Hershey opens new innovation centre in Shanghai

US chocolate manufacturer Hershey has opened a new Asia Innovation Center in Shanghai, China, as part of its strategy to drive global growth and innovation.

Located at the Jinqiao Golden Bridge Research Park in the Pudong District, the new centre will allow the company to quickly develop, test and launch new products customised to the tastes of consumers in China and across the Asia region.

The centre provides access to the Asia market while facilitating close collaboration with local and regional China sales, marketing and operations personnel.

Hershey noted that the R&D centre will serve as a global hub for innovation and technology and its location in Shanghai demonstrates its focus on China as a key growth market.

Hershey Company senior vice president and chief growth and marketing officer Michael Wege said that the new innovation centre supports the company’s aggressive growth plans in Asia and reflects its global approach to business.

"It will enable us to translate our insights and knowledge of consumer tastes and preferences into relevant products."

"With industry-leading innovation capabilities based in China, we will develop products that expand our portfolio across the region and around the world," Wege added.

The two-floor 22,000ft² facility features research and development (R&D) laboratories, a pilot plant for the chocolate, sweets and refreshment categories and a development centre for emerging product offerings.

It will also house a sensory area, creativity centre, packaging development section and research laboratory.

The centre, which includes office space for up to 32 engineers and innovation staff, will initially employ 12 scientists and product developers and the team will be led by Qingbin Yuan, Hershey’s director of Asia research and development.

Hershey plans to primarily hire local talent from the region to help gain deeper insights into the local consumer and establish strong partnerships with local universities and vendors.

Over time, Hershey will supplement technical resources that will allow the R&D facility to become a broader innovation hub with a focus on building leading brands in China, across Asia and potentially worldwide.

To achieve this, the company plans to focus on consumer research and testing.

According to Hershey, China is its fastest growth market and the company has moved from number seven to number three in chocolate share in just five years with overall chocolate share more than quadrupling by 2012.

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Image: The new centre will allow Hershey to quickly develop, test and launch new products customised to the tastes of consumers in China and across the Asia region. Photo courtesy of Evan-Amos.