Please give a warm
Georgia Tech welcome to Mr.

Thank you thank.

You.

Yeah.

OK Can you hear me good
enough OK thank you for

coming to see a lot of a people feel free
to move closer if you want again I always

say you know this is not the church you
know you can come to the front lines and

that's OK You know but whatever you
prefer So I'm delighted to be here and

want to spend you know few minutes I'm
going to talk probably about three things

I'm going to give you a little
bit of something about me and

my key inflection points in career in
my career I'll talk a little bit about

the Hershey Company and we'll talk
a little bit about the importance of

analytics OK so
when with that in mind you know the first

part I have to make things very brief
because I want to engage in questions and

answers that's I think the most important
part but when I was thinking of my

talk you know I was thinking on
how do I get it compressed to up

to two in a way that it's
meaningful enough but

still is not too verbose is
not too you know too long and

reminded me of Mr Winston Churchill
Winston Churchill one of the greatest.

Prime ministers from from England and
also a gifted speaker

and one day after one of
his glorious speeches

somebody came and asked him Mr Churchill.

You did such a wonderful job how long does
it take you to prepare for your speeches.

And he answered Well it depends.

It depends yes it depends it depends
on the length you want five minutes

give me two weeks to prepare you want
two hours I can start right now so

it kind of resonated to me you know
because it was you know I have to condense

things so what I'm going to talk is
something that my friends and even myself

you know all call me that I
had luck in life good luck and

I I do believe I had good luck and
I can't complain however

if I look inside or behind look.

I see some other things.

So look is the way to say it but
is about some other things as well and

I call it luck story
odds opportunities and

preparedness and I will illustrate
that in the next few minutes.

So my first.

Call inflection point or
moment of truth if you will was

when I graduated from Georgia Tech.

So I was like many others here but
I was a foreign student and

my major was finance I was even thinking
of doing a Ph D. in finance at that time.

I stop short I had some experience with or
as well some simulation

and things like that
that suited me well for

some work I wanted to do in long term
investments and doing simulations or

recalling bonds and bonds and
all those kind of things.

So I applied to jobs.

And.
Guess what I got invited to interview this

fantastic you know way to go
you know what they like me so

I want to do interviews and
after a few to.

Times I realize that.

I never got to the offer
to closing the office

and the reason was because I was a foreign
student and I was very transparent

at the end I would say I would disclose
you know I'm a foreign student and

I need some sponsorship from you.

So I can in no get my my my my my
working visa but no problem I will do it

you just need to be the sponsor that's all
this scared the heck out of the employers

you know they run out like crazy away from
me you know and said this is really bad so

what do I do I really wanted
to stay in the US and

I don't know what to do so
the first thing I did is.

I look at myself I said I have a resume
I have background in the engineering

Why don't exploit that as well so
I started writing to companies

depending on the company with emphasis
on the engineering background or

in the M.B.A. in the finance
you know background doing both.

So guess what a local company
Norfolk Southern called me

as a while good so we went through
the interviews and at the end

they offered me a job by this I went to
offer you to start in one thousand and

that was it i T. i said i was
an engineer and I said I had an M.B.A.

but why ID is it well you've been in
engineering you program before you had

two classes in programming you know what
you know that doesn't make me a system

developer or a systems analyst or
anything like that and

they charge guy looked at me and
said The world will teach you.

So I said Fantastic So
that's how I started you know and

I got the job and I think.

Not long after I got the phone call he and

he called me I had applied to them when
they came to Tech and they were slow.

As a large company your resume goes
God knows what routes you know and

eventually they call me.

And they were interested in my finance
you know formation that great so

we interviews talked to a bunch of
people finance went to Cincinnati

the headquarters talked to them and
then got the call

to meet with the finance who was coming
from Mexico was going to Miami and

then were going somewhere else so I met
the person in the in the Miami airport.

And he came and said.

I.
Have good news and not so good news.

What they want to hear first
is obviously the good news

I want to offer you a job in P. and G..

Not so
good news is it won't be in the U.S.

to start I want you to come back to
proof and I want you to start in I T.

I said wow again again here
we go again you know and

and.

I thought about it and what it meant
it meant I was going to give up

the job I had here my dream
of staying in the U.S.

but going to work for P. and G..

And I took the offer.

And you would ask me why did I do it
are you crazy out of your mind what is it

is because it gave me two things a path

to two different careers finance and
I.T. because the guy

in finance the V.P. told me you know I
want you to start an I.T. but will be for

a year maybe you're to have as soon as
we have a suitable opening we put you

back into financial analysis of financial
forecasting where I want you to be.

This great so I have to pass Actually
they did offer me that three times

I declined three times OK but
as a different story you know so.

It gave.

That brother whoreson you know and
they also said that I

could come back to the U.S. I could pursue
an international career after five or

six years working in Peru if
I was among the top two in

the company at my level you know because
they offered up those opportunities for

the very very top people I said OK.

That's fair you give me the opportunity
I'll earn it that's on me so

I took the opportunity that
the first inflection point you know

I could have say in the U.S.
and I did it second one was.

After six years in Peru I
was the head of whitey for

the company there and
very quickly very fast and

they offered me obviously as expected
to go but to go out leave the country.

And they offered me the U.S. not to go
subsidiary come to the headquarters

which was good and
said Well as it is coming in

the way I thought they were going
to come that's that's great.

When I looked into the offer and

the transfer guy they gave me a big binder
with all the things I had to look at

Duke I was going to move into
an entry level position.

Entry level position as
a broadening assignment in

business analysis working with marketing.

You know in the hair care category.

So is it that has nothing to do
with I have what I have learned so

far what I've done so
far but should I take it or

not on top of that they told me by the way
you know that you won't be able to come

back to your country to the Pru because
you reach the top of your job here and

you know you don't move people
laterally move to keep going up so

I thought about it I said Yeah
probably I will not return with P.

and G. but I can always return to Mike.

Entry so that took some of the angsty
of me when myself because I knew

I can always come back will be with
another company you know never say no so

I took up with him he came to the U.S.
and the first thing I.

Learned in the U.S. is OK shampoos Yeah I
know that talking about talking about

nine hundred ninety two conditioners and
my sister uses those.

Kind of know it you know
well stay in jail serums

sprays what moves is a move that's
a big animal that lives in Canada and

has huge antlers that no no no no
it's a protocol Moose is a foam and I

had to learn the category had to learn the
business I had to learn I had no clue so

I started learning that I eventually
got up to speed they gave me

the management responsibility for
the entire beauty care analytics then US

beauty care then US beauty care and health
care it's a large group of analysts and

you know everything going fine and dandy
and then I get the call a new person in

head of Latin America I.T. an ex-pat
from Europe just gotten there and

wanted to beef up his team
wanted me back Latin America

at the same time the CIA was offering
me the you want to stay in the U.S.

I can localize you here we can work for
your green card.

And hopes what do I do.

Once again I said No I go to
Latin America he said You

must be crazy you wanted from they want to
stay here you already rejected twice you

know how many more choices
chances are you going to have so.

I took the risk and I said I'm going
to go to work and make it because.

The pace of development in the mid
ninety's of Latin America.

Very fast the opportunities were
tremendous and I said I'll take it.

I thought they were going to do and
I let it all out in America.

But guess what fate has it

they told me No you're going
to do S A P S A P R three had

just come out to the market I want you to
figure out what as a P.R. three is and

I want you to make a plan to replace all
the legacy systems in nine countries

fifteen plants thirty there should be
centers make a plan tell me how much is

going to cost how long it's going to
take you know and execute a plan so

I was shocked for
about two weeks I don't know what to say.

But.

And I didn't know what as if he was so

I had no experience how long it would take
so I got some advice from people I had.

I was only person in that I
had to recruit a team and

get people to work for
me if this was going to be a project so.

I had dreamt up a plan what can you do
in the Use your judgment read things

call people and put things pen
to paper and write the plan.

Three page recommendation that goes
to the president of Latin Americans

is going to take me three and a half years
is going to cost me so much is going to

do first the core financial systems
will follow up with order to cash and

last will be the M.R.P. supply chain
plan systems that's the order and

you tell me how do you get to
that conclusion I don't know.

But one thing I can tell you if I said
the first day I have no clue how to do

this I'll be out of a job immediately if
I make a plan and say it's going to take

three and a half years I have three and
a half years of work you know.

Until they figure out that they
cannot do it but at least you know.

Forty two months of a paycheck
is better than zero months so.

So I did it you know.

And.

Surprisingly.

I delivered the project with a team that I
had nobody to a team that what like about

seventy people cross functional fine and
supply chain sales.

We did it in thirty nine months for
those less than three and a half years and

it was so well received what so
well became the foundation for P.

and G.'s future
implementations of as a P.R.

three around the world became
the template so it worked well

it led me to a promotion I got to
be the replace my boss be the.

Leader for all of Latin America you know
first like an American that got that

position before it was either Europeans or
Americans so we're very proud of that and

it came out of this project that I
had no clue how to do in which led me

then to come back to the U.S. which then
led me to my localization in the U.S.

I had reached a level that they said
you know and I want to go back to

Latin America you already had that job and
so that's how things worked out and.

So that was the the third moment of
inflection is when I came from the U.S.

back to Latin America you know.

The last moment happen when.

I got this phone call.

I got this phone call from a headhunter
asking if I wanted to be part of

a selection process for the C.E.O.
job at Hershey's.

To be honest I was in a very comfortable
position extremely comfortable

I had the largest business unit I
work with the group President Ford

reporting to her I had relationship
built all the way to C.E.O.

when everybody in the leadership
team in know me by name I had

personal friendships with then many
of them was no issue of compensation.

Was no issue of you know and
I was doing good stuff.

But when I started
talking to the recruiter.

I found out that my passion my fire
had flamed out over the years.

I was in a conference on.

Gliding no longer stretching
no more no longer challenging

myself to do more to think bigger.

And it took a call and

a description of the job to finally my
juices the adrenaline start building and

then you see wow I'm missing all of this
so I don't know if you know the story of

the boy and frog right to boil frog as
a you put the pan of boiling water throw

the frog The frog is not stupid jumps out
immediately because too hot to still be

the in there but if you get the water
pan with water at room temperature

put the frog nicely in there turn
the heat a little bit high and

after a while you get the ball
in frog Well guess what.

I was a boil frog.

I was boil and I had not realized
that I lost my passion so

that's when I decided to go I went to
the Hershey cup and never looked back

never never looked back so
the moral of the story here is

my luck was shaped by number
one expanding your odds.

OK this is like chances like
playing roulette playing you know

the more numbers you bid the higher
you a chance your probabilities are so

expand your odds Number two is you
don't control the opportunities

they will come when they come.

Normally people will say you get
an opportunity if it was only a year later

because my wife or my child or my friend
or whatever you always have a butt or

you say well if it was last
year now I can't because.

Of this and that you know you have to
be prepared you have to be ready for

the opportunities because opportunities
will come always at times

that you would say it's not
the right time that's the way it is.

And last is prepared in this
you need to be prepared ready

you know I've been preparing for
a C.E.O. role all my life.

And I forgot that I was training for
that until the head hunter called.

I should have kept that top of mind but
I lost that in my boy and frog you know.

Comparison I had lost that edge so

always be prepared you know because things
will come to you so that's my personal

background you know a little bit to
illustrate the where I come from.

The second part I want to
talk is about her company.

And.

The Hershey Company is one
of the oldest companies

still going around in the U.S.
maybe not as old as P.M.G. but

pretty old over one hundred years old you
know founded by similar to one very strong

willed individual visionary you know.

Milton Hershey and
Mr Hershey was a visionary so

he grew in central Pennsylvania
you know he worked very hard

on the fields and you know he didn't have
a university you know education degree

anything like that you know but
he was he was a true visionary and

he he went to England to learn candy
business he came back invested on learning

understanding learning and
understanding before he embarked

in the journey of making chocolates and
so he started a company.

Now the company I don't know if
many of you know the story but

the company is almost forty percent
of the company is owned by a trust.

So there's a trust on top this is
the Hershey Company thirty percent of

the shares is a public company but thirty
percent of shares are owned by the trust.

There is the school I'll talk about and
there's the Hershey entertainment the park

hotels things like that that three legs.

The trust was created because
Milton Hershey gave his

entire fortune not when he died went.

In the middle of his forming
the company you know nineteen ten or

fifteen I don't remember the year exactly
he gave his entire fortune to this trust

to fund a school for orphans.

So the Milton Hershey School in
Pennsylvania is one school with two

thousand underprivileged
kids from all walks of life

rural urban diverse you know
Latino's African-Americans and

everything in it and they come to the
school and they have foster parents and

the foster parents have a home and
the campus.

Is about eight to ten kids per
foster home with the foster parents

which includes the kids of the foster
parents so they live with them

all the throughout the the twelve
years of education.

And when they take vacations because
they are allowed to go once a month

take on the whole weekend off you have
another set of foster parents of come but

they're always the same so
you know they're either them or

this you know this is this is nothing so
you have continuity you get food.

Could you get close you get education and

at the end they they also
train you on a trade.

You know on whether you
do carpentry the work but

it is not not to go to college but they
want to pay parity in something else and

then for the people who who won who
are the best students who can aspire and

want to go to college they will
offer scholarships as well.

OK So when you walk the school
today you will see.

In the hallways big paintings lots
of big guys in the corporate guys.

All the successful alumni from the school

that reached the highest in
the profession you see C.E.O. C.F.O..

You see government people Hirsch I think
had two C.E.O.'s come from the school

actually.

Mike was reminding me of my colleague
here about the Seattle player you know

Gary Gilliam who you know
played in Super Bowl and

Gary Gary is a graduate
from he went to Penn State.

Finished his career then went
to the N.F.L. and played in

the Super Bowl then he is a graduate from
the hills Milton Hershey School OK so

those type of examples you see you see it
so that's one element then we have a lot

of social corporate social
responsibility programs you know.

In Hershey we.

We have this.

Cocoa.

You know initiative with
farmers in Ghana we buy from

our beans cocoa beans from Ghana on I
worry coast most of the time you know and

there's are small farms that join
forces and sell the product.

But they don't know much
their kids don't know.

We brought people from Ghana coming to
her she never had a chocolate bar but

they produce cocoa so
we produce videos and

training one called from
from from being to bar for

the kids to understand what happens
to their crops you know and

how it ends up in the product and
also education we gave them phones

the flip phones that nobody was using
We gave them phones so they can talk to

each other farmers can talk to each other
they live in small parcels of land but but

they want to talk to each other they want
to check their prices market prices for

and for cocoa beans and
we gave them that and

we linked also those children
with the Milton Hershey School.

So there's a lot of social responsibility
with the with the with with the farm

producers you know and
there's also you know ideas on.

How we especially with kids how we nourish
minds how we treat you know nutrition and

we have goals lofty goals by twenty
twenty to have a million kids you know

you know out to you know with with
nutrition full nutrition you know

sponsored by by Hershey and so
that's on the social responsibility so

we're not a large company we
are you know relatively small for

the standards of of corporations nowadays
it's about seven point five billion

dollars You know mostly in the U.S. but
we do business in China we do business in

India we have plants in the business
Malaysia Brazil Mexico.

Singapore India.

So we're we're growing internationally and

there's a lot more to be done but
we're mainly a U.S.

company at this point that's where the
majority of the sales come from in the.

We are the leading manufacturers
of chocolate in the US.

And father was a question themselves and
we are.

You know very proud of the opportunity
that we have in front of us so

but what has driven you know what what
was the factor that has driven Hershey

to where her she is today and
aside from this last year we had

mediocre growth we grew but not to our
aspirations to our internal goals still

grew three percent in the previous five
years we were the number one C.P.G.

company consumer product
good company in growth.

And not only in the food industry not
only against Mondale easer Kraft or

any anything like that but like comparing
with Kimberly Clark with Colgate with P.

and G. and
we've been by far ahead of them.

And what is it what is it that makes us so
unique What can we aspire to be

better than others and he's all about.

Data and a little and insights our C.E.O.

says that he publicly said.

At the meeting I think it was at
the Grocery Manufacturers Association

he said he or she is a knowledge company.

We just happen to make chocolates.

That's a profound statement
because it means that we know

more about our consumers our
shoppers our customers our retailers

about the categories we compete about
the markets than anybody else and

we can derive insights that others don't
have that gives us the edge to grow

at the levels that we're growing and
that we want to grow.

So there's a strong
culture data base culture.

And there's a strong aspiration
to become even better so

let me give you an example.

Last year or
you know half ago when I just joined.

There was a question about we participate
in gun categories as well right so

we have to Ingham and
the gun category had declined

twenty thirteen I think was you
know significantly the category

not us not somebody else is the entire
character there was less consumption of

gum that particular year than any
of the previous years so why.

Well we knew that there was a correlation
between smoking and gum tree and

smoking has been on the decrease but
that was factor in into the projections

OK because you know that's a straight line
you know how is declining you know and

you can kind of predict what's
going to look like so but

there was much deeper than that.

We didn't know what it was.

So guess what.

The answer.

Resulted to be.

Is.

The cigarettes.

With the advent of the cigarettes there
was a huge spike on the cigarette

consumption of people dropping
from cigarettes to cigarettes but

the cigarette is still considered
smoking but it's not the cigarette and

the cigarette and the cigarette
people don't need to chew gum

as the people who smokes a regular
cigarettes are but that sounds

very simple but to get to that
conclusion you have to link data sets

that you don't have you don't link
together that it's completely you know so

that's why the importance
of getting more short.

Of data.

Linking bringing them together integrating
harmonizing linking them you know to

be able to run hypothesis and see if
they hold you know run correlations but

then you have to figure out of
the correlation really is causation or

is just a correlation that has no reason
with causation so analytic is very

important and the platforms to do and
let the X. are very important to us.

It's about.

And electrics the data and tools.

So the sources of data and the tools
that you will provide the the analyst

to be able to drive to quicker conclusions
rather than spending hours and

hours trying to do bring data
together on a server and integrate.

Showed them a path to do that
very easy and it has to do about.

Scales and people were hiring
more than ever data scientist.

So computer science sciences is a given
you know you you hire some of that but

you need to fire data they
are scientists as well and

you need to make them work together.

We are also hiring Ph D.'s So

many companies don't get Ph D.'s unless
you're going to go into R. and the.

You know we're hiring some Ph D.'s
econometrics in modeling and

simulation precisely to advance
the science of analytics you know

to derive even deeper insights because
we know that data will become commodity

was going to differentiate one company
from another is the ability to drive and

derive insights from that data
that can inform decision making.

So that's what I had for
you today you know from.

Personal Hershey.

And I let X. this stand point.

Are you want to open it up for
any questions you may have.

Thank

you.

There's there.

My question was regarding your
point when he said that Hirsch's is

expanding to your markets and I know
that for emerging markets especially It

might be a liberal harder to
get all the data so how do you.

Account for this idea that you might
not have all the data that you need for

emerging markets and
especially as a C.E.O.

How do you handle setting up different
I.T. solutions in different parts of

the world because not all countries
are as advanced as the United States and

some has and
that's that's that's a good question so.

When you expand into a new market
into white space you don't start with

analytics you start with the very
fundamentals the very basics from brand

building you know to manufacturing the
products to having the right price point

the right price points so you analytics
are very rudimentary because you want to

do price or less this it is you want to do
but it is not what you do in the U.S. So

it's an evolution you know and we expect
that data is going to be evolving as well

in those markets as they grow and become
more less emerging more developed like.

To be quite honest today.

There's no deficiency of data
because you can find proxies

you know in you know with good
internet the with social media

with sensors with everything
is capture somewhere.

You know it may not be in the form and
shape you want and how you do it here and

validated what's at the SIEGEL
methyl It's like Nielsen would do.

But there's no no shortage of data to get
started with the second question was.

You said about.

Solutions you know how you go for
solutions for emerging markets in the.

In the past we being very
much one size fits all.

Which I think is absolutely the wrong
approach but it's no different from from

in the some years ago we you know
companies produced one good one size and

they expect that fits everybody and then
suddenly you see somebody who comes with

a bright idea let's split this let's
do this that way let's offer more.

For high end consumer for low end
consumers for the middle for millennia you

know you have all kinds of segmentation
in ninety I believe there's two or

three segments that we need to serve right
this is the developed markets is the.

Developing markets that will become
developed and there is some small niche

that will never be big but
you need to serve serve them as well OK so

what is the cost effective solution
that you have for that and

we address that we are looking into
you know we talk about they say

you know as A.P. is one mega solution and

everybody will be taxed with the cost
of that and the process of doing well

we're going to segment that in a different
way where going to have some processes for

developing markets that may be simpler
than processes that are used by developed

markets you know and we need to reflect
that those differences because you cannot

force a developing market to use
things beyond their needs because it

will suck their time will cost
them more and at the end sales.

Or.

Yes.

So you talk about the importance of being
able to analyze data that sometimes the.

Seemingly unrelated you talk
about your example in the.

Gum consumption so what can we what
would you say we are students right now

what can we do to ensure the training
ourselves and those skills or

what kind of resources we should look
at how can we train ourselves to be

better thinkers in terms of what you
say able to see connections are not so

apparent sometimes yeah that that that's
that's a very good question I think

some people are inductive some people
are deductive thinkers we have

to be something in the middle that's more
me maybe an abductor of saying thinker

which is you know you need to reach both
ends and you look at things from different

viewpoints and it has to do
a little bit weird curiosity and

imagination you know you have to be
curious to look at things from and

don't take the answers answers you get the
only answer they maybe others that maybe

better you have to look at different ways
so that there's no formal training because

it's trial and error is in some people are
better than others but it has to do with

how you approach the problem
something some people will come with.

An approach of I know it I know what
to do and you know the best thing is

to be humble to start and say I don't know
what I don't know and I will discover and

then you start validating you know and
ask but it's a trial and error.

One thing I look for students look and
soon as is you know people ask me you know

what majors are you hiring them I
like people who have science and

technology backgrounds I'm not
making I don't necessarily want.

Comp science people I don't know could
be engineering could be math could be

economics could be.

And any math could be any science
you know hard science and

why is because it gives you a strong and

a little background you are able
to break down problems and

pieces you're able to analyze and
able to resolve but

I don't hire for what you know I hire for
your ability to learn

because what you learn today you will
learn very quickly that in five years

eight years is obsolete you have to really
learn you have to reinvent yourself and

the importance of being a learning
organism all the time and

that's what I look for so in you for
your question is you have to learn.

There's no silver bullet.

Or a chorus of question so I'm going to
build up on the first question that was

about developing countries and
developing markets.

So China in particular.

Hershey's has had some issues establishing
footprint and I read up on it and

you guys decided to acquire gold monkey.

And to what extent do you think you'll
be using golden monkeys analytics or

golden monkeys insights in the market
as compared to what Hershey's

has already done research or.

People on the ground and what extent
do you think the two will come together

how do you plan to get that in place well
there's no question that they're coming

together so there's no longer Golden
Monkey Hershey's is one company right

that's why we're what we're integrating
but remember that the equities ition was

a complete complimentary space for
four Hershey so

they didn't do chocolates they
did Chinese suites different.

They didn't go through.

Modern retail in go to the Wal Marts
in China and the big stores you know

they went to this small little stores the.

Fifteen hundred the super to.

And they didn't do business in
big cities not Shanghai not.

Not any of the large cities they were
not there they were in the provinces

the small ones in land OK So
very complimentary.

On the other hand their capabilities
wherry very rudimentary.

So there was this was a company
from an interviewer so

it's they sell a muscle through they
make the connections with people

with store owners with good stay
with hers and they push and

very different model you know
it's very very different so

now what we're doing is we're trying to
preserve the best of what we acquired

which is the network of the stripper so
we can sell our

chocolates through that network to markets
that we were not able to reach in a.

We are also so
we have much broader coverage and

we're trying to bring some of
their products Golden Monkey and

use our distribution to the big customers

the big retailers the Wal-Mart's of
the world you know to to see that product

in that it wasn't present there before
with it but there's no one to lift it for

us to learn from them because in having.

Yes.

So again with the emerging markets
I'm wondering how much research her

she does into the cultural aspects of the
market they're looking to get into like

Coca-Cola for
example as products in Africa in Asia

are specific to those markets
the search you do something similar

to Hershey bar you get in Southeast Asia
the same as the one in the US.

Well.
We do tailor a little bit to the local

markets we are not Coca-Cola and Coca-Cola

is a powerhouse especially
on international and

you can see by their sales you know
same would be with Pepsi or the P.

and G.'s of the world we are much newer
than them in international markets however

you know you look at.

Here you know the other side of the border
go to Mexico you know Hershey Mexico has

some Hershey products but has some
products that are very specific to Mexico

there's a product called belong or equal
OK it's a little candy that comes and

you use this a little gel that comes
out and you can suck that gel and

it's a big hit that to the point
that every single competitor

has copied that with a different name
you know and it's spicy has chili

OK you would like it I don't like it OK.

To be honest but but Mexicans love it so
there you have an example of something

that value relative to the culture of
Mexico with with with with the chili for

example you know now
could we have more yes.

Could we have more I don't know I'm
thinking of European type of chocolate in

the U.S. yes now would people like
it a lot the Americans don't but

there are some that love it so can we
differentiate can we have different tiers

of products certainly we can we have a lot
to learn you know we're not there yet.

So you spoke on a level of social
responsibility displayed by

the Hershey Company specifically to
the most energy school how did that play

a role in you selecting the company
as a place you want to work and

how does it affect how you
identify with the company.

How I select the.

That the part in your selection of the
company and how does it play a role in our

you know for me when I came the company
absolutely absolutely you know.

I when I was recruited and
I was interviewing I spent a day

in Hershey and
part of that was to see the school.

Because they took me there and
I was flabbergasted by what I saw I was

incredibly shocked and
very proud of what they were doing and

it to some degree influenced the probably
not the final decision but it.

Took my excitement to another level I
know there are people here in my team

that go mentor kids go teach and
not classes but give lectures and

work with students of the school you
know we do all those kind of things and

it's very satisfying because you
see the outcome almost immediately

as you go there throughout
the year you see the outcome of.

Your influence in those kids you know so

I have no words to express that I
wish we could do more schools but

we can't trust bond us to do one school
not more than two thousand students and

that's what Mitt what miss him Milton
Hershey wanted he said he wanted not

quantity he wanted quality he wanted
to keep focus on one school and

not larger than this size and.

Thirty percent of our stock is
in the hands of the trust and

the dividends itself pays for
the operating budget of the school and

more but we cannot use the XS to fund
the second school I wish we could but

we can't you know it's a great model
it's a fantastic I haven't seen that

anywhere else.

Yes Could you discuss how you collect
all of your data do the wall.

Parts of the world provide you with

information about like who specifically
purchased a Hershey bar and

when they purchased it what store they
purchased it in and what else they might

have purchased as well as that you can
well in that information age it depends

with the retailer right we have
a agreements with customers for

sharing of data you know in the case of
Wal-Mart we have the category captaincy

you know in the categories so.

Because of that we can get when you have
the category captaincy they give you

your data means who bought
your product where and

you know they give you all of that from
their stores but they give you competitor

data as well why because we
produce to plan a ramp for them.

We do the work for
them we based on sales we

decide what's the best assortment that
Wal-Mart can have in the confection aisle

with all manufacturers right so
that's insights that's analytics stats and

we have that privilege
given by Wal-Mart to us and

in the case of Confection very unlike in
the my old company in the Turgeon sort

when you owned the front end as well and
they give you the front end they

not only give you or they give you
the seasonal aisle they not only give you

your category and competitors you
get they give you everything else so

I know about magazines or
batteries in the checkouts you know and

I can make a case you know you're not
making enough money with magazines

nobody's buying magazines you should
have there are more chocolates.

You know and
we make very very data centric

decisions so
try to be very fair if it's batteries and

we need to put a few more facings of
batteries because you make a lot of money.

BARRY So it's not only about our products
and then you become a trusted advisor.

That's not self-serving but is working
better for to grow their sales and

your sales.

Thank you for your.

Interest in presenting and I just wonder
whether the whole company phonetic and

the look it's such a speech in the US
because the discipline a very important

cause to me gauge moment so
wonder you have to be quite

honest we haven't done anything in that
area OK now we do have connections with

startups Silicon Valley
we are part of A I P P in

in Silicon Valley were part of some
of the accelerators alchemy and.

Others and we go and see companies you
know because we always want to know what's

coming in but we haven't done
enough on speech recognition and

we should you know we should.

I'm going to sneak in one question
before I hand it off to Terry and

the question I have talking about your
inflection points in your life and

clearly taking a risk is part
of what has allowed you to

be open to those opportunities and
be successful and

Sheryl Sandberg Facebook talks
about one of the biggest

business decisions one can make
selecting a partner or spouse

and the question I have for you is how
has your friends in your family and

Mabel due to take these
opportunities take these big risks.

To help you be successful
that's a great question and

I think we need another hour to.

More depth because my story is
longer than what you think but

anyway what I can tell you in short
timeframe is when I left proof for

the first time after I came back
from Georgia Tech and I left and

they told me you're leaving for good
you realize you're not coming back and

I said no yes I'm coming back with another
company I want to I know I'm not coming

back with B. and G. is it OK OK you
get it so when I talk to my wife.

She also heard the thing
you're not coming back.

And that freaked her out OK so
what that what I said is.

You create fear when you put you know.

Some objectives that are so far out that
you can see your path towards it OK so

I said bring the horizon forward because
let's make decisions every year.

So we go out go with P.M.G. and

after one year we'll review the decision
and see if it still holds for us

next year when you will do the same
thing they get one year at the time and

that took a lot of the stress of.

My question.

I think I just got on to you website
the Hershey Company dot com If

y'all haven't looked at it you should
because it's a fabulous site but what it

told me is not only how you define
good business practices that.

Are the basis for

a better world I also see a big
emphasis on the triple bottom line and

I've always known that her she was
coterminous with social responsibility but

quite surprised to see the depth of
your environmental responsibility

how did that how did that all come
about come about and how well.

That's also a great
question we have a C.E.O.

who's very passionate about this.

He's been C.E.O.
for the last five years or so

six years maybe and
he's brought the change to this and

to bring this to the forefront he's
now the president for the G.M.A.

the Grocery Manufacturers Association
of America which every C.P.G.

companies part of including the big
guys like P. and G. you know and who's

the president is the guy from Hershey you
know because he has a passion for it so

what has been his first initiative
been about food transparency and

what is it he calls it in
simple ingredients is reduce

the number of ingredients in every
one of our products to their simple

ones eliminate all the chemicals you
know go back to the basics you know

transparency and provide that in a Q.R.

code in every product that you can check
with your phone will take you to the Web

site will tell you everything about those
ingredients where they come from and

all that so that food
Transparency Initiative is leading it for

the G.M.A. the G.M.A. now is taking
this as the G.M.A. mandate for

all the others OK but her she
created it OK so now I'm working for

with Colgate for instance you know
we had a meeting with the C.E.O.

and we I offered him I'll
give you the source code.

For.
This.

Why because it's good for everybody
because you can put that source code in.

The products that are relevant for this
you know and because we're starting to

cooperate and he shares information I'll
share information we're not competes in so

why not but it makes this better and

the more companies you have coming to
this the better for all the consumers.

Is the C.E.O.
is driven from the very very top.

Thank you very much you're
going to thank you thank.