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Founder

Milton Hershey

The founder who made chocolate a mass-market product and built a town and a school around it.

4 min read · 1894–1945

Part I — The story

The story

Milton Hershey turned chocolate from an expensive luxury into an everyday treat that ordinary Americans could afford, by cracking mass production and driving cost down through scale. After several failed candy ventures, he built an enormous, efficient factory and standardised milk-chocolate recipe that let him sell at prices no craft confectioner could match.

Around the factory he built an entire town for his workers — Hershey, Pennsylvania — with housing, schools and amenities, believing productive, cared-for employees made a better business. Childless, he and his wife founded a school for orphans and left most of his fortune to it in a trust that still controls the company.

By the numbers
1894
Hershey chocolate begun
Mass scale
Made chocolate affordable to all
A town
Built for his workers
A school
Endowed with most of his fortune

Hershey's combination of scale-driven affordability and paternalistic community-building made him both a business pioneer and an unusual philanthropist whose legacy still owns the company he founded.

Part II — The playbook

The playbook

Principle 1

Use scale to democratise a luxury

Hershey drove cost down until chocolate was affordable to everyone.

Do this: Use scale to turn an expensive product into a mass-market one.
Principle 2

Standardise the recipe and process

A consistent, repeatable product was key to producing at huge volume.

Do this: Standardise so you can produce reliably at scale and low cost.
Principle 3

Invest in your workforce

He built a town for workers, believing wellbeing drove productivity.

Do this: Invest in the people and community your business depends on.

In their words

Give them quality. That's the best kind of advertising.
One is only happy in proportion as he makes others feel happy.
Business is a matter of human service.

What to read next

  • Hershey — Michael D'Antonio

Why this matters

The thinking behind these decisions connects to models you can study directly:

Frequently asked questions

How did Hershey make chocolate affordable?

By mastering mass production and a standardised milk-chocolate recipe, using scale to drive costs down until ordinary people could afford what had been a luxury.

What happened to Hershey's fortune?

Childless, he left most of it in a trust for a school he founded for orphans — a trust that still controls The Hershey Company.

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