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How E.T. Turned Reese’s Pieces Into a Movie Icon
Before E.T.: Brands in the Background
Back in 1981, brands in movies were mostly background props—you'd spot a Coke bottle or a car, but nobody planned it as a big marketing move. The whole product placement business was tiny, worth about $100 million worldwide. Then E.T. the Extra-Terrestrial hit theaters in 1982. One candy scene changed everything: Reese’s Pieces sales shot up 65% in just two weeks. The movie made $435 million (over $1.5 billion in today's dollars), proving that movies could sell products.
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The Famous Scene: Candy That Built Trust
At 23 minutes in, young Elliott drops Reese’s Pieces like a trail of breadcrumbs to coax the scared alien, E.T., out of a shed. E.T. touches one with his glowing finger, crunches it, and smiles—trust begins right there.
Steven Spielberg had originally written M&M’s into the script. But when they said no, he switched to Reese’s on set. He later said: "Hershey said yes instantly. Reese’s became candy of the hour." The peanut butter filling made it feel real and craveable—kids watching wanted that exact taste during the sweet friendship moment.
Why M&M’s Said No (and Hershey Said Yes)
Mars, the company behind M&M’s, turned it down. They worried about linking their candy to an alien movie and wanted to read the full script first. Hershey jumped in fast, spending $1 million on E.T.-themed packaging, TV ads, and store displays—even before knowing if the movie would succeed.
Producer Kathleen Kennedy later shared: "Mars called after the release, begging. Too late". Here's how it broke down:
| Brand | Decision | Reason | What They Did |
| M&M's (Mars) | No | "No aliens" + needed full script |
Missed the boat |
| Reese's (Hershey) | Yes | Ready to promote | $1M in ads and packaging |
The Sales Boom: Real Numbers
Reese’s Pieces had launched in 1978 and was still a small player. E.T. made it huge. Stores couldn't keep up—shelves emptied as kids tried to copy the candy trail.
| Time After Release | Sales Jump | What Happened |
| Day 1 | +22% | Theater talk starts |
| Week 2 | +65% | Stores run low in some areas |
| Month 1 | Up to +85% | Shortages everywhere |
| 6 Months Later | +44% steady | Now a top kids' candy |
Hershey added factory shifts. News reports showed kids leaving candy trails in grocery aisles.
Why This Placement Worked So Well
Most product placements today fail to stick—studies say 73% are forgotten. E.T. nailed it with three simple rules any marketer can use:
- Emotional Hook: The candy meant friendship. Viewers felt happy watching E.T. eat—and wanted Reese’s too
- Part of the Story: Take away the trail, and there's no E.T.-Elliott bond. It drove the plot
- Feels Natural: No sales pitch. People left theaters craving it naturally
Compared to today: A funny iPhone bit in Deadpool gets laughs but fades fast. E.T. still works because it felt real.
How Product Placement Grew Huge
E.T. kicked off a boom. Before, brands paid little. After, everyone wanted in.
| Year | Big Example | What Changed | Total Industry Money |
| 1982 | E.T. Reese’s | Candy drives story | $100M → $500M |
| 1995 | James Bond's Omega watch | Luxury brands join | $2 billion |
| 2004 | I, Robot Audi | Cars take over | $8 billion |
| 2010s | Transformers Chevy | Mega movie deals | $16 billion |
| Today | AI helps pick spots | $25 billion | Smart planning |
Deals tripled right after E.T.—studios saw the money potential.
The Lesson From M&M’s "No"
What if Mars had said yes? M&M’s was already #1—they might have owned the 1980s candy world. Reese’s could have stayed small. Instead, Hershey grabbed the chance.
Mars even tried catch-up ads in 1983 with E.T. themes. They flopped—no one forgot who the movie candy was.
What Marketers Can Learn Today
Modern AI tools like Script Spotter analyze scripts for emotional fit, story role, and natural integration—E.T.'s scene would score top marks. Hits like Dune's spice (feels like a drug) follow the same rules. Flops like Pepsi in Ghostbusters feel forced.
Key Takeaway: Spot opportunities fast like Hershey. Data helps find them, but bold moves—and a bit of luck—make them work. E.T. wasn't perfectly planned. It just happened right.
This story shows how one movie scene can change a brand forever. For marketers in big companies, it's a reminder: Say yes to smart risks.