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Issue Date: Vol. 51, No. 10, October 2011, Posted On: 10/11/2011

Hershey And Ferrero Forge Warehouse And Distribution Alliance For Stronger CSR

Emily Jed
Hershey Co., John Bilbrey, Ferrero Group, supply chain efficiencies, confection company alliance, corporate social responsibility, Hershey productivity improvement, Tic Tac, Nutella, Ferrero Rocher

HERSHEY, PA -- Hershey Co. and Ferrero Group, two of the world's largest confection companies, have entered into an agreement under which they will make joint use of warehousing, distribution and transportation in North America.

The companies said the collaboration would help improve their supply chain efficiencies and their competitiveness in the U.S. and Canada. The two candy companies will also work together on corporate social responsibility (CSR) efforts, including reducing carbon dioxide emissions and energy use in warehousing and freight, with fewer vehicle trips needed to move products to customers.

Hershey said productivity improvements from the initiative, the details of which have not been disclosed, will begin to be realized in 2012. The alliance does not include manufacturing, sales or marketing activities.

The Hershey, PA-based chocolate giant manufactures some of vending's leading candy brands, including Hershey's, Reese's and Kit Kat. Italy's Ferrero has a global brand portfolio that includes Tic Tac, Nutella and Ferrero Rocher. Its U.S. operation is based in Somerset, NJ.

"Collaborative supply chain operations are a growing trend across industries as companies seek to fully leverage their logistics infrastructure," said Hershey president and chief executive John P. Bilbrey. "Although we are initially focusing on one region of our business, we are excited about the full potential of this project."

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