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.