Hershey acquires Chinese brand

The Hershey Company has announced that it has completed the initial closing and acquired an 80 per cent stake in the iconic Shanghai Golden Monkey Food Joint Stock Co Ltd (SGM), a privately held confectionery company based in Shanghai, China.

The combination of Hershey and SGM will accelerate both companies’ growth strategies. SGM’s well-established, trusted brand name and diverse product offerings provide Hershey with a meaningful presence in China’s sugar confectionery and snacking markets, and complements Hershey’s existing portfolio in the region. At the same time, SGM will benefit from Hershey’s global scale and recognisable brands and marketing expertise. Hershey will continue to invest in SGM brands and go-to-market capabilities enabling the company to deliver its popular products to more consumers throughout China.

“This strategic acquisition advances our international growth agenda and builds on our commitment to the China market by providing world-class, quality products to Chinese consumers,” says Humberto P Alfonso, president, Hershey International. “We will leverage Shanghai Golden Monkey’s iconic brands, diverse product portfolio and strong sales force to build on the organic growth we delivered in China over the past several years. Acquiring such an iconic and scalable brand increases our opportunity to drive top-line growth and create value for shareholders over the long term.”