Hershey Announces New Organization Structure to Leverage U.S. Scale and Accelerate Global Growth

HERSHEY, Pa., Nov. 21 /PRNewswire-FirstCall/ -- The Hershey Company today announced a new organization structure to better leverage its scale in the U.S. and accelerate the company's growth in key global markets. The changes, which are effective immediately, are designed to further strengthen the company's current performance while capitalizing on long-term growth opportunities.

Highlights of the new structure include the formation of: -- A U.S. Commercial Group, with responsibility for continuing to build Hershey's confectionery leadership while capitalizing on its scale in the U.S. snack market. -- An International Commercial Group, with responsibility for pursuing profitable growth opportunities in key markets in the Americas and Asia. -- A Global Growth and Innovation Group, with responsibility for building global brands, developing benefit-driven growth platforms for the short and long term, and strengthening marketing capabilities worldwide.

Commenting on the new organization structure, Richard H. Lenny, Chairman, President and Chief Executive Officer, The Hershey Company, said, "We've made great strides in executing Hershey's value-enhancing strategy in recent years, delivering record sales, market share and earnings from operations. Now is the right time, as we approach the close of what we expect will be another strong year, to take steps to strengthen our performance in the near term and build a structure that will continue our momentum for the long term.

"The organizational structure we announced today," continued Lenny, "will allow Hershey to capture a larger share of the U.S. snack market while broadening its international presence. Unifying our U.S. business, adding much-needed global capabilities, and aligning selected international opportunities with total company resources will ensure that we continue to achieve top-tier performance."

Chris Baldwin, formerly Senior Vice President, Chief Global Customer Officer, has been appointed Senior Vice President, President U.S. Commercial Group. Michele Buck, formerly Senior Vice President, President U.S. Snacks, has been appointed Senior Vice President, Chief Marketing Officer, U.S. Commercial Group, reporting to Baldwin.

"Since joining Hershey in late 2004," Lenny said, "Chris has provided commitment, leadership and broad industry knowledge resulting in record sales and market share performance. Our customer initiatives reflect his keen understanding of marketplace opportunities and the pragmatic allocation of selling resources at both the headquarters and retail levels.

"In addition to building our confectionery leadership position," continued Lenny, "Chris quickly and effectively has established Hershey's retail presence in several high potential snack segments. His new role will ensure that the streamlined U.S. Commercial Group delivers superior results from both a consumer and customer standpoint."

In commenting on Michele Buck's appointment as Senior Vice President, Chief Marketing Officer, U.S. Commercial Group, Lenny said, "Michele has provided the strong leadership necessary to establish Hershey within new snack segments. Our results to date are encouraging, with several platforms gaining traction. Michele now will provide her insight and marketing expertise across our entire portfolio to build our position within the total U.S. snack market. By unifying our approach, we'll fully leverage Hershey's iconic brands and advantaged business system."

John P. Bilbrey, formerly Senior Vice President, President Hershey International, will continue in his present role and has been appointed Senior Vice President, President International Commercial Group.

"During the past two years," said Lenny, "J.P. has delivered solid performance at Hershey International. Now, with this foundation firmly in place, we're better positioned to broaden our international presence both within existing global markets and in selected new markets. Working with his colleagues, J.P. will ensure a disciplined and collaborative approach to building global brands and establishing the most cost-effective business system based on the specific needs of each geographic region."

Thomas Hernquist, formerly Senior Vice President, President U.S. Confectionery, has been appointed Senior Vice President, Global Chief Growth Officer. Hernquist will be responsible for all major new platform and new product development efforts across the company and around the globe, as well as for brand positionings, portfolio strategy, Integrated Business Intelligence, and such major corporate initiatives as Health & Wellness and multi-cultural marketing.

"Tom's leadership has been instrumental in accelerating Hershey's new product innovation over the past three years," said Lenny. "From limited editions of existing products to entirely new platforms, the strategic discipline established by Tom has driven superior marketplace performance and has helped Hershey to consistently lead the market in new product innovation. Tom will ensure that we develop superior capabilities across the company, whether it is in consumer insights, new product development or innovative marketing communications."

Dan Azzara, Vice President, Innovation & Quality, will report to Hernquist. In this role, Dan will be responsible for creating global platforms that simultaneously build Hershey's business in the U.S. and in select international markets. In addition, he will ensure that the company's innovation pipeline delivers new products in the near term while developing platforms for several years out.

Commenting on Dan's role, Lenny said, "Under Dan's leadership, our R & D group has delivered exceptional new product innovation within our core U.S. confectionery business. Most recently, it has enabled us to effectively extend our brands into selected snack market segments. Dan will bring this same level of product innovation to all of our businesses, regardless of geographic market."

About The Hershey Company

The Hershey Company is a leading snack food company and the largest North American manufacturer of quality chocolate and non-chocolate confectionery products. With revenues of over $4 billion and more than 13,000 employees worldwide, The Hershey Company markets such well-known brands as Hershey's, Reese's, Hershey's Kisses, Kit Kat, Almond Joy, Mounds, Jolly Rancher, Twizzlers, Ice Breakers, and Mauna Loa, as well as innovative new products such as Take 5 and Hershey's Cookies. In addition to its traditional confectionery products, Hershey offers a range of products specifically developed to address the nutritional interests of today's health-conscious consumer. These products include sugar-free Hershey's, Reese's and York candies, and PayDay Pro. It also markets Hershey's cocoa, Hershey's syrup and other branded baking ingredients, toppings and beverages.

In addition, Artisan Confections Company, a wholly owned subsidiary of The Hershey Company, markets such premium chocolate offerings as Scharffen Berger, known for its high-cacao dark chocolate products, and Joseph Schmidt, recognized for its fine, handcrafted chocolate gifts. Visit us at http://www.hersheynewsroom.com/.

Safe Harbor Statement

This release contains statements which are forward-looking. These statements are made based upon current expectations which are subject to risk and uncertainty. Actual results may differ materially from those contained in the forward-looking statements. Factors which could cause results to differ materially include, but are not limited to: the Company's ability to implement and generate expected ongoing annual savings from the program to advance its value-enhancing strategy; changes in the Company's business environment, including actions of competitors and changes in consumer preferences; customer and consumer response to selling price increases; changes in governmental laws and regulations, including taxes; market demand for new and existing products; changes in raw material and other costs; pension cost factors such as actuarial assumptions, market performance, and employee retirement decisions; and the Company's ability to implement improvements to and reduce costs associated with its supply chain, as discussed in the Company's Annual Report on Form 10-K for 2004.