Dive Brief:
- Hershey opened a 250,000-square-foot chocolate processing facility in Hershey, Pennsylvania, the company's first new manufacturing plant in the city in more than 30 years, per an April 16 emailed press release.
- The Reese Chocolate Processing facility, named after brand founder H.B Reese, took nearly three years to complete. It will provide chocolate for brands such as Reese’s, Kit Kat and Hershey’s.
- The confection and salty snacks maker said the project is part of a multi-year, $1 billion investment that also includes the addition of 13 production lines and the upgrading of 11 existing lines across Hershey’s North American facilities.
Dive Insight:
As companies look to boost production and improve the efficiency of their existing supply chain, more are adding, expanding or even closing older facilities across their networks.
The new Hershey’s plant is located on a 55-acre site that is part of the company’s existing Reese’s campus. The site has nearly 100 full-time employees and will add more positions as operations expand.
“Our ability to make and deliver products both quickly and efficiently is a key component of our growth strategy,” Will Bonifant, vice president of supply chain strategy and manufacturing at Hershey, said in a statement. “We’ve made significant investments to speed production, increase capacity and develop our workforce for the future to make more of the iconic brands consumers love.”
Hershey has recently stepped-up efforts to boost innovation across its portfolio that includes everything from Kisses and Reese’s to gummies and Dot’s pretzels. While Hershey has used M&A to expand its portfolio, a major part of its ability to innovate comes from efforts it has taken to grow production capacity.
In 2023, for example, Hershey purchased two popcorn operations from a co-manufacturer to increase production capacity and flexibility for its SkinnyPop brand. And when it purchased Dot’s in 2021, a key part of that $1.2 billion deal was buying manufacturing locations to increase output as demand increased.
