Hershey's Logo Change Is Fine, So Stop the Whining

 

NEW YORK (TheStreet) -- Hershey's (HSY) new logo, with the word "Hershey" next to a Kiss candy, is being slammed on social media, with some comparing it with human excrement. 

The company response, which was sent to TheStreet.com, is the logo is part of a "comprehensive visual identity system" built around "iconic," even "beloved" brands.

So here is the thing, social media. The logo is not about you. I don't think it's even about America or the West. It's about China, as a quick visit to the company's own Web site reveals.

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Of all Hershey's international markets, China is the one where the Kiss is the most prominently featured product. It's also a vital market for Hershey, with sales of over $100 million last year; 40% of Kiss sales are now outside the U.S.

After entering the market through a factory co-owned by Lotte, a Korean company, Hershey doubled down on the market last year, buying 80% of Shanghai Golden Monkey for an estimated $584 million.

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Hershey's overall goal, announced two years ago, is for 26% growth in its largest international markets, including China. While Hershey dominates the U.S. market, it only has a 7% market share globally - Mars, Mondelez (MDLZ) and Nestle (NSRGY) all beat it on a global basis. But it has been missing those international growth goals regularly, making up for it with stronger results in North America.

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