Hershey and Godrej announce joint venture in India
April 03, 2007
by FoodBusinessNews.net Staff
HERSHEY, PA. — The Hershey Co. and Godrej Beverages and Foods Ltd. have entered into an agreement to form a joint venture that will manufacture and distribute confectionery products, as well as snacks and beverages, in India.
Godrej is one of India’s largest consumer goods, confectionery and food companies. The agreement will give Hershey 51% ownership in the joint venture, which has about $70 million in annual net sales. The largest markets of sales are in sugar confectionery and beverages.
"The partnership with Godrej represents a significant step in Hershey’s global growth strategy," said Richard H. Lenny, chairman, president and chief executive officer of The Hershey Co. "India is an important growth market with tremendous long-term potential for our company, and Godrej has a strong track record of success and a deep knowledge of Indian consumers and markets. This agreement provides Hershey with access to Godrej’s extensive route-to-market capabilities, extending our reach across India."
The companies will work to leverage Hershey’s brands to grow the confectionery category and expand the beverage business. Overall, the joint venture will take advantage of Godrej’s manufacturing and distribution capabilities combined with the Hershey’s brand manufactured in the country and distributed to more than 1.6 million outlets in India.
The Hershey Co. also recently entered into a manufacturing joint venture in China with Lotte Confectionery Co., Ltd.