Nestle should buy REESE'S"The Hershey Company is nothing more than the H.B. Reese Candy Company doing business as The Hershey Company."
Tallahassee, Florida: Thu, 6/9/16 - 11:59pm View comments
Talk to any Wall Street investment banker who has done Due Diligence (DD) on The Hershey Company and here's what they will most likely say:
"The Hershey Company is nothing more than the H.B. Reese Candy Company doing business as The Hershey Company."
That's right, over the past 53-years the H.B. Reese Candy Company has been the "crown jewel" of The Hershey Company driving all of its share price appreciation and dividend increases.
So why should Nestle buy REESE'S?
Because I believe Nestle will accelerate the growth of REESE'S into the #1 global candy brand.
For example according to Ad Age, only 2.8% ($76 million) of REESE'S 2012 global sales of $2.679 billion were made outside of the United States:
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