HERSHEY, Pa., Aug 17, 2004 /PRNewswire-FirstCall via COMTEX/ -- Hershey Mexico, a
subsidiary of Hershey Foods Corporation (NYSE: HSY) and one of the leading
companies manufacturing and selling chocolate, confectionery and flavored milk
products in Mexico, today announced it has entered into an agreement to
acquire Grupo Lorena, one of Mexico's top confectionery companies. Grupo
Lorena, which had sales of more than $30 million in 2003, is a leader in the
spicy candy market in Mexico with its Pelon Pelo Rico(R) brand.
"Grupo Lorena's solid brands in key consumer segments will strengthen our
leadership position in the Mexican market," said Juan-Carlos Zayas, Director
of Marketing, Hershey Mexico. "This portfolio will broaden our offerings for
Mexican consumers, especially as its strength in the youth market complements
our established success in the adult segment. Its Pelon Pelo Rico(R) brand is
a great entry to the popular spicy candy segment for Hershey Mexico. Equally
important, Grupo Lorena's commitment to product quality and innovation is a
perfect fit with Hershey's reputation for manufacturing products that meet
consumer expectations for great taste and top quality."
"Grupo Lorena is a great addition to Hershey Foods' portfolio of excellent
brands," said Richard H. Lenny, Chairman, President and Chief Executive
Officer, Hershey Foods Corporation. "It significantly increases our existing
business in Mexico and supports our strategy of profitably building scale in
the key North American market. Lorena also will deliver expanded retail
channel and customer growth opportunities for Hershey, both in Mexico and the
United States. We look forward to building Grupo Lorena's brands with the
Hispanic consumer and leveraging its capabilities to introduce innovative
Hershey products to the high-growth Hispanic segment."
As part of Hershey Foods' strategy to tap into the fast-growing U.S.
Latino market, the company recently announced a multi-year partnership with
Mexican-born Thalia Sodi, the Latin singer and actress popular with millions
of fans around the world. The partnership includes sponsorship of Thalia's
2004 U.S. tour, a Spanish-language advertising campaign, consumer and retail
promotions, and a new, co-branded Thalia line of Hershey products designed to
appeal to the Latino community.
"Hershey, with its longstanding commitment to manufacturing top-quality
and great-tasting products, is a perfect match for Grupo Lorena," said
Fernando Topete, President, Grupo Lorena. "Whether in Mexico, the United
States or Latin America, our consumers will be able to enjoy all their
favorite Lorena products with complete assurance that they meet the highest
standards for quality."
The acquisition is expected to be completed during the fourth quarter of
2004 and is subject to the customary closing conditions and regulatory
approval. The acquisition is expected to be slightly accretive in the first
12 months. Terms of the agreement were not disclosed.
About Hershey Foods Corporation
Hershey Foods Corporation (NYSE: HSY) is a leading snack food company and
the largest North American manufacturer of quality chocolate and non-chocolate
confectionery products, with revenues of over $4 billion and more than 13,000
employees worldwide. The company markets such well-known brands as Hershey's,
Reese's, Hershey's Kisses, Kit Kat, Almond Joy, Mounds, York, Jolly Rancher,
Twizzlers, Ice Breakers and Bubble Yum as well as innovative new products such
as Swoops and Hershey's S'mores. In addition to its traditional confectionery
products, Hershey offers a range of products specifically developed to address
the nutritional interests of today's health-conscious consumer. These
products include sugar-free Hershey's, Reese's and York candies, as well as
Hershey's 1 gram Sugar Carb bars for people living a low-carb lifestyle. It
also markets Hershey's cocoa, Hershey's syrup and other branded baking
ingredients, toppings and beverages. Visit us at
http://www.hersheynewsroom.com.
About Hershey Mexico
A division of Hershey Foods Corporation based in Jalisco, Hershey Mexico
began operations in 1969. Some of its most popular products in the Mexican
market include Hershey's Kisses, Hershey's drink box, Jolly Rancher,
Miniatures, Bites, Hershey's chocolate bars, Cookies & Chocolate bars, Cookies
& Creme bars, Hershey's cocoa and Hershey's syrup.
About Grupo Lorena
Based in Jalisco, Mexico, Grupo Lorena's leading products in Mexico and
the United States include Pelon Pelo Rico(R) and Crayon(R). Pelon Pelo
Rico(R) brand is a leader in the spicy candy market in Mexico.
Safe Harbor Statement
This release contains statements which are forward-looking. These
statements are made based upon current expectations which are subject to risk
and uncertainty. Actual results may differ materially from those contained in
the forward-looking statements. Factors which could cause results to differ
materially include, but are not limited to: changes in the confectionery and
grocery business environment, including actions of competitors and changes in
confectionery preferences; customer and consumer response to selling price
increases; changes in governmental laws and regulations, including taxes;
market demand for new and existing products; changes in raw material and other
costs; pension cost factors such as actuarial assumptions, market performance,
and employee retirement decisions; adequacy of the Company's bad debt reserve;
the Company's ability to implement improvements to reduce costs associated
with its supply chain; and the Company's ability to successfully implement its
rationalization and realignment initiatives, as discussed in the Company's
annual report on Form 10-K for 2003.
SOURCE Hershey Foods Corporation
Stephanie Moritz, Hershey Foods Corporation, +1-717-534-7641,
smoritz@hersheys.com
http://www.hersheynewsroom.com
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