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Archive for the ‘Hershey Chocolate’ Category

HersheyArchives@30-30: Hershey Chocolate-the Great American Chocolate Bar

Remember your first Hershey Bar? Print advertisement, 1980

Remember your first Hershey Bar? Print advertisement, 1980

 

It is an advertising industry legend that Hershey Chocolate did not advertise. The advertising industry marveled at Hershey’s success without the use of advertising. During the company’s first fifty years, Hershey Chocolate succeeded without media advertising because it had few competitors in the solid chocolate confectionery market.

 

Hershey Chocolate offered a variety of promotional displays to stores to help them promote Hershey products. ca1936

Hershey Chocolate offered a variety of promotional displays to stores to help them promote Hershey products. ca1936

 

 

Window display, 1930-1932

Window display, 1930-1932

 

 

 

 

 

 

 

 

 

 

The image of Hershey as a company that succeeded without advertising stretches the truth.  It is true that Hershey did not use media advertising (newspaper ads, radio, television) until 1970. However, Hershey did make extensive use of trade and point of purchasing advertisements throughout its history.  Unlike most companies that directed advertising dollars to consumers as well as customers, Hershey concentrated all its advertising budget towards the trade, placing ads in trade publications, offering cut sheets to customers to use in their own newspaper ads and promoting its products with shelf talkers and window displays.

 

In the 1960s, market changes and the growth of the Mars Candy Company under Forrest Mars challenged Hershey’s control of the market. During the 1960s, Mars steadily gained market share and Hershey realized that it would have to change how it conducted business.

 

It was not a simple matter to begin media and print advertising. Hershey first needed to build the infrastructure that would enable them to develop a modern marketing program and support an advertising campaign.  That took several years.

 

Jack Dowd, hired in 1965 to help Hershey establish its first marketing department, recalled in his 1991 oral history interview, the chocolate company’s reluctance to move towards implementing a media advertising campaign, in spite of the company’s trend toward losing market share.

 

Incidentally, my interview, the first day I met a number of people, including Harold Mohler [Hershey Chocolate Corporation president].  He said, “They seem to like you here, but a couple of things you should know about Hershey.  One is, we don’t advertise.”

I said, “I’m vividly aware of that.  Everybody in marketing is aware of that.  But I have a couple of hypotheses about your company because I’ve done a lot of reading about it, and if they’re true, you’re going to be advertising.”

He said, “What are they?”

I said, “I think your share of market has been declining.”

And he said, “Yes, it has.”

I said, “I think your new products are not as successful as your old products.”

He said, “That’s true.  They’re not.” 

And I said, “I don’t think that your products are as popular with children as they are with adults.”

And he said, “That’s true.” 

And I said, “Given those three, you’re going to start to advertise.” 

He said, “Well, we haven’t decided yet.”

 

It was not until 1969 that the company was ready to launch a national media advertising campaign.

 

When Hershey Foods Corporation began the process of searching for an advertising agency, it was particularly interested in the agency’s skills in producing television ads. After interviewing six firms, Hershey hired Ogilvy and Mather, who were based in New York City.

 

In sharing the news of hiring Ogilvy & Mather with their employees, Hershey noted the growing competition for shelf space in the grocery store, the changing demographics of the country’s population with the emergence of the baby boom generation and the need to connect with a more youthful audience. The July 21, 1969 memo stated:

 

With the competition getting keener for the consumers sweet tooth – and the fact that almost half of the people in the United States today are under 25 years of age, we felt it prudent to introduce this marketing tool to acquaint this younger generation with our items and to maintain our position with the over 25 group.

 

Hershey selected three brands with which to test the advertising waters: Hershey’s Milk Chocolate, Reese’s Peanut Butter Cups, and Hershey’s Instant, a milk chocolate powder. At first tests were done in seven cities for several months before launching a national campaign in September, 1970.

 

Hershey Foods Corporation used both television and print media ads to promote its products. 1980

Hershey Foods Corporation used both television and print media ads to promote its products. 1980

 

Ogilvy & Mather’s creative director for the Hershey Milk Chocolate team was Billings Fuess.  He developed the “Hershey. The Great American Chocolate Bar” ad campaign.

 

Billings Fuess was inspired by his love of Hershey’s Milk Chocolate, believing that it was superior to European milk chocolate. He explained his reasoning and inspiration in a 2010 oral history interview.:

 

I had the idea for “The Great American Chocolate Bar” because I knew there was a lot of wonderful history behind Hershey.  I also liked Hershey bars and they were a heck of a lot better than their competition from Switzerland.  And I wanted to give them a dig and say the great AMERICAN chocolate bar.

 

Storyboard for Hershey's Milk Chocolate commercial, "Montage." 5/1970

Storyboard for Hershey’s Milk Chocolate commercial, “Montage.” 5/1970

 

Along with the slogan, Fuess also developed the concept for the first television commercials.  He wanted the commercials to express the personal relationships nurtured by the shared enjoyment of Hershey’s Milk Chocolate.  His strategy was to “build upon the marvelous reminisces of people and what the Hershey bar means to most people and the fact that it’s American and it tastes so good and there’s something wondrous about a little child eating it and sharing it with his parents . . . The idea of a father with his son on his shoulders and the son tears open the Hershey bar, eats some and give some to his father as he’s walking down the street.”

 

The Great American Chocolate Bar campaign served the company well. It continued to serve as the basis of Hershey’s Milk Chocolate marketing from 1970 until 1994.

 

#HersheyArchives@30

HersheyArchives@30-29: What’s New?

Occasionally, someone asks: “What is the oldest item in the archival collection?” But no one has asked, “What is the most contemporary item in the collection?” Researchers often equate archives with pre-twentieth century materials such as handwritten deeds or manuscripts written on parchment. However, Hershey Community Archives’ holdings are largely comprised of twentieth century records and, increasingly, twenty-first century records.

 

The Archives regularly receives sales and marketing materials from The Hershey Company announcing new product launches.

The Archives regularly receives sales and marketing materials from The Hershey Company announcing new product launches.

 

The Archives receives regular transfers of records from the corporations and organizations whose historical records we manage, such as The Hershey Company, Hershey Entertainment and Resorts Company, Hershey Area AARP, and the Derry Township Senior Citizen’s Council. Contemporary records, yes even those that date from 2015, are currently held by the Archives.

 

Hershey Area AARP newsletter from March-April 2015.

Hershey Area AARP newsletter from March-April 2015.

 

These selected contemporary records have what is called “archival value,” meaning the records have enduring value based on their historical usefulness or significance, that justifies their continued preservation. The records are collected quickly after they are produced so that they are less likely to be lost, causing a break in the documentary record.

 

Hershey's Milk Chocolate bar wrapper chronology. Regular transfer of records helps lessen the likelihood of breaks in the documentary record.

Hershey’s Milk Chocolate bar wrapper chronology. Regular transfer of records helps lessen the likelihood of breaks in the documentary record.

 

By collecting contemporary records, the Archives can provide a comprehensive institutional history or document the development of a particular event.

 

Contemporary records illustrate how ZooAmerica’s Creatures of the Night has evolved since its beginning.

Contemporary records illustrate how ZooAmerica’s Creatures of the Night has evolved since its beginning.

 

Archivists have an obligation to future researchers and the organizations they serve to collect and preserve contemporary records so they are available when a need arises. The records produced in 2015 and transferred to the Archives are already “archival” and have historical value. The records will help tell or illustrate an institution’s history 50 years from now or perhaps just a few years from now.

 

HersheyArchives@30-28: The Wonderful World of Chocolate: Hershey’s Chocolate World

Hershey’s Chocolate World brochure, ca1973

Hershey’s Chocolate World brochure, ca1973

 

Hershey began offering tours of its chocolate factory shortly after the factory opened.  By 1915, visitors could register for a tour at the town’s Visitor Bureau, located in the Cocoa House, on Chocolate Avenue.

 

In 1928, the factory began keeping formal statistics about factory tours.  A factory tour was a popular part of a visit to Hershey.

 

Hershey Chocolate factory tour. At the end of the tour, visitors received free samples of chocolate and cocoa milk. ca1950-1960

Hershey Chocolate factory tour. At the end of the tour, visitors received free samples of chocolate and cocoa milk. ca1950-1960

 

By 1970, almost one million people were touring the factory each year.  The factory was not designed to handle so many people.  So many visitors were causing traffic jams downtown, overwhelming the building capacity and creating risks for product safety.

 

Ken Bowers, who came to Hershey Foods Corporation in 1970 to head up the public relations department, remembered that a task force had been assembled to determine how best to address the challenge of a factory tour that had outgrown its capacity.  He recalled that the committee considered three options:

 

One, to simply terminate the tour program, because it had gotten to the point where it was creating problems for the plant.  It was creating problems traffic-wise, congestion-wise for downtown Hershey.  And there were plenty of other corporations who had had tours that were beginning to lop them off and close them and it would not have been setting a new precedent.  So that was a very real possibility. 

A second big possibility was to do rather extensive renovation in order to keep that tour program, by putting it, perhaps, into the ceiling of certain of the rooms so it would not interfere with production, with glass-enclosed walkways or something where people could not potentially throw things into the vats of chocolate, etc. 

And, of course, the third basic choice was to develop something new, different elsewhere, a mini factory kind of thing.  Those were the three things that were discussed at great length, with a considerable amount of research attached to each one.

 

While the option to simply discontinue the factory tour was one of the options, it was not seriously considered.  Hershey Foods Corporation recognized the great value the tour offered in terms of consumer relations and it was particularly important in a town like Hershey, which had a strong orientation towards tourism. Likewise, it was quickly realized that the factory would not lend itself to being remodeled to accommodate touring guests.

 

Even after deciding to build a new facility a number of decisions remained.  Should it be a model factory, actually producing product or should Hershey build a facility that would lend itself to longer hours of operation and be attractive to a broader audience. Deciding between these two options was not a simple matter.  The task force spent considerable energy debating the pros and cons of building a model factory versus visitor center that could explain how Hershey produced its milk chocolate.

 

Visitor Tour Task Team Final Recommendation Report, 5/21/1970.

Visitor Tour Task Team Final Recommendation Report, 5/21/1970.

 

The task team’s final recommendation was to “establish [a] Visitors Tour Facility in the general area of the existing Park/Stadium complex.” Acting on the task team’s recommendation, Hershey Foods decided to build Hershey’s Chocolate World, a corporate visitor center that could welcome the millions of people visiting Hershey each year and would teach visitors how Hershey’s milk chocolate is made in a fun and informative way.

 

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Hershey’s Chocolate World original design featured a tour ride, retail area, café, and an historical display. 1970

 

Hershey Foods Corporation hired R. Duell & Associates to develop concept and design plans for the new visitor center. The firm was already working on design development plans for Hershey Park’s modernization and expansion. By employing the same firm, Hershey Foods Corporation was able to benefit from R. Duell & Associates already acquired understanding and knowledge of the general site and better coordinate how the two facilities might best interact with each other. R. Duell & Associates played a significant role shaping the direction and scope of Hershey Foods’ new visitor center.

 

Hershey’s Chocolate World, ca1973

Hershey’s Chocolate World, ca1973

 

The new visitor center was located near Hersheypark’s newly constructed “tram circle.”

 

Chocolate World’s tour ride showed visitors how Hershey’s milk chocolate was manufactured. 1973

Chocolate World’s tour ride showed visitors how Hershey’s milk chocolate was manufactured. 1973

 

Hershey’s Chocolate World also included displays devoted to company history. 1973

Hershey’s Chocolate World also included displays devoted to company history. 1973

 

Hershey Chocolate World’s retail area was themed to suggest a village in a tropical jungle. 1973

Hershey Chocolate World’s retail area was themed to suggest a village in a tropical jungle. 1973

 

Plans called for the visitor’s center to illustrate the steps necessary for manufacturing chocolate, from growing and harvesting cocoa beans, through the manufacturing steps to produce Hershey’s milk chocolate. Plans also called for an enlarged retail area, a small café and gift shop, and a company history display.

 

The last public Hershey Chocolate factory tour was held June 29, 1973 and the new Hershey’s Chocolate World opened the next day.

 

#HersheyArchives@30

HersheyArchives@30-20 Eckenroth Journals: Working for Hershey Chocolate during the 1930s and 1940s

Daily journals are kept as a personal record of the activities in an individual’s life. Although never intended for a public audience, many journals provide us with a better understanding of what effect world-wide and local events had on an individual.

 

Raphael Eckenroth’s journals detail his work experience in the Hershey Chocolate Factory during the Great Depression and World War II. Born in 1908, Eckenroth began working for the Hershey Chocolate Corporation in 1928. Perhaps to accurately record his income during a period of financial uncertainty, or possibly due to a meticulous personality, Eckenroth recorded his daily wages and work assignments in the factory over a period of ten years.

 

Raphael Eckenroth's journal documents his cumulative earnings for 1941.

Raphael Eckenroth’s journal documents his cumulative earnings for 1941.

The first column records the week of the year.  The second column is the number of hours worked in the Carver room or other factory departments.  The third column is total hours worked for the week.  And the final two columns record his weekly income.

 

An example of a "Carver" press. ca.1950-1960

An example of a “Carver” press. ca.1950-1960

 

In the chocolate factory, Eckenroth worked primarily in the “Carver room” where “Carver” brand cocoa butter presses extracted cocoa butter from roasted cocoa beans. On occasion, he recorded how many hours each shift worked and the hours of operation for the “old” and “new” Carvers.  These entries offer insight into the factory’s production schedule and the increase in hours and output during the war.

 

“All old carver presses started again to press and are operating three 8 hour shifts.  The [new] carvers are operating two 7 hour shifts today.”  (February 24, 1942)

 

There is little information about the personal lives of the Eckenroth family in the journals.  Deaths, major illnesses, and social activities are recorded, but Eckenroth rarely comments on the events he chronicles.  He does however record personal reflections on the 1937 labor strike.  The journals offer a timeline of events and Eckenroth’s feelings regarding unionization are evident.

 

Approximately 500 Hershey Chocolate employees went on strike on April 2, 1937.  The “sit-down” strike end on April 7, when local farmers and non-striking workers forcibly remove the strikers.

Approximately 500 Hershey Chocolate employees went on strike on April 2, 1937. The “sit-down” strike end on April 7, when local farmers and non-striking workers forcibly remove the strikers.

 

In February 1937, the CIO began holding labor organizational meetings in Palmyra and negotiating an agreement with Hershey Chocolate Corporation.  In March, an agreement between the company and the United Chocolate Workers of America (CIO) recognizing the union was reached, however not all areas of concern were addressed.

 

A wounded and bloody striker is helped through the crowd on the last day of the strike.

A wounded and bloody striker is helped through the crowd on the last day of the strike.

 

On April 2, at 11:00 AM, a “sit-down” strike was called and approximately 500 employees began occupying the factory.  The strike impacted not only the non-striking employees but also the local dairy farmers who supplied the factory with milk each day.  On April 7, after the strikers refused to vacate the building, non-striking workers and farmers forcibly removed the strikers from the factory.  Strikers were forced to run a gauntlet and emerged beaten and bloody.  A few weeks later the National Labor Relations Board conducted an election and polled employees as to whether they wished to be represented by the United Chocolate Workers of America.  The employees overwhelmingly rejected the union.

 

“Had election today.  C.I.O. had 786.  Loyal 1542.  Was happy day for Hershey.  Spent the night drinking and being merry.”  (April 23, 1937)

 

Raphael Eckenroth worked for the Hershey Chocolate Corporation for 45 years until his retirement.  His journals, although spanning a brief ten years, broaden our understanding of the Great Depression and World War II’s impact on the Hershey community and businesses.  They also provide one man’s perspective on his relationship with Hershey Chocolate during one of the most violent periods in the community’s history.

 

#HersheyArchives@30

 

HersheyArchives@30-19 Serving the Nation: Hershey and the Ration D bar

When the United States Army needed a food product that would serve as a survival ration for soldiers in combat situations, they turned to the Hershey Chocolate Corporation.

 

 

Wrapper: "U.S. Army Emergency Ration." 12/1939

Wrapper: “U.S. Army Emergency Ration.” 12/1939

 

In the spring of 1937, Captain Paul Logan, from the office of U.S. Army Quartermaster General, met with William Murrie, President, Hershey Chocolate Corporation and Sam Hinkle, Chief Chemist. The Army wanted to develop an emergency ration bar.

 

Milton Hershey was very supportive of the request and instructed Sam Hinkle to get started right away.

 

While developing the formula for the survival ration bar was relatively simple, manufacturing the bars presented greater challenges.

 

Unlike Hershey’s confectionery products where warm chocolate pours easily into moulds, the non-confectionery chocolate paste for the Field Ration D bar, as it was formally known, was much thicker and did not flow at any temperature. A new method of moulding would need to be engineered.

 

For the first batch of Ration D bars, Hershey Chocolate Corporation planned to produce 90,000 bars for the U.S. Army Quartermaster Corps. First, the factory needed to construct enough moulds for the project. Next, the specially formulated Ration D chocolate paste was produced and each four-ounce portion was weighed, kneaded, and pressed into the mould by hand. It took the chocolate factory three weeks to produce the first run of 90,000 bars.

 

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The challenges to deliver this product were not over yet.

 

200645B6F12.1

 

The United States Army had detailed requirements for the wrapping and packaging of this product. From the bar wrapper to the boxes to the shipping cartons, Hershey had to follow very specific guidelines as to the information printed on the wrappers and cartons. As the letter notes, Hershey Chocolate provided 42,000 bars packed in wooden crates, specifically as the Army Quartermaster had specified, and 48,000 packed in fiberboard cartons. In spite of the Army’s specific instructions, Hinkle noted that the company would not pack the bars in rectangular tins since they did not have the necessary equipment.

 

200645B6F12.2

 

Between 1937 and 1941, small contracts were awarded to Hershey for additional orders of the Ration D bar. As war became more imminent, and Hershey realized that production would need to increase, the factory developed an automated method of moulding.

 

Ration D wrapped bar and shipping carton. 1942

Ration D wrapped bar and shipping carton. 1942

 

In 1939, Hershey was able to produce 100,000 units per day.  By the end of 1945, production lines on three floors of the plant were producing approximately 24 million units per week.  It has been estimated that between 1940 and 1945, over three billion ration units were produced and distributed to military personnel around the world.

 

#HersheyArchives@30

HersheyArchives@30-18 Only Hershey’s Kisses are Kisses

Consumers associate a trademark with their experiences with the service or product the trademark represents. Milton Hershey prided himself on manufacturing quality products believing quality was “the best advertising in the world.” Hershey Chocolate Company trademarks and trade dress were consistent across the product line so a Hershey’s Milk Chocolate bar was easily identifiable as being from the same company as Hershey’s Cocoa. “Hershey’s” meant quality to consumers and it has always been important to the company to maintain the positive association that Milton Hershey established.

 

Early Trademark Action

 

90015B1F27.1

 

In 1905, the Societe Generale Suisse De Chocolats, manufacturers of Peter’s Chocolate brought suit against Hershey Chocolate Company arguing that Hershey’s Milk Chocolate bar wrappers were too similar to those of Peter’s and caused consumer confusion.  Milton Hershey was ordered to change his design and subsequently adopted the now iconic maroon and silver wrapper.  Although he lost the case, Peter’s legal action introduced Mr. Hershey to the value of intellectual property and brand protection.  When his next product, Hershey’s Kisses, was introduced in 1907, Hershey diligently surveyed the marketplace for products too similar to his own.

 

Hershey Chocolate Company sold Hershey's Kisses by weight.  The pail was a unique way of packing bulk Kisses. ca1920

Hershey Chocolate Company sold Hershey’s Kisses by weight. The pail was a unique way of packing bulk Kisses. ca1920

 

Hershey’s Milk Chocolate Kisses were initially available for purchase in bulk and later in 10 cent boxes.  From 1907 until 1921, Kisses that were sold in bulk (meaning sold either by a specified number of Kisses or by weight) were identified by their display container and with nearby point-of-purchase placards.  A square piece of tissue-paper, printed with the company trademark, placed underneath the chocolate and wrapped inside the foil wrapper was the only other means of identifying the product as Hershey’s.  Since the buyer could not see that identification until after the chocolate was unwrapped, it encouraged many imitations.

 

One of Hershey's many competitors, Klein Chocolate Company marketed their conical pieces of chocolate as "Silver Bells." ca1930

One of Hershey’s many competitors, Klein Chocolate Company marketed their conical pieces of chocolate as “Silver Bells.” ca1930

 

To counteract the many competitors, Hershey Chocolate Company developed wrapping machinery that could insert a visual product marker, the plume or tag, in 1921.  Hershey began advertising its new wrapping technology and asking consumers to look for the identification tag.

 

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In-store poster promoting Hershey’s Kisses with its trademark plume. 1921

 

 

An Employee becomes a Competitor

 

In 1910, Milton Hershey hired James B. Leithiser, the husband of one of his cousins, to serve as general manager of all the non-chocolate businesses—what would later be consolidated as Hershey Estates.  Leithiser was responsible for overseeing the majority of the town’s building initiatives and the community’s development over the next ten years.

 

As Milton Hershey began to expand his operations in Cuba, he asked Leithiser to move to Cuba and oversee its operations.  Rather than move, in 1921 Leithiser resigned from his position and relocated to Berks County in Pennsylvania to open a confectionery business, Fleetwood Chocolate Company.

 

Rumors that former officials of the Hershey chocolate company who in the last few months have severed their connections with the chocolate king were about to organize a new company in Berks county have been confirmed… J.B. Leithiser….who grew up with the Hershey plant as one of the executive managers is named as president of the Fleetwood organization. [Lebanon Daily News, 01/06/1922]

 

A year later Fleetwood was in direct competition with Hershey’s.  One item in particular caught the attention of William F.R. Murrie, president of Hershey Chocolate Company.

 

Fleetwood Milk Chocolate Kisses box. 1923

Fleetwood Milk Chocolate Kisses box. 1923

 

Protecting the Brand

 

When Hershey Chocolate Company began including a plume with each wrapped Hershey’s Kiss, the company also filed a federal trademark registration, registering the mark “Hershey’s Milk Chocolate Kisses” in 1923.  Fleetwood’s Milk Chocolate Kisses prompted Hershey to consider the value of the term “Kisses” in general.  Hershey Chocolate Company president William F.R. Murrie brought the Fleetwood product to the attention of Mr. Hershey’s attorney, John E. Snyder.  Murrie thought it was imperative to protect the Kisses brand.  “It seems to me that we should not surrender what rights we may have in the use of the words, ‘Kisses,’ or ‘Milk Chocolate Kisses.’”

 

 

Correspondence  from Hershey Chocolate Company President William F.R. Murrie to John E. Snyder, Mr. Hershey's attorney. 3/17/1923

Correspondence from Hershey Chocolate Company President William F.R. Murrie to John E. Snyder, Mr. Hershey’s attorney. 3/17/1923

 

Additional federal trademark registrations protecting the name, and unique conical shape of Kisses, both wrapped and unwrapped, were later obtained.  Today, The Hershey Company continues to proactively protect the Kisses brand.  One reason is to avoid a generic or “genericized” trademark.  Trademarks can become “genericized” when the associated product or service acquires substantial market dominance or “mind space” and the trademark becomes a term for the product or service itself instead of a brand.  Genericized trademarks include: aspirin; escalator; trampoline; and laundromat.  A company risks losing its trademark and associated rights if a trademark becomes genericized and it also enables competitors to use the trademark.

 

Hershey Chocolate Company executives recognized the value of the Kisses brand early in the product’s history.  Early and continued brand protection ensures that Kisses chocolates and confections are still only associated with Hershey.

 

#HersheyArchives@30

HersheyArchives@30-11 “The Gift”

On November 13, 1918, Milton Hershey transferred his ownership of Hershey Chocolate Company to the Hershey Industrial School.

On November 13, 1918, Milton Hershey transferred his ownership of Hershey Chocolate Company to the Hershey Industrial School.

 

On November 15, 1909, Milton and Catherine Hershey signed a deed of trust establishing Hershey Industrial School (now Milton Hershey School).  Approximately 486 acres of land were transferred to the School together with all assets contained on the property.  All income, revenue, and rents derived from the property were to be used to support and maintain the School.

 

The previous day, November 14, 1909, Milton Hershey had signed a last will and testament directing the settlement of his estate.  The will provided for his wife Catherine, various friends and relatives, and also the School.   Under the terms of the will, the School would have acquired 3,000 shares of Hershey Chocolate Company stock and derived income from that investment.

 

Companies issue stock to raise money by selling a small part of the company to an investor, who is then referred to as a shareholder.  Hershey Chocolate Company and a few other Hershey area businesses acquired or established by Milton Hershey, such as Hershey Transit Company, were all privately held companies wherein a small number of private shareholders could trade or exchange stock privately. Other Hershey businesses, such as the Hershey Laundry, Hershey Park, and Hershey Store Company were funded by personal investments made by Milton Hershey.

 

Although Milton was the primary owner of the Hershey Chocolate Company and the other businesses created to manage the town, these businesses operated as separate entities. That all changed in 1918. On January 5, 1918, but retroactively effective as of January 1, 1918, Milton Hershey assigned his ownership in all of the disparate businesses to Hershey Chocolate Company.  Real estate, totaling approximately 7,695 acres, was also transferred to the chocolate company at the same time.

 

A list of the companies included in the transfer of Milton Hershey's assets to Hershey Chocolate Company.

A list of the companies included in the transfer of Milton Hershey’s assets to Hershey Chocolate Company.

 

With his investments and property consolidated under one organization, a company in which he was the primary shareholder, how Milton Hershey chose to divest his shares could impact not only the Hershey Chocolate Company, but the entire community.

 

Following the death of his beloved wife, Kitty, Milton decided to “execute” his will during his lifetime.  As it was Milton and Kitty’s desire that Hershey Industrial School operate in perpetuity, on November 13, 1918, Milton Hershey “executed” his will and quietly gifted the School his stock in Hershey Chocolate Company.  “I have no heirs—that is, no children.  So I decided to make the orphan boys of the United States my heirs.”  Hershey Industrial School became the majority shareholder in all the enterprises established by Milton Hershey and the majority landowner in Derry Township.

 

Milton Hershey with Hershey Industrial School students, seated on the steps of The Homestead.  1923

Milton Hershey with Hershey Industrial School students, seated on the steps of The Homestead. 1923

 

#HersheyArchives@30

HersheyArchives@30-5 Maroon and Silver

The  familiar Hershey’s Milk Chocolate bar wrapper.

 

The maroon and silver package, sometimes described as brown and silver, is identifiable at a glance. You can imagine the many versions and proofs Milton Hershey must have considered before settling on the now iconic wrapper design; the “face” of his new brand and his new product. Yet the process of designing the wrapper was not so straightforward. Within the Archives’ collections, documentation reveals a particular set of circumstances that transpired as to why maroon and silver came to symbolize the Hershey brand.

 

Hershey's Milk Chocolate bar wrapper. 1900

Hershey’s Milk Chocolate bar wrapper. 1900

 

Milton Hershey, after years of experimentation, began marketing Hershey’s Milk Chocolate in 1900. The bar retailed for $0.05 and was wrapped in a white wrapper with gold lettering.

 

The wrapper featured Hershey’s two trademarks, a cow’s head enclosed in a wreath of wheat and the cocoa bean baby.  The gold lettering was similar to that used on Hershey’s earlier semi-sweet or dark chocolate products.  Hershey’s Milk Chocolate Bars were immediately successful and distributed nationally, but there was one problem.  The white wrapper had a tendency to become soiled and stained during the summer months as heat influenced the product.

 

Hershey's Milk Chocolate bar wrapper, gold and maroon. Hershey marketed bars in a variety of sizes, including a 8 ounce bar, retailing for 40 cents. 1902

Hershey’s Milk Chocolate bar wrapper, gold and maroon. Hershey marketed bars in a variety of sizes, including a 8 ounce bar, retailing for 40 cents. 1902

 

In 1902, Hershey instructed that a brown wrapper, printed with the same trademarks and lettering, should replace the problematic white wrapper.  According to Milton Hershey, “The brown color of paper was selected by me for its wearing qualities, durability, cleanliness, and not being liable to soil.”[i]

 

Hershey’s Milk Chocolate bar wrapper, designed by Ketterlinus Lithographic Manufacturing Company. 1903

 

 

In 1903, Hershey visited Ketterlinus Lithographic Manufacturing Company in Philadelphia, Pennsylvania and had an additional wrapper designed.

 

Hershey was not the only manufacturer of milk chocolate in the United States.  He was however, the only manufacturer to use fresh milk; other manufacturers used milk powder or condensed milk.  In 1905, the Societe Generale Suisse De Chocolats, manufacturers of Peter’s Chocolate, took notice of Hershey’s activities.

 

Peter's Milk Chocolate bar wrapper. ca1903-1905

Peter’s Milk Chocolate bar wrapper. ca1903-1905

 

 

Peter’s argued that Hershey’s Milk Chocolate Bar wrapper was too similar to Peter’s Chocolate and caused consumer confusion and brought suit against Hershey.  A judge agreed with Peter’s and ordered Hershey to discontinue use of the wrapper.

 

Hershey complied with the judge’s order and to differentiate his wrapper from that of Peter’s began using silver lettering in place of the gold.

 

Hershey's Milk Chocolate bar wrapper. 1906-1911

Hershey’s Milk Chocolate bar wrapper. 1906-1911

 

Peter’s continued to protest Hershey’s use of the maroon, or brown, color citing that other manufacturers began to utilize the color as well causing market saturation.[ii]  Milton Hershey was satisfied with the new wrapper design of maroon and silver and was not swayed by Peter’s arguments.

 

In one way, the familiar maroon and silver wrapper is the product of legal action.  Perhaps though, Milton Hershey saw the change as an unexpected improvement. Had he not been satisfied with the new design he would have returned to the Ketterlinus offices.  The experience had an additional positive impact on Milton Hershey.  It introduced him to the value of intellectual property and trademarks in the development and protection of a brand.  Hershey would recall this experience and use the lessons he learned in the future to protect his next product: Hershey’s Kisses Chocolates.

 

[i] Milton Hershey affidavit, 1905.  Accession 200945 Box 1 Folder 42.

[ii] Correspondence, Frederick Duncan to John Snyder, 01/21/1908.  Accession 200945 Box 1 Folder 41.

 

HersheyArchives@30-3 “I am going to make chocolate.”

 

Milton Hershey ordered four pieces of equipment from the J.M. Lehmann Company's New York office. January 11, 1894

Milton Hershey ordered four pieces of equipment from the J.M. Lehmann Company’s New York office. January 11, 1894

 

Milton Hershey made his fortune with caramels but he made history with chocolate. In 1893, while attending the Columbian Exposition in Chicago, Hershey told Frank Snavely, “Caramels are a fad but chocolate is permanent. I am going to make chocolate.”

 

Milton Hershey was a reader of newspapers and an astute businessman. The increasing demand for chocolate in the United States would not have escaped his notice. In 1883, the United States imported 9,000,000 pounds of cocoa beans; in 1893, 24,000,000 pounds.

 

After examining the J. M. Lehmann exhibit of chocolate making machinery at Chicago’s 1893 Columbian Exposition, Hershey made up his mind to invest in chocolate. After the exposition closed, two pieces of Lehmann machinery from the exhibit were shipped to Lancaster, Pennsylvania. This document, an order for additional chocolate making machinery, details Hershey’s subsequent purchases and signifies the beginning of Hershey manufacturing chocolate in 1894.

 

The principal machines required to manufacture chocolate are roasters, hullers, mills to crush the beans, melangeurs (chocolate grinding machine) to mix the chocolate paste and sugar, cocoa butter presses to separate cocoa butter from cocoa solids, and steel rollers to refine the chocolate. Having acquired the melangeur and steel roller from the exhibit at the exposition, this purchase of equipment fulfilled Hershey’s needs. By 1895, the Hershey Chocolate Company was producing cocoa and semi-sweet or dark chocolate for retail sale.

 

Catalog; page 4. Image of a J.M. Lehmann Roasting Machine; Roaster; Catalog; J.M. Lehmann Dresden-Loebtau, 1902 edition

Catalog; page 4. Image of a J.M. Lehmann Roasting Machine; Roaster; Catalog; J.M. Lehmann Dresden-Loebtau, 1902 edition

 

When Hershey decided to make chocolate, he committed to the idea fully. Comparing the invoice found at the top of this story to a slightly newer (1902) J. M. Lehmann catalog indicates Hershey purchased machinery capable of producing large quantities of chocolate. The purchased roaster had a capacity of 9oo pounds. The local newspaper reported that Hershey’s melangeur was the second-largest in the United States, second only to one used by Walter Baker & Company. From the start, Hershey intended to transform and dominate the chocolate market in the United States.

If at first you don’t succeed, try a new name

Hershey Chocolate used point of purchase placards to market its products in stores. 1933-1936

Hershey Chocolate used point of purchase placards to market its products in stores. 1933-1936

 

While Hershey’s Milk Chocolate is the United States most iconic confectionery product, not all Hershey products have been so successful.  Sometimes when Hershey introduced a new product, the company was not satisfied with its sales and quickly removed the product from production.  Other times, Hershey continued to market the product, tweaking the recipe, the packaging and even the name.

 

In 1927, Hershey Chocolate introduced Hershey’s Honey bar.  The bulletin distributed to the sales force announced the product this way:

 Bulletin No. 9 February 22, 1927

Within the current week Hershey Chocolate Company will go into big production of Hershey’s 5-cent HONEY BAR.  We use those descriptive words in alluding to this new bar because the principal ingredients beig sweet milk chocolate, borken almonds, and broken honey nugget, the prinitng on the labels emphasizes the words “HERSHEY’S” and “HONEY” in this manner:

“HERSHEY’S Sweet Milk Chocolate with Almonds and HONEY”

 

Hershey's HONEY bar. 1927-1930

Hershey’s HONEY bar. 1927-1930

 

In spite of what I am sure were the company’s best efforts to distribute and market the new candy bar, the product faltered.  Instead of giving up, however, Hershey sought to improve its marketing efforts tweaking the name, so that it would be clear that this was a candy bar.

 

Hershey's HONEYBAR, 1930-1935

Hershey’s HONEYBAR, 1930-1935

 

And yet the sales remained sluggish.  Though the “Hershey’s” name was prominent on the package, perhaps the yellow wrapper did not encourage consumers to recognize that this was a Hershey product. So in 1935, Hershey again renamed the product “Hershey’s Honey-Almond Milk Chocolate” and redesigned the wrapper to make it more obviously a Hershey product.

 

Hershey's Honey-Almond Milk Chocolate. 1935-8/1939

Hershey’s Honey-Almond Milk Chocolate. 1935-8/1939

 

And still product sales lagged.  Maybe no one knew what honey-almond milk chocolate tasted like?

 

So Hershey tried one more time, reintroducing the product in 1939 as Hershey’s Nougat-Almond bar.

 

Point of purchase advertising placard for Hershey's Nougat-Almond Milk Chocolate. 1939-1941

Point of purchase advertising placard for Hershey’s Nougat-Almond Milk Chocolate. 1939-1941

 

With this new name, Hershey replaced the familiar maroon and silver packaging with blue and white. To promote the product, Hershey’s Nougat-Almond bars were one of the five products included in Hershey’s Miniatures (the other products were milk chocolate, Mr. Goodbar, Krackel, and Bitter-Sweet) when it was introduced in 1939.

 

Hershey’s Nougat-Almond bars were discontinued in 1942, as part of Hershey’s product line consolidation in response to wartime restrictions.