The Hershey Co., makers of the world-famous Hershey Kisses and other delicious chocolate treats, announced that chief executive officer Richard Lenny would retire at the end of 2007. Lenny, 55, joined the company as CEO in 2001 from Kraft Foods Inc.
David J. West, Hershey’s chief operating officer, was named company president and a director, effectively immediately, and will become chief executive on Dec. 1, the board said in a statement.
Lenny may be leaving out of frustration with the trust that controls the majority of Hershey’s shares, the Wall Street Journal reported. The Hershey Trust tried and failed five years ago to sell the company after opposition from Pennsylvania lawmakers.
“In the last couple of quarters, there’s been some disappointing performance, and there’s no question the man’s been under some intense pressure,” said Marvin Roffman, an analyst at Roffman Miller Associates Inc., of Philadelphia, which owns Hershey shares.
Hershey, the maker of its namesake chocolate bars and Kisses treats, forecast in July a drop in annual profit on higher dairy costs and increased competition from Mars Inc., known for its M&Ms candies and Snickers bars. Hershey plans to cut 12 percent of its workforce, reduce the number of assembly lines, and transfer some operations to Mexico to lower costs.