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Hershey
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Buck to succeed Bilbrey as Hershey president, c.e.o.
Dec 22, 2016 | Food Business News
By Monica Watrous
Michele Buck has been named president and chief executive officer of the Hershey Co., effective March 1, 2017. Currently executive vice-president and chief operating officer, Ms. Buck will succeed John P. Bilbrey, who previously announced plans to retire and will continue as non-executive chairman of the company’s board of directors. -
Hershey names Michele Buck as new president and CEO
Dec 22, 2016 | Food Dive
By Carolyn Heneghan
Hershey's board of directors announced Wednesday that the company will appoint 11-year company veteran and current COO Michele Buck as its new president and CEO, effective March 1, 2017, according to a news release. -
Hershey Posting Notable Gain After Naming Michele Buck Next CEO
Dec 22, 2016 | RTT News
Chocolate giant Hershey (HSY) is posting a notable gain in afternoon trading on Thursday, climbing by 1.1 percent. With the gain, shares of Hershey have reached their best intraday level in nearly four months. -
The Hershey Company Appoints New President and CEO
Dec 22, 2016 | Market Realist News
By Gabriel Kane
The Hershey Company (HSY) has a market cap of $21.8 billion. It rose 0.55% to close at $103.17 per share on December 21, 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were 3.2%, 5.5%, and 18.5%, respectively, on the same day. HSY is trading 4.2% above its 20-day moving average, 5.1% above its 50-day moving average, and 5.7% above its 200-day moving average. -
Inquirer Editorial: Will yet another overhaul rid the Hershey Trust board of its crony culture?
Dec 22, 2016 | Philadelphia Inquirer
After years of scandal, the embattled Hershey Trust board has a chance to clean up its act and set a new course. But it remains to be seen if the board will ever reform itself or continue to paper over its problems.
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Buck to succeed Bilbrey as Hershey president, c.e.o.
Dec 22, 2016 | Food Business News
By Monica Watrous
Michele Buck has been named president and chief executive officer of the Hershey Co., effective March 1, 2017. Currently executive vice-president and chief operating officer, Ms. Buck will succeed John P. Bilbrey, who previously announced plans to retire and will continue as non-executive chairman of the company’s board of directors.
“Michele is a proven leader who, during 11 years at Hershey and more than 25 years as an executive in the consumer packaged goods industry, has a demonstrated track record of building brands consumers love while bringing out the best in employees amid a rapidly changing business environment,” Mr. Bilbrey said. “She has consistently displayed a keen sense for how to grow our iconic brands. The unanimous vote by the board is a testament to the confidence we have in Michele as the next leader of this great company.”
Ms. Buck joined Hershey in 2005 as senior vice-president and global chief marketing officer, a position she held for six years before advancing to the role of senior vice-president and global chief growth officer in 2011. In 2013, she became senior vice-president and president of North America, and this past June she was promoted to executive vice-president and chief operating officer, with responsibility for leading the company’s commercial operations. During her tenure at Hershey, she has spearheaded the development and execution of a number of strategic initiatives, including the company’s move from a supply-driven business model to a demand-driven business model. She has led Hershey’s expansion into broader snacking categories, overseeing the acquisitions of the Krave jerky and barkThins snacking chocolate brands.
“Hershey is an incredibly special company with a rich 120-year history of bringing goodness to the world,” Ms. Buck said. “I am honored to be chosen as the next leader of this innovative and pioneering business. The opportunity ahead for Hershey is tremendous, and to take advantage of it will require a clear focus on meeting the evolving needs of consumers while moving quickly to stay ahead of the trends shaping our business.”
Prior to joining Hershey in 2005, Ms. Buck served 17 years at Kraft/Nabisco in numerous senior positions and at the Frito-Lay division of PepsiCo, Inc. A native of central Pennsylvania, she received a bachelor’s degree at Shippensburg University and a master’s degree at the University of North Carolina at Chapel Hill.
“I look forward to working closely with our board and the entire Hershey team to further our vision for 2017 and beyond,” Ms. Buck said. “I also would like to thank JP for his leadership, mentorship and friendship over the last several years. It is an honor to be succeeding him as c.e.o., and I look forward to his continued guidance as chairman of our board.”
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Hershey names Michele Buck as new president and CEO
Dec 22, 2016 | Food Dive
By Carolyn Heneghan
Buck faces significant challenges but also a positive outlook as she prepares to take the reins of a company she's helped grow over the past decade. In its latest earnings report, Hershey reported both net sales and earnings growth and raised its earnings outlook for the year.
But before that, Hershey had struggled to keep investors' confidence after sales slumps and Mondelez's attempted and failed takeover of the company earlier this year. Also, the costs of cocoa have been volatile, which combined with sagging sales to cause Credit Suisse to downgrade Hershey in April. This could be one contributing factor to Hershey's expansion to other non-confection snack products and "snack-fections" through both acquisitions and internal R&D.
Buck's appointment also means another exciting step forward for food and beverage: She will expand the ranks of a relatively small number of female CEOs in the industry. Hershey will join PepsiCo, Mondelez and Campbell in employing top female executives. This could encourage more leadership roles for women, particularly if Buck continues to successfully lead and expand the company's growth initiatives.
However, the jury's out on where Buck might fit in should Hershey be acquired under her leadership. Despite Mondelez's failed attempt, Hershey may not be off the table for Mondelez or other potential acquirers down the road — if a buyer can get the Hershey Trust and Pennsylvania attorney general on board.
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Hershey Posting Notable Gain After Naming Michele Buck Next CEO
Dec 22, 2016 | RTT News
Chocolate giant Hershey (HSY) is posting a notable gain in afternoon trading on Thursday, climbing by 1.1 percent. With the gain, shares of Hershey have reached their best intraday level in nearly four months.
The gain by Hershey comes after the company appointed Executive Vice President and Chief Operating Officer Michele Buck as its next President and Chief Executive Officer, effective March 1, 2017.
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The Hershey Company Appoints New President and CEO
Dec 22, 2016 | Market Realist News
By Gabriel Kane
The Hershey Company (HSY) has a market cap of $21.8 billion. It rose 0.55% to close at $103.17 per share on December 21, 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were 3.2%, 5.5%, and 18.5%, respectively, on the same day. HSY is trading 4.2% above its 20-day moving average, 5.1% above its 50-day moving average, and 5.7% above its 200-day moving average.
Related ETF and peers
The iShares MSCI USA Quality Factor ETF (QUAL) invests 0.63% of its holdings in Hershey. The YTD price movement of QUAL was 8.6% on December 21. The market caps of Hershey’ competitors are as follows:
Mondelēz International (MDLZ) — $69.8 billion
General Mills (GIS) — $37.4 billion
Latest news on Hershey
Michele Buck has been appointed as Hershey’s president and CEO, effective March 1, 2017. Currently, Buck is working as the company’s executive vice president and chief operating officer.Performance of Hershey in fiscal 3Q16
Hershey (HSY) reported fiscal 3Q16 net sales of $2.0 billion, a rise of 2.0% over the net sales of $1.96 billion in fiscal 3Q15. Sales from the North America and International & Other segments rose 1.8% and 5.3%, respectively, between fiscal 3Q15 and fiscal 3Q16. The company’s gross profit margin contracted 300 basis points, and its operating margin expanded 320 basis points.
Its net income and EPS (earnings per share) rose to $227.4 million and $1.06, respectively, in fiscal 3Q16, compared with $154.8 million and $0.70, respectively, in fiscal 3Q15. It reported non-GAAP1 EPS of $1.29 in fiscal 3Q16, a rise of 10.3% over fiscal 3Q15. Hershey’s cash and cash equivalents fell 3.8% and its inventories rose 12.3% between fiscal 4Q15 and fiscal 3Q16.Projections
Hershey (HSY) has made the following projections for fiscal 2016:
net sales growth of ~1.0%, which includes a net benefit from acquisitions and divestitures of ~0.5 points and the unfavorable impact of 0.75 points from the foreign currency exchange rate
adjusted EPS in the range of $4.28–$4.32, which includes a bark
THINS dilution of $0.05–$0.06 per share
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Inquirer Editorial: Will yet another overhaul rid the Hershey Trust board of its crony culture?
Dec 22, 2016 | Philadelphia Inquirer
After years of scandal, the embattled Hershey Trust board has a chance to clean up its act and set a new course. But it remains to be seen if the board will ever reform itself or continue to paper over its problems.
Three board members are set to resign on Dec. 31 and two others are scheduled to depart at the end of 2017. The overhaul is part of an agreement reached with the state attorney general earlier this year in an effort to clamp down on the board's dysfunction and excessive pay.
One problem: The board will pick the replacements. So the chances of attracting members with integrity and independence are slim. Granted, the attorney general has 30 days to review the new appointees but no veto power over them. And this is not the first time the scandal-plagued board has been through an overhaul.
If ever a board needed a fresh start, it is the Hershey Trust. The board oversees a $12.5 billion charity that owns Hersheypark and has a controlling interest in the famed chocolate company. Milton Hershey created the trust in 1909 with the mission to oversee a private boarding school for orphans and poor children.
The trust's $12.5 billion endowment is larger than the University of Pennsylvania's. Despite vast wealth to help needy kids, the board has seemed more focused on taking care of itself and throwing good money after bad.
The board's troubles go back years and never seem to get fixed.
In 2002, the board was accused of conflicts of interest, wasted assets and changed admissions policies that excluded the neediest children. The response was a deal with the attorney general that included removing 10 board members and shrinking the board from 17 to 11 members. Sound familiar?
In 2006, the trust spent $12 million for a golf course and then built a $5 million bar and restaurant on the property, claiming it needed buffer land for student safety. There were allegations the course was purchased at an inflated price to bail out a board member. Around the same time, the trust paid $7.5 million for an 18-acre roadside market that was then leased back to the owners.
In 2010, the school paid $3 million to resolve sexual abuse cases involving five former students.
Earlier this year, Hershey Trust Co. executive vice president John Estey was fired after federal prosecutors revealed he had been charged with wire fraud unrelated to Hershey. Estey, a political insider who was an aide to former Gov. Ed Rendell, admitted to pocketing $13,000 in bribe money.
In the meantime, the trust has spent more than $4 million on outside lawyers to investigate charges of misconduct that board members have lodged against one another.
The board spent $362,000 on travel, meals, limo services and hotels over a 2 ½ year stretch. Eight directors spent $18,000 just for a weekend board meeting at the Waldorf-Astoria in New York.
Most of these details have come to light as a result of the relentless reporting by staff writer Bob Fernandez, whose book, The Chocolate Trust, details the scandals.
Mark Pacella, the chief deputy attorney general who oversees nonprofits, has pushed for reforms for years, but to little avail. Replacing one set of connected board members with acolytes gets similar results. Until all of the political cronies are driven from the board and the culture is changed, Milton Hershey's vision and generosity will continue to be squandered.
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