Milling & Baking News Corporate Profiles - October 2012 - (Page 98)

Company Overview Chief executive officer – The Hershey Co. Five-year plan targets on five brands he Hershey Co., Hershey, Pa., has pursued a strategy in 2012 that has moved the company forward on a number of fronts while building its margins, raising its prices and increasing its earnings, said John P. Bilbrey, president and chief executive officer since 2011. Mr. Bilbrey said Hershey has developed a five-year strategic plan that focuses on its five core brands — Hershey’s, Reese’s, Hershey’s Kisses, Jolly Rancher and Ice Breakers — becoming household names both domestically and internationally. Mr. Bilbrey said the company has a goal of reaching $10 billion in net sales by the end of 2017, up from about $6.1 billion in 2011. “I’m optimistic and excited about our future,” he said. “We are focused and know what we need to do to succeed. We have strong plans in place that will enable us to win wherever we compete.” The company has strategies to lift both domestic and international performance. In the United States, Hershey plans to introduce products with health-conscious or environmentally sustainable features as well as to increase advertising. Abroad, the company plans to make acquisitions and to build its overseas R.&D. capabilities. Hershey recently introduced products with an environmentally favorable profile: Hershey’s Bliss, produced with cocoa certified by the Rainforest Alliance, and Simple Pleasures, a candy bar that contains 30% less fat than other Hershey’s bars. In addition, Mr. Bilbrey has confirmed plans to increase the advertising budget “in the low double digits.” John P. Bilbrey T Hershey also is stepping up its commitment to competing internationally. To that end, Hershey acquired Brookside Foods of Canada early in 2012, and expects the company to add $90 million in annual revenues. More recently, Hershey said it is acquiring the remaining 49% it does not own of Godrej Hershey Ltd. in India, and will rename the wholly owned subsidiary Hershey India. In 2011, the Godrej/ Hershey joint venture had net sales of about $80 million. “India is a key focus market for The Hershey Co.,” Mr. Bilbrey said. In addition, Hershey expects to open its first Asian research and development center in Shanghai during the second half of 2012, which will help the company develop and test new products in the international marketplace. Mr. Bilbrey said he expected fullyear net sales growth of about 7% to 9% and full-year adjusted earningsper-share-diluted growth of 12% to 14%, an increase from a previous estimate of an increase of 10% to 12%. The company expected reported diluted earnings per share for 2012 to be between $2.82 to $2.92 per share and an adjusted diluted earnings per share between $3.11 and $3.17 per share. Hershey’s brands remained strong in the 2012 marketplace, according to SymphonyIRI. Three of the five top-selling varieties of chocolates in the United States were Hershey’s products: M&M’s, with $417 million in annual sales; Reese’s Peanut Butter Cups, $420 million in annual sales and Hershey’s bar with $261 million in annual sales. CP 2011 global sales — $6.1 billion Top brands – Hershey’s Reese’s Hershey’s Kisses Jolly Rancher Ice Breakers 98 \ October 2012 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 - October 2012

MBN Corporate Profiles - October 2012
Table of Contents
Editorial - Contrasting stories in key figures
Grain-based Foods - Grain-based foods - Soft category sales span the breadth of grain-based foods segment
Prepared Foods - Frozen meals - Innovation may boost a stagnant category
Soup - Category only lukewarm and looking for innovation
Beverages - Beverages - Categories increasingly blur into one another
Meat and Poultry - Meat and Poultry - Meat and poultry prices will rise in 2013 as the full effects of the drought take hold
Dairy - Ice cream sales rebound, Greek yogurt surges U.S. dairy farmers struggle with high feed prices
Confectionary - Confectionary - Cocoa, sugar prices level off
Food Service - Food service - Fast-casual chains lead the way in slow recovery
Nutrition standards change school meal programs
Company Overview - Aryzta AG - North American baking accounts for nearly half of company’s sales
Company Overview - Grupo Bimbo S.A.B. de C.V. - Sharp focus on successful Sara Lee integration
Company Overview - Campbell Soup Co. - Bolthouse acquisition and focus on growth areas provide direction
Company Overview - The Coca-Cola Co. - New operating structure to involve three businesses
Company Overview - ConAgra Foods, Inc. - Frozen food adjacencies, international development and private label will drive growth
Company Overview - Groupe Danone S.A. - European economy drags, but Greek yogurt surges in United States
Company Overview - Dean Foods Co. - Partial i.p.o. of WhiteWave-Alpro under way
Company Overview - Dunkin’ Brands Group, Inc. - Newly public company makes earnings gains
Company Overview - Flowers Foods, Inc. - Seeking growth, management keeps foot to the pedal
Company Overview - General Mills, Inc. - Restructuring program initiated to focus resources
Company Overview - The Hain Celestial Group - Acquisitions drive growth in international ambient grocery
Company Overview - The H.J. Heinz Co. - Company continues to focus on core brands and global growth
Company Overview - The Hershey Co. - Five-year plan targets on five brands
Company Overview - Hillshire Brands Co. - Growth opportunities for ‘new’ meat business
Company Overview - The Kellogg Co. - Pringles acquisition sets company up to expand globally in snacks
Company Overview - Kraft Foods Inc. - Company looks forward to future post spin-off
Company Overview - Nestle S.A. - Keys remain on emerging markets, nutrition
Company Overview - Panera Bread Co. - Chain puts faith in menu innovation, shared leadership
Company Overview - PepsiCo, Inc. - Advertising investments build up brand names
Company Overview - Ralcorp Holdings, Inc. - Creation of center store private brand business initiated
Company Overview - Smithfield Foods, Inc. - Strategic shift is putting more resources into packaged meats business
Company Overview - J.M. Smucker Co. - New product surge coming in current fiscal year
Company Overview - Snyder’s-Lance, Inc. - Announces plans to bring Snack Factory into the fold
Company Overview - Starbucks Corp. - Coffee chain expands in baked foods, juices
TreeHouse Foods, Inc. - Steadfast in its commitment to private label
Company Overview - Tyson Foods, Inc. - Focusing on accelerating, innovating and cultivating its business
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