Will Hershey be bought by the owners of Cadbury and Oreo ?

Hershey stock is through the roof on the rumor that the candymaker is about to be consumed by the company that also owns Cadbury and Oreo.When the Wall Street Journal broke the news that Mondelez was interested in buying Hershey, stock jumped more than 20 percent. Another report from NBC put the offer at $107 per share.

Big Win for Chocolate Companies

The rumor set off a chain reaction that helped nudge other food brands up. Kellogg, General Mills, and Campbell Soup all saw 3 to 4 percent increases.
So, on the investment side, it looks like a potential merger between two of the biggest chocolate companies in the world would be a big win,especially if Mondelez keeps its promise to move its headquarters to Hershey,PA.

Employee Impact

But…
How will consumers react to this news, and what sort of branding and PR issues will the potential deal create if it goes through? Right out of the gate Hershey is winning on two immediate concerns. Any time a large company swallows up an American company, workers worry about losing jobs. This can also create a public relations issue that spreads much wider than the workforce and their immediate family. When Nabisco moved an Oreo plant to Mexico, social media freaked out. It even became a major storyline in the GOP primary, as Donald Trump hit on the decision, again and again, battering his opponents who supported NAFTA.

But if the buyer moves to Hershey and keeps the workforce on,potentially growing it, then that’s one possible PR problem that could be turned into a PR bonus.


Iconic Brand

Another issue: name changes. Hershey is one of the most iconic American brands there is. Right up there with Budweiser and Ford. Losing that brand could hurt the candy maker dearly, which is why Mondelez wisely plans to keep it. Remember when InBev came in and bought Budweiser? Beer fans rumbled and grumbled. They didn’t want to lose the King of Beers. And they didn’t. It all stayed, from the brand on down to the heart string-tugging Clydesdales. Hershey and Mondelez would be very wise to follow that path.