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Will Hershey’s say “Hasta Luego”?

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Derry Township, Pennsylvania–Is Hershey’s historic Chocolate Avenue plant going dark after 110 years?

Not completely, according to company spokesman Kirk Saville. If the chocolate Makers Union agrees to move 600 workers to a newer plant on the west side of town, the historic building will convert to administrative offices by 2011, with 400 workers losing their jobs in the shuffle.

If the union doesn’t agree to the move, the company has threatened to relocate. Saville declined to elaborate on a location, but we can assume it’ll be somewhere where Hershey can purchase its raw materials cheaper–like Mexico, where it has already opened a plant.

“Hershey’s and Mars, they’re thinking that if they could go on the world market and buy sugar, they could save a lot of money,” says Benjamin L. Legendre, Ph.D., Professor and Department Head, Audubon Sugar Institute at Louisiana State University. “By the U.S. Government restricting imports of sugar, it keeps the prices higher for them. The user groups lobby in Washington so they can buy cheaper sugar.”

It’s no secret that sugar is a small portion of the cost of a candy bar. “A lot of these makers will move their plants to Mexico or Canada because they say the price of sugar here is too much, so they move there because of the cheap price of sugar.”

Wonder where Hershey’s next move is?

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Written by Brian O'Connor

June 1, 2010 at 11:30 pm

Posted in Uncategorized

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Written by Brian O'Connor

May 28, 2010 at 4:01 pm

Posted in Uncategorized