New Chocolate Processing Facility Opened by Hershey in Pennsylvania
- Hershey recently inaugurated a 250,000-square-foot chocolate processing facility in Hershey, Pennsylvania, marking the company’s first new manufacturing plant in the city in over three decades.
- The Reese Chocolate Processing facility, named in honor of brand founder H.B Reese, was completed after nearly three years of construction. It will be responsible for producing chocolate for popular brands such as Reese’s, Kit Kat, and Hershey’s.
- As part of a larger $1 billion investment initiative, the confection and salty snacks maker has also added 13 production lines and upgraded 11 existing lines across its North American facilities.
Insights on Hershey’s Expansion Strategy
With an increasing focus on enhancing production capabilities and optimizing supply chain efficiency, more companies are exploring options such as facility expansions, additions, or closures within their networks.
The newly opened Hershey’s plant is situated on a 55-acre site within the existing Reese’s campus. Currently employing close to 100 full-time staff, the facility plans to create additional job opportunities as operations expand.
Will Bonifant, Vice President of Supply Chain Strategy and Manufacturing at Hershey, emphasized the importance of rapid and efficient product manufacturing and delivery in driving the company’s growth strategy. The investments made in speeding up production, enhancing capacity, and workforce development aim to meet the increasing demand for beloved Hershey brands.
Recently, Hershey has intensified its innovation efforts across its product portfolio, ranging from Kisses and Reese’s to gummies and Dot’s pretzels. While acquisitions have played a role in expanding the company’s offerings, a significant portion of its innovation capabilities stems from the focus on growing production capacity.
In 2023, Hershey acquired two popcorn operations to bolster production capacity for its SkinnyPop brand. Similarly, the purchase of Dot’s in 2021 included acquiring manufacturing locations to boost output in response to growing consumer demand.