Hershey hits sweet spot with deal for China confectionery Golden Monkey_美文

Hershey hits sweet spot with deal for China confectionery Golden Monkey

Industry insiders said the acquisition will help SGM integrate its businesses, explore more distribution channels and improve marketing.

Hershey's sales totaled about $7 billion in 2017. The privately owned SGM has seen double-digit growth in its net sales this year, which may reach $225 million.

Statistics from market research firm Euromonitor International show that Hershey has been selling mainly chocolate products in the Chinese mainland, with just a 2.2 percent market share in 2017. Competitor Mars Inc held a 43 percent market share.

Questions:

1. What is Hershey Co’s plan for China?

2. What will happen to Golden Monkey’s business?

3. What is Hershey’s market share in China?

Answers:

1. The chocolate producer will acquire 80 percent of snack producer Shanghai Golden Monkey Food Joint Stock Co.

2. Golden Monkey (SGM) will operate as a stand-alone business, and its senior management team members will retain their roles.

3. 2.2 percent market share in 2017.

About the broadcaster:

Nelly Min is an editor at China Daily with more than 10 years of experience as a newspaper editor and photographer. She has worked at major newspapers in the U.S., including the Los Angeles Times and the Detroit Free Press. She is also fluent in Korean.