Hershey's : Failing disastrously → World-Famous Chocolatier

Read time: 4.5 minutes

Hello Rebels

Fun one-liner 🏖️

Why do entrepreneurs prefer puzzles over paintings? Because they love solving the big picture piece by piece!

Onto Today’s story….

Picture this: A fourth-grade dropout, standing in the ruins of his third failed business, gazing at a world that seemed determined to crush his dreams.

Now, fast forward a few decades, and imagine that same man presiding over a chocolate empire that would bring joy to millions and forever change the face of American confectionery.

Sounds like the stuff of fiction, doesn't it?

But hold onto your taste buds, because this is the true story of Milton Hershey, the farm boy turned world-famous billionaire chocolatier.

Buckle up, aspiring entrepreneurs, because we're about to embark on a roller coaster ride through failure, redemption, and sweet, sweet success.

This isn't just a story about chocolate; it's a testament to the power of guts, innovation, and the unquenchable thirst to create something extraordinary.

The Making of a Maverick 🚀

Milton Hershey's story begins in 1857 in the heart of Pennsylvania's dairy country.

Born into a family where his father's ambitions often outpaced his abilities, young Milton's childhood was a blend of Mennonite values and entrepreneurial dreams.

Henry Hershey, Milton's father, was a dreamer and a jack-of-all-trades.

He moved from one venture to another, always chasing the next big opportunity but never quite finding it.

This constant pursuit of success meant the family moved frequently, uprooting young Milton's life time and time again.

Fanny Snavely Hershey, Milton's mother, was the rock of the family.

A devoted Mennonite, she instilled in Milton the values of hard work, tenacity, and community service that would shape his future.

While Henry chased his dreams, Fanny kept the family grounded, often through her own hard work on their farm.

Tragedy struck when Milton was nine years old. His younger sister, Serina, died from scarlet fever.

This loss deeply affected the young boy, teaching him early on about the fragility of life and the importance of cherishing loved ones.

As Milton grew older, his relationship with his father became increasingly strained.

Henry Hershey's constant failures and absences took their toll on the family.

By 1867, when Milton was about ten years old, his father had largely cut himself out of the family picture.

Education was a challenge for Milton.

By the fourth grade, formal schooling had become a luxury the Hersheys couldn't afford.

But don't feel too bad for our young hero – he was about to enroll in the school of life, and boy, was he going to ace it!

First Steps in the World of Work 👣

At 14, Milton's mother decided it was time for her son to learn a trade.

His first job?

Setting type for a local newspaper.

Spoiler alert: It wasn't his calling.

He left that job and landed an apprenticeship with Joseph Royer, a master confectioner.

For four years, Milton soaked up knowledge like a sponge in a syrup factory.

He learned the art of crafting caramels, fudge, and peppermints.

Little did he know, he was laying the foundation for a sweet empire.

The School of Hard Knocks (and Sticky Caramel) 🍬

At 19, armed with more audacity than cash and $150 borrowed from his Aunt Mattie, Milton set up shop in Philadelphia.

Picture this: A young man, barely out of his teens, working 15-16 hour days, sleeping a meager 4-5 hours, and pouring his heart and soul into every piece of candy he made.

For five long years, Milton fought tooth and nail to keep his business afloat.

But no matter how hard he worked, profitability remained as elusive as a chocolate bar on a hot summer day.

In 1882, exhausted and deep in debt, Milton had to face a bitter truth: his first solo venture had failed.

But here's where the story gets interesting.

Most people would have thrown in the towel, maybe settled for a safe, boring job.

Not our Milton.

Oh no, this setback only fueled his fire.

If at First You Don't Succeed... Fail, Fail Again 💪

Milton's next stop?

Chicago.

In 1883, he opened another candy shop, full of hope and determination.

The result?

Another failure.

Undeterred, he packed his bags and headed to New York City.

Surely the Big Apple would be ripe for his sweet innovations, right?

Wrong again.

After about two years of struggle, Hershey's New York venture also failed.

He was forced to declare bankruptcy.

But remember, dear friend, in the world of entrepreneurship, failure isn't the opposite of success – it's a stepping stone.

And Milton?

He was about to take a giant leap.

A Sweet Discovery 💖

Amidst the turmoil of his failing New York venture, Milton's life took an unexpected turn.

He met Catherine Sweeney, known affectionately as "Kitty."

As Milton's business crumbled around him, his relationship with Kitty flourished.

She stood by him through the bankruptcy and the crushing disappointment of another failed venture.

Her unwavering support gave Milton the strength to pick himself up once more and return to Pennsylvania for one last attempt at success.

Third Time's the Charm (or is it the Fourth?) 🍀

In 1883, Milton returned to Lancaster, Pennsylvania.

He was broke, but far from broken.

His relatives had given up on him, refusing even to put a roof over his head, let alone lend him money for another business venture.

But sometimes, heroes come in unexpected packages.

Enter Henry Lebkicher, a former employee from Milton's Philadelphia days.

Not only did Henry offer Milton a place to crash, but he also lent him the money to bring his candy-making equipment from New York.

Together, they scraped together enough capital to start the Lancaster Caramel Company.

And this time, things were different.

Drawing on all the lessons from his past failures, and armed with his milk caramel recipe, Milton created "Hershey's Crystal A" caramels.

These weren't just any caramels.

They were creamier, chewier, and more irresistible than anything on the market.

And people noticed.

An English importer, impressed by the quality of Milton's caramels, placed a massive order.

This order was the catalyst that enabled Hershey to secure a $250,000 loan with which he quickly began expanding his business.

Slowly they continued to grow.

By 1893, the Lancaster Caramel Co. had multiple plants and employed over 1,300 workers.

Milton Hershey, the failed entrepreneur, was now Milton Hershey, the caramel king.

Talk about a sweet comeback!

The Sweet Taste of Integrity 🤝

As Milton's business began to flourish, he never forgot the struggles of his early days.

When his New York City venture failed, he was able to pay his creditors only 40 cents on the dollar.

Most would have considered the debt settled, but not Milton.

As soon as he got back on his feet financially, he returned to New York City and paid his creditors the remaining 60 percent of his debt.

This act of integrity not only cleared his conscience but also established his reputation as a trustworthy businessman.

It was a principle he would carry throughout his career: success meant nothing if it wasn't achieved honorably.

The Chocolate Revolution 🍫

But wait, wasn't this supposed to be a story about chocolate?

Hold onto your sweet tooth, because Milton's journey is about to take its most delicious turn yet.

In 1893, Milton visited the World's Columbian Exposition in Chicago.

There, he saw something that would change his life forever: a chocolate-rolling machine from Germany.

In that moment, Milton had an epiphany.

He turned to a friend and said, "Caramels are a fad, but chocolate is permanent. I'm going to make chocolate."

Now, let's pause for a moment and appreciate the audacity of this move.

Milton had finally achieved success with his caramel business.

He could have played it safe, stuck with what he knew.

But that wasn't Milton's style.

He saw the future in chocolate, and he was ready to bet everything on it.

In 1900, Milton made a decision that would have made most businessmen think he'd lost his marbles.

He sold his successful caramel company for $1 million (that's around $31 million today).

Why?

So he could focus entirely on his chocolate venture.

Talk about putting all your eggs in one (chocolate) basket!

In 1894, Milton established the Hershey Chocolate Company as a subsidiary of his caramel business.

He began producing over 114 different types of chocolate candies.

But his real game-changer was yet to come: the milk chocolate Hershey Bar.

At the time, milk chocolate was a luxury produced only in Switzerland and Germany.

It was expensive and was not affordable by the common man.

Milton was determined to bring it to the masses.

Through countless experiments and sleepless nights, he finally cracked the code for mass-producing milk chocolate.

Building a Chocolate Empire (and a Town to Match) 🏙️

Milton didn't just want to build a chocolate factory; he wanted to create an entire community.

In 1903, construction began on a state-of-the-art chocolate factory in his birthplace, Derry Church, Pennsylvania.

But Milton didn't stop there.

He built an entire town around the factory.

We're talking affordable housing, paved streets (with names like Chocolate Avenue and Cocoa Avenue), schools, stores, churches, a library, and even an amusement park.

In 1905, the town was officially renamed Hershey, Pennsylvania.

Move over, Willy Wonka – there's a new chocolate town in town!

Kisses, Bars, and Sweet Success 💋

In 1907, Milton introduced a new candy that would become an American icon: Hershey's Kisses.

These bite-sized, flat-bottomed, conical-shaped pieces of chocolate were an instant hit.

But Milton wasn't content to rest on his chocolatey laurels.

He continued to innovate, introducing Mr. Goodbar in 1925, Hershey's Syrup in 1926, and the Krackel Bar in 1938.

The company's growth was nothing short of phenomenal, with sales skyrocketing from $600,000 in 1901 to $20 million in 1921.

That's a growth of over 3,200% in just 20 years.

Talk about a sugar high!

Weathering the Storms ⛈️

Life threw Milton a curveball in 1915 when his beloved wife Kitty passed away.

Many men might have lost their drive after such a personal tragedy.

But Milton?

He channeled his grief into his work and his philanthropy, pouring his heart and an estimated $60 million into the Hershey Industrial School for orphaned boys.

Then came the Great Depression.

While other companies were firing employees and scaling back operations, Milton did something extraordinary.

He embarked on an ambitious building campaign, constructing a new high school, a sports arena, a community building, and a lavish 170-room hotel.

Why?

To keep his workers employed.

There's a legendary story from this time.

During the construction of the hotel, Milton overheard a foreman boasting that a steam shovel could do the work of 40 men.

Milton's response?

"Get rid of the steam shovel and hire 40 men."

Now that's putting people first!

War Efforts and Late Innovations 🎖️

As World War II broke out, Milton, now in his 80s, oversaw the development of the Field Ration D bars for American soldiers.

These non-melting, high-energy chocolate bars could sustain soldiers when no other food was available.

Milton continued to work well into his 80s, finally retiring as chairman of the board in 1944 at the age of 87.

But even in retirement, he couldn't stop innovating.

In the final year of his life, he experimented with new confections, including celery, carrot, and potato ice creams, and a surprisingly successful beet sorbet.

"If I rest, I rust," was his motto, explaining his tireless work ethic even into his 80s.

The Sweet Taste of Success 🏆

As the Hershey Chocolate Company grew from a small factory to a global empire, Milton Hershey's definition of success evolved.

For him, success wasn't measured merely in dollars and cents, but in the positive impact he could make on the world around him.

"Business is a matter of human service," Hershey often said, and he lived this philosophy every day.

The town of Hershey, Pennsylvania stood as a testament to this belief.

It wasn't just a company town; it was a thriving community where workers could live, work, and prosper.

Even as his company grew to generate millions in revenue, Hershey maintained a modest lifestyle.

His true satisfaction came from seeing the positive changes his success brought to his employees, the community, and the countless children who benefited from his school.

A Sweet Legacy 🌟

When Milton Hershey passed away in 1945 at the age of 88, he left behind more than just a chocolate company.

He left a legacy of innovation, perseverance, and philanthropy that continues to inspire to this day.

As the chairman of the National City Bank of New York would later proclaim, "Milton Hershey was a man who measured success not in dollars, but in terms of a good product to pass on to the public, and still more in the usefulness of those dollars for the benefit of his fellow men."

Today, the Hershey Company generates over $8 billion in annual revenue, a testament to the enduring power of Milton Hershey's vision and the solid foundation he built.

The Sweet Lessons of Success 🍭

As we wrap up our journey through Milton Hershey's extraordinary life, let's take a moment to savor the key lessons from his story.

These aren't just empty calories, folks.

These are nutrient-rich insights that can fuel your own entrepreneurial journey.

1. Failure is just a pitstop, not the final destination: Milton failed not once, not twice, but three times before he hit his stride. How many licks does it take to get to the center of your entrepreneurial Tootsie Pop?

2. Inventing new things is the secret ingredient: Milton didn't just make chocolate; he revolutionized how it was produced and consumed. What industry norms can you melt down and reshape in your business?

3. Be curious and keep experimenting: From caramels to chocolate, from bars to kisses, Milton never stopped experimenting. What new flavors are you adding to your entrepreneurial recipe book?

Conclusion: Your Turn to Unwrap Success 🎁

As we close the wrapper on Milton Hershey's incredible story, remember this: every successful business, no matter how large, started with a single step.

Milton's journey from a fourth-grade dropout to a chocolate tycoon wasn't just about making sweets; it was about the unyielding drive to turn a dream into reality.

You might not be in the chocolate business, but you're in the business of making your dreams come true.

Like Milton, you'll face setbacks.

You'll have moments where giving up seems like the only option.

But remember, every "no" brings you one step closer to a "yes."

Every failure teaches you a lesson that success never could.

So, what's your chocolate bar?

What's that idea that keeps you up at night, that vision of a better future you can't shake?

Whatever it is, it's time to take that first step.

It's time to embrace your inner Milton Hershey.

Remember, the world is hungry for innovators, for passion, for people crazy enough to believe they can change the world.

And who knows?

Let your journey, inspire the next generation of dreamers and doers.

Now, go out there and make your own sweet success story.

The world is waiting for your special recipe.

And trust me, it's going to be delicious!

Keep Zoooming! 🍹

Yours “Anti-hustle” Vijay Peduru