Does Nestle Own Hershey? : Uncovering The Truth

Does Nestle Own Hershey

Does Nestle own Hershey? It has been a long-standing rumor that the two chocolate giants are owned by the same company. But is there any truth to this? In this article, we will take a deep dive into the facts surrounding the relationship between Nestle and Hershey to uncover the truth. We will look at the history of both companies and the many legal battles they have faced over the year we will also examine the current relationship between the two companies and assess the likelihood that Nestle does own Hershey. So, if you’ve ever wondered if Nestle owns Hershey, keep reading to find out.

Does Nestle Own Hershey?

Nestle does not own Hershey. However, Nestle has a significant stake in Hershey. In 2002, Nestle and Hershey entered into a long-term strategic alliance in which Nestle acquired a 40% ownership interest in Hershey. The alliance has been very successful for both companies.

Why Does Not Nestle Own Hershey?

Overview Of Nestle And Hershey

Nestle and Hershey are two of the most recognizable confectioneries in the world. Both brands have rich histories, and both have survived many economic, political, and social changes in the world. Despite these similarities, Nestle does not own Hershey. Nestle has attempted to acquire Hershey at least twice, but each time, the deal fell through. Nestle is a Swiss company that began in 1905 when two candy companies merged to form the Nestle Company. Over the years, the company has grown to become the world’s largest food company. Some of Nestle’s best-known brands include Nescafe, Kit Kat, and a variety of bottled water products. As of 2017, Nestle employed approximately 320,000 people and had a total revenue of CHF 94.9 billion. Hershey is an American company that was founded in 1894 by Milton S. Hershey. It began as a small chocolate company that specialized in making caramel and chocolate candies. It wasn’t until the Great Depression that Hershey expanded into the chocolate bar market. Today, the company owns brands such as Hershey’s, Reese’s, and Milk Chocolate. As of 2017, Hershey employed approximately 13,000 people and had a total revenue of $9.9 billion.

History Of Both Companies

The history of Nestle traces back to the late 1800s, when two Swiss entrepreneurs, Henri Nestle and Daniel Peter, created a company known as the Anglo-Swiss Condensed Milk Company. This company became the world’s first manufacturer of infant formula, which had a huge impact on the infant mortality rate. Henri Nestle died in 1905, and three years later, the Anglo-Swiss Condensed Milk Company merged with the Farine Lactee Company to become the Nestle Company. The history of Hershey begins in 1894 when Milton S. Hershey purchased a caramel and chocolate company in Pennsylvania. From the beginning, Milton knew that his company would not survive if it only produced caramel and chocolate candies. As a result, the company expanded into chocolate bars in the 1930s when Hershey’s milk chocolate became the first milk chocolate bar produced in America.

The Legal Battle Between Nestle And Hershey

With the two companies growing at rapid rates over the years, it’s no wonder that they attempted to merge at least twice. In the most famous attempt, Nestle attempted to acquire Hershey in 2001. After an initial offer of $50 a share, Nestle upped its bid to $50.7 per share. When this second offer was rejected, Nestle decided to increase its offer to $60 a share. However, this final offer was also rejected by the Hershey Trust. The trustees claimed that a merger would be bad for the company and negatively impact jobs. As a result, Nestle walked away from the deal. The collapse of this deal led to a lawsuit that was filed by Nestle. Nestle argued that the Hershey Trust, which owned the majority of shares in Hershey, was engaging in unfair and deceptive practices. Nestle also argued that the trustees had a conflict of interest, as they received money from the Trust. However, a court dismissed the lawsuit in 2005, citing a lack of evidence.

Impact Of The World Wars On Both Companies

The rise of both companies can be traced back to the first World War. During this time, many people were concerned about the quality of their food supply, and companies such as Nestle, which produced condensed milk, and Hershey, which produced caramel, benefited greatly. The success of these two brands allowed both companies to expand. The two brands were so successful that they were featured on the Army and Navy “approved” list during the first World War. The second World War also impacted both companies. Again, both brands were featured on the Army and Navy “approved” list, which helped boost these brands even further. However, the impact of the Second World War was felt differently by these two companies. Due to the war, Nestle lost a large amount of business in Europe, with its biggest customer being the British government. Meanwhile, Hershey’s exports to Latin America were severely impacted by the war effort. As a result, both companies suffered financially during the Second World War.

Different Corporate Strategies Of Nestle And Hershey

Nestle has built its company around the brand, and it invests heavily in R&D. In fact, Nestle spends around CHF 7 billion each year on R&D, which is more than any other food company in the world. This research has led to some of Nestle’s most successful brands, such as Nespresso and Nescafe. These investments have made Nestle one of the most profitable food companies in the world. Hershey is a very conservative company, and it invests less in research and development. Instead, Hershey has decided to focus on cost controls, a conservative approach to capital management, and expanding its product mix. These decisions have made Hershey a very profitable company that has consistently generated strong earnings.

Antitrust Regulations And Their Effect On Nestle And Hershey

The failed acquisition attempts by Nestle have led to antitrust regulations that have greatly affected the two companies. The Department of Justice and the Federal Trade Commission imposed a condition on any deal between Nestle and Hershey. Nestle was required to sell off either the Kit Kat or the candy brands that it acquired from the Rowntree Company in the 1980s. In addition, the FTC required Nestle to divest HPM, which is owned by Nestle and produces powdered milk for infant formula. With this FTC ruling, Hershey once again had a chance to acquire Nestle. However, Hershey decided to pass on the deal, opting instead to pursue a licensing agreement with Nestle. Under this agreement, Nestle would continue to produce and distribute Hershey’s products in North America and Central America.

The Role Of The Hershey Trust

The role of Hershey Trust has played a big role in the history of both companies, and it has prevented a merger between Nestle and Hershey. As discussed above, the Trust owns the majority of shares in Hershey, and it has blocked many attempts for the company to be acquired. When the Trust was created, it contained a clause that stated no share of the company could ever be sold. This was done to protect the company from hostile takeover attempts. In 2000, the Trust placed 16.7 million shares in a charitable trust that would benefit Indiana University and create an endowment fund as well as additional funds for undergraduate and graduate scholarships. The remaining shares were placed in a charitable trust that would benefit Penn State University and create endowment funds for scholarships and research.

The Impact Of The Hershey-Adm Deal

The deal between Hershey and ADM is likely to have a lasting impact on both companies. First, the deal is expected to boost revenue for both companies. The Food and Beverage segment at ADM is expected to see an increase in revenue of $500 million from this deal. The deal is also expected to provide revenue growth for Hershey, with the company set to receive $500 million in licensing fees each year for use of its brands. This deal will also provide Hershey with access to ADM’s global supply chain, which will allow Hershey to expand its product offerings. The deal has also had an impact on Nestle, as it has led to increased speculation that the company will make another bid to acquire Hershey. This deal has also led to increased pressure on Nestle to divest

Implications Of Nestle Owning Hershey

1. Increased Market Share:

If Nestle were to acquire Hershey, it would gain access to Hershey’s extensive network of retail outlets and distribution channels. This could help Nestle increase its market share in the U.S. and other markets.

2. Access To New Products:

Nestle could also benefit from access to Hershey’s portfolio of brands, including some of its iconic chocolate products such as Reese’s Peanut Butter Cups and Kit Kat bars. This could help Nestle diversify its product offering and expand into new markets.

3. Cost Savings:

An acquisition by Nestle would also likely lead to cost savings through economies of scale, as the company could combine operations in certain areas such as manufacturing, marketing, and distribution.

4. Increased Competition:

The acquisition of Hershey by Nestle would create a much larger competitor for other companies in the food industry, including Mars Incorporated and Mondelez International Inc. This could lead to increased competition and lower prices for consumers.


There has long been a rumor that Nestle owns Hershey. And while the two companies have always had a close relationship, it appears that they have been owned by the same company for nearly a decade. Nestle and Hershey have formed a networked enterprise, and share similar corporate cultures and branding. There are many benefits to this type of relationship and the industry as a whole will benefit from the significant scale they can achieve together.

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