file - Global Shea Alliance

The Hershey Company and the Global
Shea Alliance
Ray Major
March 24, 2014
KEY MESSAGES
•
The Hershey Company will be an active and supportive
member of the Global Shea Alliance
•
We will look for synergies with and use lessons learned from
our cocoa sustainability programs
•
We will work with our supply chain partners to develop
programs on the ground that build capacity and support
community development through women’s education and
empowerment
•
In the food industry shea competes with other ingredients.
We must always design our programs to make shea more,
not less competitive with its alternatives
1
FIRST - A LITTLE ABOUT HERSHEY AND SHEA
• Hershey’s annual shea butter consumption is about 2,200
tonnes
• Shea butter is a component of cocoa butter equivalents
(CBE’s) used to make the white coating in Cookies’n’Crème
and other chocolate flavored coatings
• CBE’ represent about 2% of our annual ingredient spend
• CBE’s are either a blend of palm oil and shea or a blend of
palm oil and sunflower oil
2
HERSHEY’S LEGACY
MILTON S. HERSHEY
“The first person to link
Commerce with Compassion”
-Johnny O’Brien,
’65 MHS graduate
MHS President 2004-2008
4
OUR FIRST 100 YEARS OF MAKING A
DIFFERENCE
1903
Hershey, PA
Founded
1894
Hershey
Company
Founded
5
1909
Hershey Deed of Trust
Establishing
Hershey Industrial School
1905
Hershey Trust
Company Founded
1918
M.S. Hershey
Deeds Fortune to Hershey
Industrial School
HERSHEY TRUST COMPANY
TRUSTEE
MILTON HERSHEY
SCHOOL TRUST
MILTON HERSHEY
SCHOOL (non-profit)
HERSHEY TRUST
COMPANY
(100% owned)
THE M.S.
HERSHEY
FOUNDATION (nonprofit)
HERSHEY THEATRE
(Managed by Hershey
Entertainment & Resorts)
Real Estate Management
MILTON HERSHEY
SCHOOL
Founded 1909
Enrollment 1,800+
Over 10,000 Acre Campus
155+ Student Homes
Four Instructional Centers
Founders Hall
• Administrative Offices
• Visitors’ Reception Area
• Chapel - Auditorium
Land Holdings
Lease & Rental Properties
Retail Property Management
THE HERSHEY COMPANY
HERSHEY ENTERTAINMENT
AND RESORTS
(100% Owned)
Hersheypark, Hersheypark Stadium, Giant
Center, Hershey Bears, Hersheypark Arena,
Star Pavilion, ZooAmerica, Hershey Hotel,
Hershey Spa Hershey Lodge & Convention
Center,
Cocoa Beanery, Hershey Nursery,
Hershey Dry Cleaning, Hershey Country Club,
Hershey Links, Spring Creek Golf Course,
Dutch Wonderland, Hershey Highmeadow
Campground
DERRY TOWNSHIP
SCHOOL SYSTEM
THE HERSHEY
STORY
Museum on Chocolate Avenue
(31% Stock Ownership – 72% Interest)
MILTON S.
HERSHEY
TESTAMENTARY
TRUST
(non-profit)
HERSHEY GARDENS
CHOCOLATETOWN
SQUARE
MEDICAL CENTER, PENN
STATE UNIVERSITY
Founded: 1963
$50 Million Donation from
M.S. Hershey Foundation &
$21 Million in Federal & State
Grants
MILTON S. HERSHEY
(Park)
HERSHEY
COMMUNITY
ARCHIVES
6
MILTON HERSHEY SCHOOL
• Founded in 1909 by Milton & Catherine
Hershey as a home for orphan boys
• Today, boys and girls of all races attend grades
pre-k through 12
• Students come from severe poverty (annual HHI
$14,500) and social risk
7
HERSHEY, A GLOBAL COMPANY…
 $6.6 billion net sales in 2012
 ~14,000 employees around
the world
 Over 80 brand names
 Products available in over
70 countries around the world
14 NORTH AMERICAN MANUFACTURING
LOCATIONS
Brookside (British Columbia)
Brookside (Quebec)
Dagoba
Robinson
Memphis
Hilo , Hawaii
Monterrey
Guadalajara
Toronto (Hershey Canada)
Hazleton
Reese
Y&S Lancaster
Stuarts Draft
West Hershey
INTERNATIONAL MANUFACTURING LOCATIONS
China
46% joint venture with
Lotte
Golden Monley – 5
additional manufacturing
operations
India (2)
100% Hershey owned
& operated
Brazil
51% joint venture with
Bauducco
HERSHEY’S BRANDS HERE IN THE US…
COCOA SUSTAINABILITY – OUR
PHILOSOPHY
•
Cocoa is a strategic ingredient – we need to
guarantee supply
How?
•
Motivated cocoa
communities
farmers
and
thriving
•
Government engagement
•
Efficient supply chain partners
•
Programs on the ground that build capacity
•
Standards and Independent Verification
cocoa
12
TRANSFORMING COCOA IN WEST
AFRICA
Where We Are Today
Where We Need to Go
Subsistence Farming
Business Farming
Low Yields,
Extraction
Mentality, Extra
Cash
High Yields
Sustainable Production
Income
Poverty,
Social Issues
Pathway to Wealth, Thriving
Communities
Sr. Leaders Meeting 10-21-08
4/15/2014 9:52 AM
13
Sr. Leaders Meeting 10-21-08
4/15/2014 9:52 AM
14
HERSHEY’S LEARN TO GROW:
DISTANCE LEARNING
• The purpose of distance learning is to
build awareness potential for
community development through
advanced technology
• Accelerate the use of technology based
learning in other rural Ghana schools
• Technology can and will revolutionize
development & learning in the next 10
years
• Technology will become evermore
affordable & available for rural
Ghanaians
15
16
SO WHAT ABOUT SHEA
SUSTAINABILITY?
• Shea is a not a strategic ingredient for Hershey, but it
has strong synergies with cocoa
 Same countries
 Similar and in some cases linked social issues
 Similar supply chain issues
17
TRANSFORMING SHEA IN WEST
AFRICA
Where We Are Today
Extraction/Collection
Weak Individual
Collectors
Poverty,
Social Issues
Where We Need to Go
Managed Agroforestry Systems
Strong Organizations
In Control of their Future
Pathway to Wealth, Thriving
Communities
18
HERSHEY AND SHEA
SUSTAINABILITY – OUR VISION
FORWARD
• The price of shea sustainability, like any ingredient, should be included in its
cost.
• We will look for synergies with our programs in cocoa
• We will work with our supply chain partners to develop on the ground
programs that build capacity and efficiency with focus on women’s education
and empowerment.
• We will look for Public and Private Partnerships that strengthen and improve
the transparency of the shea supply chain
19
HERSHEY AND THE GLOBAL
SHEA ALLIANCE
• Our expectation for GSA
• Provide a forum that can bring together all components of the
shea supply change
• Establish standards and guidelines that insure a sustainable shea
supply
• Independently verify that our programs are working
• Liaise with the governments of shea producing countries
• Initiate and/or administer public private partnerships when and
where they occur
• Be the voice of shea
20
THANK-YOU