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INTRODUCTION Hershey Foods Corporation is engaged with its subsidiaries in the manufacture distribution and sale of confectionery and grocery products The Companys principal product groups include confectionery products sold in the form of bar goods bagged items and boxed items as well as grocery products in the form of baking ingredients chocolate drink mixes peanut butter dessert toppings and beverages Hershey Foods manufactures confectionery products in a variety of packaged forms and markets them under more than 50 brands The different packaged forms include various arrangements of the same bar products such as boxes trays and bags as well as a variety of different sizes and weights of the same bar products such as snack size standard king size large and giant bars The Company also manufactures andor markets grocery products in the baking beverage peanut butter and toppings categories Principal products in the United States include Hersheys Reeses and Heath baking pieces Hersheys chocolate milk mix Hersheys cocoa Hersheys Chocolate Shoppe ice cream toppings Hersheys Hot Cocoa Collection hot cocoa mix Hersheys syrup and Reeses peanut butter Hersheys chocolate- and strawberry-flavored milks are produced and sold under license by various dairies throughout the United States using milk mixes manufactured by the Company The Companys products are sold primarily to grocery wholesalers chain grocery stores candy distributors mass merchandisers chain drug stores vending companies wholesale clubs convenience stores concessionaires and food distributors by full-time sales representatives food brokers and part-time retail sales merchandisers throughout the United States Canada and Mexico In 2002 sales to Wal-Mart Stores Inc and subsidiaries amounted to approximately 21 of Hershey Foods total net sales Hershey Foods manufactures imports markets sells and distributes chocolate products in Brazil under the Hersheys brand name Additional products in Brazil include IO-IO hazelnut creme items and chocolate and confectionery products sold under the Visconti brand name In China Japan Korea and the Philippines the Company imports andor markets selected confectionery and grocery
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