"Small body, big taste", the well-known chocolate brand that consumers once knew, Hershey did not know when it began to be difficult to find.
Recently, the reporter noted that the hershey (China) Investment Management Co., Ltd. (hereinafter referred to as "Hershey") online Tmall flagship store has been terminated, and a number of goods in the Hershey Jingdong self-operated store are out of stock. The internal staff of Hershey's dessert shop revealed that Hershey has withdrawn its cabinets and closed stores in various parts of the Chinese market line, leaving a legacy dispute with the distributor's channel... The performance of China is not good, the market positioning is not up and down, is it still "good" to come to China for 27 years?
Withdraw cabinets and close stores, and reduce business in China
In January, the "Hershey Dessert Concept Store" WeChat subscription account posted that Hershey Company planned to reduce the number of companies and adjust the scale of the Chinese market due to the adjustment of Chinese mainland development strategy, and closed stores in many offline places, and Hershey legal persons have left China. Online, the Hershey Tmall flagship store was terminated in January, and a number of hot-selling products in Hershey Jingdong's self-operated stores also showed that they were out of stock.
In an interview with the Beijing Business Daily reporter, an internal employee of Hershey's dessert shop said that from 2020, Hershey's company in Shanghai, China, has begun to lay off employees and reduce its business in the Chinese market. In May 2021, Hershey suddenly sent a letter informing Hershey's dessert shop that it was requesting to terminate the contract. At the same time, in the handling of the remaining problems of the channel, Hershey has disputes with a number of agent dealers.
"Suddenly notifying us to end the contract has caused a lot of losses to the investment and operation of offline stores in various places, and the liquidated damages of commercial supermarkets." The above-mentioned employee mentioned that at present, the Chinese agent dealer is communicating with Hershey through lawyers.
According to the Tianyancha App, Hershey (China) Investment Management Co., Ltd. has been liquidated in November 2021. The company was founded in April 2001 with ROHIT GROVER as its legal representative, with a registered capital of approximately US$840 million, and is wholly owned by Hershey International LLC. According to the risk information, the company is related to more than ten litigation cases, involving disputes over sales contracts and disputes over sales agency contracts.
In addition, ROHIT GROVER is also associated with two other companies, namely Hershey (Shanghai) Food R&D Co., Ltd. and Hershey Commercial (Shanghai) Co., Ltd. It is worth mentioning that Hershey (Shanghai) Food R&D Co., Ltd. has been liquidated in March 2021, and Hershey Commercial (Shanghai) Co., Ltd. has been deregistered in December 2021.
Some consumers said that CR Vanguard, Renrenle and Yonghui did not sell (Hershey).
Sales in the Chinese market fell by 46% in 2020,
The fourth quarter decline was 82.2%
There are rumors that Hershey will withdraw from the Chinese market in the future. Since entering China in 1995, Hershey has been developing in China for 27 years, but its development in the Chinese market in recent years does not seem to be very smooth.
In 2014, Hershey spent 2.6 billion yuan to join the Golden Snub-nosed Monkey, which was a "highlight moment" for Hershey in the Chinese market. However, due to reasons such as the acquisition not meeting expectations, in 2018, Hershey sold the golden snub-nosed monkey that it had acquired at a high price for 400 million yuan.
From the performance point of view, from fiscal 2015 to fiscal year 2017, Hershey China was in a state of loss. In 2018, Hershey's net sales increased by 3.7% year-on-year to $7.791 billion, but the Chinese market fell by 20.5%. In 2019, Hershey's revenue was $7.986 billion, up 2.5% year-on-year, while the Chinese market fell 13.4% year-on-year.
In 2020, Hershey's global net sales were about $8.15 billion, up 2% year-on-year, but sales in China fell by 46%, including 82.2% in the fourth quarter. In contrast, sales in North America reached $7.417 billion, up 4.7% year-over-year, and sales in Canada increased by 4.1%. Hershey's North America business net sales for the fourth quarter were $1,974 million, up 8.9 percent from the year-ago quarter.
Have you ever eaten Hershey Chocolate?
Can you still see it in supermarkets?
Source: Beijing Business Daily
Reviewed by: He Yucheng
"Shen" reported hot goods