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A Town Built on Chocolate

Meet the man who built one of the world’s biggest businesses—and a community around it.

October 13, 2025
By Cailin Loesch

Hershey’s Kisses. Kit Kat. Reese’s Peanut Butter Cups. Today people across the country enjoy the sweet taste of Hershey chocolate. And it all started with a shy boy who grew up on a farm in Derry, Pennsylvania.

Milton Hershey came from a poor family, but he went on to become one of the most successful businesspeople in history. He used his wealth to create a thriving community. 

“What makes Hershey stand apart was the fact that he always gave back,” says Alicia Schlossberg. She’s a historian at the Milton Hershey School in Pennsylvania.

A Slow Start

Bettmann Archive/Getty Images

Milton Hershey

Born in 1857, Hershey worked hard from a young age. When he was 14, he became an assistant to a confectioner, or candymaker. Hershey loved learning how to make sweet treats. He dreamed of one day opening his own candy shop.

After four years of training, Hershey struck out on his own. He started a candymaking business in Philadelphia, Pennsylvania. But it didn’t succeed. Hershey went on to open two more shops, one in Chicago, Illinois, and one in New York City. Each of those also failed. 

Still, Hershey refused to give up. In 1883, he returned to Pennsylvania and sold caramels from a cart. People loved them! Over the next decade, Hershey turned his small success into a booming business.

A New Chocolate

Hershey’s greatest success began to take shape in 1893. At a world’s fair in Chicago, he got a taste for the art of chocolate making. He watched German workers use machines to quickly turn bitter cacao (kuh-KOW) beans into sweet chocolate.  

At the time, chocolate was expensive. It took a long time to make and was shipped overseas from Europe. Back home, Hershey had an idea. What if he could make milk chocolate affordable for all? Using equipment he bought at the fair, Hershey worked on a recipe. He used fresh milk from local farms. 

In 1894, the Hershey Chocolate Company was born. By the end of 1900, the first Hershey bar sold for only a few cents. It was a hit! Hershey built the world’s largest chocolate factory in Derry Township, Pennsylvania. Part of the area would come to be known as Hershey.

The Sweet Life

Shutterstock.com 

Last year, the Hershey Company made more than $5 billion in profits.

Source: Statista

Within 20 years, Hershey’s company was raking in more than $20 million a year. Hershey believed wealthy people should help others. He used the profits from his business to boost the economy of the town around his factory. 

Hershey already employed hundreds of workers in his factory and supported local dairy farmers. He hired more people to build houses, parks, and schools. They also built attractions like the Hershey Theater and Hersheypark. Today more than 3 million people visit the park each year. 

“Hershey wanted everyone to have jobs, be successful, and feel like they were a part of the community,” says Schlossberg.

Building an Economy

Milton Hershey created one of the most famous chocolate companies of all time. He also boosted the local economy. Here’s how he did it.

RESOURCES

H. Mark Weidman Photography/Alamy Stock Photo

Hershey used three kinds of resources to run his business.

  • NATURAL (things from nature): Hershey used milk from local cows, sugar, and cacao beans. 
  • HUMAN (workers): He hired people from the community.
  • CAPITAL (machines, buildings): He built a factory and used machines to make chocolate.


PRODUCT

H. Armstrong Roberts/ClassicStock/Getty Images

The goods Hershey produced, chocolate bars, were affordable and became popular across the U.S.


IMPACT

Hershey Community Archives

Hershey used the money he made from his chocolate business to help the town of Hershey grow. He hired people to build houses, schools, and parks.



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