Hershey, Ferrero Forge Warehouse, Distribution Alliance

Does not encompass manufacturing, selling, marketing activities

HERSHEY, Pa. & SOMERSET, N.J. -- The Hershey Co. said that it has entered into an alliance with The Ferrero Group in North America through a joint warehousing, transportation and distribution initiative. Productivity improvements from this initiative will begin to be realized in 2012. This alliance does not encompass manufacturing, selling or marketing activities.

The alliance is consistent with Hershey's ongoing productivity efforts to improve supply-chain efficiency and enhance competitiveness. The two companies will also work together to maximize corporate social responsibility efforts with the expectation of reducing carbon dioxide (CO2) emissions and energy consumption in warehousing and freight, with fewer vehicle journeys needed to move products to customers.

John P. Bilbrey, president and chief executive officer, The Hershey Co., said, "Ferrero is a respected international company with a portfolio of successful brands including Tic Tac Mints, Ferrero Rocher Chocolates and Nutella Hazelnut Spread. Collaborative supply-chain operations are a growing trend across industries as companies seek to fully leverage their logistics infrastructure. Although we are initially focusing on one region of our business, we are excited about the full potential of this project."

The Ferrerro Group is headquartered in Innsbruck, Austria. Ferrero USA Inc. is based in Somerset, N.J.

Hershey is the largest producer of quality chocolate in North America and a global leader in chocolate and sugar confectionery. Based in Hershey, Pa., it has operations throughout the world and more than 13,000 employees. With revenues of about $6 billion, Hershey offers a wide range of confectionery products, including such iconic brands as Hershey's, Reese's, Kisses, Hershey's Bliss, Special Dark, Hershey's Syrup, Kit Kat, Twizzlers, Ice Breakers, PayDay and Jolly Rancher. Hershey also is a leader in the premium and artisan chocolate segments, with such brands as Scharffen Berger and Dagoba, offered through the Artisan Confections Co., a wholly owned subsidiary. The company is focused on growing its presence in key international markets in Asia and Latin America while continuing to build its position in the United States and Canada.