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Old 08-11-2005, 01:08 PM   #1
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Herseys buying Scharffen Berger?

I saw an article saying that Herseys is buying Scharffen Berger. I wonder if this is going to change anything on the SB side... SB is known to be high end chocolate, while Herseys isn't...strange combo...as long as it doesn't change the taste and quality of SB, I'm happy.

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Old 08-11-2005, 01:11 PM   #2
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There was a big article in our paper a couple weeks ago about this (Hershey's just a couple towns over from where I live). I was so upset! I think the world of Scharffenberger and am one of vew people in Central PA who doesn't get excited about Hershey's. It's just a shame to see yet another high-end small business have to sell to a large corporation.

Apparently Hershey saw a good nitch in the dark chocolate market and wanted to expand their dark chocolate line. There was little info about how it would affect the Scharffenberger name but I get the impression that it's the Hershey line that's expanding, which makes me worry.

DH and I toured the Scharffenberger factory and ate at their restaurant this past March when we were on vacation. It was a wonderful experience and I'm glad I got do it when they were still the old Scharffenberger.
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Old 08-11-2005, 03:45 PM   #3
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I wonder if this will influence how SB makes their chocolate, or if it will change their process. I have read that one of the reasons SB chocolates are superior in taste and quality is because they make it in smaller batches. I hope Hersheys doesn't try to get them to make bigger batches and do the whole Ford like assembly line thing.
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Old 08-11-2005, 08:07 PM   #4
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That's exactly one of my concerns htc! I don't think you can get a better American-made chocolate than Scharffen Berger. I can't imagine Hershey's acquiring SB and not "tinkering" with it. It's just not their style.
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Old 08-13-2005, 03:19 AM   #5
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sounds like good chocolate, Dark chocolate will go up in price because of the health benefits they are finding out you watch !
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Old 08-16-2005, 03:19 PM   #6
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This article was in our daily paper this morning:


Hershey sweetens candy lines


Tuesday, August 16, 2005 BY APARNA KUMAR
Of The Patriot-News
Taking another bite out of the market for premium chocolates, The Hershey Co. said yesterday that it has acquired San Francisco chocolatier Joseph Schmidt Confections Inc.

Known for its fancy, egg-shaped truffles and handcrafted chocolate gifts, Joseph Schmidt is the second maker of premium chocolate that Hershey has cherry-picked in the San Francisco Bay area in less than a month.

Hershey also said it has completed its acquisition of Scharffen Berger Chocolate Maker Inc., a dark-chocolate producer based in Berkeley, Calif.

The two brands will be marketed by a Hershey-owned subsidiary called Artisan Confections Co.

The new subsidiary will be "a smaller, more entrepreneurial entity" that allows the new brands to take advantage of Hershey's resources while maintaining their distinct, premium identities, Hershey spokeswoman Stephanie Moritz said.

The Joseph Schmidt and Scharffen Berger brand names will remain on the products, which also will bear the new stamp of Artisan Confections. The companies also will use their signature recipes and retain their California production facilities, Moritz said.

Moritz said Hershey would not disclose how much it paid for each company.

In a prepared statement, the company said the combined purchase price for Scharffen Berger and Joseph Schmidt will be between $46.6 million and $61.1 million.

The final purchase price will depend on how much the brands generate in sales through 2007.

Together, the two companies have annual sales of nearly $25 million, according to Hershey, which reported annual revenue of $4.43 billion in 2004.

Joseph Schmidt Confections has stores in San Francisco and San Jose, Calif., and its truffles and other chocolate desserts are sold in department and specialty stores.
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Old 08-16-2005, 04:19 PM   #7
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I am afraid this will turn out to be depressing news.
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