Builds On Chocolate Leadership Position By Entering Rapidly
Expanding Organic Segment
HERSHEY, Pa., Oct. 19 /PRNewswire-FirstCall/ -- The Hershey Company
(NYSE: HSY), as part of its strategic focus on the high-growth premium
chocolate segment, today announced that it has acquired the assets and
operations of Dagoba Organic Chocolate, LLC. Based in Ashland, Oregon, Dagoba
is known for its high-quality natural and organic chocolate bars, hot
chocolate and chocolate-covered coffee beans sold in natural foods outlets and
gourmet stores.
In announcing the acquisition, Richard H. Lenny, Chairman, President and
Chief Executive Officer, The Hershey Company, said, "Organic chocolate
products are experiencing dramatic growth as consumers continue to trade up
for indulgent, high-quality products. Dagoba, with its well-regarded portfolio
of quality organic products, will enable Hershey to build on its leadership in
the North American chocolate market by meeting emerging consumer needs and
building profitable new marketplace opportunities."
Chris Baldwin, Senior Vice President, President North American Commercial
Group, The Hershey Company, said, "Dagoba's strong presence in the natural
channel is a real plus for Hershey, allowing us to expand our presence and
broaden our offerings in this growing arena. In addition, Dagoba's use of only
the finest organic ingredients makes it a great complement to our existing,
premium portfolio of Scharffen Berger and Joseph Schmidt products."
"This is a tremendous opportunity for Dagoba," said Frederick Schilling,
Chief Executive Officer and Founder, Dagoba Organic Chocolate, LLC. "Hershey's
deep commitment to quality and sustainability throughout its supply chain will
help Dagoba improve and expand its mission of improving cacao farmers'
livelihoods and expanding organic farming methods. This partnership will
enable us to continue creating the world's most exquisite chocolate and make
it available to a much broader consumer base."
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 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, and PayDay Pro. It also markets Hershey's cocoa, Hershey's syrup and
other branded baking ingredients, toppings and beverages. In addition, Artisan
Confections Company, a wholly owned subsidiary of The Hershey Company, markets
such premium chocolate offerings as Scharffen Berger, known for its high-cacao
dark chocolate products, and Joseph Schmidt, recognized for its fine,
handcrafted chocolate gifts. Visit us at http://www.hersheynewsroom.com.
About Dagoba Organic Chocolate, LLC
Founded in 2001, Dagoba Organic Chocolate, LLC seeks to create the world's
most exquisite organic chocolate, following the highest standards of ethics
and ecological sustainability. Dagoba is dedicated to the Art of Chocolate
Alchemy: transforming cacao into exquisite chocolate through Full Circle
Sustainability(TM): blending equity, quality, ecology and community. The
company seeks out fine flavor, sustainable and certified organic cacao through
direct, equitable partnerships, and manufactures in small batches with great
care. All products are also kosher, and many are Certified Organic. Dagoba's
approach has gained high regards: Food & Wine's 2005 Tastemaker Award,
"World's Best Chocolate" - CNN/Money, and "Best Dark Chocolate" - San
Francisco Chronicle.
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: our ability to implement and
generate expected ongoing annual savings from the initiatives to advance our
value-enhancing strategy; changes in raw material and other costs and selling
price increases; our ability to implement improvements to and reduce costs
associated with our supply chain; pension cost factors, such as actuarial
assumptions, market performance and employee retirement decisions; changes in
our stock price, and resulting impacts on our expenses for incentive
compensation, stock options and certain employee benefits; market demand for
our new and existing products; changes in our business environment, including
actions of competitors and changes in consumer preferences; changes in
governmental laws and regulations, including taxes; risks and uncertainties
related to our international operations; and such other matters as discussed
in our Annual Report on Form 10-K for 2005.
SOURCE The Hershey Company
/CONTACT: MEDIA: Kirk Saville, +1-717-534-7641, or FINANCIAL: Mark
Pogharian, +1-717-534-7556, both of The Hershey Company/
/Web site: http://www.hersheys.com /
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