More Chocolate is Better Chocolate

The Hershey Co. (Hershey, Pa.) announced that its newly formed, wholly owned subsidiary, Artisan Confections Co., has acquired the assets of Joseph Schmidt Confections Inc. (San Francisco), a premium chocolate maker known for its truffles, chocolate mosaics, specialty cookies, handcrafted chocolates and distinctive packaging. The 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.

The announcement comes less than three weeks after Hershey announced the acquisition of Scharffen Berger Chocolate Maker Inc. (Berkeley, Calif.). The combined purchase price for Scharffen Berger and Joseph Schmidt — which have combined annual sales of approximately $25 million — will be between $46.6 million and $61.1 million, with the final amount reflecting actual sales growth through 2007. The acquisitions appear intended to better position Hershey in the growing, higher-priced luxury chocolate market.

“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 Hershey president, chairman and ceo Richard Lenny. “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.”