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

Key Point

  • In 2014, Hershey purchased an 80% stake in Shanghai Golden Monkey. In 2015, SGM sales and profitability have floundered.

ChinaAg Comments

  • 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.

Similar Posts by ChinaAg

Spread the word. Share this post!