HERSHEY'S GIANT BAR BET ' TO GROW IN BRAZIL

Business is candy for the Hershey Co.
The manufacturer of sweets of the United States had an 18% growth in second-quarter profit compared to the same period in 2012 and raised in 7% your net sales forecast for this year. At the same time, Hershey's shares have risen 30 percent this year, maintaining its upward trajectory since the financial crisis.
Even so, analysts are still wondering what will fuel the future growth of the company.
The Chief Executive, John p. Bilbrey, acknowledges that the Hersey began afternoon its international expansion. But he says he is focusing on important markets like Brazil, China and Mexico, offering special varieties of its brands, a new line of candy of milk in China and large Hershey chocolate bars in Brazil.
The hope, says Bilbrey, is that by 2017 about 25% of revenues come from the manufacturer of their business outside the u.s. and Canada.
Bilbrey wouldn't say whether the company will increase the price of their products. But the price of cacao, an essential ingredient of chocolate, reached this week, the highest level in a year due to concerns about the quality and quantity of the next harvest in West Africa, a region that grows about 70% of world production.
Bilbrey, of 57 years, has over two decades of experience working for Groupe Of none, of France, and Procter Gamble Co. & He chatted recently with The Wall Street Journal. Edited excerpts follow:
WSJ: what's new in the world of sweets?
Bilbrey: a package called "hand to mouth", which is different from the instant consumption. Is a convenient packaging. Can be closed again after open and lets you control the portion size. I don't mean it to be a surprise, but she surpassed our expectations, although I consider our very high expectations.
WSJ: so you guys are working on new products in that category?
Bilbrey: Very.
WSJ: How do you deal with discussions about the supposed benefits of chocolate for health?
Bilbrey: this category [candy] does not belong to the Group of foods. Therefore, there is a certain cynicism when you talk about benefits. The idea that it's good for health is not the biggest motivation [of consumers]. It's still a pleasure.
WSJ: the Hershey arrived late to international markets compared to other food manufacturers. Are there any advantages?
Bilbrey: we are late, but we are acting in a very elegant way. The delay allows us to be very balanced and disciplined as to the best markets where we can be. We learn [from the mistakes of competitors]. I spent half of my life outside the USA or administering global u.s. companies. Although the products are different, we don't need to invent [to enter emerging markets].
The most attractive countries in the world, both in terms of GDP growth as very low development category, are countries like India, China, Mexico. It makes no sense for us to have loss in 50 places.
WSJ: how Hershey's products differ from one place to another?
Bilbrey: Although all are chocolates, it's like the seasonings and spices-the product is different in different places. So, we really adapt to local preferences of taste and texture. The size of the products and the weight of the products may also change.
In Brazil, we call [chocolates] of "giant bars" for a good reason. Are tablets. If we were to offer that in China, people would be very embarrassed. They'd say: ' My God, this is great! '
WSJ: will the UNITED STATES will continue to be essential for the growth of sales of Hershey?
Bilbrey: is [our goal] have really strong, vibrant business and winners in North America. Internally, we talk about business "predictable, profitable and sustainable." Is really the engine of our company. [The US] are the largest and most lucrative world market for sweets and confectionery. The fact that we have leadership in this market is, obviously, a privilege, and allows us to do many other things.
WSJ: How do you plan to reach your goal of selling $ 10 billion?
Bilbrey: If you consider the plans that we have for growth while operating company, they'd take us $ 9.3 billion. We are very active in evaluating opportunities for mergers and acquisitions. Again, not all [the firms] are on sale and, even if they are sometimes buy them doesn't make sense commercially. If we reach $ 9.3 billion and our financial structure is exactly as it is today, I'd be perfectly happy.