Hershey Company and Chocolate Industry Status and ChallengesCompany InformationTake 5 was a chocolate bar first produced by Hershey Company in 2004. It consisted of 5 components: pretzel, caramel, peanut butter, peanuts and a chocolate coating. The Hershey Company was founded by Milton S. Hershey in 1894. It is headquartered in Hershey, Pennsylvania. Today, Hershey is the largest chocolate producer in North America and a leader in the chocolate industry worldwide. It is present in 50 countries and employs more than 14,000 people worldwide. In 2013, the total revenue of the Hershey company is approximately $7.0 billion, the majority of which in the domestic market is approximately $4.7 billion. (Hester Jeon, 2013) The Chocolate business unit and the Confectionery and Refreshments business are the two main business units of Hershey. Hershey owns more than 80 famous brands, including Hershey's candy bars, Hershey's Kisses, Reese's, Kit Kat, Twizzlers, and more. Over the past 5 years, the company has focused on expanding its international market share in different countries like China and Mexico while maintaining its market share in North America.Industry InformationIn The chocolate industry, companies produce and retail chocolate products and confectionery using cocoa beans, sugar and other materials. The Hershey Company, Nestlé SA, Mars Inc. are the main players in the American chocolate industry. The Hershey Company's market share is 30.5%, Mars Inc's 24.2% and Nestlé SA's 10.1%. In 2013, the turnover of the American chocolate industry amounted to 15.5 billion dollars and its profit to 2.1 billion dollars. Over the past five years, average annual growth is around 1.5% (Table 1). Due to the decline in per capita disposable income in 2008, consumers turned to cheaper candy and chocolate. The volume of sales...... middle of paper ....... In 2008, the world price of cocoa increased by 31.4%, in 2010 it increased further by 17.9% in 2010. The other raw material, the price of sugar, increased by 44.3% in 2010. (Hester Jeon, 2013) Therefore, a significant increase in the price of raw materials negatively affects the profits of the entire industry chocolate. Mars Inc intends to invest in research and development of cocoa plantation. The company wants to help cocoa producers increase their yields and efficiency. Therefore, they could reduce and control the price of cocoa beans. Growing Health Awareness More and more Americans realize that consuming too much sugar and fat is harmful to their health. This concern would reduce sales of traditional chocolate products. The chocolate manufacturer is actively researching and developing new, healthier and more nutritious chocolates like sugar-free, low-sugar and dark chocolate...