Hershey lifts game in Malaysia with DKSH expansion deal

By Oliver Nieburg

- Last updated on GMT

Related tags Confectionery Nestlé Hershey

Hershey lifts game in Malaysia with DKSH expansion deal
US Chocolate giant Hershey has entered a sales and marketing partnership with Asian expansion group DKSH to help raise its profile in the emerging Malaysian market.

The deal will see DKSH sell and market Hershey’s Kisses, chocolate bars, nuggets, and pearls, as well as Bubble Yum gum in Malaysia.

The partnership builds on Hershey’s recent deal with DKSH in Singapore.

Seventh place in Malaysia

Although Hershey is currently the fifth biggest chocolate player worldwide, it has only the seventh largest share in Malaysia at just 3.4%, according to the latest data from Euromonitor International.

Kraft and Nestle commands almost half of the market between them with Mars just behind.

Chocolate growth potential

Hershey’s head of corporate communications Jeff Beckman told ConfectioneryNews.com​: “Hershey products are already sold in Malaysia, and our new agreement with DKSH continues our presence of Hershey products in that market.“

“South East Asia is a sizeable market with consumers who want Hershey’s iconic products.”

Euromonitor forecasts that chocolate confectionery in Malaysia will grow around 3.7% year-on-year up until 2014. Chocolate is the highest selling confectionery category in the market, some way ahead of sugar confectionery, while gum accounts for only a small portion.

Growth is not expected to be as strong in the Malaysian chocolate sector compared to BRIC markets, but chocolate retail value sales would reach €138.4m if Euromonitor growth forecasts are realised.

Better links to retailers

DKSH communications manager Leng Stricker-Wong told this site that Hershey could benefit from her company’s strong local network in Malaysia, including close contact with retail chains.

She said that DKSH had deals with other confectioners for the Asia-Pacific market, but did not give names.

During Hershey’s webcast for its second quarter 2012 results, Hershey president and CEO John P. Bilbrey said that international sales were up 20% compared to the same period last year.

The company will also soon open a R&D centre in China as announced last year to develop China and Asia-Pacific products.

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