The Hershey Company's most recent acquisitions have been:
Feb 2009- Van Houten Singapore Pte Ltd (chocolate brand sold in Asia)
Oct 2006- Dagoba Organic Chocolate LLC (producer of chocolate products)
Aug 2005- Joseph Schmidt Confections Inc (producer of premium handcrafted chocolate products) and Scharffen Bergen Chocolate (producer of premium dark chocolate products)
Dec 2004- Mauna Loa Macadamia Nut Corp (producer of macadamia nuts)
Sunday, October 24, 2010
Sugar Prices Expected to Rise
Taken from 10/19/10 article on MSN.
"...droughts in South America have pushed down sugar cane forecasts and should ultimately result in high sugar prices. Brazilian company Cosan Ltd. last month revised its 2011/12 sugar cane crush forecast downwards. Also, the Environmental Protection Agency's recent approval for an increase of the percentage of ethanol allowed in gasoline from 10% to 15%, could increase demand for sugar and further affect prices."
http://articles.moneycentral.msn.com/news/article.aspx?Feed=MW&Date=20101019&ID=12191289&Symbol=US:HSY
"...droughts in South America have pushed down sugar cane forecasts and should ultimately result in high sugar prices. Brazilian company Cosan Ltd. last month revised its 2011/12 sugar cane crush forecast downwards. Also, the Environmental Protection Agency's recent approval for an increase of the percentage of ethanol allowed in gasoline from 10% to 15%, could increase demand for sugar and further affect prices."
http://articles.moneycentral.msn.com/news/article.aspx?Feed=MW&Date=20101019&ID=12191289&Symbol=US:HSY
Tuesday, October 19, 2010
Hershey Recipe Change....Yes, It's True...Well, Somewhat...
My classmate posted a blog recently on Hershey's recipe change and how it is leading to the decreased market share. http://luciangmarsinc.blogspot.com/2010/10/fake-chocolate-say-it-isnt-so-hersheys.html I feel like it is an area I should address in my Hershey blog...and also add a bit of clarification for those who are ready to switch chocolate bars.
Yes, Hershey has changed their recipe on some of their products. They have replaced the cocoa butter with vegetable oil in these products. If you look at the labels, they are pretty easy to spot. The FDA does not allow a product to be called "chocolate" if it contains any vegetable oil. So the changed products will say something like "chocolatey coating" or "chocolate-flavored". However, 85% of their products remain unchanged. The classic Hershey bar, for instance, is the same recipe that we have grown up on. Some of the products that have been changed are their smaller sellers, such as Mr.Goodbar, Take5, and Kissables.
While I'm not sure I agree with the recipe change, I do see where the temptation came in to cut costs. Because of the high competition in the candy industry, they couldn't raise their prices to pass their increased costs along to consumers. Some customers have stated they feel betrayed...like Hershey tried to slip the recipe change in under the radar. Well, they did. At the same time, I don't remember hearing any ads about how Mars candy bars were going to be shrinking to cut costs. So who's to say which, if either, was more deceitful?
Some people have stated that the new recipe provides less health benefits because of the removal of cocoa butter. Well, seriously, most people are not eating chocolate for the health benefits. The milk chocolate that most people enjoy actually provides little health benefit when you take into account the high amounts of sugar and fat that make it so yummy. If you are seeking the health benefits, try a spoonful of pure unsweetened cocoa instead.
Today show video: http://today.msnbc.msn.com/id/26184891/vp/26788318#26788318
Article: http://www.pennlive.com/midstate/index.ssf/2008/09/a_consumer_segment_on_nbcs.html
Yes, Hershey has changed their recipe on some of their products. They have replaced the cocoa butter with vegetable oil in these products. If you look at the labels, they are pretty easy to spot. The FDA does not allow a product to be called "chocolate" if it contains any vegetable oil. So the changed products will say something like "chocolatey coating" or "chocolate-flavored". However, 85% of their products remain unchanged. The classic Hershey bar, for instance, is the same recipe that we have grown up on. Some of the products that have been changed are their smaller sellers, such as Mr.Goodbar, Take5, and Kissables.
While I'm not sure I agree with the recipe change, I do see where the temptation came in to cut costs. Because of the high competition in the candy industry, they couldn't raise their prices to pass their increased costs along to consumers. Some customers have stated they feel betrayed...like Hershey tried to slip the recipe change in under the radar. Well, they did. At the same time, I don't remember hearing any ads about how Mars candy bars were going to be shrinking to cut costs. So who's to say which, if either, was more deceitful?
Some people have stated that the new recipe provides less health benefits because of the removal of cocoa butter. Well, seriously, most people are not eating chocolate for the health benefits. The milk chocolate that most people enjoy actually provides little health benefit when you take into account the high amounts of sugar and fat that make it so yummy. If you are seeking the health benefits, try a spoonful of pure unsweetened cocoa instead.
Today show video: http://today.msnbc.msn.com/id/26184891/vp/26788318#26788318
Article: http://www.pennlive.com/midstate/index.ssf/2008/09/a_consumer_segment_on_nbcs.html
Wednesday, October 13, 2010
Hershey falling short on Fair Trade
October is Fair Trade Month. Even though Hershey leads the US market share at just over 40%, they are doing the least in the area of fair trade. Competitors Mars, Kraft, Nestle, and Cargill are embracing fair trade. Global Exchange, Green America, and the International Labor Rights Forum, and Oasis USA got together to release the report, TIME TO RAISE THE BAR: The Real Corporate Social Responsibility Report for the Hershey Company. (Hershey released its first ever Corporate Social Resonsobility Report last week.)
http://www.fastcompany.com/1693089/hershey-gets-a-not-so-sweet-declaration-for-fair-trade-month
http://www.fastcompany.com/1693089/hershey-gets-a-not-so-sweet-declaration-for-fair-trade-month
Original Hershey Chocolate Factory Set To Close
Hershey has announced that they will be closing their original factory. They state that it is old and cannot accomodate new equipment necessary to remain cometitive globally. A new facility is being built just outside of town for $300M. 600 workers are scheduled to be moved to the old to new plant, but 500 employees are scheduled to be replaced by machinery.
http://www.npr.org/templates/story/story.php?storyId=130079220&ft=1&f=1003
http://www.npr.org/templates/story/story.php?storyId=130079220&ft=1&f=1003
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