Hershey’s: The Sweet Story Behind a Global Brand

Dear Readers

Today, let’s unwrap a story that’s as sweet as the product itself — the journey of Hershey’s.

We all know Hershey’s for those delicious chocolate bars and kisses. But behind the simple, melt-in-your-mouth treats is a business story packed with smart thinking, bold risks, huge failures, massive wins — and a ton of lessons for anyone dreaming of building something big.

Let’s dive into the Hershey’s case study — from a tiny candy business to a global chocolate empire.

Grab a snack (maybe even a Hershey’s bar), and let’s get started.

How Hershey’s Started: A Dream Fueled by Candy

It all began in the late 1800s with a man named Milton S. Hershey — and trust me, this guy was the real deal when it comes to persistence.

Before Hershey became the king of chocolate, he failed miserably at multiple businesses.

• His first candy shop in Philadelphia? Total flop.
  
  

• His next attempts in New York? Also flops.
  
  

  Most people would have quit. Milton didn’t.

Finally, in Lancaster, Pennsylvania, he found success with the Lancaster Caramel Company. Caramels were all the rage back then, and Milton’s version became super popular.

But here’s the twist: even when his caramel business was booming, he bet everything on something new — milk chocolate.

In 1900, he sold his caramel business for $1 million (a massive sum back then) and went all-in on chocolate.

Talk about guts.

The Birth of Hershey’s Chocolate Company

Milton wasn’t just trying to make fancy chocolate for the rich. His mission was bigger:

Make chocolate affordable for everyone, not just the wealthy.

Until then, chocolate was mostly a luxury item in America. Imported from Europe. Expensive. Special occasion stuff.

Milton wanted every kid, every family, every worker to be able to grab a chocolate bar whenever they wanted.

So, in 1905, he opened the Hershey Chocolate Factory in Derry Township, Pennsylvania — right in the middle of dairy country. Smart move: fresh milk was key for his creamy milk chocolate recipe.

It wasn’t just a factory. Milton built an entire model town around it — complete with houses, schools, parks, and transportation for workers.

This was way ahead of its time — a combination of business strategy and social vision.

How Hershey’s Makes Money (Simple But Brilliant)

At its heart, Hershey’s business model is simple:

• Make chocolate (and other snacks)
  
  

• Sell it everywhere
  
  

• Keep the brand iconic
  
  

• Expand without losing the magic
  
  

But of course, it’s a little more detailed than that:

Main Revenue Streams:

• Chocolate and Confectionery Sales: Hershey’s Kisses, Hershey’s Bars, Reese’s, KitKat (in the U.S.), and many more.
  
  

• Snacks and Beverages: Protein bars, cookies, spreads, milkshakes, and even baking products.
  
  

• Licensing: Hershey’s licenses its brand for things like baking chips, cereals, and international expansion.
  
  

• Retail Stores and Experiences: Hershey’s Chocolate World locations are massive tourist attractions.
  
  

Fun Fact: Reese’s (yes, the peanut butter cups) is one of Hershey’s biggest money-makers today — even though it wasn’t originally their invention (Hershey eventually bought the company).

How They Keep Winning:

• Strong Branding: That brown-and-silver Hershey’s wrapper is iconic.
  
  

• Constant Innovation: New flavors, new formats (like snackable bites, thins, sugar-free versions).
  
  

• Holiday Specials: Think Halloween, Easter, Valentine’s — Hershey dominates the candy aisles.
  
  

• Global Growth: Hershey is expanding internationally, focusing on India, Mexico, Brazil, and other emerging markets.
  
  

Hershey’s Growth Story: From Bars to Global Brand

Over the decades, Hershey’s didn’t just sit around counting chocolate coins. They kept evolving.

Here’s a quick timeline:

• 1920s-30s: Launch of Hershey’s Syrup (yes, the one you put on your ice cream).
  
  

• 1940s: During WWII, Hershey made special ration bars for U.S. soldiers.
  
  

• 1960s-80s: Bought companies like Reese’s and expanded their portfolio.
  
  

• 1990s: Moved beyond candy — into cookies, baking products, and snacks.
  
  

• 2000s-present: Big international push + healthier snack options (because, well, people still love chocolate but don’t want the guilt every time).
  
  

Today, Hershey’s operates in over 60 countries and owns a huge portfolio of brands beyond just chocolate.

The Numbers (as of 2024)

• Annual Revenue: Around $11 billion
  
  

• Net Income: Roughly $1.5 billion
  
  

• Employees: 18,000+
  
  

• Key Brands: Hershey’s, Reese’s, KitKat (U.S.), Ice Breakers, Twizzlers, SkinnyPop, Pirate’s Booty
  
  

The Business Model, Simplified

If I had to explain Hershey’s strategy in one line, it would be:

“Dominate the sweet tooth, diversify the snack shelf.”

Hershey’s doesn’t just sell chocolate — they sell happiness, nostalgia, convenience, and comfort. And they’ve spread that idea across candies, cookies, sips, and snacks.

Their edge?

• Emotional branding (everyone has a Hershey’s memory)
  
  

• Smart acquisitions (buy great brands, don’t just build everything from scratch)
  
  

• Operational efficiency (they keep costs low, quality high)
  
  

• Global expansion with smart local partnerships
  
  

Key Entrepreneurial Lessons from Hershey’s Journey