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World’s Columbian Exposition in Chicago, Illinois

In 1893, Milton Hershey walked through the Chicago World’s Fair.

He stopped at a display of German chocolate-making machinery. It caught his eye, and changed his plans.

Hershey already ran a thriving caramel business in Lancaster, Pennsylvania. Chocolate felt like the next chapter. He bought the chocolate-making equipment at the close of the Exposition.

Historical photo of the chocolate factory site

Choosing the Location

Milton Hershey considered sites in Lancaster, Baltimore, New Jersey and New York for his new factory. In the end, he chose his hometown of Derry Church, Pennsylvania.

Derry Church sat near many dairy farms, providing Hershey with a reliable supply of fresh milk. Railroads connected the factory to major cities and shipping routes across the country.

Historical HERSHEY'S milk chocolate wrapper

The Perfect Chocolate Recipe

While crews raised the buildings, Milton Hershey tackled the harder problem: perfecting the recipe.

Fresh milk made chocolate creamy, but too much moisture ruined texture. Milk fats could turn rancid.

Milton Hershey and his team spent long days testing and adjusting. They would change the milk, change the heat, change the timing, then taste and start again.

Finally, they landed on a combination that worked. First, a mixture of milk and sugar was condensed to remove the moisture. It then combined smoothly with chocolate liquor to create the perfect milk chocolate bar.

historical photo of the Hershey chocolate factory
historical photo of the Hershey chocolate factory
historical photo of the Hershey chocolate factory

Hershey Factory Tours

From the beginning, people wanted to see how Hershey’s chocolate was made. The Hershey Chocolate Company started offering factory tours in 1910.

At the beginning of the tour, visitors were greeted with a chocolate drink. Visitors could then witness the production floor firsthand. At the end of the tour, they received packs of candy bars as souvenirs.

By 1970, nearly a million people took the factory tour each year. The crowds eventually outgrew the factory space. The last public tour inside the production plant was held in 1973. The next day, HERSHEY’S Chocolate World opened nearby with a free tour ride that shows how chocolate is made.

Today, you can still take the HERSHEY’S Chocolate Tour for free at HERSHEY’S Chocolate World in Hershey, Pennsylvania.

Timeline of Hershey’s Chocolate

1893

Milton Hershey attended the World’s Columbian Exposition in Chicago. He purchased German chocolate-making equipment and began experimenting with making chocolate.

1894

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

Historical HERSHEY'S Chocolate packaging

1900

Hershey introduced his first milk chocolate bar. It sold for five cents.

Milk Chocolate Label

1903

Ground was broken for the Hershey Chocolate Factory in Derry Township, Pennsylvania.

Workers use shovels and a jackhammer to dig the foundation.

1905

The chocolate factory was completed and began large-scale chocolate production.

The completed factory and office building in the snow.

1910

The Hershey factory began offering public tours, allowing visitors to see how chocolate was made.

1927

The Hershey Chocolate Company formally incorporated as Hershey Chocolate Corporation and became publicly traded, expanding its reach across the United States.

1973

The final public tours of the Hershey Chocolate Factory were held in the working plant. HERSHEY’S Chocolate World opened the next day, offering a free tour ride that showed how chocolate is made.

historical photo of Hershey Chocolate World

Today

Modern chocolate-making facilities use advanced technology and automated systems, but the basic process remains the same.

Trivia About Making Hershey’s Chocolate

1 of 6 Trivia

1. What inspired Milton Hershey to begin making chocolate?

B is correct!

2 of 6 Trivia

2. What was unusual about Hershey’s milk chocolate recipe at the time?

C is correct!

3 of 6 Trivia

3. What is “chocolate liquor”?

D is correct!

4 of 6 Trivia

4. What step in chocolate production helps smooth texture and develop flavor?

B is correct!

5 of 6 Trivia

5. When was the first Hershey’s Milk Chocolate Bar introduced?

B is correct!

6 of 6 Trivia

6. How much did the original Hershey’s Milk Chocolate Bar cost?

B is correct!

Frequently Asked Questions

About Hershey’s Chocolate

How did Milton Hershey first start making chocolate?

Milton Hershey was running a successful caramel business in Lancaster, Pennsylvania, when he saw chocolate-making equipment at the 1893 World’s Fair in Chicago. He purchased the machinery and began experimenting with chocolate while still producing caramels. By 1900, chocolate became his main focus.

Where did Milton Hershey source the ingredients for his chocolate company?

Milton Hershey wanted to make chocolate in a place where he could get fresh ingredients. He chose a location surrounded by dairy farms, where milk could be brought in daily. He originally sourced sugar from Europe, and cocoa beans from tropical regions within 20 degrees of the equator.

Did Milton Hershey invent milk chocolate?

No, Swiss chocolatier Daniel Peter invented solid milk chocolate in 1875 in Vevey, Switzerland. Milton was the first American to successfully mass-produce milk chocolate, making it affordable and accessible to more people.

When did Milton Hershey start making milk chocolate?

Milton Hershey introduced his first milk chocolate bar in 1900. However, it wasn’t until years later that he perfected his recipe. After years of experimentation, he developed a method that used fresh milk instead of powdered milk. This gave Hershey’s milk chocolate the signature taste and texture we still enjoy today.

Why was fresh milk important to Hershey’s chocolate recipe?

Fresh milk gave Hershey’s chocolate a creamy flavor and texture. The milk was condensed with sugar before being blended with chocolate liquor. This process removed excess moisture, which helped the ingredients blend together and improved shelf stability.

How did the Great Depression affect Hershey’s chocolate production?

During the Great Depression, Milton Hershey continued producing affordable chocolate products. Lower-cost items and smaller portions helped keep chocolate accessible to families during difficult economic times. Milton Hershey also started what is now called the Great Building Campaign during the Great Depression to keep local workers employed. Learn more about The Town Hershey Built.

When did chocolate bars stop being wrapped in foil?

In 2003, to enhance product freshness, Hershey discontinued its traditional foil inner wrap and paper wrapper and began wrapping its milk chocolate bars with a single film wrapper.

Can visitors still see Hershey’s chocolate being made today?

Visitors can experience a version of the chocolate-making process through exhibits and attractions in Hershey, Pennsylvania. Modern production facilities are not open for public tours. But you can take a free factory tour ride at HERSHEY’S CHOCOLATE WORLD.

Experience HERSHEY’S Chocolate Tour

Plan Your Visit to HERSHEY’S CHOCOLATE WORLD

Visitors can also see real historic chocolate-making equipment in action at The Hershey Story, The Museum on Chocolate Avenue.