The Hershey Company
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| The Hershey Company
<tr><td colspan="2" style="text-align:center; padding:16px 0 16px 0;">Image:Hershey's logo.JPG</td></tr> | |
| Type | Public (NYSE: HSY) |
|---|---|
| Founded | 1894-02-09<ref>About.com. URL last accessed 2006-06-30.</ref> |
| Headquarters | Image:Flag of the United States.svg Hershey, Pennsylvania, USA
<tr><th style="text-align:right; padding-right:0.75em;">Key people</th><td>Milton S. Hershey, founder; |
The Hershey Company (NYSE: HSY), until April 2005 Hershey Foods Corporation<ref>Preparedfoods.com URL last accessed June 30, 2006.</ref>, commonly called Hershey's, is America's largest chocolate company.<ref>Booksense.com URL last accessed June 30 2006.</ref> Its headquarters is in Hershey, Pennsylvania, a town permeated by the aroma of cocoa on some days, and home to Hershey's Chocolate World. It was founded by Milton S. Hershey in 1894 as the Hershey Chocolate Company, a subsidiary of his Lancaster Caramel Company. Hershey's candies are sold worldwide.<ref>Booksense.com URL last accessed June 30 2006.</ref>
Hershey's is one of the oldest chocolate companies in the United States, and an American icon for its chocolate bar. The Hershey Company owns many other candy companies and is also affiliated with Hershey Entertainment and Resorts Company, which runs Hersheypark, a chocolate-themed amusement park; the Hershey Bears hockey team; Hersheypark Stadium; and the GIANT Center. Hershey also is a sponsor (since 2003) of Richard Childress Racing, initially in the NASCAR Busch Series, and since 2006, split sponsorship with GM Goodwrench on the team's NASCAR Nextel Cup Series #29 car, sponsoring 12 races.
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[edit] History
After completing an apprenticeship to a confectioner in 1876, Milton Snavely Hershey founded a candy shop in Philadelphia, which failed six years later.<ref>Reference For Business.com URL last accessed June 30, 2006.</ref> After trying unsuccessfully to manufacture candy in New York, Hershey returned to Pennsylvania, where he founded the Lancaster Caramel Company, whose use of fresh milk in caramels proved successful.<ref>Reference For Business.com URL last accessed June 30, 2006.</ref> In 1900, Hershey sold his caramel company for $1,000,000<ref>Reference For Business.com URL last accessed June 30 2006.</ref> (about US$24,000,000 in today's currency) and began to concentrate on chocolate manufacturing.<ref>Reference For Business.com URL last accessed June 30 2006.</ref>
In 1903, Hershey began construction of a chocolate plant in what became Hershey, Pennsylvania.<ref>Reference For Business.com URL last accessed June 30 2006.</ref> The milk chocolate bars manufactured at this plant proved successful, and the company grew rapidly thereafter.
In 1907, Hershey introduced a new candy, small flat-bottomed conical-shaped pieces of chocolate that he named "Hershey's Kisses". Initially they were individually wrapped by hand in squares of foil, and the introduction of machine wrapping in 1921 simplified the process while adding the small paper ribbon to the top of the package to indicate that it was a genuine Hershey product.<ref>Reference For Business.com URL last accessed June 30, 2006.</ref> The product was trademarked three years later and went on to become one of the most successful and well-known products ever produced by the company. Other products introduced include MR. Goodbar (1925), Hershey’s Syrup (1926), chocolate chips (1928), and the Krackel bar (1938).
In 1940, over two years after the defeat of the CIO union, an affiliate of the American Federation of Labor successfully organized Hershey's workers under the leadership of John Shearer, who became the local's first president. Currently, Local 464 of the Bakery, Confectionary, Tobacco Workers, and Grain Millers represents the Hershey workers, and although it calls itself the "Chocolate Workers" it has successfully organized workers in other local industries.
[edit] Reese's acquisition
While celebrating Reese's 40th Anniversary on April 12 1963 the six Reese brothers, Dick, Ed, Ralph, Harry, John and Bob, announced a $24 million tax free stock-for-stock merger between Reese Candy and Hershey Chocolate.
[edit] Manufacturing plants
The first plant outside Hershey, Pennsylvania opened on June 15 1963 in Smiths Falls, Ontario, Canada.<ref>Hershey's Canada (collections.ic.gc.ca) URL last accessed June 30, 2006.</ref> Another plant, covering two million square feet of manufacturing space (185000 square meters), is the largest chocolate factory in the world;<ref>Surfnetkids.com/chocfactory.htm URL last accessed July 3 2006.</ref> the factory opened on May 22 1965 in Oakdale, California.<ref>Herhsey's.com URL last accessed June 30 2006.</ref> These are the major factories for Hershey's, as tours are offered in the Smiths Falls, Ontario, Canada plant. Tours were operated in the Pennsylvanian factory, but this no longer the case.<ref>Herhsey's.com URL last accessed June 30, 2006.</ref> Visitors to Hershey, Pennsylvania can now experience Hershey's Chocolate World visitors' center and its simulated tour ride.
[edit] Other sales and acquisitions
In 1986, Hershey's began a brief foray into cough drops when it acquired the Luden's cough drops brand. By 2001, the brand had been sold to Pharmacia.<ref>Hersheys.com URL last accessed September 29, 2006.</ref> In 1988, Hershey's acquired the rights to manufacture and distribute many Cadbury-branded products in the United States. Cadbury creme eggs sold in the United States are imported by Hershey from Cadbury in the United Kingdom.<ref>Typetive review URL last accessed June 30, 2006.</ref>
On July 25, 2002 it became public knowledge that the Milton Hershey School Trust was seeking to sell its controlling interest in the Hershey Foods Corporation. The value of Hershey stock skyrocketed 25% with over 19 million shares trading that day. However, over the next 55 days, widespread press coverage, as well as pressure from Pennsylvania Attorney General Mike Fisher, the Community of Hershey, and Dauphin County Orphans' Court Senior Judge Warren G. Morgan, led to the sale being abandoned. The seven Hershey Trustees who voted to sell Hershey Foods on September 17, 2002, for US$12.5 billion to the William Wrigley Jr. Company were removed by Attorney General Fisher and Judge Morgan. Ten of the 17 Trustees were forced to resign and four new members who lived locally were appointed. The former Pennsylvania Attorney General, LeRoy S. Zimmerman, became the new Chairman of the reconstituted Milton Hershey School Trustees. Mr. Zimmerman has publicly committed to having the Milton Hershey School Trust always retain its controlling interest in The Hershey Company.
In July 2005, Hershey acquired the Berkeley, California-based boutique chocolate-maker Scharffen Berger.<ref>Sfgate.com URL last accessed June 30, 2006.</ref>
In November 2005, Hershey acquired Joseph Schmidt Confections, the San Francisco-based chocolatier.
In November 2006, Hershey acquired Dagoba Organic Chocolate, a boutique chocolate maker based in Ashland, Oregon.
Hershey's chocolate is available across the United States, due to their wide network of distribution.<ref>Fool.com. URL last accessed July 3, 2006.</ref> They have three mega distribution centers, with modern technology and labor management systems.<ref>
The Logistics Intitute # Chris Malon, Hershey Foods URL last accessed July 3, 2006.</ref>
[edit] Chocolate
Most of Hershey's chocolate products are not made using traditional European recipes, but instead use less cocoa and more sugar. [citation needed] Hershey's mixing process partially sours the taste of its final product, making a very different chocolate than traditional European recipes. Hershey's products are sold in many European countries.
[edit] Product Recalls
- In November 2006, the Smith's Falls production plant in Ontario, Canada temporarily shut down and several products were voluntarily recalled after concerns over salmonella contamination possibly found in soy lecithin within their production line. It is alleged that most of the products involved in the recall never made it to the retail level.<ref>CBC News Article URL last accessed November 13, 2006.</ref> and <ref>CBC News Article URL last accessed November 20, [2006].</ref>
- In July 1998, a number of 100-gram milk chocolate bars were recalled because they may have contained traces of almonds not listed in the ingredients. The chocolate bars were sold for fund-raising events.<ref>Health Canada Advisory URL last accessed November 13, 2006.</ref>
[edit] See also
- List of products manufactured by The Hershey Company
- Big Chocolate
- H. B. Reese
- Hershey Creamery Company (not related to the Hershey Company)
[edit] References
- Brenner, Joël Glenn (2000). The Emperors of Chocolate: Inside the Secret World of Hershey & Mars. Broadway Books. ISBN 0-7679-0457-5.
<references/>
[edit] External links
- Official Hershey's chocolate and candy site
- Official Hershey corporate site
- Hershey Canada
- Nutrition facts
| Confectionery products of The Hershey Company |
|---|
| Chocolate-based |
| 5th Avenue | Almond Joy | Bar None (discontinued) | Cherry Blossom | Fast Break | Glosette (Canada only) | Heath bar | Hershey bar | Hershey's Kiss | Hershey's Kissables | Hershey's Cookies 'n' Creme | Hershey's Pops | Hershey's S'mores | Kit Kat (U.S. only) | Krackel | Milk Duds | Mounds | Mr. Goodbar | Oh Henry! (Canada only) | PayDay Chocolate (Limited Edition) | Rolo (U.S. only) | Reese's Peanut Butter Cup | Reese's Pieces | ReeseSticks | Skor | Take 5 (Also known as Max 5) | Whoppers | York Peppermint Pattie |
| Non-Chocolate |
| Bubble Yum | Ice Breakers | Jolly Rancher | Koolerz | PayDay | ZAGNUT |
| Other |
| Good & Plenty | Snack Barz | Swoops | Twizzlers | Whatchamacallit |
| Hershey also manufactures Cadbury-branded products in the U.S. and military chocolate for the U.S. armed forces |
eo:Hershey Foods Corporation ja:ハーシー社
Categories: Companies listed on the New York Stock Exchange | Articles with unsourced statements | Chocolatiers | Hershey brands | Companies based in Pennsylvania | Companies based in Harrisburg | Confectionery companies of the United States | Food companies of the United States | Companies established in 1894 | Fortune 1000 | NASCAR sponsors
