Milton Hershey / "Hershey Foods"

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Here years company Hershey Foods already is a lot of is the leader in the American market of products from chocolate. However right now for the company problem time has come. Owners Hershey Foods puzzled with arisen problems, have decided to sell the company. Naturally, buyers were quickly, and all higher, probably, would remain are happy, if the transaction has taken place. But it was prevented by inhabitants of small town Hershi.

If Hershey Foods it has been sold, the transaction sum could reach a record mark for branch - during negotiations the price $15 billion In the list of possible buyers was called such powerful brands, as American Wrigley, and also Swiss Nestle and British Cadbury appeared.

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Under pressing of public Hershey Trust has made definitive decision to refuse from company sale. «The board has rejected all demands about purchase and has addressed to the company with the offer to stop sale discussion», - is spoken in statement Hershey Trust. Unexpected turn of business speaks singularity of the company. Hershey Foods represents whether an original illustration to the doctrine of socialists-utopians, whether an embodiment of religious ideas of its founder. This feature of the company also has prevented shareholders to finish the transaction.

Milton Hershi, the company founder, by the right of named by his name, was born in September, 1857 in small town Derri CHerch in Pennsylvania. Its family was religious. In 18 century its ancestors have got over to America from Germany and Switzerland where together with the compatriots and have created a small community. Therefore the first language on which Milton has started talking, was not English, but "pensilvansko-Dutch".

Because of frequent moving of the family Milton has had time to study at school only four classes. Though mother and itself did not aspire to give to the son a normal secular education - she considered, that «from books only one harm». At the first possibility Milton has been given «in people». It had to work some time in journeymen for the printer who was letting out the small newspaper in German. Polygraphic business has not carried away Milton, and it has replaced an occupation - became the pupil of the local confectioner making both selling inexpensive karamel and ice-cream. So it was pleasant to Milton at the confectioner, that it has started to master its craft, hoping in the future to open the business.

It has undertaken some attempts to begin own business - in Philadelphia, Denver, New York, Chicago and New Orleans - and has not succeeded anywhere. But has managed to find out at one Denver confectioner a secret, well-known today: for taste in karamel it is necessary to add fresh milk. New opening has inspired it, and it has made one more attempt, this time in Lancaster. Relatives have refused to support it, and only mother with the aunt have come to the aid. After a series of experiments Milton at last has created the original recipe karameli which he has named Hershey's Crystal A. Here to it the recognition also has come! New karamel have estimated not only compatriots, but also foreign importers of sweets. After reception of the large order from England Hershi has addressed in Lankastersky national bank for the loan. It did not have a guarantor, but, having tried Hershey's Crystal A, the head of bank himself has acted in a role of the guarantor, having believed in success of its founder. And enterprise Hershi began to prosper. Thanks to success karamelnogo business in 1894 Milton Hershi already was considered as one of the richest inhabitants of Lancaster.

It was the free money first in his life. Rich Americans of that time travelled much, and Hershi has adopted their this manner. It has visited Mexico, England, France, Egypt. Into the program of its visits to the different countries entered not only museums and shops, but also large factories, factories and distributors. There it got useful business ties and, that the most important thing, scooped ideas for own business. Thus, Milton Hershi has earned first million on manufacture and sale karameli. But on it it has not stopped. It has received the present recognition, the world popularity and a huge status thanks to chocolate. The idea to be switched to this product has visited him for the first time on the World's fair of 1893 in Chicago where Milton was especially impressed with the German equipment for chocolate manufacturing. Hershi has immediately got it and has established in Lancaster. At first on the equipment did only glaze for karameli, hardly later to assortment drinking cocoa and chocolate for a batch were added. And by the end of 90th years of 19 centuries Hershi has definitively made a choice in favour of chocolate. In 1900 he without a regret has sold the company to competitors for $1 million (rather impressive sum on those times), having left itself(himself) only chocolate shop.

Now it has been anxious by search of a place for building of the new enterprise. Hershi has returned to native small town Derri CHerch. He has redeemed the house even earlier, in which was born to present to his father, and now and itself has decided to locate there. Besides in small town lived a lot of jobless which would be glad to work at new factory. Set of farms close Derri could deliver milk for chocolate manufacture and consequently the decision was immediately accepted. Building has been begun in 1903, and in 1905 factory has already started to work.

To pay back all expenses, the hit product was necessary. Hershi has attended to creation of the recipe of the original milk chocolate, capable to compete to the Swiss brands. It experimented, constantly offered new ideas, combinations of additives. At last on light has appeared well-known batonchik Hershey's - a liked delicacy of Americans of those times and our days. Hardly later, in 1907, the factory has let out one more best seller - chocolates Hershey's Kisses which idea of creation belonged also to Milton Hershi.

The grown rich Milton did not begin to shiver over each cent. Religious beliefs did not allow it to enjoy riches while its compatriots lived below the breadline. But also thoughtlessly to distribute money to the right and on the left was not in its habits. The mission he saw, first of all, in creation of new workplaces, and also in maintenance of unique working conditions for those times for the employees.

Round factory in Derri Hershi has constructed the whole city which has named the name. All necessary in him has been provided - bank, hotel, churches, parks, shops, laundries, platforms for a golf and even a zoo. The majority of employees and managers of factory lived in a city, but those who lived outside of Hershi have not been forgotten also: specially for them have constructed a tram line that it was easier to employees to reach factory.

The second boom of building in Hershi has fallen to years of Great depression. To provide with job of requiring townspeople, Milton Hershi has started building of the big hotel in the Mediterranean style. As a hotel prototype has served Heliopolis Hotel in Cairo which has amazed imagination Hershi during its travel to Egypt.

Official opening of hotel has taken place on May, 26th, 1933, and in honour of this event Hershi has organised a party on 400 visitors. One year later at hotel the golf club has been opened, and a year later to it have attached a grandiose hall for carrying out of balls.

But opening in 1909 of industrial school which since 1951 is called simply as school of a name of Milton Hershi became the most considerable philanthropic act of "the chocolate king», perhaps. Milton and his wife could not have children both all love and care have turned on orphans. Though itself Hershi grew in a high-grade family, its childhood it was impossible to name a lung. He considered as the debt to relieve as much as possible children of difficulties which has gone through itself. Pamjatuja about the four classes of education, Hershi cared of that pupils of school besides labour skills received also good education within the limits of the high school program.

In 1918, in three years after death of the wife, Milton Hershi has written the will according to which all its personal status - by that moment $60 million - should depart to school. It has not changed this decision before the most death which have followed in 1945. Now Hershey Foods is the public company, but the school through fund Hershey Trust posesses 31,4 % of usual actions. Besides, the school supervises 76 % of voting actions Hershey Foods.

Company Hershey maintained relations with the American military departments. In 1937 the main business executive of the American army the Floor Logan has addressed to the then president of the company William Merri with the request to develop batonchik for soldier's rations. Requirements to a new product were that: the weight no more than four ounces, stability to heats, nutritiousness and at least in the slightest degree pleasant taste - according to Logan, «is hardly better, than at a boiled potato». Milton Hershi has approved cooperation with army and has listened to wishes of military men.

After a number of experiments experts of factory managed to create chocolate which met the requirements set forth above - maintained temperature to 50 degrees and contained about 600 calories. Officially the product was called Ration D, but in its people there and then began to name «batonchikom Logan».

At first army orders were not so big, but before the Second World War manufacture pajkovogo chocolate have put on a stream. In 1939 Hershey let out already 100 thousand packings Ration D a day. In 1943 the army has put before Hershey a problem to develop the new version batonchika which would not thaw on heat and possessed the improved taste - «hardly better a potato» military men any more did not arrange. After short experiments there was one more army hit - Hershey's Tropical Chocolate Bar. In 1971 together with crew of ship Apollo of a tile of this chocolate have visited on the Moon.

After Milton Hershi's death the company tried not to recede from the market strategy chosen by the founder. For example, Hershi did not like to be spent for advertising - it considered, that the good product speaks for itself. To the middle 1960 in Hershey Foods there was no even an independent marketing division.

Long time this approach justified itself: having tried "army" batonchikov, many Americans came back from military service devoted admirers of chocolate Hershey. Anyway, so one of authors of the claim against Hershey Foods, submitted quite seriously confirmed several years ago. The claimant has accused the company of premature demise of the father: on war that has so conceived a liking to pajkovomu to chocolate Hershey's, that then and could not refuse it and as a result has died of adiposity. The claim, by the way, has been satisfied.

By the end 1960 new management Hershey Foods has felt, that the company starts to become outdated morally. It concerned both the industrial party, and image of products. Business has reached that Hershey Foods has conceded leadership in home market to the immemorial competitor - companies Mars. It has been as a result decided to start company reorganisation. For the first time to responsible posts began to invite people from the party - with good education and experience of marketing activity (earlier in Hershey Foods considered, that is good supervise over the company the person who has worked in it of many years) can only. New factories have been constructed, old factories are converted. Hershey Foods has started to extend at the expense of the external acquisitions, to most essential of which was purchase of company H. B. Reese Candy Co.

All these measures have allowed Hershey Foods to return themselves leadership in the American market of sweets which it keeps and today. Thus cloudless company position you will not name. In 2001 Hershey Foods Richard Lenni - first "stranger" in company history (before it worked in Nabisco) has headed. Arrival Lenni to «a chocolate city» was not quite adequate: it has not shown readiness to follow principles, zaveshchannym Milton Hershi. Among offered Lenni measures - production distribution through cheap shops (for example, at gaz stations), sale of "not chocolate" brands, closing of factories and even dismissal. The discontent of employees has poured out in April, 2002 in the longest in history Hershey Foods strike. It proceeded 44 days and has come to the end with a victory of trade unions.

The state of affairs in the company has called alarm shareholders. In the end of July news agencies have informed, that Hershey Trust searches for the buyer for the company. Not all experts understand, what for owners of a control package needed to sell a legend of the American business. «Though I also am the supporter of consolidation in food branch, but I think, that Milton Hershi in a coffin would turn over …» - so John Makmillin, an analyst from Prudential Securities has commented on news about the future sale.

Have not understood this possible change and inhabitants Hershi who have decided, that sale Hershey Foods will negatively affect their well-being. Numerous army of the patriots protesting against sale of national property, the general public prosecutor of Pennsylvania Mike Fisher has headed. The staff court has decided, that Hershey Trust has no right to sell the company. Correct to the father and the founder of the company liked by all inhabitants of democratic America, has won the public.