Hershey Purchases Dagoba, Leading Manufacturer of Organic Chocolate

Builds On Chocolate Leadership Position By Entering Rapidly Expanding

Organic Segment



19 Oct, 2006, 01:00 ET from The Hershey Company

    HERSHEY, Pa., Oct. 19 /PRNewswire-FirstCall/ -- The Hershey Company
 (NYSE:   HSY), as part of its strategic focus on the high-growth premium
 chocolate segment, today announced that it has acquired the assets and
 operations of Dagoba Organic Chocolate, LLC. Based in Ashland, Oregon,
 Dagoba is known for its high-quality natural and organic chocolate bars,
 hot chocolate and chocolate-covered coffee beans sold in natural foods
 outlets and gourmet stores.
     In announcing the acquisition, Richard H. Lenny, Chairman, President
 and Chief Executive Officer, The Hershey Company, said, "Organic chocolate
 products are experiencing dramatic growth as consumers continue to trade up
 for indulgent, high-quality products. Dagoba, with its well-regarded
 portfolio of quality organic products, will enable Hershey to build on its
 leadership in the North American chocolate market by meeting emerging
 consumer needs and building profitable new marketplace opportunities."
     Chris Baldwin, Senior Vice President, President North American
 Commercial Group, The Hershey Company, said, "Dagoba's strong presence in
 the natural channel is a real plus for Hershey, allowing us to expand our
 presence and broaden our offerings in this growing arena. In addition,
 Dagoba's use of only the finest organic ingredients makes it a great
 complement to our existing, premium portfolio of Scharffen Berger and
 Joseph Schmidt products."
     "This is a tremendous opportunity for Dagoba," said Frederick
 Schilling, Chief Executive Officer and Founder, Dagoba Organic Chocolate,
 LLC. "Hershey's deep commitment to quality and sustainability throughout
 its supply chain will help Dagoba improve and expand its mission of
 improving cacao farmers' livelihoods and expanding organic farming methods.
 This partnership will enable us to continue creating the world's most
 exquisite chocolate and make it available to a much broader consumer base."
     About The Hershey Company
     The Hershey Company (NYSE:   HSY) 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.
     About Dagoba Organic Chocolate, LLC
     Founded in 2001, Dagoba Organic Chocolate, LLC seeks to create the
 world's most exquisite organic chocolate, following the highest standards
 of ethics and ecological sustainability. Dagoba is dedicated to the Art of
 Chocolate Alchemy: transforming cacao into exquisite chocolate through Full
 Circle Sustainability(TM): blending equity, quality, ecology and community.
 The company seeks out fine flavor, sustainable and certified organic cacao
 through direct, equitable partnerships, and manufactures in small batches
 with great care. All products are also kosher, and many are Certified
 Organic. Dagoba's approach has gained high regards: Food & Wine's 2005
 Tastemaker Award, "World's Best Chocolate" - CNN/Money, and "Best Dark
 Chocolate" - San Francisco Chronicle.
     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: our ability
 to implement and generate expected ongoing annual savings from the
 initiatives to advance our value-enhancing strategy; changes in raw
 material and other costs and selling price increases; our ability to
 implement improvements to and reduce costs associated with our supply
 chain; pension cost factors, such as actuarial assumptions, market
 performance and employee retirement decisions; changes in our stock price,
 and resulting impacts on our expenses for incentive compensation, stock
 options and certain employee benefits; market demand for our new and
 existing products; changes in our business environment, including actions
 of competitors and changes in consumer preferences; changes in governmental
 laws and regulations, including taxes; risks and uncertainties related to
 our international operations; and such other matters as discussed in our
 Annual Report on Form 10-K for 2005.
 
 

SOURCE The Hershey Company
    HERSHEY, Pa., Oct. 19 /PRNewswire-FirstCall/ -- The Hershey Company
 (NYSE:   HSY), as part of its strategic focus on the high-growth premium
 chocolate segment, today announced that it has acquired the assets and
 operations of Dagoba Organic Chocolate, LLC. Based in Ashland, Oregon,
 Dagoba is known for its high-quality natural and organic chocolate bars,
 hot chocolate and chocolate-covered coffee beans sold in natural foods
 outlets and gourmet stores.
     In announcing the acquisition, Richard H. Lenny, Chairman, President
 and Chief Executive Officer, The Hershey Company, said, "Organic chocolate
 products are experiencing dramatic growth as consumers continue to trade up
 for indulgent, high-quality products. Dagoba, with its well-regarded
 portfolio of quality organic products, will enable Hershey to build on its
 leadership in the North American chocolate market by meeting emerging
 consumer needs and building profitable new marketplace opportunities."
     Chris Baldwin, Senior Vice President, President North American
 Commercial Group, The Hershey Company, said, "Dagoba's strong presence in
 the natural channel is a real plus for Hershey, allowing us to expand our
 presence and broaden our offerings in this growing arena. In addition,
 Dagoba's use of only the finest organic ingredients makes it a great
 complement to our existing, premium portfolio of Scharffen Berger and
 Joseph Schmidt products."
     "This is a tremendous opportunity for Dagoba," said Frederick
 Schilling, Chief Executive Officer and Founder, Dagoba Organic Chocolate,
 LLC. "Hershey's deep commitment to quality and sustainability throughout
 its supply chain will help Dagoba improve and expand its mission of
 improving cacao farmers' livelihoods and expanding organic farming methods.
 This partnership will enable us to continue creating the world's most
 exquisite chocolate and make it available to a much broader consumer base."
     About The Hershey Company
     The Hershey Company (NYSE:   HSY) 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.
     About Dagoba Organic Chocolate, LLC
     Founded in 2001, Dagoba Organic Chocolate, LLC seeks to create the
 world's most exquisite organic chocolate, following the highest standards
 of ethics and ecological sustainability. Dagoba is dedicated to the Art of
 Chocolate Alchemy: transforming cacao into exquisite chocolate through Full
 Circle Sustainability(TM): blending equity, quality, ecology and community.
 The company seeks out fine flavor, sustainable and certified organic cacao
 through direct, equitable partnerships, and manufactures in small batches
 with great care. All products are also kosher, and many are Certified
 Organic. Dagoba's approach has gained high regards: Food & Wine's 2005
 Tastemaker Award, "World's Best Chocolate" - CNN/Money, and "Best Dark
 Chocolate" - San Francisco Chronicle.
     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: our ability
 to implement and generate expected ongoing annual savings from the
 initiatives to advance our value-enhancing strategy; changes in raw
 material and other costs and selling price increases; our ability to
 implement improvements to and reduce costs associated with our supply
 chain; pension cost factors, such as actuarial assumptions, market
 performance and employee retirement decisions; changes in our stock price,
 and resulting impacts on our expenses for incentive compensation, stock
 options and certain employee benefits; market demand for our new and
 existing products; changes in our business environment, including actions
 of competitors and changes in consumer preferences; changes in governmental
 laws and regulations, including taxes; risks and uncertainties related to
 our international operations; and such other matters as discussed in our
 Annual Report on Form 10-K for 2005.
 
 SOURCE The Hershey Company