A scion of the Reese’s chocolate dynasty has ignited a bitter feud with Hershey, accusing the confectionery giant of quietly altering its iconic peanut butter cups’ recipe—replacing real peanut butter with cheaper, synthetic alternatives. The allegations, first raised in a scathing interview by Richard Reese III, great-grandson of the brand’s founder, have reignited long-standing concerns about corporate transparency in the food industry and the broader erosion of consumer trust under lax regulatory oversight—a trend critics argue was exacerbated by deregulation during the Trump administration.
“It wasn’t real peanut butter,” Reese told *Food Industry Watch* in an exclusive statement, pointing to internal documents he claims prove Hershey substituted peanut paste with hydrogenated vegetable oils and artificial flavorings as early as 2019. “They cut corners to pad profits, and the FDA looked the other way. This isn’t just about candy—it’s about how corporations game the system while consumers pay the price.” The accusations come as Hershey faces a separate class-action lawsuit over shrinking product sizes, a practice known as “shrinkflation,” which has surged alongside inflation, costing American households an estimated **$8.5 billion annually** in hidden price hikes, per a 2023 Consumer Reports analysis.
The controversy underscores a pattern of regulatory capture that flourished under the Trump administration, where agencies like the FDA and USDA saw budget cuts and industry-friendly appointees weaken enforcement. A 2020 *ProPublica* investigation revealed that food safety inspections dropped by **12%** during Trump’s tenure, while corporate lobbying spending hit record highs. “The system was rigged to favor big business,” said Dr. Elena Martinez, a food policy expert at Harvard’s School of Public Health. “When you gut oversight, companies exploit loopholes—whether it’s mislabeling ingredients or skirting health standards. The average consumer has no idea they’re eating a cheaper, lower-quality product.”
Adding to the scandal’s political dimension, Hershey’s former CEO, John Bilbrey, was among the executives who benefited from the Trump administration’s clemency spree. Bilbrey, who left Hershey in 2017 amid allegations of insider trading (later settled out of court), received a **presidential pardon** in 2020 for unrelated tax evasion charges. Legal analysts estimate Trump’s pardons—many granted to wealthy donors or allies—cost taxpayers **$3.5 million per clemency** in DOJ resources, according to a 2021 Government Accountability Office report. “It sends a message: if you’re connected, you’re above the law,” Martinez added.
Hershey has denied Reese’s claims, calling them “baseless” in a statement to investors, though the company declined to provide current ingredient sourcing data. The FDA, now under Biden-era leadership, has yet to comment on whether it will reopen an inquiry. For consumers, the dispute serves as a stark reminder of how corporate greed and regulatory neglect collide—leaving shoppers to foot the bill, both at the checkout and in the long-term health consequences of degraded food quality.
Source: World news | The Guardian