As the nineteenth century began its last quarter several important entrepreneurs arrived on the stage to lead a new era in industrialization and economic development. These men created immense wealth as they tackled the oil, steel, banking, and railroad industries. However, there was one man who decided his entrepreneurial ambition laid elsewhere. His idea was something closer to home, something everyone could enjoy if they could only discover a way to make the product more cost efficient. This man was Milton S. Hershey, the founder of the Hershey Chocolate Company. His manufacturing techniques revolutionized the chocolate industry, a product up to this time only affordable to the wealthy, into a product that was now available to every household in the country through mass production.
Success for Hershey did not come easily. His earlier attempts in candy making led to six bankruptcies. However, this did not dissuade him from trying again. In the mid-1880s Hershey once again went into another candy making venture. Having had success in making caramel sweets during his earlier ventures, along with the capital investment from a Philadelphian who believed in Hershey, he turned this venture into a success. The plant, based in Lancaster, Pennsylvania, was turning profits when a local banker friend introduced Hershey to an Englishman who wished to purchase a large order of the caramels. Hershey borrowed money, using the adage use someone else's money, allowing him to fill the order for which the Englishman promptly paid. This allowed Hershey to repay the loan and to expand his business further. By the early 1890s the business, Lancaster Caramel Company, was a complete success. Family members who had loaned him money on many of his failed businesses were now willing to invest in his new success. Hershey now expanded further with locations in Chicago and Geneva, Illinois, increasing his total employee count to 1400 and becoming the largest caramel candy manufacturer in the world.
During this time, he still searched for additional ways to increase his growing caramel business. While n Chicago he attended the 1893 Columbian World's Exposition. It was here where he discovered a new chocolate manufacturing system being introduced from Europe. The entrepreneur in Hershey realized an opportunity. Chocolate had been a relatively expensive sweet to manufacture making it only affordable to the wealthy. Hershey knew there was an untapped market waiting for this wonderful delicacy, only if it could be mass produced, reducing the cost. If he could find the solution, chocolate could now be enjoyed by every person. The market was huge!!! Hershey now found the solution he was searching for.
To start his new chocolate venture, Hershey purchased and shipped the chocolate machine from Chicago to Pennsylvania where in 1894 a subsidiary under the name of the Hershey Chocolate Company began. This would be the company Hershey built into the multibillion-dollar corporation of today. However, before any of this could happen, he had to discover the recipe that would work best in chocolate making. The recipe eventually came into being, but now the issue was marketing the treat. During this period the plant was making more chocolate than it was selling. Fortunately, a man by the name of Bill Murrie arrived who became the marketing genius behind the company. HE was able to sell chocolates all over the nation and in the process helped Hershey build his chocolate empire.
By 1900 the business was booming, and other caramel manufacturers approached Hershey about a merger. Hershey was not interested in a merger, but he was willing to sell the Lancaster Caramel Company. Hershey believed the future was in chocolate so sold his caramel business for one million dollars. With the proceeds from the sale, he enlarged his chocolate business.
His success in the chocolate business allowed him to begin the process of building his so-called utopian society where his employees would have single-family homes to live in built on different designs, tree lines streets with streetlights sporting the "Hershey Kiss" as coverings, playgrounds, ballparks, concert venues, utility services, and an amusement park. A trolley service would be added to get his employees to and from work. Hershey was aware other industrialists offered some of the same "benefits" to their employees, but on a much poorer scale. Hershey planned for a much nicer, cleaner, family friendly, and peaceful community. The town became known as Hershey.
Over the years, as the business grew, it did run into issues, especially during World War I when sugar became scarce. At this point Hershey expanded his sugar operations into Cuba where he designed another workplace/home place town for his employees. Hershey needed control over sugar production and Cuba provided the answer. Hershey began to align other subsidiaries within the parent Hershey company. Hershey was using his visible hand to align these subsidiaries to assist his company in financial as well as market growth. Aligning these various entities required additional management and coordination which Hershey fully realized. His chocolate dream had become a reality.
As for his work of philanthropy, it was enormous and still in work to this day, but that is another sweet story saved for later.
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