[Comment: Hershey, along with Whirlpool and Royal Doulton and others, were/are the poster children of rushed Y2K software upgrades going awry: ERP software from SAP caused major problems in a number of companies, and contributed to Royal Doulton declaring bankruptcy.

--Andre]

News item follows (hand typed from newspaper, someone else can find the URL!): ****************************************************

100 Years Later, Hershey Faces New Challenges [excerpts]

Associated Press via the Carlisle Sentinel [PA], 18 April 2000, page B5

Hershey Foods is finding making good chocolate is not enough. It had weak earnings after delays with a new automation system hampered delivery of Halloween and Christmas candies last year. Fast company growth also stirred warehouse shortages and shipping woes.

Now as the busy Easter season approaches, the nations largest candymaker says its problems are largely behind it. Delivery times, it says, have improved, and the company has begun hiring workers for a long-awaited 1.2 million square-foot distribution center set to being operating soon.

Hersheys first-quarter earnings are set to be released April 24, the day after Easter. Easter is very important for Hershey this year, said Ann Gurkin, an analyst with Davenport & Company in Richmond VA. Theyve missed earnings for several quarters. It would certainly be refreshing for them to beat or exceed expectations. It would also help instill confidence with customers that their orders are back on track. 

Last year, the biggest challenge was delays in completing a $112 million automated ordering and distribution system, which snarled deliveries, cause spot shortages of Hersheys candy and inflated operating costs between the Halloween and Christmas seasons. The company endured double-digit losses in the third and fourth quarters as it scrambled to get the system online and to smooth relations with retailers.

This year, retailers reported better turn-around times and plenty of chocolate by Valentines Day. Analysts say Easter shipments for this year appear to be on target. A new distribution center near the Hershey factory is set to be fully operational by fall and is expected to help unclog delivery.

The problems seem to be behind us, and its business as usual, spokesman John Long said, adding the next Halloween season, the industrys biggest sales season by far, may be the most meaningful test

-- Andre Weltman (72320.1066@compuserve.com), April 20, 2000