HERCO profits

[Guest SalG (Sal Grenci)]

Hi all, The business news says Hershey Foods is taking a $217M charge, will close some production down, reduce the number of brands and cut employees. Will they try to improve their profits throght HERCO?

[Guest]

Sal -<BR>FYI, HERCO is a completely separate legal entity from Hershey Foods Corp. HERCO's agressive management of the attractions and land in the area is intended to maximize profits for their organization, not the foods businesses. However, both organizations channel profits into the Hershey schools, etc. So, whatever business moves the chocolate bar gurus make really do not have any relationship to the business practices of the wonderful folks who lease facilities for the AACA Eastern Division Fall Meet.<BR>

[Tom Deering]

Good info Ted. Most of us have thought of HERCO and HSY (Hershey Foods) as one and the same. They are related only in a rather obtuse fashion. In 1927 Milton Hershey created The Hershey Trust to fund The Milton Hershey School. The Trust owns HERCO in it's entirety and currently controls 76% of HSY. Profits from these two entities go to the Trust to fund the school as you have already stated. It is my understanding that all HERCO profits are plowed back into the Trust. Only a percentage of HSY profits are directed back to the Trust. I guess you could say the money we hobbiests pay to HERCO is used for a philanthropic purpose. That can't be all bad, can it?<BR> Tom

[Guest]

Sounds good to me.<BR>As long as the profits are used for something worthwhile, like education. I've never known how the Herco profits were used. I feel much better now.<BR>Roger