Hershey has opened its R&D centre in Shanghai as part of plans to rapidly grow in Asia.
The US confectionery giant, which this week announced the launch of its first-ever overseas brand in China, said the site was “a fundamental step toward accelerating the company’s global growth”.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Michael Wege, Hershey’s chief growth and marketing officer, said: “Our new innovation centre in Shanghai supports our aggressive growth plans in Asia. It will enable us to translate our insights and knowledge of consumer tastes and preferences into relevant products. With industry-leading innovation capabilities based in China, we will develop products that expand our portfolio across the region and around the world.”
The facility, based in Shanghai’s Pudong district, will employ 12 scientists and product developers. Hershey said the site could become a “broader global innovation hub” for its product development.
Hershey, which has been slower than some peers to grow globally, has targeted China among a select number of markets. It has labelled China as a “win now” market and forecast it will be its second-largest in five years.
The company’s sales in China are growing; in the first quarter, it said its sales increased at a double-digit rate. It has been selling US brands like Hershey and Kisses in China but this week the company announced the development of Lancaster milk candies, a Chinese brand and its first outside the US.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData
