Hershey to acquire Scharffen Berger

The Hershey Company has purchased all shares of Scharffen Berger Chocolate Maker, Inc., one of the fastest-growing premium dark chocolate companies in the United States. The deal should be completed during the third quarter of 2005. Founded in Berkeley, CA in 1996 by John Scharffenberger and Dr. Robert Steinberg, the company is known for its high-cacao content, signature dark chocolate bars and baking products sold online and in a broad range of outlets, including specialty retailers, natural food stores and gourmet centers across the country as well as three own specialty stores. Little will change in Scharffen Berger s Berkeley headquarters, said John Scharffenberger, the company s co-founder. All of Scharffen Berger s staff will remain employed at the Berkeley headquarters.


Scharffen Berger employs 60 and manufactures between 800,000 and 1 million pounds of chocolate a year. At its three-year-old, 27,000-square-foot Berkeley factory, Scharffen Berger has the capacity to increase production fivefold. Hershey sees the premium chocolate segment as a key growth opportunity. Scharffen Berger posted revenue of $15 million in 2004, a 75 percent increase. Scharffenberger had earlier predicted a further 50 percent increase this year.
"They ve always wanted to enter the premium (chocolate) business, and we want to help them do that," Scharffenberger said. "This is a great opportunity to get to the next step" and continue the company s growth.