Hershey's Replaces Board (after moving jobs to Mexico)

[Omaha Steve]

Source: The Street.com

The trust that controls Hershey's is restocking the candy maker's boardroom in a move aimed at boosting company performance.

Hershey's announced Sunday that eight board members had resigned, and that the Hershey Trust had elected eight replacements.

The changes come after the company last month reported poor third-quarter results and predicted troubles in the fourth quarter. The current chairman and CEO, Richard Lenny, has reportedly clashed with the trust and has announced he will retire.

The trust has appointed Kenneth Wolfe as a new non-executive chairman, effective Jan. 1, which is when Lenny will leave the company. In addition to Mr. Wolfe, the new directors are Charles Davis, a former Goldman Sachs (GS - Cramer's Take - Stockpickr) executive and the head of Stone Point Capital; Edward Kelly III, managing director of the Carlyle Group; Arnold Langbo, the former CEO of Kellogg (K - Cramer's Take - Stockpickr); James Nevels, the chairman of the Swarthmore Group investment firm; Thomas Ridge, the former secretary of Homeland Security; Charles Strauss, a former Unilever (UL - Cramer's Take - Stockpickr) CEO; and LeRoy Zimmerman, who is the chairman of the Hershey Trust.

Read more: http://www.thestreet.com/s/hersheys-replaces-board/newsanalysis/food/10389529.html?puc=googlefi

[Trillo]

1. Looky at all those new names!

The American Royal Crony Clan.

[Lorien]

2. Who knew that a sugary treat could turn so evil?

Thank goodness I only buy Lindt (made in Switzerland and therefore neutral ) ;-)

[Demeter]

3. Why Would Bushbots Take Over Hersheys?

Trying to screw Africa through their cash crop?

Trying to have all American women commit suicide when they jack up prices even more?

Positively nefarious, whatever the reason.

[raouldukelives]

4. I'm all in favor off moving jobs to Mexico

They just seem to move the wrong ones. A good mexican CEO would save Hershey millions of dollars.

[DCKit]

5. Commodities that Kill and Exploit the Poor:

Gold
Diamonds
Chocolate
Coffee
Bananas

Additions?

[Omaha Steve]

6. Oil?

I think it fits the puzzle too.

[momster]

8. Sugar

and whatever they're getting from the Brazilian rainforests...

[onehandle]

9. Tobacco.

I can't believe this isn't at the top of the list.

[Ian David]

11. Tea, Ginseng, Coal , Sugar and Oil. n/t

[pop goes the weasel]

7. context

From the same article you linked:

"The Hershey Trust, which is obligated to manage its assets solely for the benefit of Milton Hershey School, a school for children in need, has made clear it has not been satisfied with the Company's recent results," said Zimmerman in a statement announcing the changes.

There's been a lot of wrangling in the past few years over the Hershey Trust, and whether selling or keeping the candy company would be in the best interests of the Trust. This looks like another episode in that drama.

[Ian David]

10. As far as multi-national corporations go, Hershey used to be one of the most ethical.

Good for them for kicking the assholes to the Hershey Highway!

[soothsayer]

12. aren't they some of the idiots willing to redefine chocolate as not having to have cocoa?

the hell with them! The Mars family may be kooks, but at least they know chocolate has cocoa in it.

[tomreedtoon]

13. Hershey is...the Great Traitorous Chocolate Bar!

I recall that when Consumer Reports tested chocolate bars, Nestle came out much better and much closer to true chocolate than Hershey's. They announced that the Hershey bars were coated with some kind of NON-chocolate coating to make the bar "look better."

Looks like some pidgeons are coming home to roost and pooping on the Chocolate Empire.

[librechik]

14. the Three Mile Island Chocolate

milk from mildly radioactive herds for decades to come....

[NuttyFluffers]

15. hmm, Hershey's has historically been such a feel good business before...

particularly of a better history than Nestle and a few other chocolatiers. and the trust *should* be focusing bringing help to the needy, orphans, and the town. so part of this is interesting, like there's going to be responsility for moving a factory to mexico (which, was rather inevitable sadly). but then the new people being put in is rather... questionable.

overall hershey's is a good product, and of an excellent history, filled with moral stories and behaviors to make DU proud. i just don't get the antagonism here, especially since the last thing we should want is to leave Mars as the sole american representative of american chocolates. Nestle is a megalithic empire in europe, and Mars is like the embodiment of evil. after a few specialists for the culinary market, we're pretty much left in a bind about positive chocolatiers. that's why i'm curious why these figures are squeezing into the boardroom. i'm worried; i know they hate the idea of Hershey's history and success helping their community. they might want to destroy all the good work Hershey's has already done.

Hershey's have bought up Scharffenburger and an eco-friendly artisian chocolatier (who name currently escapes me) and are actively trying to encourage them to a broader audience. they are trying to build their name too with excellent dark chocolates (which are really damn good, you should try them). they work hard and conscienciously to not exploit their workers and were one of the last of the mega-chocolatiers to outsource, to sch places like mexico. but Nestle and Mars were kicking their ass because they didn't give a shit and were putting a major squeeze on Hershey's. it was literally do or die.

i'm just sad so many people here do not know who are "the good guys" and "the bad guys" in this market. it has been miserably competitive these past few decades, and to see some dogpiling just because 1 factory had to be outsourced makes me sad. people, you really should start doing your homework. business gets ugly and things turn into shades of grey real fast. sometimes your well-intentioned message misses its target.

(disclaimer: i do not work for Hershey's, Mars, or Nestle. my favorite candy bar is Snickers, a Mars product. i try to eat it sparingly because Mars is pretty damn evil. Nestle is GINORMOUS; just about every 3rd food product you eat from europe seems to be made by them. and they are nowhere near as nice as people may think. there's a reason why these big 2 stay silent, they know people will end up buying from their subsidiaries after their righteous indignation. you'll be surprised how 'pwnd' you are right now!)

[JPZenger]

20. Yes, Hershey Used to be Corporate Model.

The Hershey Company used to be a model of a good corporate citizen. For many years, they treated their employees very well, and the employees stayed for many decades. The majority of the company stock is still controlled by the Trust, which runs a school and home for 1,500 needy kids. Mr. Hershey donated almost his entire fortune 30 years before he died to operate that school in perpetuity.

In the 1990s, the Trust that controls the company became distant from the intent of Mr. Hershey. Some of the boardmembers became self-serving. The school also wasted millions, and became a giant ATM machine for powerful people. It was only after the Trust board tried to sell the company circa 2002 that the public rose up and a judge became more involved. As a result, the Trust board was reconstituted with more PA. residents, with the intent that the company would not be sold off.

This latest move is an attempt by the Trust Board to take control of the Company. In the past, the Trust let the company operate independently. That worked up until the time the Company's stock value suffered large losses.

I believe the company will get involved in joint ventures with other companies, such as Cadbury, to make profits from overseas sales. However, it is clear that the present boardmembers have no intent of giving up control of the company. There also are some controls in State law that would make it difficult to sell the company.

[FreeStateDemocrat]

16. Edward Kelly III, managing director of the Carlyle Group

[Omaha Steve]

17. How about ghirardelli? Hershey made this decision while making $493 million

http://www.ghirardelli.com/ How are they socially?


http://www.afroarticles.com/article-dashboard/Article/Hershey-Moving-American-and-Canadian-Plants-to-Mexico/21133

Hershey announced its Oakdale, CA plant will close by January 2008, and production will be moved to Monterrey, Mexico. Hershey plans to eliminate 1,500 jobs and one-third of production lines over the next three years. Plants in Reading, PA and Smith Falls, Ontario, Canada will shut down.

An Associated Press story stated, "The dramatic steps are necessary, the company said, to reduce its North American manufacturing and expand in faster-growing markets in the developing world."

Hershey is the largest candy maker in the U.S. Its net sales in 2005 were $4.835 billion, with a $493 million profit.

This story doesn't include the California plant moving to Mexico. $493 doesn't sound like an ass kicking to me.


http://www.post-gazette.com/pg/07047/762534-28.stm

Friday, February 16, 2007
By Peter Jackson, The Associated Press

HARRISBURG -- The Hershey Co., whose name has been synonymous with U.S. candy making for more than a century, is moving a bigger chunk of its production to Mexico.

A day after Valentine sweethearts across the country enjoyed bags of Hershey Kisses, the company yesterday announced a restructuring plan that will scale back its work force by 1,500 jobs and force some plants to close.

Hershey said the three-year blueprint would reduce the number of production lines by more than one-third while saving the company as much as $190 million a year.

The maker of Hershey's Kisses, Reese's peanut butter cups and Mounds bars employs about 13,000 at 20 plants in the United States, Canada, Mexico and Brazil. The planned cuts amount to 11.5 percent of that work force.

The proportion of Hershey's manufacturing done in the United States and Canada will shrink, from 90 percent to 80 percent, and the impact will vary from one plant to another.

[senseandsensibility]

19. I've made this suggestion before

Ghiradelli's doesn't outsource, as far as I can tell. Their chocolate is made in the US, and tastes much better than Hershey's. I remember when you used to have to buy it locally in their store in San Francisco, or Monterey, CA, but now it's available everywhere. I've seen Ghiradelli's in all the major grocery store chains. There is literally no comparison between the taste of Ghiradelli and Hershey, so give it a try!

[Beerboy]

18. The Trust merely needs mo money for

*diamonds
*gold
*oil
*tobacco, and
Chinese slaves!
The replaced board-members might not be able to buy new Porsche SUV's this year! Oh the humanity!:cry:

[eppur_se_muova]

21. Why didn't they try that FIRST, before closing the plant?

(Rhetorical question)