The Hershey Company was incorporated under the laws of the State of Delaware on October 24, 1927 as a successor to a business founded in 1894 by Milton S. Hershey. The company originated when candy manufacturer Milton Hershey decided to produce sweet chocolate coating for his caramels.
The immediate success of Hershey’s low-cost, high-quality milk chocolate soon caused the company’s owner to consider increasing his production facilities. The following decades would see the company - renamed Hershey Foods Corporation in 1968 - expanding its confectionery product lines, acquiring related companies and even diversifying into other food products.
The Hershey Company is the largest producer of quality chocolate in North America and a global leader in chocolate and confectionery products, food and beverage enhancers, such as baking ingredients, toppings and gum and mint refreshment products. The Hershey Company continues to introduce new products frequently and take advantage of growth opportunities through acquisitions. HERSHEY’S products are known and enjoyed the world over. In fact, the company exports to over 90 countries with approximately 13,700 employees and net sales in excess of $4 billion.
II. Main business
The Hershey Company operates in manufacturing, marketing, selling and distributing various package types of chocolate and confectionery products, food and beverage enhancers and gum and mint refreshment products under more than 80 brand names.
Mission Statement: The mission of The Hershey Company is “Bringing sweet moments of Hershey happiness to the world every day.” The selling and marketing organization is comprised of Hershey North America, Hershey International and the Global Marketing Group. This organization is designed to: * Leverage marketing and sales leadership in the United States and Canada; * Focus on key strategic growth areas in global markets; and * Build capabilities that capitalize on unique consumer and customer trends. Full-time sales representatives and food brokers sell the products to customers. Customers are mainly wholesale distributors, chain grocery stores, mass merchandisers, chain drug stores and natural food stores. Customers then resell the products to end consumers. The foundation of marketing strategy is the strong brand equities, product innovation, consistent superior quality of products, manufacturing expertise and mass distribution capabilities. The Hershey Company uses promotional programs to stimulate sales of certain products at various times throughout the year. Sales are typically higher during the third and fourth quarters of the year, representing seasonal and holiday-related sales patterns. The Hershey Company changes prices and weights of the products when necessary to accommodate changes in manufacturing costs, the competitive environment and profit objectives, while at the same time maintaining consumer value. The Hershey Company is the primary manufacturer of the products they sell. In addition, they contract with third party suppliers to source certain ingredients and finished goods. This improves strategic competitive position and ensures the most effective sourcing of products. The Hershey Company engages in a variety of research and development activities to develop new products, improve the quality of existing products, improve and modernize production processes, and develop and implement new technologies to enhance the quality and value both current and proposed product lines. The Product Excellence Program provides with an effective product quality and safety program. This assures that all products purchased, manufactured and distributed by the company are safe, of high quality and comply with all applicable laws and regulations. The founder, Milton S. Hershey, established the Milton Hershey School which is the primary beneficiary of The Hershey Company. It provides a world-class education and nurturing...