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Aggressive Mars breathes down Hershey's neck in U.S.

BY Marc Levy

On the packaging, Hershey dances around the term -- Whatchamacallit has a "chocolatey coating," Mr. Goodbar is "made with chocolate" and Kissables are "chocolate candy."

And sometimes ingredients speak for themselves: Products with the substitutes don't taste fresh and vibrant, said Cybele May of Los Angeles, who reviews sweets at www.candyblog.net.

"The wonderful thing about cocoa butter is that it melts in your mouth," May said. "Oils replicate that behavior, but they never get it right."

Given health scares and concerns about food quality -- Chinese milk anyone? -- it can be an effective marketing tactic for Mars to cast doubt on its rival's product, said Jean-Pierre Dube, a marketing professor at the University of Chicago Graduate School of Business. And with both companies strapped by the skyrocketing cost of commodities such as cocoa and milk, Mars' knocks on Hershey's quality might persuade consumers to pay a higher price for a Mars product, Dube said.

Whether Mars' criticism is fair is another question.

Hershey is not alone in using chocolate substitutes: Mars does it in countries where the rules are different. Other candymakers, including Nestle, do not use real chocolate in some of their U.S. candy.

And Mars is doing its own cost-cutting -- by slimming down some of its package sizes.

Fair or not, Laurel Haring's mind is made up.

Once a daily devotee to Hershey's Kissables, Haring noticed this year that the candies had stopped tasting like, well, chocolate.

"It wasn't creamy, it wasn't sweet, it wasn't milky," said Haring, 47. "It was just nasty."

Haring's husband prowled drugstores and grocery stores near their home in Wilmington, Del., in search of the good Kissables, and came up empty. She even contacted Hershey to tell them something was wrong -- and got coupons instead of an explanation.

A few weeks ago, she stumbled onto an online news item about Hershey's use of substitutes -- it featured an image of Kissables -- but by then she had moved on.

To Dove Promise squares.

AP Business Writer Emily Fredrix in Milwaukee contributed to this report.



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