Blog: Dean BestWhat now for Hershey?

Dean Best | 2 October 2007

Hershey’s chief executive has quit the company, so what now for the US confectionery giant?

Rick Lenny has decided to stand down from his positions as chairman, president and CEO at Hershey. The US confectionery business is awash with rumours that Lenny had grown frustrated with the company’s ownership structure.

Hershey is controlled by a trust set up by the company’s founder almost a century ago and there is a widely-held view that the trust has held back a business far too dependent on the US market.

As you can imagine, there has been no public comment from Lenny, Hershey or the trust on the reasons behind the executive’s departure, just the platitudes we normally see when a key actor leaves a company.

However, one analyst just-food spoke to today (1 October) agreed that Lenny was likely to have become irritated at Hershey’s inability to expand its business globally. The analyst said Hershey had become “land-locked” in North America and its global footprint compared unfavourably to the likes of Cadbury Schweppes and Wrigley.

Hershey has made attempts to expand outside the US and has also restructured its domestic operations to boost margins. But the market is now in something of a “wait and see mode”. Will Hershey now be put for sale? Would Hershey thrive as part of a larger company? Issues for all of us to chew on.


BLOG

US food agency hints at direction of travel with "policy roadmap"

It's light on specific details but a new "strategic policy roadmap" for 2018 from the US Food and Drug Administration should give manufacturers a sense of where the agency could be looking to act this...

BLOG

Vegan tourist tales

I sampled some of the products launched in the UK in the New Year, aimed at those seeking to eat more healthily or cut down on their meat consumption....

BLOG

"We're evolving" - flagship US lobby group insists change coming as more members quit

Hershey and Cargill are the latest US-based food majors to have decided to leave The Grocery Manufacturers Association - and the lobby group says it is looking to change to meet the "disruption" in th...

just-food homepage



Forgot your password?