Hershey sees sweet spot amid slowdown
Updated: 2015-09-25 07:39
By Li Xiang(China Daily)
|
|||||||||||
John P. Bilbrey, president and chief executive of United States chocolate giant the Hershey Company. [Photo provided to China Daily] |
Bilbrey said that Hershey is betting on more strategic investments in innovation and brand building to gain greater shares in China and to get its business back on the growth track.
The company saw its operating loss in international markets widen to $44.5 million in the second quarter of this year mainly due to the slower sales in China.
Bilbrey remained upbeat about China, noting that Hershey will focus on its core chocolate business which will continue to grow for the full year, although at a slower pace than previous years.
The CEO also defended the company's $584 million acquisition of Shanghai Golden Monkey in 2013, saying that the integration of the Chinese food company will bring Hershey the complementary advantages through its extensive distribution networks and expanded candy and snack portfolios in China.
Bilbrey spoke to China Daily on Hershey's strategy for business growth and various other aspects. Following are the edited excerpts from the interview:
How has a slowing Chinese economy affected Hershey's business in China?
Hershey's chocolate business has been impacted by this slowdown. But our business is still growing, albeit at a smaller pace and growth rate.
This year, the growth rate in the overall chocolate category has improved despite experiencing a much tougher selling environment.
Even with some of these headwinds, we expect the category to recover strongly in the second half of the year, so that we can have a full-year growth rate of 8-9 percent in the category.
China remains our top priority market and we will continue to take the needed steps to get our business on track including strategic investments in innovation and brand building as we look to gain market share.
The company's operating loss has widened in the international markets due to the slower sales in China. What do you think went wrong?
It is not unusual to experience the cyclical nature of economies.
Related Stories
Chocolate companies see sales melt away 2015-09-02 09:14
Hershey sales melt in China after posting net loss for second quarter 2015-08-11 15:08
Hershey sweetens China lineup with Brookside candies 2015-05-09 10:18
Top 15 Chinese CEOs to attend US roundtable during Xi's visit 2015-09-21 06:51
A maturing market needs new players 2015-09-14 10:54
Today's Top News
Hundreds killed in Saudi Hajj stampede
Volkswagen to pick Porsche boss as new CEO
EU leaders claim unity regained, pledge aid for Syrians
Business leaders, experts applaud Xi's speech in Seattle
Premier encourages innovation
Xi calls for safe cyberspace, reassures US business titans
Volkswagen CEO quits after carmaker rocked by diesel scandal
EU pushes through plan to relocate 120,000 refugees
Hot Topics
Lunar probe , China growth forecasts, Emission rules get tougher, China seen through 'colored lens', International board,
Editor's Picks
Solutions elusive in Syrian refugee crisis |
Stepping up |
Rural families still hope for male heirs |
Blue skies over Beijing ... for now |
V-Day parade for 70th WWII anniversary |
Tianjin blasts: Death, damage and bravery |