However, Buffett has also emphasized the power of a strong brand, as it enables companies to raise prices without losing loyal customers to competitors.
If MrBeast can infuse Feastables with his own charismatic brand identity, he may defy the odds and carve out a significant piece of the candy market. Only time will tell if his ambitious venture will succeed in disrupting the industry.
Information for this briefing was found via Business Insider and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
