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Timeline

  • 1857 – Milton Hershey is born

  • 1876 – Milton starts his first
  • candy company, Crystal A. Caramels

  • 1893 – Milton discovers chocolate making

  • 1894 – Milton coats his caramels with chocolate

  • 1900 – The first Hershey Milk Chocolate Bar was enjoyed in America

  • 1903 – Hershey’s first factory

  • 1907 – Hershey’s Kiss

  • 1908 – Hershey’s Milk Chocolate Bar with almonds

  • 1909 – Milton creates the Hershey Industrial School for impoverished orphaned boys

  • 1918 – Milton donates all of his wealth and ownership of the company to his school

  • 1925 – Mr. Goodbar introduced

  • 1926 – Hershey’s syrup

  • 1938 – Krackel Bar

  • 1939 – Hershey’s Miniatures

  • 1941-45 – Hershey’s produces more than 1 billion ration bars for the WWII troops

  • 1971 – Hershey’s introduces their Special Dark Bar

  • 1989 – Hershey’s introduces the Symphony Chocolate Bar

  • 1994 – Cookie’s ‘n’ Crème Bar introduced

Financials

2009

Total Revenue 5,298,668

Gross Profit 2,053,137

Net Income 435,994

Total Assets 3,675,031

Long Term Debt 1,502,730

R&D 0

Products

Chocolate:

  • Hershey Bars
  • Almond Joy
  • Kit Kat Wafer Bar
  • Milk Duds
  • Whoppers

Non-Chocolate:

  • Breath Savers
  • Jolly Ranchers
  • Bubble Yum
  • PayDay
  • Trail Mix
  • Twizzlers

Hershey's Chocolate Bar

Nutrition Information

Kosher Status: OU-D

Serving Size: 1 bar (43.00 g)

Total Calories 210

Calories from Fat 110

Amount Per Serving %DV

Total Fat 13 g 20%

Saturated Fat 8 g 40%

Cholesterol 10 mg 3%

Sodium 35 mg 1%

Total Carbohydrate 26 g 9%

Dietary Fiber 1 g 4%

Sugars 24 g

Sugar Alcohols 0%

Protein 3 g

Vitamin C 0%

Calcium 8%

Iron 2%

What

The Hershey’s Milk Chocolate Bar is a bar of milk chocolate and is described as “The Great American Chocolate Bar”. It was invented by Milton Hershey and is manufactured by The Hershey Company.

Who

Hershey's sells directly to large production manufacturers, bakeries, grocery markets, and consumers.

Competitors

  • Kraft Foods Inc.
  • Mars Inc.
  • Nestle S.A.

Price

$0.50

Annual Volume

1,000 per minute

or

525,600,000 per year

Manufacturing

Cacao trees grow melon-like fruit, which is harvested by hand. Inside each

pod are about 20-40 seeds, or cocoa beans.

After the beans are removed from the pods, they are placed in large

heaps or piles. This is called fermentation, and takes about a week.

During this time, the shells harden, the beans darken, and the rich cocoa flavor develops. After drying, the

beans are ready for transport to the chocolate factory.

Railroad cars carry the cocoa beans from the docks to the chocolate

factory where they are cleaned and stored.

Cocoa beans from different countries each have a distinct flavor. After

arriving at the factory, the beans are stored by country of origin until they

are blended to give them that special Hershey taste

Cocoa beans are roasted in large, revolving roasters at very high

temperatures.

special hulling machine then takes the dry, roasted cocoa beans and separates the shell from the inside of the

bean - called the “nib.” This is the part of the bean actually used to make chocolate.

Mixing

The main ingredients in chocolate are the chocolate liquor, cocoa butter,

sugar and milk.

Hershey uses fresh, whole milk to make its milk chocolate. It’s been that

way since Milton Hershey developed the recipe in 1900. Tanker trucks

bring the fresh milk to the factory every day where it is tested,

pasteurized, and then mixed with sugar. The whole milk-sugar mixture is

slowly dried until it turns into a thick, taffy-like material.

At the heart of the chocolate factory is the central blending operation

where the chocolate liquor is combined with the milk and sugar. This new mixture is dried into a coarse, brown

powder called chocolate crumb.

Finishing Touches

The chocolate crumb powder is used to make milk chocolate. Hershey

adds cocoa butter to the crumb which brings out the rich taste and

creamy texture of the chocolate. The crumb travels through special steel

rollers which grind and refine the mixture, making it smoother.

The crumb becomes a thick liquid called chocolate paste. The paste is

poured into huge vats called conches. Once inside the conche, large

granite rollers smooth out the gritty particles from the crumb. This

process can take anywhere from 24 to 72 hours to complete.

Most chocolate bars are made by pouring the liquid chocolate paste into

moulds. The moulding machines can fill more than 1,000 moulds per

minute with delicious HERSHEY’S chocolate. The filled moulds then take a

bumpy, vibrating ride to remove air bubbles and allow the chocolate to

settle evenly. Finally, they wind their way through a long cooling tunnel

where the liquid chocolate is gently chilled into a solid candy bar.

Completed

Suppliers

Cacao Beans

  • Cote d'Ivoire (Ivory Coast)
  • Ghana
  • Indonesia

Sugar

  • Brazil
  • India
  • Australia

Milk

  • Eu
  • India
  • United States

Quality

Have a page on their site that

talks about the nutritious values

and facts about manufacturing, so

the consumer knows exactly what their

chocolate is made of and how its made.

Quality problems

FDA says Hershey can no longer use milk chocolate, from what I researched consumers don't like this

Hershey gets cacao beans from countries that use child labor.

Distribution

90% of sales in North America

Production

  • Canada
  • Mexico
  • United States

Distributions

Hershey’s has 90% of it’s sales in North America. The production facilities are located in Canada, Mexico, and the United States. Hershey’s distributes it’s products through wholesale distributors, grocery stores, mass merchandisers, dollar and department stores, drug stores, convenience stores, and department stores, and vending companies.

The McLane Company

  • Largest customer - distributor
  • 27% of sales

Overseas

Hershey’s has started to distribute products in the UK, Europe and China to compete with Kraft and Mars. Inc.

Threats

  • Extremely vulnerable to the rise of prices of cocoa, milk, peanuts, and sugar
  • Biggest threat - decrease in cocoa production
  • Cocoa prices up 15% in last year due to crop plagues

Other Threats

  • Nestle
  • Craft
  • Mars

Possible buyout by Nestle rumored

The Hershey Company (HSY)

Produce videoes that show you

the process of the chocolate, from the raw materials to packaging.

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