The Hershey Company

The Hershey Company
	File:Hershey logo.svg Logo used since 2020
Company type	Public
Industry	Confectionery
Founded	1894; 132 years ago
Founder	Milton S. Hershey
Headquarters	Hershey, Pennsylvania, United States
Key people	Michele Buck (CEO), Steven Voskuil (CFO)
Products	Chocolate, baked goods, beverages
Owner	Hershey Trust Company (minority ownership stake, majority voting control)
Website	www.thehersheycompany.com

The Hershey Company, widely recognized as Hershey or Hershey's, is a leading American multinational confectionery firm headquartered in Hershey, Pennsylvania, the location of Hersheypark and Hershey's Chocolate World. Established in 1894 by entrepreneur Milton S. Hershey as the Hershey Chocolate Company, initially a branch of his Lancaster Caramel Company, it has evolved into one of the globe’s foremost chocolate producers. Although the Hershey Trust Company holds a minority ownership stake, it maintains majority voting control.

Hershey's range of products encompasses chocolate, baked goods such as cookies and cakes, and beverages like milkshakes, broadened through targeted mergers and acquisitions. The corporation runs 19 production facilities worldwide and supplies its products to 60 countries through three primary distribution centers that utilize sophisticated labor management technologies. As part of the World Cocoa Foundation, Hershey prioritizes sustainable practices in its supply chain.

Despite their shared Lancaster County roots, The Hershey Company is not connected to the Hershey Creamery Company. The two entities have settled several trademark conflicts, culminating in a 1990s agreement that required Hershey Creamery to clearly state its lack of association on its ice cream packaging.

Top leadership includes CEO Michele Buck and CFO Steven Voskuil, who oversee the company’s strategic direction and financial outcomes. In 2024, Hershey reported $11.2 billion in revenue, $2.9 billion in operating income, and $2.22 billion in net income, underscoring robust growth and significant influence within the confectionery sector.

19th century

Following an apprenticeship with a confectioner in Lancaster in 1873, Milton S. Hershey launched candy shops in Philadelphia, Chicago, and New York City; however, these ventures were unsuccessful. He subsequently founded the Lancaster Caramel Company in 1883. The Hershey Chocolate Company was created as a subsidiary in 1894.

In 1896, Hershey constructed a milk-processing facility to perfect his milk chocolate formula and by 1900 had developed the Hershey process, which allowed for reliable mass production of milk chocolate. That same year saw the introduction of the signature Hershey's Milk Chocolate bar.

20th century

After selling his caramel business for $1 million in 1900 to concentrate on chocolate manufacturing, Hershey established a factory in Derry Church, Pennsylvania (later renamed Hershey). This location provided affordable housing for employees and featured recreational amenities including what would become Hersheypark to improve worker satisfaction. The factory’s output of popular milk chocolate bars spurred rapid company expansion.

In 1907, the company launched the bite-sized Hershey's Kiss, originally hand-wrapped in foil; mechanized wrapping began in 1921, enhancing production speed and brand consistency. Presently, more than 70 million Kisses are produced daily.

The product lineup grew with additions such as Mr. Goodbar (1925), Hershey's Syrup (1926), semi-sweet chocolate chips (1928), and the Krackel bar featuring crisped rice (1938), all contributing to strengthening its position in the confectionery market.

Milton Hershey Schools (MHS)

Milton S. Hershey, the founder behind the Hershey Company, created the Hershey Industrial School in 1909 to serve orphaned boys. In 1918, he contributed nearly $90 million along with 40% of the company's common stock to establish a trust for the school. Originally emphasizing vocational training, the institution later evolved to focus on preparing students for college. Since its inception, the Hershey Trust Company has overseen the school's trusteeship and voting rights. The campus includes architectural elements inspired by Hershey products, such as street lamps modeled after Hershey Kisses. Renamed the Milton Hershey School in 1951, it continues to represent a major philanthropic initiative connected to Hershey’s corporate heritage.

Reese's Peanut Butter Cups

Harry Burnett Reese founded the H. B. Reese Candy Company in 1923 and created Reese's Peanut Butter Cups. Following Reese’s passing in 1956, his company merged with Hershey Chocolate Corporation through a tax-exempt stock-for-stock transaction in 1963. By 1969, Reese's Peanut Butter Cups had become the best-selling product within Hershey’s portfolio. As of 2012, Reese’s dominated U.S. candy sales with $2.603 billion in revenue and ranked fourth worldwide with $2.679 billion. After 61 years of stock splits, the Reese family’s initial 666,316 shares expanded to 16 million shares valued at more than $4.4 billion by 2024, producing annual dividends over $87 million. This acquisition substantially broadened Hershey’s market presence and brand diversity in confectionery.

Unionization

During the late 1930s, labor tensions arose at Hershey when a union supported by the Congress of Industrial Organizations sought to organize factory employees. A sit-down strike in 1937 ended unsuccessfully amid confrontations between loyal workers, local farmers, and strikers. By 1940, under John Shearer’s guidance, an affiliate of the American Federation of Labor successfully unionized Hershey’s workforce as Local Chapter Number 464 of the Bakery, Confectionery, Tobacco Workers and Grain Millers' International Union, which continues to represent workers today.

Atlantic City soap venture

Between 1938 and 1952, Milton Hershey diversified into personal care products by offering cocoa butter-scented toilet soap at a retail location on Atlantic City’s Boardwalk. This store sold items produced by Hershey Estates including keystone soap, tar soap, and shaving soap. Distribution extended from New York City down to Baltimore until the shop ceased operations in 1953.

M&M's

Just before World War II, Bruce Murrie—son of Hershey president William F.R. Murrie—collaborated with Forrest Mars to develop sugar-coated chocolates named M&M's, with Murrie owning a 20% share. During wartime rationing, Hershey supplied the chocolate component. In 1948, Mars acquired Murrie’s stake and established himself as a principal competitor.

Kit Kat and Rolo

In 1969, Hershey secured licensing rights from UK-based Rowntree's to produce and distribute Kit Kat and Rolo within the United States. After Nestlé purchased Rowntree's in 1988, it maintained this licensing agreement; Hershey still manufactures these products domestically. The license would revert to Nestlé if Hershey were sold—a condition that complicated Hershey's attempted sale in 2002 and influenced Nestlé’s decision to decline the asking price.

Cadbury

In 1988, Hershey secured the rights to produce and distribute numerous Cadbury products within the United States, except for gum and mints, which remain under Mondelēz International ownership. In 2015, Hershey initiated legal action against a British importer to halt the entry of British Cadbury chocolates into the U.S. market, sparking negative consumer reactions. Plans for a merger between Mondelēz and Hershey were ultimately abandoned in 2016 after Hershey declined a $23 billion acquisition offer.

20th century sales and acquisitions

Hershey expanded its portfolio in 1977 by acquiring Y&S Candies, the producer of Twizzlers. The company briefly ventured into the cough drop sector in 1986 through the purchase of Luden's, which it later divested in 2001 while retaining ownership of the 5th Avenue candy bar. In 1996, Hershey acquired the American division of the Leaf Candy Company. The Hershey Pasta Group was sold off in 1999, leading to the formation of New World Pasta, now under Ebro Foods.

21st century

In 2002, an attempt by the Hershey Trust to divest its controlling stake in Hershey Foods triggered a 25% surge in stock value. However, due to public opposition and legal challenges, the sale was halted, resulting in the replacement of several trustees to maintain Trust control.

December 2004 saw Hershey acquire Mauna Loa Macadamia Nut Corp., followed by purchases of boutique chocolate makers Scharffen Berger Chocolate Maker and Joseph Schmidt Confections in 2005, and Dagoba Organic Chocolate in 2006.

Hershey encountered controversy in 2006 regarding packaging for "Ice Breakers Pacs" and reformulated some chocolate products by substituting cocoa butter with vegetable oils to reduce production costs; this led to relabeling changes from "milk chocolate" to "chocolate candy." That same year included a temporary shutdown of a Canadian plant and product recall due to possible contamination concerns.

In December 2011, Hershey expanded by acquiring Brookside Foods Ltd., a Canadian confectionery firm. The company further broadened its snack offerings with the $290 million purchase of barkTHINS in 2016.

A proposed sale of Hershey to Mondelēz International was blocked by the Hershey Trust that year.

In 2017, Hershey acquired Amplify Snack Brands, known for SkinnyPop, for roughly $1.6 billion. The following year, it purchased Pirate Brands for $420 million, marking an expansion into non-confectionery snack categories.

August 2019 brought the acquisition of protein bar manufacturer One Brands LLC for $397 million and a collaboration with Yuengling to produce a limited-edition chocolate porter beer. In June 2021, Hershey acquired Lily's for $425 million and later announced intentions to buy Dot’s Homestyle Pretzels and Pretzel INC for $1.2 billion.

Hershey has faced ongoing scrutiny over ethical cocoa sourcing; in 2019 it admitted being unable to fully ensure its cocoa supply was free from child slave labor despite longstanding commitments dating back to 2001. In 2021, Hershey was included in a class action lawsuit alleging involvement in forced labor on cocoa farms; this lawsuit was dismissed in 2022.

In December 2022, Hershey faced litigation concerning elevated lead and cadmium levels detected in various dark chocolate products as reported by Consumer Reports.

By 2023, Hershey diversified into plant-based chocolate offerings utilizing dairy alternatives with new lines such as Plant Based Extra Creamy and Plant Based Reese's Peanut Butter Cups.

Mark Tanner from The Wendy's Company was announced as Michelle Buck’s successor as CEO effective July 2025 upon her retirement.

Brands

Hershey's brand lineup predominantly features chocolate and confectionery products, complemented by gum and savory snacks. The company primarily serves consumers in the United States and Canada.

Innovation remains a key focus for Hershey, which broadens its product range beyond traditional chocolate through strategic acquisitions such as Pirate's Booty, Skinny Pop, and Dots Pretzels.

Consumer Insights

By utilizing consumer data, Hershey ensures its offerings meet the preferences of its target audiences. The "Hershey Intelligence Engine" combines retail sales information with sector analytics to gain deeper understanding of purchasing patterns, thereby shaping product development and marketing strategies.

Manufacturing plants

The company's initial manufacturing site outside Pennsylvania was established in Smiths Falls, Ontario in 1963, followed by a facility in Oakdale, California in 1965. In 2007, Hershey announced the closure of these plants, shifting some production capacity to a newer plant located in Monterrey, Mexico. The Oakdale factory ceased operations in February 2008.

Global expansion includes the opening of a chocolate factory in São Roque, Brazil in 2002 and an Asia-focused supply plant in Mandideep, India. Additional production facilities are located in Stuarts Draft (Virginia), Lancaster and Hazleton (Pennsylvania), Memphis (Tennessee), Robinson (Illinois), and Guadalajara (Mexico).

While Hershey’s visitor center at Hershey's Chocolate World remains operational, public tours of its factories were discontinued—Pennsylvania’s tours ended in 1973 and California’s after the events of September 11—due to heightened security concerns.

In September 2012, Hershey announced a $300 million upgrade to its West Hershey manufacturing complex. Later, in March 2018, the company initiated a $60 million expansion at its Kit Kat production site in Hazle Township, Pennsylvania, creating 111 new jobs.

On August 17, 2023, Hershey reacquired its former Smiths Falls facility from Canopy Growth for $53 million.

Perception outside the U.S.

Hershey’s chocolate is characterized by the presence of butyric acid generated through controlled lipolysis during production. This imparts a flavor profile that many international consumers find unusual or off-putting—often likened to vomit—and contrasts significantly with European chocolates such as Swiss milk chocolate. With approximately 13% cocoa content and milk fat partially enzymatically broken down, Hershey’s chocolate exhibits a subtly rancid and cheesy taste that limits its global popularity.

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