Hershey, Ferrero Group Form Warehouse and Distribution Alliance

HERSHEY, Pa. -- The Hershey Co. has entered into an alliance with The Ferrero Group in North America through a joint warehousing, transportation and distribution initiative. This alliance is part of Hershey's ongoing productivity efforts to improve supply chain efficiency and enhance competitiveness, the company announced.

The two companies will also work together to maximize corporate social responsibility efforts with the expectation of reducing carbon dioxide (CO2) emissions and energy consumption in warehousing and freight, with fewer vehicle journeys needed to move products to customers.

"Ferrero is a respected international company with a portfolio of successful brands including Tic Tac Mints, Ferrero Rocher Chocolates and Nutella Hazelnut Spread. Collaborative supply chain operations are a growing trend across industries as companies seek to fully leverage their logistics infrastructure," stated Hershey's President and CEO John P. Bilbrey. "Although we are initially focusing on one region of our business, we are excited about the full potential of this project."

Productivity improvements from this initiative will begin to be realized in 2012. This alliance does not encompass manufacturing, selling or marketing activities, according to the announcement.