Hershey and Cadbury, No Love

An article in the Wall Street Journal (subscription required) last week speculated that Hershey might join forces with Cadbury when the confectionery unit spins off from the larger Cadbury Schweppes company, a decision announced recently. But the chairman of the Hershey Trust Company dispelled those rumors on Sunday.

There’s no denying that profits and revenue are down at Hershey. According to a Reuters article, “On February 15, Hershey announced plans to cut 1,500 jobs, or 11 percent of its workforce, and eliminate more than one-third of its production lines to improve manufacturing efficiency.” Trust chairman LeRoy Zimmerman says he has “absolute confidence” in the management team and is unwilling to give up a controlling interest in the company.

While I normally wouldn’t be paying this much attention to the goings-on at Hershey, the company’s acquisition of Scharffen Berger and Dagoba chocolates over the past two years means that now I have a vested interest as well.

See more articles
Share this article: