Hershey Co. (HSY) has the support of its board as it weighs international acquisitions, although its largest shareholder, the Hershey Trust, still intends to maintain its controlling interest in the company, Chief Executive David West said in an interview.

Hershey weighed a bid for Cadbury PLC (CBY) but didn't make an offer for the U.K. confectioner, which last month accepted Kraft's $19 billion acquisition offer. That deal raised some questions about how Hershey--which currently gets the bulk of its sales from the slower-growing U.S. market--would boost its presence in faster-growing emerging markets going forward.

Hershey isn't focused on deals of a particular size and is open to joint ventures as well, West said after the company's presentation at the Consumer Analyst Group of New York conference in Florida.

"We don't think about [acquisitions] in terms of size. We talk about them [in terms of] do they fit strategically and do they create shareholder value," said West. "Clearly, emerging markets are interesting." He declined to discuss any specific deal candidates. Latin America and Asia would be particular areas of focus for the company in any deal making. The company would be open to categories that are "adjacent" to the confectionery business if they are seen as complementing the company's brands and existing research and technology, he said.

The company's strategy is to push growth in existing markets as well as through outside deals. The company's management has the support of the board in the steps it is taking, West said.

"The strategic plan that we have has the unanimous backing of the board," said West, pointing out that some of the directors who are on the company's board are also on the board of the Hershey Trust. "We have a strategic plan around which our board is united around and unanimous." As the Cadbury bidding process unfolded in recent months, questions were raised about whether the Hershey Trust and the company's management were in agreement. West said all final actions on that deal were taken with the agreement of the board and management.

Hershey said Tuesday that to push growth, it is investing more in advertising its brands, working more closely with retailers and cutting costs. The company this year is launching new products like bite-size Reese's Minis and Hershey's Drops.

In China, where the company already has a joint venture, it will look at expanding to more cities and expanding distribution in cities where it's currently present. Still, Hershey may face significant challenges as it makes a concerted push overseas.

Internationally, it will be competing with two global giants. Kraft's acquisition of Cadbury will close in the coming weeks. Mars Inc. in 2008 created its own candy conglomerate by acquiring Wm. Wrigley Jr. Co. Mars sells brands like M&Ms and Dove chocolate, and its stable of brands now includes such names as Wrigley's Spearmint. Even if Hershey acquires and teams up with smaller players, it wouldn't have the scale of such global giants.

Asked if the company would be open to selling itself, West said the Hershey Trust "has indicated that they want to continue to have control." The trust - which oversees a school for needy children that is funded partly by Hershey Co. dividends - has long insisted on keeping its controlling interest in the candy maker.

Stifel Nicolaus analyst Chris Growe said that West in his presentation appeared to strike a more determined note on mergers and acquisitions than he has in the past. This strategy "could introduce risk. It could also allow the company to finally build that international portfolio," Growe said.

-Anjali Cordeiro, Dow Jones Newswires; 212-416-2200; anjali.cordeiro@dowjones.com
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