Hershey CEO bails for same post at Del Monte Foods


Shutterstock photo

The top executive of the U.S.' largest producer of chocolate resigned on Wednesday to take the top position at another food company, MarketWatch reports .

David West, chief executive officer of Hershey (HSY) for the past three years, will begin the same job at Del Monte Foods ( DMF ) on August 15. Bloomberg reports West and the Trust that oversees Hershey disagreed in 2009 and 2010 over how to handle the bid from Kraft Foods (KFT) for Cadbury (CDSCY).

"We believe this is a significant negative development for Hershey given high loyalty to former CEO West throughout the organization," according to Eric Katzman, a food analyst at Deutsche Bank. "We expect the premium valuation to contract significantly."

Though an interim chief has been named, the change comes at a challenging time that includes increased amounts of competition and high costs for ingredients, according to the food analyst.

During the final three years of his decade at Hershey, West rejuvenated sales, tripled spending on advertising, remade many staples and slashed costs of supplies by shuttering seven manufacturing facilities.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: News Headlines Business
Referenced Stocks: DMF

More from Henry Brier



Henry Brier

Find a Credit Card

Select a credit card product by:
Select an offer:
Data Provided by BankRate.com