Hershey Foods Corporation is the leading North American manufacturer
of quality chocolate, confectionery and chocolate-related grocery products;
is the leading North American producer of branded, dry pasta products, and
has a variety of international operations.
Our mission is to be a focused food company in North America and selected
international markets and a leader in every aspect of our business. In North
America, our goal is to enhance our number one position in confectionery
and maintain our Leadership position in pasta and chocolate-related grocery
Hershey Chocolate North America
The division produces and markets many favorite American brands. Principal
brands include Almond Joy and Mounds candy bars, Cadbury Creme Eggs candy,
Hershey's Cookies 'n' Creme candy bar, Hershey's milk chocolate and milk
chocolate with almond bars, Hershey's Nuggets chocolates, Hershey's Kisses
and Hershey's Hugs chocolates, Kit Kat wafer bar, Reese's NutRageous candy
bar, Reese's peanut butter cups, Sweet Escapes candy bars, TasteTations
candy, Twizzlers candy and York peppermint patties. Additional brands include
Jolly Rancher candy, Jujyfruits candy, Milk Duds candy, PayDay peanut caramel
bar, Pot of Gold boxed chocolates, Whoppers malted milk balls and Wunderbeans
jellybeans. Key Canadian brands include Brown Cow and Strawberry Cow milk
modifiers, Chipits chocolate chips, Eat-More candy, Glosette candy, Hershey
candy bars, Oh Henry! candy bars, Pot of Gold boxed chocolates, Reese Peanut
Butter Cups candy and Twizzlers candy. In Mexico, chocolate products are
produced and marketed under the Hershey's brand name. In addition, some
of the division's products manufactured in the United States are sold in
Market Position Factors
In 1996, Hershey Chocolate North America was the leading confectionery
company in North America. The division also continued to hold the leadership
position in baking chips and sundae toppings in Canada, and held the number
two position in the expanded chocolate bar market in that country as well
as the number two position in the chocolate confectionery and flavored milk
drink categories in Mexico.
The December 1996 acquisition of Leaf North America carried the division
to the North American leadership position in the non-chocolate confectionery
category and enhanced its leadership position in the chocolate confectionery
category. Successful new product introductions, line extensions of core
brands, the inclusion of Henry Heide products, the excellent growth in the
division's seasonal packaged candy business and the December 1995 price
increase on the divisions standard bar line in the United States all contributed
to the strong growth in the corporation's largest division.
Hershey Pasta and Grocery Group
The division produces a broad array of dry pasta products under eight
regional brands: American Beauty, Ideal by San Giorgio, Light 'n Fluffy,
P&R, Mrs. Weiss, Ronzoni, San Giorgio and Skinner. Other grocery products
include Hershey's and Reese's baking chips, Hershey's baking chocolate,
Hershey's chocolate drink, Hershey's chocolate milk mix, Hershey's Chocolate
Shoppe ice cream toppings, Hershey's cocoa, Hershey's syrup, Hershey's Hot
Cocoa Collection hot cocoa mix and Reese's peanut butter.
The division continued to hold the number one share position in the
U.S. branded dry pasta category. Its regional approach to marketing has
been instrumental in maintaining this leadership position. The division
also holds the leadership position in the chocolate syrup and unsweetened
cocoa categories in the United States.
Market Position Factors
The U.S. pasta industry experienced a modest volume decline and continued
higher durum wheat costs in 1996. The division participated in a successful
trade case against illegally subsidized and dumped imported pasta. New chocolate-related
grocery product introductions and the licensing of the corporation's trademarks
to other grocery manufacturers contributed significantly to the division's
The division exports Hershey's branded confectionery and grocery products
to over 60 countries worldwide. It markets traditional Hershey's chocolate
and grocery products, as well as Hershey's Extra Creamy milk chocolate,
designed specifically to meet the preferences of international consumers.
Hershey's branded products also are available through licensing agreements
with partners in South Korea, Japan, the Philippines and Taiwan.
In Japan, Hershey's Kisses milk chocolates are the division's major
confectionery product. The division continues to have a strong brand franchise
in South Korea, where it is the recognized leader in chocolate beverages.
One of Hershey's strongest markets outside of North America is the Philippines,
where the division competes favorably in the domestic retail market and
duty-free business. Hershey's chocolate products have been introduced in
Russia and China.
Market Position Factors
The division continues to focus its efforts in areas where it can achieve
profitable growth and a reasonable return on investments. The Far East,
Russia and China, as well as licensing and export programs worldwide, provide
growth opportunities for the division.