Raised in rural central Pennsylvania, hampered by the lack of a formal education and nearly bankrupt by the time he was 30, Milton S. Hershey went on to become not only one of America’s wealthiest individuals, but also a successful entrepreneur whose products are known the world over, a visionary builder of the town which bears his name and a philanthropist whose open-hearted generosity continues to touch the lives of thousands.
A successful entrepreneur...eventually.
Following a four-year apprenticeship as a teenager to a Lancaster, Pennsylvania, candy maker, Hershey in 1876 attempted to start his own candy business in Philadelphia. Despite six years of hard work, it failed. So he moved to Denver and found work with a confectioner who taught him how to make caramels using fresh milk. He then started up a second candy business in New York City. It also failed. Undaunted, he returned to Lancaster and once again tried making a go of the caramel business. This time, it worked. Soon, his Lancaster Caramel Company was shipping all over the U.S. and Europe, employing 1400 people and turning him into one of the area’s leading citizens.
But what about the chocolate?
It was at the 1893 World’s Columbian Exposition in Chicago that Hershey first became fascinated with the art of chocolate making. While there, he purchased some German machinery, had it shipped to Lancaster and began producing chocolate coatings for his caramels. But aware of the growing demand for chocolate itself, he soon started the Hershey Chocolate Company. For years, he worked at perfecting a viable recipe for making milk chocolate -- a process which up to then had been kept a closely guarded secret by the Swiss. Finally, through trial and error, he hit upon the right formula of milk, sugar and cocoa that enabled him to realize his dream of mass producing and distributing milk chocolate candy. What had once been a luxury for the rich, was to become an enjoyment that anyone could afford...the Hershey bar.
A new business needs a new location.
With his Hershey Chocolate Company growing by leaps and bounds, Hershey decided to sell his caramel company (for $1 million, an enormous sum in 1900!) and devote his attention to making chocolate. Discovering a need to expand his production capacity, he began looking around for a suitable place to build a new factory. He found it in nearby Derry Township, where he had been born. Convenient to the port cities that could provide cocoa beans and sugar, surrounded by dairy farms and endowed with a hardworking populace, the area seemed ideal. In 1903, he broke ground.
Building a town, not just a company.
Hershey’s success was not simply a matter of luck. Having learned from his past failures, he had become a shrewd and astute businessman. He believed, along with the more forward-thinking industrialists of the age, that workers who were treated fairly and who lived in a comfortable, pleasant environment would be better workers. Accordingly, he set upon building an infrastructure to take care of the people who were employed by his company. He had plans drawn up for a model community that included housing for executives and ordinary workers alike, schools, churches, parks, recreational facilities and a trolley system. Unlike other “company towns,” Hershey’s was not intended to exploit its resident workers, but rather to provide for their welfare. As time went on, Hershey saw to it that the town (named Hershey, naturally) added a community building, a department store, a convention hall, an amusement park, a swimming pool, and schools. Lots of schools.
“To train young men to useful trades.”
For the farm boy who never had much chance at education himself, providing that opportunity for others was always an important priority. As early as 1909, Hershey and his wife Catherine established the Hershey Industrial School, a school for orphan boys. Today named the Milton Hershey School, it has since opened its doors to girls as well. He also made sure that the town of Hershey had the finest elementary and secondary schools possible. There were even plans for a junior college. In 1918 and with no fanfare, Hershey transferred the bulk of his considerable wealth, including his ownership in the Hershey Chocolate Company and other enterprises, to the Hershey Trust to be held for the Hershey Industrial School.
A legacy that lives on.
With the death of Milton Hershey in 1945, the company, town and institutions that bear his name were well positioned to continue and grow. The Hershey Chocolate Corporation has evolved into The Hershey Company, a profitable company encompassing a range of products found in homes throughout the world. The town of Hershey, with its many attractions, has become a popular destination for both vacationing tourists and business conventioneers. The Milton Hershey School, along with Hershey’s other philanthropic endeavors, have expanded and prospered, with the school housing and educating hundreds of boys and girls. In a long and useful life, Milton S. Hershey proved himself to be a courageous entrepreneur, a determined builder and a compassionate humanitarian.
It all started with a decision.
Our company originated with candy-manufacturer Milton Hershey’s decision in 1894 to produce sweet chocolate as a coating for his caramels. Located in Lancaster, Pennsylvania, he called his new enterprise the Hershey Chocolate Company. In 1900, the company began producing milk chocolate in bars, wafers and other shapes. With mass-production, Hershey was able to lower the per-unit cost and make milk chocolate, once a luxury item for the wealthy, affordable to all. One early advertising slogan described this new product as “a palatable confection and a most nourishing food.”
A company on the move.
The immediate success of Hershey’s low-cost, high-quality milk chocolate soon caused the company’s owner to consider increasing his production facilities. He decided to build a new chocolate factory amid the gently rolling farmland of south-central Pennsylvania in Derry Township, where he had been born. Close to the ports of New York and Philadelphia which supplied the imported sugar and cocoa beans needed, surrounded by dairy farms that provided the milk required, and with a local labor supply of honest, hard-working people, the location was perfect. By the summer of 1905, the new factory was turning out delicious milk chocolate.
A KISS for the whole world.
Looking to expand its product line, the company in 1907 began producing a flat-bottomed, conical milk chocolate candy which Mr. Hershey decided to name HERSHEY’S KISSES Chocolates. At first, they were individually wrapped in little squares of silver foil, but in 1921 machine wrapping was introduced. That technology was also used to add the familiar “plume” at the top to signify to consumers that this was a genuine HERSHEY’S KISS Chocolate. In 1924, the company even had it trademarked.
New products, hard times.
Throughout the next two decades, even more products were added to the company’s offerings. These included MR. GOODBAR (1925), HERSHEY’S Syrup (1926), chocolate chips (1928) and the KRACKEL bar (1938). Despite the Great Depression of the 1930s, these products helped the newly incorporated Hershey Chocolate Corporation maintain its profitability and avoid any worker layoffs. Nevertheless, supported by the CIO labor union, a group of workers staged a six-day strike that ended with the strikers being forcibly removed by loyal workers and local farmers.
HERSHEY’S chocolate goes to war.
With the outbreak of World War II, the Hershey Chocolate Corp. (which had provided milk chocolate bars to American doughboys in the first war) was already geared up to start producing a survival ration bar for military use. By the end of the war, more than a billion of these Ration D bars had been produced and the company had earned no less than five Army-Navy “E” Production Awards for its exceptional contributions to the war effort. In fact, the company’s machine shop even turned out parts for the Navy’s antiaircraft guns.
A family friend becomes a family member.
The post-war period saw the introduction of a host of new products and the acquisition of an old one. Since 1928, H.B. “Harry” Reese’s candy company, also located in Hershey, had been making chocolate-covered peanut butter cups. Given that Hershey Chocolate supplied the coating for REESE’S “penny cups”; (the wrapper said, “Made in Chocolate Town, So They Must Be Good”), it was not surprising that the two companies had a good relationship. As a result, seven years after Reese’s death in 1956, the H.B. Reese Candy Company was sold to Hershey Chocolate Corp.
Growing up and branching out.
The following decades would see the company - renamed Hershey Foods Corporation in 1968 - expanding its confectionery product lines, acquiring related companies and even diversifying into other food products. Among the many acquisitions were: San Giorgio Macaroni and Delmonico Foods (1966); manufacturing and marketing rights to English candy company Rowntree MacKintosh’s products (1970); Y&S Candies, makers of Twizzlers licorice (1977); Dietrich Corp.’s confectionery operations (1986); Peter Paul/Cadbury’s U.S. confectionery operations (1988); and Ronzoni Foods (1990).
The Hershey Company enters a new century.
Today, The Hershey Company is the leading North American manufacturer of chocolate and non-chocolate confectionery and grocery products. As the new millennium begins, we continue to introduce new products frequently and to take advantage of growth opportunities through acquisitions. HERSHEY’S products are known and enjoyed the world over. In fact, we export to over 90 countries. With approximately 13,700 employees and net sales in excess of $4 billion, The Hershey Company remains committed to the vision and values of the man who started it all so many years ago.
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