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The Hershey Company
Global Marketplace

Hershey’s value chain encompasses our global supply chain, from the farmers who supply the raw materials for our ingredients to the consumers who enjoy our products. We are committed to dealing fairly and ethically with all parties in our value chain. We work hard to ensure the responsible and sustainable sourcing of raw materials; the safe processing of those ingredients into wholesome, affordable products of the highest quality; and the promotion of responsible habits in the enjoyment of our products.

Our marketplace extends globally from the furthest reaches of our supply chain to the consumers who enjoy our products. We are firm in our commitment to every party in our supply chain and maintain this commitment through many different programs we initiate and support. COCOALINK, the newest program sponsored by The Hershey Company, seeks to improve the livelihoods of cocoa farmers and communities in Ghana through leveraging communication technology.

For our Marketplace Targets and updates on our progress, visit our CSR Reporting page.

Integrity of Supply

COCOA

COCOALINK

“COCOALINK- Connecting Cocoa Communities” is a first-of-its kind program that uses mobile technology to deliver practical information on agricultural and social topics to rural cocoa farmers. This program, initiated and funded by The Hershey Company in collaboration with the World Cocoa Foundation and the Ghana Cocoa Board, will use Ghana’s rapidly growing mobile phone infrastructure to reach more than 8,000 Ghanaian cocoa farmers and community members. Sixty nine percent of cocoa farmers in Ghana already have a cell phone, which allows COCOALINK to communicate with a significant number of Ghanaian cocoa farmers and provide them with the valuable information they need to be more successful and increase their earnings. The program has been implemented on the ground in partnership with the World Cocoa Foundation and the Ghana Cocoa Board, known in Ghana as COCOBOD.

Although there is a wealth of cocoa-farming and agricultural husbandry information now available to Ghana’s 700,000 cocoa farmers, the challenge is getting this information into their hands because they live mostly in remote areas without easy access to information. COCOALINK creates an innovative, yet simple, way to disseminate critical information to cocoa farmers that can have a positive impact on the lives of their children and families.

Through voice and SMS text messages delivered in their local language or English, cocoa farmers will receive - at no charge - useful information about improving farming practices, farm safety, child labor, health, crop disease prevention, post-harvest production and crop marketing. They will also be able to share information and receive answers to specific cocoa-farming questions.

“Harnessing emerging technology that directly benefits farmers and their communities will dramatically accelerate the flow of information to the cocoa regions. Because any Ghanaian farmer with a mobile phone can sign up for COCOALINK, we expect more than 100,000 cocoa farmers and their families to benefit from this program during the next three years,” said Andy McCormick, Hershey’s Vice President of Public Affairs.

DAGOBA Sourcing High-Quality Cocoa from Peru

In 2010, DAGOBA, our organic chocolate brand, partnered with Romex to create a direct sourcing model in order to develop a sustainable supply of high-quality cocoa from Peru. Through this program, on-the-ground personnel work closely with local Peruvian cocoa farmers to improve agriculture and post-harvest techniques.

We are making direct investments in building tree nurseries and centers to help improve production and yields. The seeds planted in the new nurseries will be from cacao trees with high yields and strong disease resistance. When the trees mature, farmers and their families will directly benefit from the higher yields.

Our partnership with the San Juan de Cheni community gives us the opportunity to purchase some of the finest flavored cocoa in the world and also to have a measureable impact on the lives of a remarkable group of people who are striving to improve their livelihoods and maintain their traditional values.

– Ray Major, Cacao Fellow, The Hershey Company

HERSHEY'S CONTINUED COMMITMENT

By 2017, Hershey will expand and accelerate programs to improve cocoa communities by investing in West Africa and continuing to work with experts in agriculture, community development and government to achieve progress with cocoa farmers and their families. The programs include certified products, expanding COCOALINK into the Ivory Coast, opening the HERSHEY LEARN TO GROW farm and family development center in Ghana, and a $10 million commitment to reduce child labor and improve the cocoa supply in West Africa. These public and private partnerships will directly benefit 750,000 African cocoa farmers and over two million people in cocoa communities across the region. Read More.

World Cocoa Foundation

We are a founding partner of the World Cocoa Foundation (WCF) and have been a supporter since 2000. As a non-profit membership foundation, the WCF promotes a sustainable cocoa economy through giving cocoa farmers the tools and information to increase their crop yield and cocoa quality, market their cocoa, and make greater profits. WCF also provides programming to improve the livelihoods of farmers and their families worldwide. Through our dedicated support of the World Cocoa Foundation, we are sustaining two of its innovative flagship initiatives, ECHOES Alliance and the Cocoa Livelihoods Program among other projects.

WCF ECHOES Alliance

The ECHOES program is a comprehensive youth educational and teacher training program that focuses on basic education, agricultural practices, entrepreneurship and leadership skills as well as information on HIV/AIDS, child labor and malaria. The program aims to expand the opportunities for young people through relevant education in their local schools. The program also includes after-school agricultural programs and clubs, leadership training, community literacy classes, family support scholarships and the creation of community resource centers. The ECHOES program has directly impacted over 23,000 youth and adults and enhanced the lives of more than 440,000 people in Ghana and Cote d’Ivoire (from ECHOES Annual Stakeholder Report, 2010).

WCF Cocoa Livelihoods Program

The Cocoa Livelihoods Program is a five year, $40 million initiative that began in 2009. The program is funded by the Bill & Melinda Gates Foundation and 15 chocolate industry companies, including The Hershey Company. The goal of the program is to significantly improve the livelihoods of approximately 200,000 cocoa farmers in Cameroon, Cote d’Ivoire, Ghana, Liberia and Nigeria.

The program increases cocoa farmers’ incomes by enhancing their knowledge of agricultural techniques, production technologies, crop diversification and business. Farmers’ new skills are making a difference in increasing their yields and their profits as well as the livelihoods of their families.

Family Health International

We are partners in Family Health International’s efforts to address malaria, one of the world’s major causes of death for young children in developing nations. Through our support, thousands of insecticide-treated mosquito bed nets have been distributed in the cocoa-growing regions of Cote d’Ivoire. Distributors have also focused on educating recipients on proper net use and retreatment, early signs of malaria, and proper sanitation methods to keep mosquitoes from breeding. Educating recipients helps maximize the program’s success rate.

AIM-PROGRESS

We joined AIM-PROGRESS in 2010. This group of 25 global companies representing over $500 billion dollars in annual revenues works to maintain common responsible sourcing standards. With the AIM-PROGRESS network of companies, Hershey engages with suppliers to establish programs that improve their sourcing practices.

Consumer Well-Being

Well-being... is happiness. We know that a good life is made up of many small, joyful moments that matter, like sharing a meal with family or friends, baking holiday cookies, or playing together in the backyard. The Hershey Company offers tips, recipes, activities and programs to help you savor and share these special moments.

Moderation Nation

Recipes and tips for meals and snacks, activity and play, and work and home to enjoy the goodness of a balanced lifestyle.

www.moderationnation.com

Celebrate with Hershey's

Holiday recipes, crafts, gift ideas and activities to create special moments for every season

www.hersheys.com/celebrate

Hershey's Track & Field

For more than 35 years, the largest youth activity program of it’s kind in North America, celebrating running, jumping and throwing for youth ages 9-14.

www.hersheystrackandfield.com

Healthy Weight Commitment

Hershey is a proud member of The Healthy Weight Commitment Foundation, the first-of-its kind coalition that brings together more than 200 industry partners aiming to reduce childhood obesity by 2015 through programs that support families and schools.

www.healthyweightcommit.org

Food Marketing to Children Pledges

Hershey is a member of the Children’s Food and Beverage Advertising Initiative (CFBAI) in the U.S. and The Canadian Children’s Food and Beverage Advertising Initiative (CCFBAI), voluntarily committing not to advertise to children under 12.

www.bbb.org/us/childrens-food-and-beverage-advertising-initiative/

Global Marketing Principles

We are committed to the responsible marketing of our products. Our strong values guide our behavior in all aspects of our brand-building work, and we apply these values to all consumer communications worldwide.

Hershey applies its Global Marketing Principles to all forms of media designated for consumers, including broadcast and cable television, print advertising, radio, online and digital advertising and video.

Our Global Marketing Principles

Alignment with Customers

At the Hershey Company, we care a great deal about our customers and aligning with their CSR goals. In 2010, we created the CSR Sales Advocate program to better support and understand our customers’ CSR initiatives.

CSR Sales Advocates

There are 55 CSR Sales Advocates working in communities across the United States and Canada to engage with field personnel, to mobilize local support for customer philanthropic events and to communicate regularly with the CSR Department.

The CSR Department and the CSR Sales Advocates have monthly meetings to help the department understand customer needs as well as provide the sales advocates with valuable resources to make them more effective.

CSR Sales Advocates and the CSR Department partner together to complete the CSR sections of customer scorecards and/or supplier conduct cards. This allows the CSR Department to better understand our customers’ CSR priorities.

Lastly, the CSR Sales Advocates have been instrumental in supporting customer philanthropic events. The sales advocates have provided volunteers, donations and product to hundreds of customer events across the U.S. and Canada.