The Hershey Company has reported a net loss of nearly $100 million in the second quarter of this year after being hit by falling sales in China. The United States-based chocolate giant came up with a mixed bag of figures with net sales dropping slightly to $1.57 billion compared to the same period last year. The second quarter net loss came in at $99.9 million compared to a net income of $168.2 million a year ago. Net chocolate sales in China dropped $35 million during the same period…Full Article: China Daily Aug 2015
- In 2014, Hershey purchased an 80% stake in Shanghai Golden Monkey. In 2015, SGM sales and profitability have floundered.
- In November 2014, Hershey management expected its Chinese sales to reach US$500 million by 2015 thanks in part to Shanghai Golden Monkey’s distribution system.
- In May 2013, Hershey announced that launched a new chocolate product in China. The product, called “Lancaster”, is a “Nai Bei” styled candy made from high-quality imported milk (three flavors total).
- In 2011, America’s Mars (via its Dove brand chocolate) had a 40% market share in mainland China. Following Mars was Nestle with an 11% share and Italy’s Ferrero Rocher with 9% share. In the rear of the pack were Cadbury and Hershey’s.
- In 1995, Hershey established a representative office in China. However, the company was not able to obtain significant market share, with Hershey products reportedly “missing” from store shelves in 2004.