The Hershey Company 85655 221458537 2008-06-24T16:15:58Z 130.207.91.212 updated link for reference 30 {{otheruses4|the chocolate manufacturer|the ice cream company also known as Hershey's|Hershey Creamery Company}} {{Infobox Company |company_name = The Hershey Company |company_logo = [[Image:HersheyCo.PNG|200px]] |company_type = Public ({{nyse|HSY}}) |company_slogan = "a palatable confection and a most nourishing food." |foundation = [[February 9]], [[1894]]<ref>[http://homeschooling.about.com/cs/unitssubjhol/qt/feb9a.htm About.com]. URL last accessed [[2006-06-30]].</ref> |location = {{flagicon|USA}} [[Hershey, Pennsylvania|Hershey]], [[Pennsylvania]], [[United States|USA]] |key_people = [[Milton S. Hershey]], founder;<br/>Richard H. Lenny,<ref>[http://www.referenceforbusiness.com/businesses/G-L/Hershey-Foods-Corporation.html Reference For Business.com] URL last accessed [[June 30]] [[2006]].</ref> current [[Chief executive officer|CEO]] |num_employees = 14,352 worldwide<ref>[http://www.referenceforbusiness.com/businesses/G-L/Hershey-Foods-Corporation.html Reference For Business.com] URL last accessed [[June 30]], [[2006]].</ref> |industry = Chocolate and candy manufacturer |products = See [[list of products manufactured by The Hershey Company]] |revenue = {{profit}} $4.944 billion [[USD]] (2006)<ref>[http://finance.google.com/finance?q=The+Hershey+Company Google Finance] URL last accessed [[April 4]], [[2006]].</ref> |net_income = {{profit}} $305.6 million, $271.39 paid in dividend to stockholders [[USD]] (2006)<br/>≈7.1% [[profit margin]] |homepage = [http://www.hersheys.com/ hersheys.com] }} '''The Hershey Company''' ({{nyse|HSY}}), known until April 2004 as the '''Hershey Foods Corporation'''<ref>[http://www.preparedfoods.com/CDA/Archives/5e3692deb5788010VgnVCM100000f932a8c0____ Preparedfoods.com] URL last accessed [[June 30]], [[2006]].</ref> and commonly called '''Hershey's''', is the largest [[chocolate]] manufacturer in [[North America]].<ref>[http://www.booksense.com/readup/news/archive/0919hershey.jsp 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,<ref>[http://edition.cnn.com/2003/US/Northeast/03/01/hershey.100.ap/ CNN News Article] URL last accessed [[January 3]] [[2007]].</ref> 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 and other products are sold worldwide.<ref>[http://www.booksense.com/readup/news/archive/0919hershey.jsp 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]]. ==History== [[Image:niagarahershey.JPG|thumb|Outlet in [[Niagara Falls, Ontario|Niagara Falls, Ontario, Canada]]]] [[Image:Hershey's in Times Square.jpg|thumb|Hershey's Times Square Store, [[Times Square]], [[New York City]]]] After completing an [[apprenticeship]] to a [[confectioner]] in 1876, [[Milton S. Hershey|Milton Snavely Hershey]] founded a candy shop in Philadelphia, which failed six years later.<ref>[http://www.referenceforbusiness.com/businesses/G-L/Hershey-Foods-Corporation.html 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>[http://www.referenceforbusiness.com/businesses/G-L/Hershey-Foods-Corporation.html Reference For Business.com] URL last accessed [[June 30]], [[2006]].</ref> In 1900, Hershey sold his caramel company for $1,000,000<ref>[http://www.referenceforbusiness.com/businesses/G-L/Hershey-Foods-Corporation.html 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>[http://www.referenceforbusiness.com/businesses/G-L/Hershey-Foods-Corporation.html Reference For Business.com] URL last accessed [[June 30]] [[2006]].</ref> In 1903, Hershey began construction of a chocolate plant in his hometown, [[Derry Church, Pennsylvania]], which later came to be known as [[Hershey, Pennsylvania]].<ref>[http://www.referenceforbusiness.com/businesses/G-L/Hershey-Foods-Corporation.html 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. While his company was successfully selling sweet chocolate products, Milton Hershey knew that a fortune lay in creating and selling milk chocolate products. Milton built a milk-processing plant in the year 1896, to be able to create and refine a recipe for milk chocolate candies. In 1899, three years later, he discovered the [[Hershey process]]. In 1907, Hershey introduced a new candy, small flat-bottomed conical-shaped pieces of chocolate that he named "[[Hershey's Kiss]]es". 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>[http://www.referenceforbusiness.com/businesses/G-L/Hershey-Foods-Corporation.html 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. (In 2007, in a rare embrace of a commercial product on a first-class stamp, the USPS marked the one-hundredth anniversary of Hershey's by placing an image of one on its Love Stamp.) 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 [[Congress of Industrial Organizations|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, Confectionery, 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. In 1970, the Chairman of the Board of Directors, [[Daniel Jones]] was arrested on charges of embezzling funds and funneling profits to the North Vietnamese government. At a preliminary hearing, it came to light that many of the documents had been forged by another member of the board, [[Joseph Tresnep]], who later admitted under oath that he wanted to take his position as Chairman. In 1971, the charges were formally dropped although the reputation of the company was badly damaged. Jones was later replaced by [[Roger W. Hershey]] as Chairman of the Board. In 2007, the Chocolate Manufacturers Association, whose members include Hershey, [[Nestlé]], and Archer Daniels Midland, began to lobby the [[FDA]] to change the legal definition of chocolate to let them substitute [[partially hydrogenated vegetable oils]] for cocoa butter as well as artificial sweeteners and milk substitutes. Currently, the FDA does not allow a product to be referred to as "chocolate" if the product contains any of these ingredients. In fall 2007, Hershey changed their milk chocolate recipe by adding lactose, milk fat, and the food additive [[PGPR]]. In December 2007, [[Philadelphia]] city councilman Juan Ramos called for Hershey's to stop marketing "Ice Breakers Pacs" due to the resemblance of the packaging to that used for street drugs.<ref>{{cite news | last =Porter | first =Jill | title =Hershey's mint/drug: Kisses, disses | work =Philadelphia City News | publisher =About Philly.com | date =Dec. 5, 2007 | url = http://www.philly.com/dailynews/columnists/jill_porter/20071205_Jill_Porter___Hersheys_mint_drug__Kisses__disses.html }}</ref> ===Manufacturing plants=== The [[Hershey, Pennsylvania]] plant, covering two million square feet of manufacturing space (185,806 square meters), is the largest chocolate factory in the world.<ref>[http://www.surfnetkids.com/chocfactory.htm Surfnetkids.com/chocfactory.htm] URL last accessed [[March 10]], [[2008]]</ref> The first plant outside [[Hershey, Pennsylvania]] opened on [[June 15]] [[1963]] in [[Smiths Falls, Ontario]], Canada. Hershey's third opened on [[May 22]] [[1965]] in [[Oakdale, California]].<ref>[http://www.hersheys.com/discover/oakdale.asp Hershey's.com] URL last accessed [[March 10]], [[2008]].</ref> In February and April 2007 Hershey's announced that their Smiths Falls<ref>[http://www.cbc.ca/money/story/2007/02/16/hershey.html CBC] URL last accessed [[March 10]], [[2008]].</ref><ref>[http://www.cbc.ca/canada/ottawa/story/2007/02/22/hershey.html CBC] URL last accessed [[March 10]], [[2008]].</ref> and Oakdale<ref>[http://www.kcra.com/news/13227352/detail.html KCRA] URL last accessed [[March 10]], [[2008]]</ref> plants would close in 2008, being replaced in part by a new facility in [[Monterrey|Monterrey, Mexico]]. The Oakdale factory closed on [[February 1]] [[2008]].<ref>[http://www.modbee.com/reports/hershey Modesto Bee] URL last accessed [[March 10]], [[2008]].</ref> According to the Hershey's web site, the Smiths Falls visitors center will remain open through 2008.<ref>[http://www.hersheys.com/discover/smithsfalls.asp Hershey's.com] URL last accessed [[March 10]], [[2008]].</ref> Tours were operated in the Pennsylvania and California factories, but this is no longer the case.<ref>[http://www.hersheys.com/discover/oakdale.asp Hershey's.com] URL last accessed [[March 10]], [[2008]].</ref> As of 2008, a factory tour is still offered at the Smiths Falls, Ontario, Canada plant.<ref>[http://www.hersheys.com/discover/smithsfalls.asp#tour Hershey's.com] URL last accessed [[March 10]], [[2008]].</ref> Visitors to Hershey, Pennsylvania can now experience [[Hershey's Chocolate World]] visitors center and its simulated tour ride. ===Other sales and acquisitions=== In 1977, Hershey acquired Y&S Candies, founded in 1845 and now makers of [[Twizzlers]] licorice candies. 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>[http://www.hersheys.com/products/details/fifthavenue.asp Hersheys.com] URL last accessed [[September 29]], [[2006]].</ref> In 1988, Hershey's acquired the rights to manufacture and distribute many [[Cadbury-Schweppes|Cadbury]]-branded products in the United States. [[Cadbury Creme Egg|Cadbury creme eggs]] sold in the United States are imported by Hershey from Cadbury in the United Kingdom.<ref>[http://www.typetive.com/candyblog/item/cadbury_mini_eggs/ Typetive review] URL last accessed [[June 30]], [[2006]].</ref> On [[July 25]], [[2002]] it became public knowledge that the [[Hershey Trust Company]] 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 interest in The Hershey Company. In December 2004, Hershey acquired the [[Mauna Loa Macadamia Nut Corp.]] from [[The Shansby Group]].<ref>{{cite book | title = Standard and Poor's 500 Guide | publisher = The McGraw-Hill Companies, Inc. | date = 2007 | isbn = 0-07-147906-6 }}</ref> In July 2005, Hershey acquired the [[Berkeley, California]]-based boutique chocolate-maker [[Scharffen Berger Chocolate Maker|Scharffen Berger]].<ref>[http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2005/07/26/BUGM6DTAOM1.DTL Sfgate.com] URL last accessed [[June 30]], [[2006]].</ref> In November 2005, Hershey acquired [[Joseph Schmidt Confections]], the [[San Francisco, California|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>[http://www.fool.com/specials/1999/sp991027halloween3.htm Fool.com]. URL last accessed [[July 3]], [[2006]].</ref> They have three mega [[distribution center]]s, with modern technology and labor management systems.<ref> [http://www.scl.gatech.edu/professional-education/ The Supply Chain & Logistics Intitute # Chris Malon, Hershey Foods] URL last accessed [[July 3]], [[2006]].</ref> Since 2005, Hershey has been moving some of the industry from the United States to many other countries, such as China and Mexico. They have cut over three thousand jobs because of this, and many people in Hershey, Pennsylvania, have been left disgruntled because of all the job cuts over the past few years.<ref>[http://www.shortnews.com/start.cfm?id=60296 Hershey's Moving to Mexico, Cutting 1,500 Jobs<!-- Bot generated title -->]</ref> ==Product recalls== *In November 2006, the [[Smiths 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 believed that most of the products involved in the recall never made it to the retail level.<ref>[http://www.cbc.ca/canada/story/2006/11/13/hershey-recall.html CBC News Article] URL last accessed [[November 13]], [[2006]].</ref><ref>[http://www.cbc.ca/health/story/2006/11/17/hershey-soy.html 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>[http://www.inspection.gc.ca/english/corpaffr/recarapp/1998/19980714e.shtml Health Canada Advisory] URL last accessed [[November 13]], [[2006]].</ref> ==See also== * [[Milton S. Hershey]] * [[List of products manufactured by The Hershey Company]] * [[Big Chocolate]] * [[H. B. Reese]] * [[Hershey Creamery Company]] (not related to the Hershey Company) ==References== *{{cite book | first=Joël Glenn | last=Brenner | year=2000 | title=The Emperors of Chocolate: Inside the Secret World of Hershey & Mars | chapter= | editor= | others= | pages= | publisher=Broadway Books | id=ISBN 0-7679-0457-5 | url= | authorlink= }} {{Reflist|2}} ==External links== * [http://www.hersheys.com Official Hershey's chocolate and candy site] * [http://www.thehersheycompany.com Official Hershey corporate site] * [http://www.hersheycanada.com Hershey Canada] {{Hershey's confectionery products}} [[Category:Hershey, Pennsylvania]] [[Category:Chocolatiers|Hershey]] [[Category:Hershey brands| ]] [[Category:Companies based in Pennsylvania|Hershey]] [[Category:Companies based in Harrisburg, Pennsylvania|Hershey]] [[Category:Confectionery companies of the United States|Hershey]] [[Category:Food companies of the United States|Hershey]] [[Category:Companies established in 1894|Hershey]] [[de:Hershey Company]] [[es:Hershey´s]] [[eo:Hershey Foods Corporation]] [[fr:Hershey's]] [[it:Hershey Company]] [[nl:Hershey's]] [[ja:ハーシー社]] [[pt:Hershey's]] [[sv:Hershey Company]] [[zh:好時]]