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Shareholder Tightens Grip


February 29, 2008
By Canadian Vending

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The charitable trust that controls Hershey Co. is flexing its muscle by
overhauling the board of the candy maker, mired in a yearlong slump.

The charitable trust that controls Hershey Co. is flexing its muscle by overhauling the board of the candy maker, mired in a yearlong slump.

The Hershey Trust asked six directors to resign, while two others volunteered to leave, the company said. The trust then installed two of its own members.

This fall already has been tumultuous for the maker of Hershey’s Kisses and Reese’s, which is trying to revive its sales while undergoing a dramatic shift to cut its domestic plants and expand production in China, India and Mexico.

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Citigroup analyst David Driscoll viewed the changes positively for Hershey.

“The incoming board members at (Hershey) appear to be a talented group with a wealth of experience,”
Driscoll said.

He also said the move would align the company’s board, chief executive and Hershey Trust – and possibly put to rest the disagreements that many analysts perceive have cropped up in recent months.

The trust, the company’s largest shareholder, funds a school for underprivileged children.


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