In an unexpected sweet-toothed turn of events, YouTube sensation MrBeast is setting his sights on the confectionery industry. But unlike some of his entrepreneurial peers, he’s not promoting betting against established titans like Hershey’s.
The popular YouTuber, known in real life as Jimmy Donaldson, took to Twitter to share his views, stating, “I wouldn’t recommend shorting a company, seems lame. But I will say these next few years between Feastables and Hershey’s will be interesting once I actually ramp up.”
MrBeast, who boasts a staggering 169 million YouTube subscribers and is known for his extravagant giveaways and peculiar competitions, stepped into the world of confectionery last year with the launch of his Feastables brand. Citing concerns over certain ingredients in American snacks and a perceived lack of innovation, he released his own chocolate bars to bring something new to the table.
Donaldson’s comments came as a response to an article by ‘The Bear Cave newsletter titled “Problems at Hershey,” which suggested Feastables, anticipated to hit as many as 50,000 stores by next year’s end, might give Hershey’s a run for its money.
Interestingly, Donaldson’s dislike for shorting stocks could endear him further to meme-stock enthusiasts. These traders infamously bought into stocks like GameStop and AMC Entertainment last year, partly to challenge wealthy hedge funds betting on these companies downfall.
While Donaldson appears confident in his ability to go up against Hershey’s, the task might prove more difficult than he imagines. Noted investor Warren Buffett, whose Berkshire Hathaway conglomerate owns See’s Candies, has often cautioned that change comes slowly in the candy business, pointing out that the list of best-selling chocolate bars in the US has stayed practically the same for decades.
Buffett even dared Elon Musk to shake up the candy business a few years back, a challenge that the Tesla CEO was unable to successfully meet. Yet, the legendary investor also emphasized the value of a robust brand that can increase prices without losing loyal customers to competitors.
If MrBeast can leverage his personal brand to infuse value into Feastables, he just might overcome the odds and snag a sweet chunk of the candy market for himself.