When you think of chocolate in America, Hershey’s iconic brown wrapper likely comes to mind. But have you ever wondered who’s behind this sweet empire?
The Hershey Company is primarily controlled by the Hershey Trust, which owns approximately 80% of the voting power through its ownership of 99% of the company’s class B shares. This unique ownership structure has helped preserve Milton Hershey‘s vision since the company’s founding in 1894.
The Hershey Trust isn’t your typical corporate owner. It was established to fund and operate the Milton Hershey School, a private school for children from low-income families.
This means that when you enjoy a Hershey’s Kiss or Reese’s Peanut Butter Cup, you’re indirectly supporting education. The remaining ownership is divided among institutional investors, who own about 78% of the company’s stock, with a small percentage held by insiders and the general public.
Milton Hershey’s legacy extends far beyond chocolate. He started with a caramel company before selling that business in 1900 to focus on chocolate manufacturing.
Today, the company has evolved from a simple chocolate maker into a global snacks empire while maintaining strong ties to its hometown of Hershey, Pennsylvania.
Key Takeaways
- The Hershey Trust controls about 80% of voting power, using proceeds to support the Milton Hershey School for children in need.
- Institutional investors own nearly 78% of Hershey’s stock while the company maintains its independence despite acquisition interest.
- Hershey began as a chocolate subsidiary of a caramel company in 1894 and has since grown into a diverse snack corporation with global reach.
History of The Hershey Company
The story of The Hershey Company begins with one ambitious man. Milton Hershey had a sweet tooth that would change American candy forever!
Milton’s candy journey started long before Hershey chocolate became famous. He first found success with the Lancaster Caramel Company in the 1880s.
In 1894, Milton made a decision that would make history – he established The Hershey Chocolate Company as a subsidiary of his caramel business. This marked the beginning of a chocolate empire.
The real turning point came in 1900 when Milton sold his caramel business. He took a big risk and focused entirely on chocolate production.
Milton wasn’t just a businessman – he was a visionary. Together with his wife Catherine, he founded the Hershey Industrial School in 1909 to help orphaned boys. This showed his deep commitment to education and community.
After Catherine’s death in 1915, Milton made an extraordinary decision. In 1918, he endowed the school with his entire fortune of Hershey Chocolate Company stock!
The company continued to grow through the decades. What started as a simple chocolate business expanded into a snack empire. Today, The Hershey Company remains one of America’s most beloved brands.
Milton’s legacy lives on through both delicious treats and the positive impact his company continues to have on communities.
Ownership Structure
The Hershey Company has a complex ownership structure with different types of shareholders controlling the chocolate giant. While publicly traded on the NYSE, a unique trust arrangement gives certain stakeholders significant control despite owning fewer shares.
Public Shareholders
The Hershey Company operates as a publicly traded company on the New York Stock Exchange under the ticker symbol HSY. Regular investors can purchase shares through standard investment accounts, becoming partial owners of the famous chocolate maker.
Public ownership makes up a significant portion of the company’s shareholders, though they typically hold less voting power than major institutional investors. Individual investors collectively own millions of shares, but each person usually controls only a small percentage of the total.
Despite being publicly traded, The Hershey Company has a special voting structure that limits how much influence these public shareholders have on company decisions.
Institutional Investors
Several large financial institutions hold substantial stakes in The Hershey Company. BlackRock Advisors LLC owns about 6.6% of shares, making it one of the larger institutional investors.
Capital Research & Management Co. holds approximately 8.4% of Hershey shares, representing over 12 million individual shares. These institutional investors provide stability to Hershey’s stock price through their long-term investment strategies.
Other financial institutions like Vanguard, State Street, and various pension funds also maintain significant positions in the company. While these institutions collectively own a large percentage of Hershey, their voting power is still limited compared to the company’s primary stakeholder.
Key Stakeholders
The most influential owner of The Hershey Company is the Milton Hershey School Trust, which owns 28% of shares. Despite this seemingly modest percentage, the Trust controls the majority of voting stock, giving it exceptional control over company decisions.
The Milton Hershey School Trust was established by founder Milton Hershey and his wife Catherine to fund the Milton Hershey School, which provides education for children in need. This charitable mission remains central to the company’s ownership structure today.
The Trust’s majority voting control means it can effectively determine the company’s board of directors and major corporate decisions. This unique arrangement ensures the company maintains its founding values while The Hershey Company reports $4.71 billion in equity as of 2024.
The Hershey Legacy in Hershey, PA
The town of Hershey, Pennsylvania stands as a living monument to Milton Hershey’s vision of creating not just a business, but a community that would thrive for generations. His philanthropic spirit and business acumen transformed a rural area into a destination known worldwide.
Milton Hershey’s Vision
Milton Hershey was born on September 13, 1857, near what would later become Hershey, PA. After finding success in the chocolate business, he decided to build more than just a factory—he wanted to create a model community.
In 1909, Milton and his wife Catherine made an extraordinary decision. They donated their entire fortune to establish a school for orphaned boys. This became the Milton Hershey School, which continues today.
The town’s layout was carefully planned with wide streets, affordable housing, and public spaces. Milton believed workers deserved quality living conditions, good schools, and cultural opportunities.
His vision extended beyond business success. He wanted to create a place where families could enjoy a good quality of life while working at his chocolate factory.
Hershey Gardens and Attractions
Visitors to Hershey can enjoy numerous attractions that showcase Milton’s legacy. The Hershey Gardens, opened in 1937, started as Milton’s gift to the community—a simple rose garden that has grown into 23 acres of botanical beauty.
Hershey Park, originally created as a leisure area for factory employees, has evolved into a major amusement park attracting millions of visitors yearly. Its growth reflects Milton’s belief in balancing work with recreation.
The Hershey Story Museum offers insights into Milton’s life and business journey. Visitors can learn about his failures before success and his innovative approach to chocolate making.
Chocolate World provides a fun, interactive experience showing how Hershey’s chocolate is made, complete with free samples that delight guests of all ages.
Community Events
The town embraces its chocolate heritage through various annual events. The Hershey Christmas Sweet Lights transform the town into a winter wonderland with more than 600 illuminated displays.
Chocolate-Covered February celebrates Valentine’s Day with a month of cocoa-themed activities. Visitors can enjoy chocolate dinners, tastings, and special tours throughout town.
The Hershey Community Archives preserves the town’s unique history through Milton’s legacy programs and exhibits that showcase how his vision continues to shape the community.
The Kiss-raising ceremony on New Year’s Eve has become a beloved tradition, where a giant Hershey’s Kiss is raised instead of a ball to welcome the new year.
These events strengthen community bonds while honoring the founder’s belief that business success should benefit the wider community.
Brand Portfolio
The Hershey Company boasts an impressive collection of brands that extends far beyond its famous chocolate bars. Over the years, the company has built a diverse portfolio that includes both classic treats and newer snack options.
Beloved Chocolate Brands
Hershey’s chocolate lineup includes some of America’s most iconic treats. The classic HERSHEY’S chocolate bar remains a staple in households across the country. REESE’S peanut butter cups continue to be a fan favorite, combining chocolate and peanut butter in perfect harmony.
Other beloved chocolate brands in their portfolio include:
- Kit Kat
- Almond Joy
- Mounds
- York Peppermint Pattie
- Hershey’s Kisses
These products have become deeply integrated into American culture and holiday traditions. Many families associate Hershey’s products with special moments like Halloween trick-or-treating, Christmas stockings, and Easter baskets.
Expansion to Snacking Categories
Hershey has strategically grown beyond chocolate by acquiring popular snack brands. The company now owns Skinny Pop Popcorn, offering health-conscious consumers a lower-calorie snacking option.
Their snacking portfolio also includes:
- Pirate’s Booty
- ONE Bars
- Lily’s Sweets (low-sugar chocolate)
- barkTHINS
This expansion reflects changing consumer preferences toward varied snacking options throughout the day. Hershey has positioned itself as more than just a chocolate company – it’s now a comprehensive snacking powerhouse.
Innovations in Snacks and Treats
Hershey continually introduces new products to meet evolving consumer tastes. The company has developed plant-based options and reduced-sugar alternatives like Lily’s Sweets for health-conscious customers.
Seasonal innovations keep their lineup fresh and exciting. Limited-edition flavors of classic products appear during holidays, creating buzz and collector appeal.
Hershey also licenses its iconic brands for use in other products. This strategy extends brand recognition beyond the candy aisle into areas like baking ingredients, ice cream flavors, and even themed merchandise.
The company’s innovation strategy balances honoring beloved classics while exploring new formats and flavors that appeal to changing consumer preferences.
Product Offerings and Recipes
Hershey delights consumers with an extensive range of chocolate products and provides creative ways to enjoy them in cooking and baking. The company continually expands its offerings to include seasonal treats that bring joy during holidays throughout the year.
Signature Chocolate Products
Hershey’s portfolio includes more than 90 brands of beloved chocolate and snack products. Their most iconic offering is the classic Hershey’s Milk Chocolate Bar. It was introduced in 1900 and is still made with fresh milk from local farms.
The REESE’S Peanut Butter Cup combines chocolate with peanut butter for a perfect sweet-salty mix that has become America’s favorite candy. These distinctive orange-wrapped treats come in various sizes and seasonal shapes.
Other popular Hershey products include:
- Kit Kat bars with their crispy wafers
- Almond Joy and Mounds coconut bars
- Twizzlers licorice twists
- Jolly Rancher hard candies
Hershey has expanded beyond traditional candy with better-for-you options like Lily’s Sweets (stevia-sweetened chocolates) and SkinnyPop popcorn for health-conscious consumers.
Recipe Inspirations
Hershey’s chocolates aren’t just for snacking—they’re perfect ingredients for home bakers and cooks. The company’s famous Hershey’s Chocolate Cake recipe (sometimes called “Black Magic Cake”) has been printed on cocoa containers for generations.
REESE’S Peanut Butter Cup Cookies offer an easy way to elevate ordinary chocolate chip cookies. You can do this by pressing a miniature cup into warm cookies right after baking. The result is deliciously gooey and impressive.
Holiday parties often feature recipes like:
- No-bake Hershey’s Chocolate Bar Pie
- Kit Kat Cheesecake with crushed wafers as crust
- S’mores Bars using Hershey’s milk chocolate squares
The company’s website offers free, tested recipes for everything from simple treats to show-stopping desserts. All of these feature their iconic products as star ingredients.
Seasonal Specialties
Hershey excels at creating seasonal versions of their classic candies. Halloween brings miniature versions of favorite treats, perfect for trick-or-treaters. They also have special editions like Reese’s Pumpkins with higher peanut butter-to-chocolate ratios.
For Christmas, Hershey offers Kisses wrapped in red and green foil, Candy Cane Kisses with peppermint flavor, and gift boxes of assorted chocolates. Their Valentine’s Day lineup features heart-shaped boxes and romantic packaging.
Easter is especially big for Hershey with:
- Cadbury Creme Eggs (produced under license in the US)
- Reese’s Eggs
- Hershey’s Solid Chocolate Bunnies
These seasonal items create tradition and nostalgia for consumers while boosting sales during key holiday periods. The limited-time nature of these products often creates excitement and urgency among chocolate lovers.
The Business of Sweetness
The Hershey Company has built an impressive business empire based on chocolate and snacks. Their success comes from a blend of manufacturing expertise, global reach, and commitment to sustainable practices.
Manufacturing Excellence
The Hershey Company operates state-of-the-art manufacturing facilities that produce millions of chocolate products daily. These facilities blend tradition with modern technology to ensure quality and consistency.
The company’s main production center in Hershey, Pennsylvania, serves as both a manufacturing hub and tourist attraction. Visitors can see how their favorite treats are made while learning about the company’s history.
Hershey has expanded beyond just chocolate bars to include a wide variety of snacks and confections. Their product lines now include cookies, pretzels, popcorn and other savory options.
Quality control remains a top priority. Each product undergoes rigorous testing before reaching store shelves, maintaining the standards Milton Hershey established over a century ago.
Global Distribution
From its humble beginnings, Hershey has grown into a global powerhouse with products available in more than 80 countries. This international presence helps balance seasonal fluctuations in different markets.
The company uses a sophisticated distribution network of warehouses, trucks, and retail partnerships. This ensures their chocolates and snacks reach consumers fresh and ready to enjoy.
In recent years, Hershey has expanded its snack empire through strategic acquisitions. These moves have helped them enter new markets and appeal to changing consumer preferences.
Regional tastes influence product offerings around the world. While the classic Hershey bar remains popular in America, the company creates specialized products for different international markets.
Sustainable Practices
Hershey demonstrates a strong commitment to sustainability throughout their supply chain. Their cocoa sourcing initiatives aim to improve farmer livelihoods while protecting the environment.
The company has pledged to use 100% certified and sustainable cocoa in all their chocolate products. This effort helps combat deforestation and promotes fair labor practices in cocoa-growing regions.
Hershey also focuses on reducing their environmental footprint through energy-efficient manufacturing.
Many facilities use renewable energy sources and implement water conservation measures.
Community support remains central to Hershey’s legacy of goodness. The company invests in education, nutrition programs, and disaster relief efforts in communities where they operate.
