Hershey takes time to digest Mauna Loa
Hershey Foods Corp. swallowed Mauna Loa Macadamia Nut Corp. last year but is still digesting it, the country's largest candy company said Tuesday.
The company behind Hershey's Kisses, Almond Joys, Mounds, KitKats and Reese's Pieces said gross margin improvement would miss long-term targets due to complex integration of Mauna Loa, the largest macadamia nut candy company.
All macadamia nuts grown in America are grown on Hawaii's Big Island, where Mauna Loa dominates the field. Hershey spent more than $122 million acquiring the company last year. The company now says it is inventing new chocolate and other products that incorporate macadamia nuts.
Harrisburg, Pa.-based Hershey also said it intends to change its name to The Hershey Co. and double its outstanding stock to 1.05 billion shares, assuming shareholders approve this at their meeting April 19.
It said in a Securities & Exchange Commission filing the more generic form of its name "will provide flexibility should the company choose to expand into other market segments."
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