- North America
North America generates 85% of the total revenue. However, Hershey is focused on building its international presence.
In 2014, 14.4% of the company’s total revenues came from international operations, compared to 13.2% in 2013, and 12.5% in 2012. In its international business, Hershey is mainly focusing in emerging markets of Mexico, Brazil, India, and China. Over the last five years, constant currency net sales increased with a CAGR (compound annual interest rate) of ~15% in these four focus markets.
As of December 2014, 35% of Hershey’s assets were located outside the US. The company’s international growth has been driven by China, which includes the newly-acquired SGM (Shanghai Golden Monkey) business.
In the international market, Hershey faces intense competition from global players like Mondelez International (MDLZ), Nestle (NSRGY), and Mars. According to ValueNotes, Mondelez, the owner of Cadbury chocolates, leads the Indian chocolate market with market share of 62%, followed by Nestle and Mars, with 18% and 6%, respectively, of the market share. Hershey has an insignificant share in the Indian market.
Hershey’s confectionery offerings include chocolate and sugar confectionery products, gum and mint refreshment products, pantry items (including baking ingredients), toppings and beverages, and snack items (including spreads).
Some of the company’s most renowned brands include the following:
- Ice Breakers
Continue to the next part of this series for a closer look at Hershey’s customer relationships and initiatives.