Hershey's (HSY - Get Report) celebrated its 125th anniversary and part of the way it plans to follow that up with another 125 years of success is by insulating itself from trade tensions that have acted as severe headwinds to other food makers.Susanna Zhu, head of Hershey's U.S. supply chain, told TheStreet that over 85% of the company's ingredients are sourced in the U.S. Unfortunately, cocoa does not grow on this side of the equator, so there is some exposure for the company.
"Unfortunately the US does not really grow much cocoa domestically. So we do a source, certainly ingredients from all sides of the u s but we do have very much a focus of sourcing local ingredients such as sugar, such as packaging materials, as well as dairy, Zhu said. "Most of our dairy or sourced actually in the state of Pennsylvania, from dairy farmers around us when it comes to tariffs that we are impacted by some of the trade tensions that we are seeing, pretend the U.S. and the rest of the world."
But cocoa supplies and the fact that it is a global company does raise concerns for the company.
"We are monitoring the situation very closely and really hoping that we can resolve some of these challenges," Zhu said.
To hear the rest of this interview watch the video at the top of this page.