The ownership of Kit Kat by Hershey can be traced back to a licensing agreement executed in 1970 between Hershey and Rowntree. This agreement granted Hershey the exclusive rights to produce and distribute Kit Kat bars in the United States. However, it is important to note that this licensing agreement is contingent upon Hershey not being sold.
The reason behind Hershey’s ownership of Kit Kat lies in its strategic partnership with Rowntree, the original creator of Kit Kat. Rowntree, a British confectionery company, developed Kit Kat in the 1930s and established it as a popular chocolate bar in the UK and other countries. In order to expand Kit Kat’s reach into the American market, Rowntree entered into a licensing agreement with Hershey.
This licensing agreement allowed Hershey to produce and sell Kit Kat bars in the United States under its brand. By granting Hershey the license, Rowntree was able to leverage Hershey’s extensive distribution network and manufacturing capabilities to introduce Kit Kat to American consumers. This partnership proved successful, and Kit Kat became a well-known and loved chocolate brand in the US.
Over the years, Hershey has continued to produce and distribute Kit Kat bars in the United States, maintaining the license acquired through the agreement with Rowntree. This ownership arrangement has been mutually beneficial for both companies, as Hershey has been able to expand its product portfolio with a popular and well-established brand, while Kit Kat has gained a strong foothold in the American market.
It is worth noting that the ownership of Kit Kat by Hershey is not permanent and is contingent upon Hershey not being sold. This condition ensures that the license remains with Hershey and prevents the possibility of Kit Kat production being transferred to another company in the event of a sale. This arrangement allows Hershey to retain control over the production and distribution of Kit Kat bars in the United States.
The ownership of Kit Kat by Hershey can be attributed to the licensing agreement between Hershey and Rowntree, which granted Hershey the exclusive rights to produce and distribute Kit Kat bars in the United States. This partnership has allowed Kit Kat to become a beloved chocolate brand in the US market, while also benefiting Hershey by expanding its product offerings.