The Hershey Co. has reorganized to form separate U.S. and international divisions to solidify its snacks leadership here and pursue long-term growth outside the U.S.
The U.S. Commercial Group will handle confections and snacks here, while the International Commercial Group handles Asian, North American and South American markets.
A third unit, Global Growth and Innovation, will build global brands and oversee markets outside the Americas and Asia.
Chris Baldwin becomes senior VP-president of the U.S. Commercial Group, and Michele Buck becomes senior VP-CMO of the division. Baldwin had been senior VP-chief global customer officer and is credited with establishing Hershey’s retail presence in several snack categories. Buck had been senior VP-president of U.S. Snacks.
John Bilbrey becomes senior VP-president of the International Commercial Group, a similar role to his previous post as senior VP-president of Hershey International.
Thomas Hernquist becomes senior VP-global chief growth officer, overseeing global R&D, health and wellness, multi-cultural marketing, portfolio strategy and brand positioning. Hernquist had been senior VP-president of U.S. Confectionery. VP-Innovation & Quality Dan Azzara keeps his current title but now reports to Hernquist, overseeing new-product development.
Earlier this month, Hershey hired Andrew Panayiotou as VP-innovation and strategy (Xtra Nov. 15). He will work in the U.S. Commercial division.
The reorg “will allow Hershey to capture a larger share of the U.S. snack market while broadening its international presence,” said CEO Rick Lenny in a statement. “Unifying our U.S. business, adding much-needed global capabilities, and aligning selected international opportunities with total company resources will ensure that we continue to achieve top-tier performance.”
Hershey reported record net sales of $1.37 billion for third-quarter 2005, up 9%, and $3.48 billion for the first nine months, up more than 10% over the same period in 2004. Lenny credited the performance in part to new products and strong seasonal sales, and projects sales to grow at least 4% or more in 2005 and again in 2006.
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