He expects to make a decision in the next 12 to 18 months
Hershey CEO weighs next steps in China
candy maker to canada goose coats remain with its partner there even after it took sole ownership of its joint venture in India.
Hershey’s candy bars are displayed at a canada goose store gas station in Phoenix, Arizona October 27, 2011. The two companies sell enough products to run their plant at about 90 percent capacity, and Hershey canada goose uk black friday Chief Executive Officer John Bilbrey sees it needing more canada goose clearance space very soon.
looking now at what do we do next, Bilbrey said in an interview at company headquarters in Hershey, Pennsylvania, ahead of cheap canada goose uk a new factory opening. we Canada Goose Outlet joint venture again on an additional factory or do we build our own factory? Do we do it in Southeast canada goose coats on sale Asia? We haven answered that canada goose question.
Hershey, whose shares rose more than 1 percent, just spent $300 million to modernize and double the size of a plant less than two miles from where its founder Milton Hershey opened his first chocolate factory in 1905.
The updated factory, which officially opened on Tuesday, can make 70 million Hershey Kisses a day, up from canada goose black friday sale roughly 40 million before.
As for China, Bilbrey said another option is to move into Lotte other factories there, if space permits.
think we know enough to build (a factory) on our own, but that may not be the Canada Goose Jackets most financially viable way canada goose uk outlet to do it, Bilbrey said. He expects to make a decision in the next 12 to 18 months.
Another option is to acquire Lotte confectionary business, according to Bernstein Research analyst Alexia Howard. If so, the candy business would be a good fit for Hershey, she said.
Bilbrey declined to comment on any upcoming acquisitions, but he did Canada Goose sale affirm the cheap Canada Goose company intention to do deals.
definitely could be in the cards, said Morningstar analyst Erin Lash. While she expects Hershey to pursue acquisitions, she said one consideration was buy canada goose jacket cheap Hershey control Canada Goose online by a trust whose main objective, in her opinion, is to preserve strong cash flow.
When asked about the trust, which has a 30 percent economic interest in the company but 80 percent of the voting rights, Bilbrey said it was supportive of the company strategy.
learned a lot from them, he said. were good partners, but food is not a core competency for Canada Goose Parka them. We got ourselves to where it would be better for us to go on our way.
Just because Hershey bought out its Indian partner does not mean it will buy out all its partners, Bilbrey said.
is not about you always walk away from them, he said, adding that Canada Goose Coats On Sale he expects Hershey to continue to partner with Lotte, for example.
Referring to a Brazilian venture Hershey has with Bauducco Foods, he said canada goose clearance sale he had no reason to believe that relationship will change.
may go on uk canada goose in perpetuity because it good for them, Bilbrey said. Since business is seasonal for the related site canada goose sale https://www.canadagooseparks.com Brazilian maker of panettone, an Italian holiday cake, it benefits from having a partner to share the factory costs, he said.
Along the same lines, Hershey is building a distribution center in Canada canada goose factory sale with Italy Ferrero.
Hershey has forecast 2012 sales of about $6.5 billion, with canada goose uk shop about 15 percent of that coming from international markets. By 2017, the company expects revenue of about $10 billion, with international sales accounting for about 20 percent.
Growth of uk canada goose outlet the company existing brands, such as Reese Kit Kat, Twizzlers and Jolly Rancher, should bring the company to about $9.3 billion, Bilbrey said. The remainder should come from acquisitions.
Acquisition targets could include brands in international markets or in the United States, in candy or in adjacent categories such as snack bars or other nutritional products, he said.
actively look all the time, said Bilbrey, whose favorite candy bars are Hershey Milk Chocolate with Almonds and PayDay.
In December Canada Goose Online 2011, canadian goose jacket Hershey agreed to acquire Canada buy canada goose jacket Brookside Foods, which makes chocolate covered jelly candies.