Hershey to Diversify into Snacks, Dark Chocolates
In a meeting with Wall Street analysts, The Hershey Co. revealed plans to diversify into snacks and a line of dark chocolates with healthy cocoa flavanols. Marketing strategies were also on the agenda, with the company announcing plans to move away from television towards the Internet, including a promotion involving online auctioneers Ebay, Food Business Review Online reported.
Also, in a bid to expand beyond its core U.S. market, Hershey is making green tea-flavored chocolates in China for sale in Chinese market, according to Food Business Review Online.
Hershey also intends to build its presence in Latin America, Asia and Canada. In China, the company intends to tailor products to the market and start manufacturing locally in order to avoid shipping costs.
Senior Vice President of Hershey's international division, J.P. Bilbrey said, "We’re changing our business model in Asia. The product was not locally relevant and it also got there at an unattractive cost."
The company recently confirmed its profit outlook for the year and said its net sales were rising above its long-term goal of between 3 percent and 4 percent. The company also plans a $500 million stock buy-back program for next year, according to the report.
Also, in a bid to expand beyond its core U.S. market, Hershey is making green tea-flavored chocolates in China for sale in Chinese market, according to Food Business Review Online.
Hershey also intends to build its presence in Latin America, Asia and Canada. In China, the company intends to tailor products to the market and start manufacturing locally in order to avoid shipping costs.
Senior Vice President of Hershey's international division, J.P. Bilbrey said, "We’re changing our business model in Asia. The product was not locally relevant and it also got there at an unattractive cost."
The company recently confirmed its profit outlook for the year and said its net sales were rising above its long-term goal of between 3 percent and 4 percent. The company also plans a $500 million stock buy-back program for next year, according to the report.