Hershey to buy 51% in Godrej Beverages

[OhioChick]

Source: Reuters

REUTERS< MONDAY, APRIL 02, 2007 02:45:41 PM>

MUMBAI: US chocolate maker Hershey Co will buy 51 per cent in Godrej Beverages & Foods
Ltd, in a deal that values the Indian firm at about $100 million, a source close to the deal said on Monday.

Hershey would buy the 40 per cent stake held by the private equity arm of IL&FS, and additional shares, the source said.

A senior executive of the Indian firm said Hershey and Godrej Beverages would hold a joint media briefing in Mumbai on Tuesday, but declined to give more details.

In February, the executive had said Godrej Beverages was in talks with many firms, including Hershey.

Local news reports have indicated the maker of Hershey's Kisses and Reese's peanut butter cups will take 51 per cent in the unit of Godrej Industries Ltd for Rs 2.38 billion ($55 million).


Read more: http://economictimes.indiatimes.com/articleshowcnews/1846418.cms

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Isn't Hershey laying off in large numbers due to cost-cutting?

[fasttense]

1. They are a corporation and they can do whatever they want.

Corporations will eventually completely take over America. They never die, they just keep amassing more and more money, more and more power.

[Born Free]

7. getting rid of workers in USA...

Hershey is getting rid of about 3000 employees, and a bunch more at Reeses. They are creating new (about 1500)jobs outside USA (Mexico?). It's all part of Lenny's (CEO) plan to increase corporate profits. Some Hershey employees that will be 50 by the end of this year will be offered a retirement option but others will have 2 choices, voluntary severance at 2 weeks pay for each year of employment (limit may be 30 weeks) or "forced " severance with 1 weeks pay for each year of service. The Harrisburg Patriot News (www.pennlive.com) runs many articles but traditionally gives the upbeat Hershey corporate version. Area M&M plants are doing OK, no talk of them getting rid of workers to increase profits - they are privately owned

[trotsky]

2. Hey, maybe this counts as good news.

For once it's an American company buying out a foreign one, not the other way around.

Too bad it doesn't really matter for workers - the end results are the same.

[KansDem]

3. Hmmm...there goes another source for potentially healthy food

Godrej beverages & foods limited, is amongst the leading fmcg company in the category of tea, fruit-based beverages, soy milk, confectioneries and edible oils. The company is a part of the 109 years old, usd 1. 3 billion godrej group, one of indias largest and most respected conglomerates.

Company Profile
Company Name: Godrej Beverages & Foods Limited
Country/Territory: India
Address: Vikhroli (E), Mumbai, Maharashtra, India
Products/Services We Offer: Tea, Fruit Drinks, Fruit Juices, Soy Milk, Confectioneries And Edible Oils
Business Type: Manufacturer
Industry Focus: Food Processing , Health Food , Beverages , Edible Fats & Oils ,
Geographic Markets: Worldwide
No. of Employees: 101 - 500 People
Annual Sales Range (USD): Below US$1 Million

[rcdean]

4. A firm with sales of $1 Million is valuedat $100 Million?

Even if its net were 50% of sales, or $0.5 million, that would still put the valuation of the firm at 200 X earnings. Where's the financial logic in that?

Hershey has made several bone-headed moves, some of which wound up as p-r disasters, over the past half-dozen years or so since it's gone under new leadership. I wonder if this one won't draw a similar barrage of legit and warranted criticism.

[ChromeFoundry]

5. The Hershey Company Announces Price Increase

HERSHEY, Pa., April 4 /PRNewswire-FirstCall/ -- The Hershey Company (NYSE: HSY), North America's leading chocolate and confectionery manufacturer, today announced an increase in the wholesale prices of its domestic confectionery line.

An increase of approximately 4-5 percent on the Company's standard bar, king-size bar, 6-pack and vending lines is effective immediately. These products represent roughly one-third of the Company's portfolio. This action will help offset the Company's input costs, including raw and packaging materials, fuel, utilities and transportation. While there has been no change in list prices on these impacted items since December 2004, over this period costs have continued to rise.

<...>

http://www.thehersheycompany.com/news/release.asp?releaseID=981846


Meanwhile they plan to close the Hershey, PA plant and move it off to Mexico...

Hershey Announces Global Supply Chain Transformation
http://www.thehersheycompany.com/news/release.asp?releaseID=963574


Here is a list of Hershey products to boycott during this Easter Season:
100 Calorie Bars
5TH AVENUE candy bar
ALMOND JOY candy bar
BREATHSAVERS mints
BUBBLE YUM bubble gum
CACAO RESERVE BY HERSHEY'S
CADBURY chocolates
GOOD & PLENTY candy
HEATH cnady bar
HEATH toffee bar
HERSHEY'S BAKE SHOPPE baking pieces
HERSHEY'S BAKE SHOPPE chocolate for baking
HERSHEY'S Brownies
HERSHEY'S chocolate bar
HERSHEY'S chocolate milk mix
HERSHEY'S cocoa
HERSHEY'S COOKIES
HERSHEY'S dessert toppings
HERSHEY'S EXTRA DARK
HERSHEY'S hot cocoa mix
HERSHEY'S KISSES brand chocolates
HERSHEY'S Mini KISSES Cookies
HERSHEY'S MINIATURES chocolate bars
HERSHEY'S NUGGETS chocolates
HERSHEY'S POT OF GOLD boxed chocolates
HERSHEY'S Really NUTS
HERSHEY'S Sandwich Cookies
HERSHEY'S S'MORES candy bar
HERSHEY'S STICKS
HERSHEY'S SUGAR FREE candy
HERSHEY'S Sweet & Salty granola bars
HERSHEY'S SYMPHONY milk chocolate bar
HERSHEY'S Syrup
ICE BREAKERS chewing gum
ICE BREAKERS LIQUID ICE mints
ICE BREAKERS mints
JOLLY RANCHER fruit chews candy
JOLLY RANCHER gummies candies
JOLLY RANCHER hard candy
JOLLY RANCHER jelly beans
JOLLY RANCHER lollipops
JOLLY RANCHER SCREAMING SOURS candies
KISSABLES Brand Chocolate Candies
KIT KAT wafer bar
KRACKEL chocolate bar
LA DULCERIA THALIA
MAUNA LOA
MILK DUDS candy
MOUNDS candy bar
MOUNDS sweetened coconut flakes
MR. GOODBAR chocolate bar
PAYDAY peanut caramel bar
REESE'S FAST BREAK candy bar
REESE'S NUTRAGEOUS candy bar
REESE'S peanut butter
REESE'S peanut butter cups
REESE'S PIECES candy
REESESTICKS wafer bars
ROLO caramels in milk chocolate
SKOR toffee bar
SNACK BARZ rice and marshmallow bars
Snacksters
SPECIAL DARK
TAKE 5 candy bar
TWIZZLERS candy
TWIZZLERS cherry bites candies
TWIZZLERS NIBS candy
TWIZZLERS PULL-N-PEEL candy
TWIZZLERS SOURZ candy
TWIZZLERS STRAWZ candy
TWIZZLERS TWERPZ candy
WHATCHAMACALLIT candy bar
WHOPPERS malted milk balls
YORK peppermint pattie
ZAGNUT candy bar
ZERO candy bar

[OhioChick]

6. Thanks for Posting....

I wasn't aware that Hershey's made Icebreakers or Jolly Ranchers.