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Chocolate industry case study
Chocolate industry case study
Introduction of chocolates
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Milton Hershey was and still is one of the greatest chocolate makers of all time. He was the man who turned a bare patch of land into a thriving chocolate town and pulled everybody through the Great Depression. But, Hershey is best remembered to be the person who made chocolate popular in America and other parts of the world. Many people today know and purchase the infamous chocolate products that have been produced by the Hershey Factory, but some know about how the business became to be so successful.
Milton S. Hershey was born in a small Pennsylvania town named Derry Township on September 13, 18571. He was the only child of Fannie and Henry Hershey. His mother was a Mennonite2 and moved often, which disrupted his education and could only finish 4th grade3. Hershey became an apprentice of a Lancaster candy maker for four years and started to get into the candy business. Milton opened his first candy store in Philadelphia on 1876 at the age of 184which failed after 6 years and went bankrupt on 1882.5 Milton then tried his luck at opening candy stores at Chicago and New York, both resulting in failure and went bankrupt again on 1886.6 When Milton visited Denver, he discovered how to mix fresh milk with caramel and returned to Lancaster to start a caramel business on 1883. 7his business proved to be a huge success and was named the Lancaster Caramel Company8. The success of this caramel company was the thing that set Milton as a candy maker and provided him with financial stability to start on his next interest, chocolate. Milton purchased his first chocolate-making equipment from a German company called J.M.Lehmamm Company on 1893 that was displayed in the World’s Columbian Expedition9. He started a sub-company called Hershey Chocolate Company under the Lancaster Caramel Company and began to produce chocolates. On 1900, Hershey sold his successful caramel company for $1,000, 0010and in order to set his sights to begin mass-producing chocolate. Hershey needed a place to produce that much chocolate and returned to Derry Township, PA to build his new factory on 1903. The Derry Township was an ideal location for producing chocolate because of its source of water, fresh milk, and workers. The factory, later named The Chocolate Factory was built on 1905 and used latest mass production techniques that produced the first milk chocolate that was made in America 11.
Kit-kats, Hershey bars, Skittles, and Jolly Ranchers. The reason these sweets, and many other products, are so popular is because of their sugar content. It’s hard to imagine that something used in nearly every food today was practically nonexistent at one point. But this is true- sugar wasn’t introduced globally until the 1500’s. Following this introduction, the trade that sprung up would come to be one of the most successful and profitable in the world. The Sugar Trade’s success was driven by many factors. Out of those several factors, the ones that promised success were high consumer demand, willing investors with a lot of capital, and the usage of slave labor.
Mr. George Washington Carver, the name can be found in textbooks across the world, but the only knowledge about Mr. Carver that all really know is that he was known as the Peanut man. Can a man really gain notoriety by being associated with the peanut? Possibly, but George Washington Carver did so much more than just create the modern-day version of peanut butter. The man created an industry out of a peanut, literally. He not only created a new niche for farmers, but he helped revolutionize agriculture. How does a man (botanist, chemist, and inventor) explain a small peanut and agriculture to others? Well, Carver started with humble beginnings and a had deep admiration for plants and nature as he grew. Mr. Carver’s love for nature
“Remember that not getting what you want is sometimes a wonderful stroke of luck.”- Dalai Lama. In my opinion, the chocolate chip cookie has an interesting story. A woman named Ruth Wakefield discovered this delicious treat and from then on, everyone came to know it as the famous chocolate chip cookie. In fact, the chocolate chip cookie is one of America’s favorite cookies. Ruth Wakefield was an amazing and very lucky baker.
Hershey impacted the world in a huge way. A farm boy from Derry Church became an aspiring candy maker with only schooling up to fourth grade. Milton found his calling at a young age and went with it following a path that lead him to great success. With all his wealth and success he did not become arrogant, he decided to use his wealth and power to help others. His actions have impacted society tremendously. We still see his name on candy wrappers today and we will for a long time. 1886 was the year that Hershey’s legacy began with the establishment of the Lancaster Caramel Company. The rest is
Before Milton Hershey had a world wide known chocolate business, he had a small, not so well known caramel business. Milton Hershey began his chocolate making business in 1893, when his father and him traveled to Chicago to attend a big job fair (Tarshis 14), but it wasn’t until 1900 when Hershey succeed in making the first milk chocolate candy bar (The Hershey Company). Hershey attended an exhibit hall of new and amazing inventions around the world at the fair in Chicago. As Hershey walked into the exhibit hall, he was struck by a delectable smell (Tarshis 14). “Hershey was already a leading candy maker. He had created the largest caramel factory in the country, but he became convinced that the future of his business would be chocolate. At the fair in Chicago, Hershey Bought chocolate-making equipment. He had it shipped back to his caramel factory in Pennsylvania. Then he hired two chocolate makers. Soon the company was churning out chocolate candies in more than 100 shapes” (Tarshis 15).
The videos provided for this subject builds a great understanding on what happens behind the scenes and how the production cycle of chocolates turns deadly for few. The chocolate industry is being accused having legit involvement in human trafficking. The dark side of chocolate is all about big industries getting their coco from South America and Africa industries. However, it is an indirect involvement of Hersheys and all other gigantic brands in trafficking (Child Slavery and the Chocolate Factory, 2007).
Why would a person decide to betray the beliefs they had fought so hard for? In Robert Cormiers novel The Chocolate War, the character of Jerry Renault changes drastically from a rebel to a follower in the end. The school gang known as the vigils and his moral beliefs motivates Jerry’s actions. He feels he must take a stand against evil. Jerry can be considered a hero because of his beliefs. In the end however he gives in to the things he fought against and becomes a follower.
Madelyn McQueen - Twin Falls Idaho Have you ever wondered how the delicious, classic treat came to be? Well, any event you can think of after the date of 1938, the cookie was bound to be there. Several stories about how the country’s favorite baked good came to be, have been spread and believed by thousands. For example, Ruth Wakefield unexpectedly ran out of nuts for a regular ice-cream cookie recipe and, in desperation, replaced them with chunks chopped out of a bar of Nestle bittersweet chocolate. Another story is said that the vibrations from an industrial mixer caused chocolate stored on a shelf in the Toll House kitchen to fall into a bowl of cookie dough as it was being mixed. Sadly, all of these stories are false, says Carolyn Wyman in her recently published “Great American Chocolate Chip Cookie Book.” In her book, Wyman offers a more believable version of how the cookie came to be. Wyman argues, that Ruth Wakefield, who had a degree in household arts and a reputation for perfectionism, would not have allowed her restaurant, which was famed for its desserts, to run out of such
For Milton Hershey, he was the type of person that not a lot of people expected a whole lot out of. He was your typical small town boy, and although he had very little growing up, he learned to be happy with what he was given. Although Milton Hershey, did grow to be an amazing businessman, he had almost no formal schooling or education after being thirteen years of age. He left school to work, and also to help take care with his mother. It was while Milton was growing up, that his father (Henry) left his mother. In many ways, it was Henry, Milton’s father, who inspired him to be the type of leader he was, and to never give up, no matter how many times he failed. While Milton was still growing up, Henry tried getting in on the oil business that was going on at the time. While he did learn a lot from the experience, he walked away empty handed. The problem that Milton could see with his father, was that he was bursting full of ideas, but he had no money, and was growing older as time went on.
University of North Carolina, 2010. Web. 16 Oct. 2013. <http://www.learnnc.org/lp/pages/1866> Coe, Sophie D., and Michael D. Coe. The True History of Chocolate.
...terized as the “Henry Ford of Chocolate Makers.” With the help from his aunt, he established his own candy business in Philadelphia in 1876, he was merely 19. He mainly produced caramel confections, which he ended up selling for one million dollars after a trip to the chocolate centers of Europe. With the money, Hershey bought a farm in Derry Township, Pennsylvania, and built his chocolate factory. This became the nucleus of “Hershey, the Chocolate Town.”
Hershey’s takes advantage of many different types of advertising. Television commercials and ads are very common. Sponsorships is also another very common way Hershey advertises. Hershey sponsors everything from ice skating shows, to racecars. The Hershey Food Corporation is very competitive so they need this type of advertising. However, the only other major corporation to compete with is Mars. The chocolate industry is diffidently not pure competition. Mars and Hershey’s form an oligopoly. Hershey’s has so many different kind of products that they have a lot of competition. The company has branched out to where they’re not only competing against other chocolates but also for fruit candies, and baking chocolate and chocolate drinks as well. The fact that so many products are offered, extends the corporation to different divisions. Mexico and Canada have manufacturing plants. Seventeen manufacturing plants include Hershey, Pa (Hershey plant, Reese plant, West Hershey plant0, Hazleton, PA, Lancaster, PA, Memphis, Tenn., Naugatuck, Conn., New Brunswick, NJ, Oakedale, CA, Palmyra, PA, Reading, PA, Robinson, Ill., Stuarts Draft, VA, Wheatridge, CO, Dartmouth, Nova Scotia, Montreal, Quebec, Smiths Falls, Ontario, and Guadalajara, Mexico.
During a "chocolate scare" in the early 1970's when the supply of chocolate went way down and the price went way up Hershey's who uses chocolate as a main ingredient more than Mars does had to cut down on spending in some area of business, so they chose to cut down spending on advertising. Mars saw this as an opportunity to spend more money on advertising and even more importantly M&M/Mars saw an opportunity to knock Hershey's out of the #1 spot. M&M's plan was successful, they used very aggressive marketing and they become the #1 chocolate/candy company in America.
Fryer, Peter, and Kerstin Pinschower. "The Material Science of Chocolate." Mrs Bulletin December 2000: 1-5.
"Food: The History of Chocolate." Birmingham Post 11 Dec. 2004, First ed., Features sec.: 46. Print