Hershey's bans Cadbury's (British Chocolate) from the US

[jrmasm]

So did Hershey and Cadbury come to an agreement or was it banned? How can Hershey BAN an import?

Was the agreement with Hershey/Cadbury that Hershey does not export to UK?

From Hershey's website:

Hershey has license agreements with affiliated companies of Cadbury Schweppes p.l.c. to manufacture and/or market and distribute YORK, PETER PAUL ALMOND JOY and PETER PAUL MOUNDS confectionery products worldwide, as well as CADBURY and CARAMELLO confectionery products in the United States.

 

[SirDuff]

So did Hershey and Cadbury come to an agreement or was it banned? How can Hershey BAN an import?

Was the agreement with Hershey/Cadbury that Hershey does not export to UK?

As far as I can tell (from the larger NYT article), Hershey's reached an agreement with an importing company (Let’s Buy British Imports) to stop importing Britain-made Cadbury chocolate. It doesn't seem like the rule stops any other company from importing the chocolate though - I have trouble believing that Let’s Buy British Imports is the only importer for Britain-made Cadbury chocolate, but what do I know? Of course, Hershey's will probably put pressure on any large importer (and small importers probably don't want the hassle of dealing with the FDA etc.).

As a result of a settlement with the Hershey’s Company, Let’s Buy British Imports, or L.B.B., agreed this week to stop importing all Cadbury’s chocolate made overseas. The company also agreed to halt imports on KitKat bars made in Britain; Toffee Crisps, which, because of their orange packaging, and yellow-lined brown script, too closely resemble Reese’s Peanut Butter Cups; Yorkie chocolate bars, which infringe on the York peppermint patty; and Ms. Perry’s beloved Maltesers.

http://mobile.nytimes.com/2015/01/24/nyregion/after-a-deal-british-chocolates-wont-cross-the-pond.html?hp&action=click&pgtype=Homepage&module=mini-moth&region=top-stories-below&WT.nav=top-stories-below&_r=3&referrer

 

[The Mystery Machine]

So it was an agreement between LBB/Hershey and not really a "ban" from what my understanding is here. (Must dig some more though).

I went to LBB's site and was looking through their products. Not related to Hershey's....A funny thing was the "Heinz Salad Cream". I just saw that in my store last week. Never saw it there before.

http://www.lbbimports.com/confectionary_cad_nes.html

 

[The Mystery Machine]

Ok, so Hershey's hit LBB with a lawsuit for starters.

Really Hershey's? You suck.

LBB did come to an agreement but they were forced to.

Really have to think about this one.

http://www.theguardian.com/business/2015/jan/27/hersheys-lawsuit-ban-imported-cadbury-from-us

 

[Geoff_M]

I'm curious why so many people think that Hershey is "the bad guy" for merely wanting to enforce their rights.... rights for which they've paid Cadbury's parent company?

 

[jrmasm]

Ok, so Hershey's hit LBB with a lawsuit for starters. Really Hershey's? You suck.

LBB did come to an agreement but they were forced to.

Really have to think about this one.

http://www.theguardian.com/business/2015/jan/27/hersheys-lawsuit-ban-imported-cadbury-from-us

Because: Hershey has license agreements with affiliated companies of Cadbury Schweppes p.l.c. to manufacture and/or market and distribute YORK, PETER PAUL ALMOND JOY and PETER PAUL MOUNDS confectionery products worldwide, as well as CADBURY and CARAMELLO confectionery products in the United States.


Sounds to me like Hershey has an agreement with Cadbury and LBB importing candy was in violation the agreement. Maybe? I'm not a lawyer...

 

[jrmasm]

I'm curious why so many people think that Hershey is "the bad guy" for merely wanting to enforce their rights.... rights for which they've paid Cadbury's parent company?

That's what it sounds like to me too.

 

[Geoff_M]

Because: Hershey has license agreements with affiliated companies of Cadbury Schweppes p.l.c. to manufacture and/or market and distribute YORK, PETER PAUL ALMOND JOY and PETER PAUL MOUNDS confectionery products worldwide, as well as CADBURY and CARAMELLO confectionery products in the United States.


Sounds to me like Hershey has an agreement with Cadbury and LBB importing candy was in violation the agreement. Maybe? I'm not a lawyer...

Additionally, Hershey has also licensed the rights to the Cadbury trademark in the U.S., so LBB would be in violation for selling the imported product.

 

[The Mystery Machine]

My answer to the question of why is Hershey's "the bad guy"?

How about Hershey's came to an agreement allowing LBB to distribute the British chocolate for the expats in America?

 

[ariel71]

My answer to the question of why is Hershey's "the bad guy"?

How about Hershey's came to an agreement allowing LBB to distribute the British chocolate for the expats in America?

How the heck is that a viable model? They set up distribution centers where British expats submit documentation proving their citizenship status and country of origin prior to purchase? Honestly, that's just a silly statement.

 

[The Mystery Machine]

How the heck is that a viable model? They set up distribution centers where British expats submit documentation proving their citizenship status and country of origin prior to purchase? Honestly, that's just a silly statement.

No, Hershey's comes to an agree with LBB allowing everyone to purchase, not just expats.

Sorry I meant expats as the people who are the biggest customers. My bad.

 

[jrmasm]

No, Hershey's comes to an agree with LBB allowing everyone to purchase, not just expats.

Sorry I meant expats as the people who are the biggest customers. My bad.

Why would it make sense for Hershey to do that if they have exclusive production rights in the US?

 

[kirstenb1]

I'm curious why so many people think that Hershey is "the bad guy" for merely wanting to enforce their rights.... rights for which they've paid Cadbury's parent company?

As someone who grew up loving "real" Cadbury I am curious as to why Hershey would tinker with the recipe. BTW, I hate Hershey's: too sugary, not creamy at all. Frankly it may be their right, but this whole thing reeks of sneakiness, and insecurity. Make a decent candy bar Hershey's! Then you won't have to compete with a company you bought, and tinker with their recipe.

 

[EMAW_KSU]

As someone who grew up loving "real" Cadbury I am curious as to why Hershey would tinker with the recipe. BTW, I hate Hershey's: too sugary, not creamy at all. Frankly it may be their right, but this whole thing reeks of sneakiness, and insecurity. Make a decent candy bar Hershey's! Then you won't have to compete with a company you bought, and tinker with their recipe.

Is there the possibility that they had to change the recipe to manufacture them in the USA do to different regulations?

 

[Geoff_M]

As someone who grew up loving "real" Cadbury I am curious as to why Hershey would tinker with the recipe. BTW, I hate Hershey's: too sugary, not creamy at all. Frankly it may be their right, but this whole thing reeks of sneakiness, and insecurity. Make a decent candy bar Hershey's! Then you won't have to compete with a company you bought, and tinker with their recipe.

I don't consider myself a big fan of Hershey's chocolate either, but Hershey's didn't buy Cadbury. Cadbury is owned by food conglomerate Mondelēz International (Formerly known as Kraft Foods), but Hershey has licensed the US rights to make and sell Cadbury brand candies. The profits from off-shore product that was sold by LBB goes into the pockets of Mondelēz instead of Hershey... and since by legal right Hershey has paid for the US rights and trademarks, I don't blame them for protecting their turf. If you think that Hershey's Cadbury product is inferior, then gripe to them, but don't expect Hershey to "compete" for something that is legally theirs.

 

[mefordis]

They are using cheaper ingredients. It's all about making more money, plain and simple.

We threw out most of our halloween candy this past year because it just tastes awful. Hershey is manufacturing garbage. I used to not be able to control myself around my kid's halloween candy. Now it repulses me, and the kids don't like it very much either.

I'm trying to think of good chocolate for easter. Ghiradelli - no one has bought them and ruined the recipe yet. Any others?

As someone who grew up loving "real" Cadbury I am curious as to why Hershey would tinker with the recipe. BTW, I hate Hershey's: too sugary, not creamy at all. Frankly it may be their right, but this whole thing reeks of sneakiness, and insecurity. Make a decent candy bar Hershey's! Then you won't have to compete with a company you bought, and tinker with their recipe.

 

[bcla]

As someone who grew up loving "real" Cadbury I am curious as to why Hershey would tinker with the recipe. BTW, I hate Hershey's: too sugary, not creamy at all. Frankly it may be their right, but this whole thing reeks of sneakiness, and insecurity. Make a decent candy bar Hershey's! Then you won't have to compete with a company you bought, and tinker with their recipe.

They didn't specifically buy Cadbury. They licensed the rights to the name. What they do isn't much different than licensees of American brands using the name yet making products with different recipes tailored to the individual market and/or the company's manufacturing capabilities.

Also - Hershey did buy some premium chocolate manufacturers. They started up a division called Artisan Confections and added companies like Dagoba, Scharffen Berger, and Joseph Schmidt Confections. The did can the latter because it wasn't making money. I'm also a bit peeved about Scharffen Berger. They said they'd stay in the Bay Area yet they eventually just shut down the factory in Berkeley and moved all production to Ohio.

 

[Geoff_M]

Is there the possibility that they had to change the recipe to manufacture them in the USA do to different regulations?

Assuming the complaints are about the chocolate itself, and not the filling, I'd guess the issue is that for cost reasons Hershey only wants to manufacture one type of chocolate that can be used for their bars, kisses, Cadbury eggs, etc. instead of having to maintain production of different recipes.

 

[bcla]

They are using cheaper ingredients. It's all about making more money, plain and simple.

We threw out most of our halloween candy this past year because it just tastes awful. Hershey is manufacturing garbage. I used to not be able to control myself around my kid's halloween candy. Now it repulses me, and the kids don't like it very much either.

I'm trying to think of good chocolate for easter. Ghiradelli - no one has bought them and ruined the recipe yet. Any others?

They're owned by Lindt. While they haven't really changed much there, Lindt itself has set up factories outside of Switzerland, including the US. I don't find the US made product to be as good.

 

[mefordis]

They're owned by Lindt. While they haven't really changed much there, Lindt itself has set up factories outside of Switzerland, including the US. I don't find the US made product to be as good.

I agree. And I also find Ritter Sport to taste terrible lately, too. They must have tinkered with that recipe (German company).