HERSHEY, Pa., Aug 15, 2005 /PRNewswire-FirstCall via COMTEX/ -- The Hershey Company
(NYSE: HSY), the largest North American confectionery company and a leading
snack food marketer, today announced that its newly formed, wholly owned
subsidiary, Artisan Confections Company, has acquired the assets of Joseph
Schmidt Confections, Inc., a premium chocolate maker. Joseph Schmidt is known
for its artistic and innovative truffles, colorful chocolate mosaics,
specialty cookies, and handcrafted chocolates presented in distinctive
packaging. These products are sold in select department stores and other
specialty outlets nationwide as well as in Joseph Schmidt's stores located in
San Jose and San Francisco.
Hershey also has completed the previously announced acquisition of
Scharffen Berger Chocolate Maker, Inc., one of the fastest-growing premium
chocolate companies in the United States. Scharffen Berger, based in San
Francisco, California, is known for its high-cacao-content, signature dark
chocolate bars and baking products. The combined purchase price for Scharffen
Berger and Joseph Schmidt will be between $46.6 million and $61.1 million,
with the final amount reflecting actual sales growth through 2007. Together,
these companies have combined annual sales of approximately $25 million.
"The Scharffen Berger and Joseph Schmidt acquisitions are great strategic
opportunities for Hershey to capitalize on the high-growth, on-trend premium
chocolate segment," said Richard H. Lenny, Chairman, President and Chief
Executive Officer, The Hershey Company. "These companies provide two distinct
platforms to broaden our presence in the $1.7 billion premium segment.
Scharffen Berger is a leader in the high-cacao-content, distinctive dark
chocolate arena, while Joseph Schmidt specializes in fine, handcrafted
chocolate gifts. We look forward to capturing the immense growth potential of
Scharffen Berger and Joseph Schmidt as we further extend Hershey's leadership
position in the U.S. confectionery market."
About Scharffen Berger Chocolate Maker, Inc.
Founded in Berkeley, California in 1996 by John Scharffenberger and Dr.
Robert Steinberg, Scharffen Berger Chocolate Maker is an artisanal American
chocolate company. The company sources the best cacao beans, roasts and
grinds them in small batches in vintage European equipment, and creates blends
that make the world's finest tasting premium chocolate. The distinctive
chocolate, like fine wine, possesses complexity, distinct fruitiness, balance,
intense flavor, and a lingering finish. Scharffen Berger products are
available on the web at http://www.scharffenberger.com and at the Scharffen
Berger stores in Berkeley, San Francisco, CA, Healdsburg, CA and New York
City. Select products are also available at fine specialty stores nationwide
with a limited international presence. For more information, please visit
http://www.scharffenberger.com.
About Joseph Schmidt, Inc.
Headquartered in San Francisco, California, Joseph Schmidt is recognized
for its dazzling signature truffles and exquisite chocolates in elegantly
designed gift-wrapped or hand-painted packaging. For more information, please
visit http://www.josephschmidtconfections.com.
About The Hershey Company
The Hershey Company (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 Hershey Company markets such well-known brands as
Hershey's, Reese's, Hershey's Kisses, Kit Kat, Almond Joy, Mounds, Jolly
Rancher, Twizzlers, Ice Breakers, and Mauna Loa, as well as innovative new
products such as Take 5 candy bar and Hershey's cookies. 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 SmartZone bars for people seeking balanced
nutrition. It also markets Hershey's cocoa, Hershey's syrup and other branded
baking ingredients, toppings and beverages. For more information, please
visit http://www.thehersheycompany.com/news/.
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: the Company's ability to implement
and generate expected ongoing annual savings from the program to advance its
value-enhancing strategy; changes in the Company's business environment,
including actions of competitors and changes in consumer 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;
and the Company's ability to implement improvements to and reduce costs
associated with its supply chain, as discussed in the Company's Annual Report
on Form 10-K for 2004.
SOURCE The Hershey Company
Stephanie Moritz of The Hershey Company, +1-717-534-7631, smoritz@hersheys.com
http://www.prnewswire.com
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