Hershey strikes deal with UK grocers
Thursday 09 December 2010
The confectionery giant Hershey is to start selling its chocolate in the UK for the first time on a mass scale in Asda and Sainsbury's next year, in an effort to bite a chunk out of the lucrative European market.
Asda, which is owned by the US retail giant Walmart, will sell a range of Hershey products – including Hershey's Kisses, the chocolate shaped like flat-bottomed teardrops – in the majority of its UK food stores in the first three months of 2011.
The UK's second-biggest grocer said it had an "exclusive licence" to sell a range of the products which will be free of the genetically modified ingredients that Hershey uses in the US.
Asda remained tight-lipped on the other Hershey brands, but given the trademarks the US confectioner has listed in the UK, the supermarket is also likely to sell its Mr Goodbar, Hugs and Reese's Pieces brands.
Sainsbury's will only sell Hershey's Kisses in its larger supermarkets from the first quarter of next year. But the grocer currently sells the Reese's Nutrageous peanut bars made by Hershey.
The UK move by Hershey has raised eyebrows, however, as its distinctive chocolate has often been viewed as at odds with European taste buds.
As part of its drive to ramp up sales outside of North America, Asia and Latin America, however, Hershey wants to muscle in on the Europe market, which is dominated by Kraft's Cadbury, Mars, Lindt and Ferrero. Of Hershey's total revenues of $5.3bn in 2009, only 14 per cent came from Europe. It is also working with Asda's parent Walmart to introduce its products into other global markets.
Doug McMillon, the head of Walmart's international division, said: "We believe people will buy [Hershey's Kisses] without a lot of marketing support if we demo them and let people taste them".
Hershey set up a European subsidiary in August and it is also seeking to hire a manager for a European and Middle East travel retail arm, who would expand its distribution.
An Asda spokeswoman said: "The range has been exclusively developed for Asda and will be in the majority of stores. We are sure our customers will love them." Tesco said "no decision has been made" on selling Hershey products next year but it currently sells Reese's Cups Rich Peanut Butter products. Morrisons said it currently stocks two Reese's brands
Founded in 1894 in Hershey, Pennsylvania, the company was last year linked to a bid for Cadbury before the British chocolate maker was bought by Kraft for £11.4bn.
- 1 Howard Jacobson: Let's see the 'criticism' of Israel for what it really is
- 2 Brazil vs Germany World Cup 2014: In defence of Mesut Ozil - the Arsenal midfielder works magic in the shadows
- 3 Do you know this man? Amnesia sufferer found in park pleads for help in identifying who he is
- 4 PornHub begs users to stop uploading video clips of Brazil getting beaten 7-1
Game of Thrones author George RR Martin says 'f*** you' to fans who fear he will die before finishing Westeros saga
Jennifer Lawrence face palms Emma Watson at Christian Dior show in Paris
Mick Jagger denies being World Cup curse and reason for Brazil’s embarrassing defeat
Gingers face extinction due to climate change, scientists warn
Do you know this man? Amnesia sufferer found in park pleads for help in identifying who he is
Sustained immigration has not harmed Britons' employment, say government advisers
British jihadist calls for 'flag of Islam' over Downing Street and Buckingham Palace
Australia facing international condemnation after turning around Sri Lankans at sea
7/7 memorial defaced on anniversary of 2005 attacks with ‘Blair lied thousands died’ graffiti
Even when it brutalises one of its own teenage citizens, America is helpless against Israel
There’s a nasty smell in the political air – and it’s coming from the Tories
iJobs Money & Business
£60000 - £75000 per annum: Harrington Starr: Business Analyst Consultant (Fina...
£60000 per annum: Harrington Starr: A leading provider in investment managemen...
£600 - £700 per day: Harrington Starr: AVS, JVS Openlink Endur Developer JVS, ...
£30000 per annum: Harrington Starr: A global leader in trading platforms and e...