Milling & Baking News Corporate Profiles - 2015 - (Page 90)

Company Overview Company Overview The Hershey Co. Top U.S. confectioner facing headwinds in China T he Hershey Co., North America's largest chocolate company based in Hershey, Pa., came off a strong 2014 to face significant headwinds in its global expansion efforts, with results in China pulling company-wide first-half 2015 net income down 66% from a year earlier on sales that were up 2%. At the same time, the company continues to show solid results in North America, making strides in diversification, sustainability, simple ingredients and other areas, including new product launches and the remaking of its iconic chocolate bar. Struggles in China are twofold - a downturn in the Chinese economy and underperformance of Shanghai Golden Monkey, a confectioner that Hershey bought 80% of in 2014. It hopes to buy the remaining 20% of Golden Monkey by the end of 2015. 2014 net sales - $7.4 billion Chief executive officer - J.P. Bilbrey Top brands - 90 \ October 2015 Hershey's Brookside Ice Breakers Reese's Hershey's Kisses Kit Kat Twizzlers Jolly Rancher Largely due to its problems in China, Hershey lowered its fullyear 2015 net sales outlook to an increase of 1.5% to 2.5% from 6% to 7% initially. Adjusted diluted earnings per share are forecast at $4.10 to $4.18, up 3% to 5% from 2014. The picture is considerably brighter in North America, where Hershey's financial results have been slightly better than expected as it continues to build on its strong position. Three of Hershey's products - Reese's, Hershey's (chocolate bar) and Kit Kat - are in the top five in dollar and unit sales in the under 3.5-oz category, according to I.R.I. data for the 52 weeks ended June 14, 2015. Mars, Inc.'s M&Ms hold the top spot and Snickers comes in third. In the larger than 3.5-oz segment, Hershey has four of the five top spots, with Mars' M&Ms still holding the No. 1 position. While iconic mainstream chocolate items remain the core of Hershey's business, it continues to seek a larger share of the gourmet chocolate segment and has moved into the snack category that J.P. Bilbrey, president and chief executive officer, sees as "a trend ... becoming a habit." Hershey bought Krave Pure Foods, Inc., a maker of premium meat snacks, in late 2014, illustrating its seriousness to further diversify in the growing snacks segment, adding to Brookside, a brand it purchased in 2012 that focuses on sweet, upscale snacks, including chocolate covered fruit pieces. Hershey's nonconfectionery snack portfolio now includes spreads, dips, snack bars, jerky and bean curd (in China). New snack products and line extensions already launched or slated for launch in 2015 include Brookside Fruit and Nut Bars (made without artificial flavors, colors or high-fructose corn syrup), Hershey's and Reese's Snack Mixes, Hershey's, Mr. Goodbar and PayDay Snack Bites. New confectionery items include Kit Kat White Minis, Ice Breakers Cool Blasts Chews, Hershey's Caramels and Hershey's Kisses Deluxe. Many of Hershey's new products are launched at convenience stores and other "on-the-go" shopping points to take advantage of the trend away from traditional shopping. Perhaps even larger than its foray into snacks is Hershey's progress in simple ingredients, sustainability, ethical sourcing and other measures across its entire portfolio as it seeks to better resonate with changing consumer trends and attitudes. Hershey plans to remove lactose, vanillin, artificial flavor and polyglycerol polyricinoleate from its milk chocolate bars and Kisses by the end of 2015. It will share information on manufacturing, labeling, sourcing and ingredients with consumers. It is ahead of schedule in having 100% of its cocoa independently certified and verified as coming from sustainable cocoa farms by 2020. CP Milling & Baking News * Food Business News * Baking & Snack * Meat+Poultry Corporate Profiles

Table of Contents for the Digital Edition of Milling & Baking News Corporate Profiles - 2015

Milling & Baking News Corporate Profiles - 2015
Table of Contents
Editorial - With growth elusive, its pursuit only intensifies
Industry Review: Grain-based Foods
Industry Review: Packaged Foods
Can K-Cups kick-start soup?
Industry Review: Beverages
Industry Review: Meat and Poultry
Industry Review: Dairy
Industry Review: Confectionery
Industry Review: Food Service
Industry Review: Clean Label
Company Overview - Grupo Bimbo S.A.B. de C.V.
Company Overview - Campbell Soup Co.
Company Overview - Coca-Cola Co.
Company Overview - ConAgra Foods, Inc.
Company Overview - Flowers Foods, Inc.
Company Overview - General Mills, Inc.
Company Overview - The Hain Celestial Group, Inc.
Company Overview - The Hershey Co.

Milling & Baking News Corporate Profiles - 2015