Who Owns Hershey Company?

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Who owns The Hershey Company?

The Hershey Company, a global confectionery leader, has a unique ownership structure rooted in philanthropy. Founded by Milton S. Hershey, the company's trajectory was shaped by his vision to support underprivileged children through the Milton Hershey School.

This philanthropic foundation, the Hershey Trust, holds a controlling interest, influencing the company's long-term strategy and stability. As of August 2025, The Hershey Company has a market capitalization of approximately $36.29 billion USD.

The Hershey Trust Company is the primary owner of The Hershey Company, holding a controlling stake. This structure ensures that the company's profits ultimately support the Milton Hershey School, which provides education for underprivileged children. This unique arrangement means that while the company is publicly traded, its ultimate beneficiaries are the students of the school, not just traditional shareholders. This philanthropic foundation's significant ownership influences corporate governance and strategic decisions, differentiating it from many other publicly traded entities. Understanding this ownership is key to grasping Hershey's operational and strategic direction, including its approach to product development and market expansion, as detailed in its Hershey PESTEL Analysis.

The Hershey Company's story begins with Milton S. Hershey, a persistent entrepreneur whose early confectionery ventures eventually paved the way for his success with the Lancaster Caramel Company in 1883. This caramel enterprise provided the crucial funding for his ambitious move into chocolate manufacturing, leading to the establishment of the Hershey Chocolate Company in 1894.

Founder's Vision

Milton S. Hershey's early ventures, particularly the Lancaster Caramel Company, were instrumental in funding his groundbreaking work in chocolate production.

Transition to Chocolate

In 1900, Hershey sold his successful caramel business for $1 million to fully dedicate his efforts to chocolate, transforming it into an accessible treat.

Philanthropic Foundation

The establishment of the Hershey Trust Company in 1905 and the subsequent Deed of Trust for the Milton Hershey School underscored a deep commitment to community and education.

Ownership Transfer

A significant portion of the company's ownership, approximately 40% of common stock, was transferred to the Milton Hershey School in 1918, establishing a unique philanthropic control structure.

Legacy of Giving

Milton Hershey's death in 1945 finalized the transfer of his remaining stock to the Milton Hershey School Trust, cementing the school's role as the primary beneficiary and steward of the company.

Founding Ownership Structure

Milton S. Hershey initially held complete ownership, but his vision led to a structure where the Milton Hershey School Trust became the dominant shareholder.

The foundational ownership of The Hershey Company is intrinsically linked to its founder, Milton S. Hershey. His early entrepreneurial endeavors, particularly the success of the Lancaster Caramel Company, provided the financial bedrock for his pioneering work in chocolate. This strategic shift culminated in the sale of the caramel business for $1 million in 1900, allowing Hershey to focus exclusively on chocolate. The establishment of the Hershey Trust Company in 1905 and the subsequent creation of the Milton Hershey School through a Deed of Trust in 1909 laid the groundwork for a unique ownership model. By 1918, Milton Hershey had transferred a substantial portion of his ownership, including 40% of the company's common stock, to the school trust. Upon his passing in 1945, the remaining stock was bequeathed to the same trust, solidifying the Milton Hershey School as the primary financial stakeholder and influencing the company's long-term governance and mission.

Key Ownership Aspects

The ownership structure of The Hershey Company is distinctive, with a significant portion controlled by a charitable trust established by its founder.

• Milton S. Hershey was the sole owner during the company's initial phases.
• The Hershey Trust Company was established to manage assets for the Milton Hershey School.
• In 1918, Milton Hershey transferred a substantial amount of company stock to the school trust.
• This philanthropic ownership structure remains a defining characteristic of the company's governance.

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The Hershey Company's ownership trajectory is uniquely tied to its founder's philanthropic vision, with its incorporation in 1908 and reorganization as a public entity in 1927 laying the groundwork for its distinctive governance. This evolution has resulted in a structure where a charitable trust wields significant control.

The Hershey Trust Company, acting as trustee for the Milton Hershey School, stands as the dominant stakeholder in The Hershey Company. This influence is primarily exercised through its substantial holdings of Class B stock, which grants it a disproportionate amount of voting power. As of March 2024, the Trust commanded approximately 78.8% of the total shareholder voting power, despite holding around 28% of the outstanding shares as of May 2025. This structure ensures that the company's strategic decisions and governance remain aligned with the founder's long-term philanthropic mission, a critical factor for understanding Hershey Company corporate governance.

Key Stakeholders and Their Influence

Institutional investors collectively represent a large segment of The Hershey Company's shareholder base, demonstrating broad market confidence. However, the ultimate control rests with the Hershey Trust.

• The Hershey Trust Company is the largest single shareholder, holding approximately 28% of outstanding shares as of May 2025.
• Through its ownership of nearly 100% of Class B stock, the Hershey Trust controls about 78.8% of the voting power.
• Major institutional investors like Vanguard Group Inc, BlackRock, Inc., Capital International Investors, and State Street Corp collectively held 159,756,014 shares as of April/May 2025.
• Institutional investor holdings reached 60.41% in April 2025, indicating significant market participation.
• Understanding these relationships is key to grasping the Target Market of Hershey and its financial stakeholders.

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The Board of Directors for The Hershey Company, as of August 2025, is comprised of key executives and independent directors, with Kirk Tanner serving as President and CEO. Huong Maria T. Kraus assumed the role of Chairman of the Board on August 18, 2025, also holding leadership positions within the Hershey Trust Company and Milton Hershey School since January 2024. This interconnected governance structure underscores the significant influence of the Hershey Trust Company.

The voting power within The Hershey Company is heavily concentrated due to a dual-class share system. Common Stock shareholders receive one vote per share, while Class B Common Stock shareholders are granted ten votes per share. This structure is central to the Hershey Trust Company's substantial control. As of March 2024, the Hershey Trust Company held nearly 100% of the Class B stock, which accounted for 78.8% of the company's total voting power. This arrangement significantly influences corporate decisions and makes the company resilient to unsolicited acquisition attempts, as evidenced by the reported difficulty in a December 2024 takeover approach from Mondelez. In May 2025, a shareholder request highlighted ongoing discussions about the impact of this concentrated voting power, seeking the disclosure of voting results by share class to better understand the alignment of different shareholder interests.

Understanding Hershey's Voting Power

The Hershey Company's voting structure is designed to maintain control by a specific entity. This dual-class system grants significantly more voting power to holders of Class B stock.

• Class B shares have 10 times the voting power of common shares.
• The Hershey Trust Company controls a majority of the voting power through its Class B holdings.
• This structure impacts the company's susceptibility to hostile takeovers.
• Shareholder requests in May 2025 aimed to increase transparency regarding voting by share class.
• The Hershey Company ownership structure is a key factor in its corporate governance.

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Recent years have seen significant strategic shifts for The Hershey Company, marked by aggressive expansion into the snacking category and key leadership changes. The company's unique ownership structure, however, continues to be a defining element, providing a stable foundation amidst these developments.

Institutional investors collectively held approximately 88% of the company's shares as of April/May 2025, underscoring their significant influence. The Hershey Trust Company, while maintaining majority voting control through its Class B shares, has also strategically managed its holdings. This includes selling some shares in 2025 to diversify the Milton Hershey School Trust's assets, a move that deliberately preserves the Trust's substantial voting power. This enduring control by the Trust, combined with the dual-class share structure, is fundamental to the company's operational stability and its alignment with its philanthropic objectives, providing a buffer against external pressures.

Diversification Strategy

The company has actively expanded its portfolio beyond traditional chocolate. Acquisitions in the snacking sector, such as Dot's Pretzels and the planned acquisition of LesserEvil, highlight this strategic direction.

Ownership Stability

The Hershey Trust Company's majority voting control ensures consistent strategic direction. This structure insulates the company from hostile takeovers and activist investor influence.

Financial Management

Shareholder value is a focus, evidenced by significant share repurchases in 2024. This demonstrates a commitment to returning capital to investors.

Leadership Evolution

Recent executive leadership changes, including a new CEO and Chairman, signal a new phase of management. These transitions are occurring within the established governance framework.

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