According to an article posted today on talkingretail.com, Hershey has appointed Euro Food Brands for a UK sales push. EFB will be the official importer and distributor partner in the UK. EFB believes that there are clear growth opportunities in the UK through both everyday purchasing and via seasonal and gifting occasions. Stephen Barlow, Managing Director of Euro Food Brands, says: "Hershey's has a phenomenal potential in the UK market with such a portfolio of iconic brands."
Looks like Hershey is not the only organization to think of their iconic brands as a competitve advantage....I'd say I have to agree with them!
http://www.talkingretail.com/products/product-news/16138-hershey-appoints-euro-foods-group-for-uk-sales-push.html
Tuesday, August 31, 2010
A bit on Performance, Competitve Advantage, and Stategy....
Some key points regarding performance, competitive advantage, and strategy taken from The Hershey Company 2010 Annual Meeting of Stockholders held May 4, 2010. If you would like to look over the presentation, it can be viewed at:
http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9NDQyMzF8Q2hpbGRJRD0tMXxUeXBlPTM=&t=1
Performance:
They state that they have had top-tier performance since adoption of new strategy in 2008. From 1/1/08 to 4/23/10, Hershey shares have out performed peer group. I am interested to see if I can find something outlining their strategy before 2008.
In 2010, they expect a Net Sales increase of at least 6% and an Adjusted Earnings Per Share-diluted increase in the low-to-mid teens.
Competitive Advantage:
Confectionery-an advantaged category
-High impulse purchases
-High household penetration
-High purchase frequency
-Responsive to merchandising
-Seasonal destination
-Low private label presence
-Recession resistant
Significant competitive advantages:
-Iconic brands
-Category leadership
-Dedicated direct sales force
-Proprietary go-to-market tools
Hershey is loved by customers and has a strong corporate reputation built on a unique heritage that is still at heart of the company today, both of which they feel also gives them a competitive advantage.
Strategy:
Hershey is evolving their supply chain. One way is thru reducing the number of manufacturing facilities and distribution centers for an expected savings on capital expenditures of $30 million to $60 million.
Their strategy places a great emphasis on innovation leading to enhanced consumer and category understanding and a developed disciplined process. They also place an emphasis on new product launches, both variations of current core products and introduction of new products/segments.
http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9NDQyMzF8Q2hpbGRJRD0tMXxUeXBlPTM=&t=1
Performance:
They state that they have had top-tier performance since adoption of new strategy in 2008. From 1/1/08 to 4/23/10, Hershey shares have out performed peer group. I am interested to see if I can find something outlining their strategy before 2008.
In 2010, they expect a Net Sales increase of at least 6% and an Adjusted Earnings Per Share-diluted increase in the low-to-mid teens.
Competitive Advantage:
Confectionery-an advantaged category
-High impulse purchases
-High household penetration
-High purchase frequency
-Responsive to merchandising
-Seasonal destination
-Low private label presence
-Recession resistant
Significant competitive advantages:
-Iconic brands
-Category leadership
-Dedicated direct sales force
-Proprietary go-to-market tools
Hershey is loved by customers and has a strong corporate reputation built on a unique heritage that is still at heart of the company today, both of which they feel also gives them a competitive advantage.
Strategy:
Hershey is evolving their supply chain. One way is thru reducing the number of manufacturing facilities and distribution centers for an expected savings on capital expenditures of $30 million to $60 million.
Their strategy places a great emphasis on innovation leading to enhanced consumer and category understanding and a developed disciplined process. They also place an emphasis on new product launches, both variations of current core products and introduction of new products/segments.
Sunday, August 29, 2010
A little info on Hershey....
Milton S. Hershey was raised in rural central Pennsylvania, dropped out of school when he was 13 years old, and was nearly bankrupt by the time he was 30. He went on to “become not only one of America’s wealthiest individuals, but also a successful entrepreneur whose products are known the world over, a visionary builder of the town which bears his name and a philanthropist whose open-hearted generosity continues to touch the lives of thousands.”
Hershey’s has acquired several other companies over the years: H.B. Reese Candy Company (1956); San Giorgio Macaroni and Delmonico Foods (1966); manufacturing and marketing rights to English candy company Rowntree MacKintosh’s products (1970); Y&S Candies, makers of Twizzlers licorice (1977); Dietrich Corp.’s confectionery operations (1986); Peter Paul/Cadbury’s U.S. confectionery operations (1988); and Ronzoni Foods (1990).
“Today, The Hershey Company is the leading North American manufacturer of chocolate and non-chocolate confectionery and grocery products.” They export to over 90 countries, employee approximately 13,700, and have net sales in excess of $4 billion.
NYSE: HSY --8/27/10 Close: $47.09 Change: +$0.60
Hershey’s has acquired several other companies over the years: H.B. Reese Candy Company (1956); San Giorgio Macaroni and Delmonico Foods (1966); manufacturing and marketing rights to English candy company Rowntree MacKintosh’s products (1970); Y&S Candies, makers of Twizzlers licorice (1977); Dietrich Corp.’s confectionery operations (1986); Peter Paul/Cadbury’s U.S. confectionery operations (1988); and Ronzoni Foods (1990).
“Today, The Hershey Company is the leading North American manufacturer of chocolate and non-chocolate confectionery and grocery products.” They export to over 90 countries, employee approximately 13,700, and have net sales in excess of $4 billion.
NYSE: HSY --8/27/10 Close: $47.09 Change: +$0.60
Friday, August 27, 2010
Why Hershey?
I chose to follow The Hershey Company because I love candy and the story behind the company! Milton S. Hershey's story is quite inspiring. My in-laws live 45 minutes from Hershey, PA, and I have to make a stop at Chocolate World every time I come up for a visit!
NYSE: HSY
website: http://www.thehersheycompany.com/
NYSE: HSY
website: http://www.thehersheycompany.com/
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