US confectioner Hershey yesterday posted an 18% rise in underlying annual profits as the Reese’s maker finished 2010 with accelerating sales growth.The company said its adjusted net income reached US$587.7m in 2010, up 18.2% on 2009. The adjusted figure stripped out the impact of restructuring costs in both years. Adjusted earnings per share-diluted was $2.55, up 17.5% on the year. Taking into account the restructuring costs, which were linked to Hershey’s supply chain revamp, first launched... ...Read more »

US chocolate maker Hershey has filed a lawsuit against confectionery rival Mars Inc, accusing it of copying Hershey’s packaging for its Dove Promise squares. The lawsuit, filed in the federal district court of Pennsylvania last week, argues that Mars packaged its Dove peanut butter chocolate Promise squares in such a way that it mimics the patented orange, brown and tan wrappings of Reece’s peanut butter chocolate products. Hershey said in the complaint that the use of the colours is... ...Read more »

Stinging criticism that Hershey has not done enough to address child and forced labour in its supply chain has come as a new framework of multi-partite action offers genuine hope of progress in tackling the issue. But, Ben Cooper writes, while chocolate companies are increasingly active in tackling the problem their reticence to speak publicly about the issue for fear of admitting culpability often hampers the communication of that positive message. Child and forced labour is a feature of cocoa... ...Read more »

Hershey president and CEO Dave West has stood by the US chocolate maker’s strategy and insisted the company can deliver “long-term value” for shareholders. The business, which generates the bulk of its revenues in the US, has faced questions over its future growth after deciding not to bid for UK confectioner Cadbury. Hershey has ventures in Brazil, India and China but industry watchers have argued the company’s international ambitions – and therefore prospects for long-term... ...Read more »

The world’s largest food group, Nestlé, is expected by analysts to look at the prospect of acquiring Hershey in the years ahead as they see themselves fall down the confectionery pecking order. The Swiss group typically maintains the lead or second position in their major categories marking their place as third in the chocolate sector behind Mars and a Cadbury-enriched Kraft as unfamiliar territory. As such, analysts believe they will look at a purchase of Hershey, albeit probably not this... ...Read more »

Hershey has advised that they will not make a bid for Cadbury in light of the revised Kraft offer that surprisingly gained the British confectioner’s support last week. Talks between Kraft’s Irene Rosenfeld and Cadbury heavyweights last Monday night helped lead the US maker of Oreo and Vegemite toward a new proposal that would be recommended by Cadbury’s Board. And, with Hershey pulling out, it now appears almost certain that the A$21 billion deal will go through. Hershey, along... ...Read more »

Kraft Foods and Cadbury have reached an amicable takeover agreement overnight that is now only pending shareholder approval in the absence of a counterbid from potential suitor Hershey. In a change of heart on Monday, prominent members of the Cadbury leadership team met with Kraft CEO Irene Rosenfeld to work toward a revised offer that the Cadbury Board would accept. That revised offer – valuing the company at around 11.9 billion pounds or A$21b – has now been unanimously recommended... ...Read more »

Sources close to the ongoing Kraft-Cadbury takeover saga have reported that the two parties may come to an amicable agreement, something that would come as a shock given Cadbury’s obvious disapproval of Kraft’s attempts to wrest control of the British confectioner. Indeed, it was only last week that Chairman Roger Carr urged shareholders not to let Kraft “steal” the company. Reuters and the BBC have reported that Kraft and Cadbury are currently in discussions to cement a friendly... ...Read more »

Hershey, the US chocolate maker rumoured to be preparing a solo bid for Cadbury, needs to pay a “serious price” to acquire the company, the UK confectioner’s chairman insisted today (14 January). Roger Carr, speaking as Cadbury gave more details on its 2009 performance as the company fights a hostile takeover bid from Kraft Foods, said the Dairy Milk maker believes in its stature as an independent company but would consider offers that better matched the UK firm’s valuation... ...Read more »

The latest speculation suggests American confectionery company Hershey will be a late entry into the race for Cadbury, presenting competition to Kraft’s hostile proposal. According to the Financial Times, the Hershey Trust has given the go-ahead for a formal offer to be presented to Cadbury prior to the January 23 deadline. The long running ‘will they or won’t they’ questioning will soon be over as the two possible counterbidders – Ferrero and Hershey – near the... ...Read more »