Hershey to Explore Sale of Pasta Business

Hershey Foods Corporation is exploring the possible sale of its U.S. pasta business with the assistance of Goldman, Sachs & Co.

Hershey, through its Hershey Pasta and Grocery Group, holds the number-one share position in the U.S. branded dry pasta category. Its eight regional brands include American Beauty, Ideal by San Giorgio, Light 'n Fluffy, P&R, Mrs. Weiss, Ronzoni, San Giorgio and Skinner pasta. In 1997, combined sales for Hershey's pasta business were $400 million.

``Hershey Foods has been involved in the pasta business since 1966 and today enjoys the leadership position in the U.S. branded dry pasta category. Over the years, this business has provided profitable growth and good cash flow for the corporation. After a thorough review of our strategic direction, we believe that we can generate a better return for our shareholders by focusing resources on our confectionery and related grocery and foodservice businesses,'' said Kenneth L. Wolfe, chairman and CEO of Hershey Foods.