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Hershey's deal with Ferrero aids candy supply chain

The candy supply chain got a boost last week when it was announced that the Hershey Company said that it had entered into an alliance with The Ferrero ...

Freddie Pierce
|Oct 10|magazine6 min read

The candy supply chain got a boost last week when it was announced that the Hershey Company said that it had entered into an alliance with The Ferrero Group in North America through a joint warehousing, transportation and distribution initiative.

This alliance is consistent with Hershey's ongoing productivity efforts to improve supply chain efficiency and enhance competitiveness. The two companies will also work together to maximize corporate social responsibility efforts with the expectation of reducing carbon dioxide (CO2) emissions and energy consumption in warehousing and freight, with fewer vehicle journeys needed to move products to customers.

HERSHEY FACTORY TOUR

“Ferrero is a respected international company with a portfolio of successful brands including Tic Tac Mints, Ferrero Rocher Chocolates and Nutella Hazelnut Spread,” John P. Bilbrey, President and Chief Executive Officer of The Hershey Company said. “Collaborative supply chain operations are a growing trend across industries as companies seek to fully leverage their logistics infrastructure. Although we are initially focusing on one region of our business, we are excited about the full potential of this project.”

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Productivity improvements from this initiative will begin to be realized in 2012. The alliance does not encompass manufacturing, selling or marketing activities.

The Hershey Company is the largest producer of quality chocolate in North America and a global leader in chocolate and sugar confectionery. Headquartered in Hershey, Pa., The Hershey Company has operations throughout the world and more than 13,000 employees.

With revenues of about $6 billion, Hershey offers a wide range of confectionery products, including such iconic brands as Hershey's, Reese's, Kisses, Hershey's Syrup, Kit Kat, Twizzlers, Ice Breakers, PayDay and Jolly Rancher.

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Edited by Kevin Scarpati