These legendary brands have contributed to the success of having sales that reach well over four billion dollars. TheHershey Company also enjoys being the leader of the dark and premium chocolate segment. The top brands in thiscategory include Hershey¶s Special Dark, Hershey¶s Extra Dark, and Cacao Reserve. Expansion has also lead to thedevelopment of different snacks.Hershey¶s chocolate has been used to enhance cookies, brownies, and cakes.The Hershey Company lives by their mission statement: ³Undisputed Marketplace Leadership´ (www.hersheys.com).They strive to maintain a superior standing by having continual creation of value, developing a diverse portfolio of brands, and by successfully transforming consumer and customer desires into reality. Today, the Hershey Companyremains committed to fulfilling the mission of Milton Hershey, the founder who started it all.
Milton Hershey grew up in rural Pennsylvania and left his legacy as Hershey¶s chocolate. Milton was an entrepreneur who completed a four-year apprenticeship with a candy maker prior to venturing out to start his own business.Hershey made three attempts at starting his own company before successfully starting the Lancaster CaramelCompany. It wasn¶t until 1893 that Milton Hershey became interested in the art of chocolate making. While attendingthe World¶s Columbian Exposition, Hershey purchased machinery and thus began producing chocolate that coveredhis caramel creations. Soon after this discovery, Hershey started the Hershey Chocolate Company in 1894. After many trials and errors, he finally stumbled upon the famous recipe that would become his legacy.In 1900, Milton Hershey sold his caramel business for one million dollars. He then focused solely on makingchocolate. In 1903, Hershey decided to build his company at a new location in Derry Township. This location had alarger population, easy access to port cities that would supply sugar and cocoa beans, and plenty of dairy farms.Milton Hershey sought not only to build a company, but also to build a community. He believed that workers workedbetter under pleasant working conditions and pleasant surroundings. For this reason, Hershey built an infrastructureto take care of his workers. This infrastructure was accompanied with a department store, convention hall, and lots of schools. ³In a long and useful life, Milton S. Hershey proved himself to be a courageous entrepreneur, a determinedbuilder and a compassionate humanitarian´ (www.hersheys.com).
Chocolate and Cocoa Industry History / Development:
The chocolate industry relies heavily on fluctuations in demand. The demand for these products increases drasticallyduring the holiday season. For this reason, sales increase during the third and fourth quarters of the calendar year.Several consumer trends such as the rising sales of premium-priced chocolates and the growing concern about thehealth risks associated with the consumption of such high-fat foods affect the chocolate industry (www.answers.com).There were 995 establishments that produced chocolate in 2000 (www.answers.com). California and Pennsylvaniawere the two states that had the majority of these establishments. The total consumption of chocolate in a year isabout 3.1 billion pounds with a total of retails sales reaching about $13 billion.The chocolate industry dates back to 1765. At that time, growers in the West Indies supplied cocoa. The firstchocolate factory was established in England. During the First World War, chocolate was used as a morale booster and for nourishment. From 1989 to 1991 the chocolate/cocoa industry experienced 50 acquisitions, mergers,licensing agreements, or joint ventures (www.answers.com).During the mid 1990¶s, the industry catered toward new consumer trends. The development of lite chocolate and litedesserts increased drastically with the creation of fat-free chocolate items.
In order for U.S. manufacturers to use cocoa beans, the beans must be imported by direct purchase or through abroker. The growers of these beans are paid market price. Once the beans are obtained, they are then processed tomake chocolate liquor. This liquor is then used to manufacture cocoa, syrup, and solid chocolate chips. It can also beused to enhance confections, bakery items, and other dairy products.The manufacturing process includes roasting, shelling, and grinding of the beans to produce the unsweetenedchocolate liquor. Additional processing will yield one of two products, cocoa or chocolate. Cocoa is produced byextracting fat from the liquor. The remaining cocoa cake is crushed to form a powder and may be sweetened or leftunsweetened. The fat that is extracted is known ascocoa butter which can be used in sweetened chocolate or as moisturizers. The production of chocolate requires theaddition of sugar and cocoa butter to the liquor. Milk solids are also needed when manufacturing milk chocolate.Chocolate manufacturers typically sell the semi-processed products to other firms that use them when producingconfectionery goods. ³Exports of chocolate products consist of confectionery items rather than semi-processedchocolate´(www.answers.com).
Company Mission Statement/ Corporate Philosophy:
The Hershey Company¶s mission statement reads as follows, ³Our mission is to be a focused food company in North America and selected international markets and a leader in every aspect of our business. Our goal is to enhance our