Hershey Develops Global Markets

By Tom Dochat, The Patriot-News, Harrisburg, Pa.

Jan. 16–The Hershey Co. remains the U.S. leader in confectionery products, with an overall 30 percent share of the candy market.

It has 45 percent of the chocolate market, said Richard H. Lenny, chairman, president and CEO.

About 90 percent of Hershey sales are in the U.S., Lenny said.

“We want to continue to build our leadership within the U.S. market, but we can no longer simply be primarily a one-country business,” he said.

Hershey is eyeing high-growth markets such as China, India, other parts of Asia and some Latin American countries. To take advantage of those opportunities, Hershey needs to develop ways to get its country-specific products to consumers.

“We’re looking at potential alliances with well-established regional players who can give us a route to market,” Lenny said.

Hershey is making products for China in the Middle East and the Philippines. Lenny explained that the company is getting away from the export model “where we make product in the U.S. and ship to the global market.”

“That’s not the way to win,” Lenny said.

—–

To see more of The Patriot-News, or to subscribe to the newspaper, go to http://www.patriot-news.com.

Copyright (c) 2007, The Patriot-News, Harrisburg, Pa.

Distributed by McClatchy-Tribune Business News.

For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.

HSY,