The Hershey Company Acquires Joseph Schmidt Confections and Completes Scharffen Berger Acquisition, Extending Reach Into Premium Chocolate Segment

15 Aug, 2005, 01:00 ET from The Hershey Company

    HERSHEY, Pa., Aug. 15 /PRNewswire-FirstCall/ -- The Hershey Company
 (NYSE:   HSY), the largest North American confectionery company and a leading
 snack food marketer, today announced that its newly formed, wholly owned
 subsidiary, Artisan Confections Company, has acquired the assets of Joseph
 Schmidt Confections, Inc., a premium chocolate maker.  Joseph Schmidt is known
 for its artistic and innovative truffles, colorful chocolate mosaics,
 specialty cookies, and handcrafted chocolates presented in distinctive
 packaging.  These products are sold in select department stores and other
 specialty outlets nationwide as well as in Joseph Schmidt's stores located in
 San Jose and San Francisco.
     Hershey also has completed the previously announced acquisition of
 Scharffen Berger Chocolate Maker, Inc., one of the fastest-growing premium
 chocolate companies in the United States.  Scharffen Berger, based in San
 Francisco, California, is known for its high-cacao-content, signature dark
 chocolate bars and baking products.  The combined purchase price for Scharffen
 Berger and Joseph Schmidt will be between $46.6 million and $61.1 million,
 with the final amount reflecting actual sales growth through 2007.  Together,
 these companies have combined annual sales of approximately $25 million.
     "The Scharffen Berger and Joseph Schmidt acquisitions are great strategic
 opportunities for Hershey to capitalize on the high-growth, on-trend premium
 chocolate segment," said Richard H. Lenny, Chairman, President and Chief
 Executive Officer, The Hershey Company.  "These companies provide two distinct
 platforms to broaden our presence in the $1.7 billion premium segment.
 Scharffen Berger is a leader in the high-cacao-content, distinctive dark
 chocolate arena, while Joseph Schmidt specializes in fine, handcrafted
 chocolate gifts.  We look forward to capturing the immense growth potential of
 Scharffen Berger and Joseph Schmidt as we further extend Hershey's leadership
 position in the U.S. confectionery market."
 
     About Scharffen Berger Chocolate Maker, Inc.
     Founded in Berkeley, California in 1996 by John Scharffenberger and Dr.
 Robert Steinberg, Scharffen Berger Chocolate Maker is an artisanal American
 chocolate company.  The company sources the best cacao beans, roasts and
 grinds them in small batches in vintage European equipment, and creates blends
 that make the world's finest tasting premium chocolate.  The distinctive
 chocolate, like fine wine, possesses complexity, distinct fruitiness, balance,
 intense flavor, and a lingering finish.  Scharffen Berger products are
 available on the web at http://www.scharffenberger.com and at the Scharffen
 Berger stores in Berkeley, San Francisco, CA, Healdsburg, CA and New York
 City.  Select products are also available at fine specialty stores nationwide
 with a limited international presence.  For more information, please visit
 http://www.scharffenberger.com.
 
     About Joseph Schmidt, Inc.
     Headquartered in San Francisco, California, Joseph Schmidt is recognized
 for its dazzling signature truffles and exquisite chocolates in elegantly
 designed gift-wrapped or hand-painted packaging.  For more information, please
 visit http://www.josephschmidtconfections.com.
 
     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 candy bar 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, as well as Hershey's SmartZone bars for people seeking balanced
 nutrition.  It also markets Hershey's cocoa, Hershey's syrup and other branded
 baking ingredients, toppings and beverages.  For more information, please
 visit http://www.thehersheycompany.com/news/.
 
     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.
 
 

SOURCE The Hershey Company
    HERSHEY, Pa., Aug. 15 /PRNewswire-FirstCall/ -- The Hershey Company
 (NYSE:   HSY), the largest North American confectionery company and a leading
 snack food marketer, today announced that its newly formed, wholly owned
 subsidiary, Artisan Confections Company, has acquired the assets of Joseph
 Schmidt Confections, Inc., a premium chocolate maker.  Joseph Schmidt is known
 for its artistic and innovative truffles, colorful chocolate mosaics,
 specialty cookies, and handcrafted chocolates presented in distinctive
 packaging.  These products are sold in select department stores and other
 specialty outlets nationwide as well as in Joseph Schmidt's stores located in
 San Jose and San Francisco.
     Hershey also has completed the previously announced acquisition of
 Scharffen Berger Chocolate Maker, Inc., one of the fastest-growing premium
 chocolate companies in the United States.  Scharffen Berger, based in San
 Francisco, California, is known for its high-cacao-content, signature dark
 chocolate bars and baking products.  The combined purchase price for Scharffen
 Berger and Joseph Schmidt will be between $46.6 million and $61.1 million,
 with the final amount reflecting actual sales growth through 2007.  Together,
 these companies have combined annual sales of approximately $25 million.
     "The Scharffen Berger and Joseph Schmidt acquisitions are great strategic
 opportunities for Hershey to capitalize on the high-growth, on-trend premium
 chocolate segment," said Richard H. Lenny, Chairman, President and Chief
 Executive Officer, The Hershey Company.  "These companies provide two distinct
 platforms to broaden our presence in the $1.7 billion premium segment.
 Scharffen Berger is a leader in the high-cacao-content, distinctive dark
 chocolate arena, while Joseph Schmidt specializes in fine, handcrafted
 chocolate gifts.  We look forward to capturing the immense growth potential of
 Scharffen Berger and Joseph Schmidt as we further extend Hershey's leadership
 position in the U.S. confectionery market."
 
     About Scharffen Berger Chocolate Maker, Inc.
     Founded in Berkeley, California in 1996 by John Scharffenberger and Dr.
 Robert Steinberg, Scharffen Berger Chocolate Maker is an artisanal American
 chocolate company.  The company sources the best cacao beans, roasts and
 grinds them in small batches in vintage European equipment, and creates blends
 that make the world's finest tasting premium chocolate.  The distinctive
 chocolate, like fine wine, possesses complexity, distinct fruitiness, balance,
 intense flavor, and a lingering finish.  Scharffen Berger products are
 available on the web at http://www.scharffenberger.com and at the Scharffen
 Berger stores in Berkeley, San Francisco, CA, Healdsburg, CA and New York
 City.  Select products are also available at fine specialty stores nationwide
 with a limited international presence.  For more information, please visit
 http://www.scharffenberger.com.
 
     About Joseph Schmidt, Inc.
     Headquartered in San Francisco, California, Joseph Schmidt is recognized
 for its dazzling signature truffles and exquisite chocolates in elegantly
 designed gift-wrapped or hand-painted packaging.  For more information, please
 visit http://www.josephschmidtconfections.com.
 
     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 candy bar 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, as well as Hershey's SmartZone bars for people seeking balanced
 nutrition.  It also markets Hershey's cocoa, Hershey's syrup and other branded
 baking ingredients, toppings and beverages.  For more information, please
 visit http://www.thehersheycompany.com/news/.
 
     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.
 
 SOURCE  The Hershey Company