An ambitious restructuring plan and a move into new-product lines such as premium chocolate and snacks for nutrition-conscious consumers have Hershey predicting a sweet future. CEO Richard Lenny has also bolstered sales of higher-margin single-serve snacks aimed at on-the-go consumers and is making changes in distribution by expanding the brand’s presence beyond grocery stores and mass merchant chains to home-improvement and other specialty stores. Overseas, Hershey faces strong competition from Mars and Cadbury Schweppes, but a venture with Korea’s Lotte Confectionery will help it make inroads in China and other Asian markets. To increase its competitiveness, Hershey over the next three years plans to cut its workforce by 10.7%, or 1,500, and shift more of its production overseas. These moves should bring savings of $170 million to $190 million by 2010.
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|Total Return||Past 12 Months|
|Past 36 Months
|Economic Sector||Consumer Staples|
|Industry||Packaged Foods & Meats|