How a 12-Year-Old Made His $21 Billion Empire from Selling Candy

This video is sponsored by Manscaped. Hershey owns one of the largest chocolate factories in the world and is reportedly worth 21

billion

. His humble beginnings were led by a 12-

year

-old school dropout who was expected to replace his absent father, but became the black sheep of the family. Failure, bankruptcy and death hampered his chances of success for

year

s until he discovered the secrets to making

candy

. And it all started with a cow. Before we move on to the next part of the story, our team would like to quickly thank our sponsor. Manscaped the global men's care and hygiene brand. products.

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For a limited time, you can get all of this plus two freebies. The premium travel and storage bag and Manscaped anti-chafing boxer briefs. Go to Manscaped.com today and get 20% off plus free international shipping. When you use promo code HOOK20 at checkout or click the link in our description below. In the mid-19th century, Milton Hershey was born and raised in Dauphin County, Pennsylvania, the son of poor farmers, Henry Hershey and Fanny Snavely. While both parents came from prominent families of ministers, farmers, and businessmen, they lost and struggled to regain their wealth thanks to Henry's get-rich-quick schemes.

All 17 failed, but Henry remained optimistic and continued with his goal. Meanwhile, Fanny, once a supportive wife, became bitter toward her hopeful-eyed husband. Just before Milton's third birthday, Henry sold his farm and moved the family near oil town Pennsylvania, hoping to cash in on America's first oil boom. They could only afford to live in a small shack in nearby Titusville, where the streets were muddy and the air reeked of rotten food and outhouses. After two years, with no luck, Henry began to run out of money. Fanny was more worried than ever because she was expecting her second child.

When her family discovered that her brothers, Abraham and Benjamin, had traveled from Lancaster County to visit them, they were shocked to discover how lifeless her sister had become and how small and weak her nephew Milton was. “Fanny used to be better,” Benjamin insisted before turning to Milton. "How old is she? Four and a half? She is as weak as a three year old child. Take him to the farm where she can have fresh milk and eggs every day." "You don't understand!" Henry shouted. "With the civil war, the army needs oil. Men are becoming millionaires and helping a good cause at the same time.

I just need a little more money." "We have money to help," Benjamin replied. "And we'll use it to transport them all back home." Convinced that fortune was just around the corner, Henry begged Fanny to persuade her brothers to lend her more money. "I'm sorry, but I can't live like this anymore." Fanny admitted. "I can't raise my children here. You have to give up this dream." Without Fanny's support, Henry had no choice but to comply and return to Dauphin County. When the Hersheys settled back home, Fanny gave birth to their second child, Sarena, and Milton began Milton did not enjoy his classes and did so poorly that he could barely read.

Meanwhile, Henry started a new business

selling

farm equipment, which ended in failure. see Fanny struggle with two young children. So they reluctantly gave Henry one of their farms in Lancaster County in the hope that he could finally be a provider. Henry accepted their generous offer and moved the family to. Lancaster Henry was enthusiastic about the farm and began raising trout, chickens, and cows, and planting berries, bushes, and roses. But he eventually became distracted by another get-rich-quick scheme and neglected the farm, leaving Fanny in charge of raising the farm. children, maintain the farm and sell eggs and hand

made

brooms to earn money alone.

Despite her efforts, there were times when the family did not have enough food to eat and Milton went to school without proper shoes. When winter came, necessities such as food and clothing were not Fanny's only concerns. Her drafty cabin on the farm never stayed warm and both Milton and Sarena caught colds. As Milton began to recover, Sarena's condition worsened. A faint red rash appeared on her neck and spread across her chest and body. Fanny then realized that Sarena did not have a cold. She had scarlet fever, a deadly disease that killed more children than anything else at the time.

Sarena was no exception. After a few weeks, she died at just four years old. "What did I do to deserve such punishment?" Fanny screamed at her sister Mattie: "My life is over. There is nothing for me now." "Nonsense," Mattie insisted. "You have your son. We must make sure he becomes a proper man. We cannot trust his father to do the job". Fanny followed her sister's advice. She had already been teaching Milton the importance of hard work and had encouraged him to become a farmer or businessman. Meanwhile, Henry insisted that Milton pursue his own unfulfilled dream of becoming a farmer.

Milton wasn't sure what he wanted for himself. The only thing he knew for sure was that school wasn't for him. It didn't help that one of his teachers told him that he had to leave and that he would never learn anything. So, after learning to read, write, and do simple math, he decided it was time to leave. When he was only 12 years old, Fanny supported his decision. She believed that school was not necessary to become respectable. He was devastated. She arranged for Milton to work as an apprentice in a printing shop in the hopes that he could become a writer and advance.

Milton wished his father would give up this dream for him, but he accepted the job anyway. Milton hated working in the printing press. The owner, Samuel Ernst, had a bad temper and yelled at Milton almost every day. After a few months, Milton could no longer stand the treatment and threw his hat into the press so that the machine would break and he would be fired. That plan was his only option since his father signed a contract that obligated him to work in the workshop for five years. Fortunately for Milton, his plan worked and he was sent home immediately afterward.

When Milton returned home, Fanny was puzzled as to why he had returned so early. Milton kindly told him the news. To her surprise, Fanny was not disappointed and assured her that she would soon find a better job. Shortly after, Aunt Mattie came to visit and told her that a bakery in Lancaster called Royer's was looking for an apprentice. Milton smiled excitedly and immediately headed to present her application. Upon meeting, Joseph Royer liked Milton's enthusiasm, but he worried that he could not do the physical work. "I'm not afraid of hard work," Milton insisted. "I know I can do it if you give me the chance." I'll do any job you tell me." Impressed by his enthusiasm, Joseph immediately hired Milton.

He taught him how to buy ingredients, make ice cream and

candy

, and set prices. Early in Milton's training, Fanny encouraged Milton to concentrate on making candy. He realized that among all the confectionery products offered, candy had the longest shelf life and generated the greatest profits. Hoping that Milton would one day open his own store, he paid Joseph to exempt Milton. of any task that did not involve sweets. Meanwhile, Henry disapproved and claimed that making sweets was a woman's job. Milton did not pay attention to her words. He found the work exciting and enjoyed learning everything there was to know, but after.

Four years, Joseph had nothing new to teach him. "It's time you went about your own business," Fanny insisted. "You can't be an apprentice forever." He had saved a little money over the years, but it wasn't enough to open a bakery. "You have shown that you are capable of hard work." Aunt Mattie intervened. "The Snavelys will provide you with the money to help you get started." Milton felt relieved and very happy. Having his own business meant that he could experiment with new recipes and hopefully make some of the best sweets that would make people happy. Several months later, Milton opened a candy store in Philadelphia.

Fanny and Aunt Mattie considered it the perfect city since America's first world's fair, the Centennial Exposition, was being held there. Milton's shop was on the way to the exhibition, making it an ideal location. To draw large crowds, Milton's store offered a variety of products in addition to candy, including ice cream, fruits and nuts to appeal to everyone. His strategy worked and the business did so well that he had to move to a larger space, open a wholesale store and. He asks Fanny and Aunt Mattie for help. But eventually the price of sugar became too expensive and Milton struggled to make a profit.

Fanny suggested that Milton raise his prices, but Aunt Mattie warned him that he would lose customers. The American economy was recovering from the long depression and few people had money to spare. Aunt Mattie's solution was to hire a respected Lancaster businessman, William Lebkicher, as her accountant. William reviewed the account books and advised Milton to pay his suppliers to receive more credit. The amount was double what an average worker earned in a year. Milton couldn't afford to pay them back, so Aunt Mattie ordered him to write to her brothers, Abraham and Benjamin, and ask for a loan.

Abraham and Benjamin sent the money, but it was only enough to keep the business running for a couple of months. William advised Milton to cut costs wherever possible and limit his products to candy. Milton was disappointed, but he understood that staying in business required difficult decisions. Soon after, demand for Milton's sweets grew and a larger space was needed. Milton couldn't afford the cost. Then Aunt Mattie told her to write again to Abraham and Benjamin and tell them that Mattie needed the money to make a new investment in the store. Fortunately they agreed to send the money.

It was around then that Milton received an unexpected visit and an interesting offer. His father, Henry, moved to Philadelphia not only to join Milton but also to become his business partner. Despite all of his past plans, Milton did not have the courage to reject him and invested in his new ideas, even though his business was still in debt. After three of his ideas failed, Milton suffered a mental breakdown and became seriously ill. His doctor advised Fanny, Aunt Mattie and Harry to run the shop until he recovered. Otherwise, he wouldn't survive. A few weeks later, Milton was still bedridden.

Still, Henry overwhelmed him with a new proposal: buy out his share of a cabinet business so he could move to Denver and cash in on the Colorado silver rush. The cabinet business was not related to Milton's store. It was simply one of Henry's ideas that Milton allowed himself to be tricked into investing with the store's money. And although Milton knew that the store could not afford to lose any more money, he accepted Henry's proposal out of fear that Henry would bankrupt the store if he stayed. It took Milton a whole month to recover. By then, the store was so in debt that Milton had to take out another loan from his uncles.

They sent some money, but not enough to keep the business going. When Milton asked his uncles for more money, his letters went unanswered. Aunt Mattie decided to travel to Lancaster to find out why. She discovered that her brothers could no longer help Milton because his funds were tied up in other businesses. After six years, Milton had no choice but to declare bankruptcy. Like his father, he had become a black sheep in the eyes of the Snavelys. This is a special hook, don't forget to subscribe to our channel. After declaring bankruptcy and losing his store and warehouse, Milton returned to Lancaster.

He felt uncomfortable returning home. His uncles never mentioned the missing money, but he could feel their disapproval every time they looked at him. Over time, Milton not only wanted to get away from the watchful eye of his uncle, but also to experience a change of scenery. Fortunately, he received a letter fromHenry about how wonderful Denver was and finding him there. Milton decided to leave the past behind and accept Henry's invitation. Fanny and her aunt Mattie didn't like the idea, but they understood why Milton needed to leave. When Milton arrived, Denver fell into a financial depression. Milton decided to try to find a stable job.

During the search for him, he discovered a shack with a sign that said "help wanted." Milton entered. Before he could finish his sentence, an old man curtly told him to go to the back room with the other boys. Milton didn't have a good feeling. "What kind of work do you offer?" Milton asked quickly. "Go back there and you'll find out," the old man insisted. "You want a job, don't you?" Milton was not desperate. Before heading to Denver, Aunt Mattie lent her a $100 bill. She did not trust the old man and decided to leave. But when he returned to the front door and turned the handle, it was locked. "Let me out!" -Milton asked.

As his heart began to race, the old man smiled at Milton. "I need workers," he explained. "I'm going to send you to the fields to tend the cattle. It's hard work, but it will make a man of you." Milton had heard of labor contractors kidnapping young men and forcing them to work for unbearable wages. Remembering that his father had given him a gun before leaving, he quickly pulled it out of his pocket and demanded that the old man let him out. The old man quickly reached out and pulled a rope that opened the door. Without turning his back on him, Milton grabbed the handle and left the building.

Milton hurried toward downtown Denver. Along the way he passed investment offices, auction houses and gambling clubs. He was beginning to doubt that he could find a steady job in a decent business. Just when he was about to give up, he saw a candy store with a "help wanted" sign. Milton applied for him and was hired as a candy maker. Early in his work, Milton discovered the ultimate secret to making candy. And he surprisingly came from a cow. When candy was

made

in baking, they used fresh milk instead of paraffin and mixed it with vanilla and sugar.

The fresh milk made the candies softer, smoother, and sweeter, and he allowed them to keep on the shelf for many weeks without spoiling. After a few months, Milton memorized the recipe and decided to try his luck

selling

his own. The recipe was unknown elsewhere and was not protected by any copyright or patent. Milton didn't have enough money to start, so he returned to Lancaster hoping to convince Aunt Mattie to lend him more money. Aunt Mattie was impressed with his Denver-style candy and she agreed to help him once again. With her support, Milton felt confident enough to open a new candy store in the most competitive city in the country, New York.

When Milton arrived in New York, he decided to work for a candy store called Huyler's Candies. His plan was to get to know local suppliers and the tastes of New Yorkers before starting a new business. After only a year, he learned everything he needed and opened his own store. New Yorkers were hooked on Milton's new candies. Milton became so busy that Fanny and her aunt Mattie moved to work for him. Week after week sales grew and Milton became more confident that he was on the path to success. But just like his first store, Henry showed up unannounced and convinced Milton to invest in his cough drop business, which quickly failed.

Henry subsequently fled the city, leaving Milton with a mounting debt that he was unable to pay. Milton had no choice but to declare bankruptcy once again and leave town. Failing a second time was no less painful than failure. first. Still, Milton held out some hope that the Snavelys would take him in and even help him open a new store in Lancaster. He was sure that he would do better there, since he could cut costs by using local milk, rather than imported milk, as he did in New York. The Snavelys listened patiently before rejecting him, letting him know that he was too much like his father and that he was no longer welcome in his home.

With nowhere to go, Milton turned to his former accountant, William, who gave him some money to get him back on his feet. Milton wasted no time in proving his family wrong and thanking William for his kindness. He immediately rented a small room in a warehouse and began making his Denver-style candies again. Later, he founded the Lancaster Caramel company and sold his candy first in a basket and then in a handcart, as they became more popular. A few months later, Milton earned enough money to move operations into a small space in a factory. Fanny and Aunt Mattie surprised him one day by showing up to help him and let him know that they had never lost faith in him.

They had only stayed away to give him time to figure things out on his own. Milton was grateful, and even more so when Aunt Mattie allowed Milton to take out a loan in her name to scale up production. There was just one problem. Milton only had 90 days to return it. Week after week, Milton visited countless stores in Lancaster to sell his candy. Many of them made requests, but it was not enough to pay off his loan. Still, Milton did not let the thought of failure overwhelm him, and fortunately, his optimism paid off a few days before he was due for the money.

A British importer was passing through Lancaster and tried Milton's candies. Later, he located Milton to place an important order to be shipped to England. If they arrived in good condition, the importer would send Milton a check. Milton decided to take the risk. He did not receive an advance that could repay his loan or help complete the order, so he begged Lancaster National Bank for more money. A young bank official named Frank Brenneman told Milton what he already knew: it was too risky to give him more money. Milton begged Frank to see his operations and taste his candy before giving a final answer.

Frank reluctantly agreed. The next day, Frank offered Milton a loan in his name because he knew the bank would deny Milton's request. "You were honest with me," Frank explained. "You didn't hide how difficult things are for you or make excuses. I think you're a risk worth taking." A few weeks after sending the candies to England, Milton received a letter in the mail. Inside was a bank draft worth 500 English pounds. Tears streamed down Milton's face. Finally, he was able to pay off all of his debts and his worries were over. From then on, the Lancaster Caramel company expanded its market year after year.

Milton even became known as one of Pennsylvania's most prominent men, but Milton eventually became restless when his new employees took over production. He then decided to attend the Columbian Exposition in Chicago to see some of the world's newest inventions. At the exhibition, Milton discovered a chocolate factory from Germany. While he observed his operations, the owner, J.M. Lehmann offered Milton a bar and pointed out that his mass production method had made chocolate less expensive. At that time, chocolate was considered a luxury that only the rich could afford. "This is better than anything I've ever had," Milton exclaimed as he took a bite.

The milk chocolate was smooth and rich, a stark contrast to the grainy, bitter kind he was used to. Lehmann nodded. "Americans don't know how to make smooth, rich milk chocolate." "Can this really be done at a price everyone can afford?" Milton asked. JM assured him that his operation made it possible and that Milton did not doubt his prediction. He had already noticed that there were fewer of them. He ordered the candy from him to Europe and later discovered that chocolate was the cause. Sensing that it would one day become an American staple, Milton asked Lehmann if he could purchase the equipment from him.

Lehmann gladly accepted his offer. Hershey Chocolate Company and sold his candy business for 1 million. Then he focused on finding a formula for a smooth, rich milk chocolate, just like the Europeans did. During this process, he decided to not only build a huge factory, but also. an ideal city for his church workers in Derry. Baffled by his plans, Milton's wife and her associates suggested that he find a doctor to have his head examined. One even suggested that he appoint a guardian to control his finances. Still, Milton forged ahead with purchasing land and beginning construction. Unknown to anyone, Milton would end up building the largest chocolate factory in the world, turning his company into a

billion

-dollar

empire

.

Time was not on Milton's side. Five months after construction began, the factory's new walls were almost complete. Meanwhile, Milton had yet to find the formula for smooth, rich milk chocolate. Despite his best efforts, it seemed that the factory would surely be finished before Milton was even close. Desperate, Milton hired a chemist to help him, but quickly fired him after burning a batch of milk and sugar. So Milton sent for someone he knew he could trust: an engineer who worked for his candy factory named John Schmalbac. The problems that Milton and John faced were common. Overall, milk chocolate was difficult to make since milk and chocolate don't mix well.

Milk is mainly made up of water and chocolate contains a lot of oil in the form of cocoa butter. Before mixing these ingredients, it is necessary to remove the water from the milk through evaporation, which is a very complicated process. Many factors must be considered to ensure that the mixture accepts the cocoa and other ingredients without forming clumps and lasts more than a few days before spoiling. These factors include the breed of cows, the rate of heating, and how the mixture is cooled and timed. During John's first experiment, he poured low-fat milk from Holstein cows and lots of sugar into a giant kettle to make condensed milk, gradually increasing the heat.

After several hours, he let the mixture cool slightly, which resulted in it being smooth and easy to add cocoa and other ingredients. The flavor was described as sweet, with a distinctive, subtle sour note caused by the fermentation of dairy fat. Milton later discovered that John's method allowed milk chocolate to last for several months without spoiling and to be mass produced faster and cheaper than Europeans. This was because John's mixture consisted of condensed milk rather than powdered milk, making it easier to go through various processes such as pumping and pouring. It also required less time to be placed in molds.

Finally Milton had a formula that allowed him to offer milk chocolate at an affordable price to everyone and demonstrate that, after all, a career in the candy industry was not limited. But shortly after the discovery, one of the few important people who ever doubted him suddenly disappeared. His once-skeptical father, Henry, died of an unexpected heart attack. After such a tragedy, Milton had to move forward with opening his new factory and launching his new milk chocolate bars. Sales during its first year exceeded one million, which was almost equal to one of America's newest and biggest brands, Jell-o.

Milton later launched two more exclusive products that made even more millions: milk chocolate bars with almonds and bite-sized chocolates wrapped in foil called Hershey Kisses. Because of their name, Hershey Kisses became a popular and iconic Valentine's Day gift. That's when Milton decided on his company's product strategy: produce only a few products in large quantities and price them no higher than a nickel. That way, almost every store in America could afford to stock Hershey products. And many of them did. The strategy took the company to new heights of success that exceeded Milton's expectations. After just a couple of years, the factory tripled in size and later became the largest of its kind in the world.

As the Hershey Chocolate Company flourished, Milton's wife Catherine's health declined. She had been diagnosed with nerve damage years before and could no longer accompany Milton on her trips. Still, Catherine seemed as cheerful as the day they met. Milton was often unaware of her pain because she hid it so well. One day, Catherine contracted pneumonia and managed to convince Milton to give her champagne. As she walked to bring him a glass, a nurse pointed out that Catherine suddenly seemed different from herself. By the time Milton rushed over, Catherine had already passed away. With no children of his own, Milton went to work after Catherine's death, but ultimately decided to take on some much-neededvacation in Cuba.

He immediately fell in love with the country and its people and was amazed by the oceanic sugar cane fields on the cliffs overlooking the northern coast. Before leaving, Milton had made a decision about Cuba. He was not only going to build a sugar mill, but also an ideal city for the workers, as he did at Derry Church. But unlike those who came to Cuba to make a profit, Milton truly cared about creating opportunities for others. When Milton returned home, Hershey executives were baffled by his plans. The company's vice president, William Murrie, was especially fearful of the financial burden.

But just like before, Milton went ahead with purchasing land and starting construction. In addition to creating the most advanced sugar mill in the world, Milton built public services, schools, health clinics, and modern subsidized housing for his workers. He also added a baseball stadium that became one of the most beautiful in Cuba, attracting teams from all over the country. Only later did Hershey executives realize how Milton's plans were worth the risk. The Derry church factory was surrounded by dairy farms that could easily supply fresh milk, and the Cuba mill ensured an abundant supply of sugar at an affordable price.

In fact, a year after Milton announced his plans for Cuba, the United States joined World War I and sugar became scarcer and more expensive. The Hershey chocolate company managed to survive on its own supplies and fulfill a US Army contract for huge quantities of cocoa and 2 million chocolate bars. During the last year of the war, the company exceeded 20 million. After the war ended, Milton decided to take advantage of the peace and travel to Europe for the first time since Catherine's death. His plan was to visit all the places where they enjoyed some of the best moments of their lives together.

But unfortunately he had to quickly return home. Her mother, Fannie, who always supported her, contracted pneumonia and died. From then on, Milton could only reflect on his mother's belief in him to comfort him in difficult times, especially when he faced fierce competition from hundreds of candy manufacturers who set out to overthrow him. Year after year, competing products became new American favorites, including Clark Bar, Baby Ruth, Mounds, Oh! Henry and the Milky Way. Meanwhile, Milton did not let the fear of being overthrown get to him and he continued to concentrate on a few products. It wasn't until the stock market crashed and sales fell by half that Milton decided to change his product strategy: offering his own chocolate.

At that time, one of Milton's former employees, Harry Reese, invented an unusual product: a milk chocolate cup filled with peanut butter. Many Americans had never tried peanut butter, as it was made to be a health food for people who could not digest meat. Still, Harry's product, Reese's Peanut Butter Cups, was not only popular with retailers, but also among Hershey employees. So when Milton found out, he didn't treat Harry as a threat. Instead, he offered to provide her with his chocolate. Fortunately, Harry accepted his offer and the two benefited greatly. Soon after, Milton ended up supplying chocolate to his other competitors, including Oh!

Henry and the Milky Way. Milton had proven once again that his plans were worth the risk, but he found it impossible to avoid what quickly came next: the Great Depression. Sales fell more than before. Other companies were going bankrupt and many Americans were taking their own lives. Milton not only had to think about his results, but also about the livelihood of his workers. So, to keep them employed, he made plans to build a new high school, a sports stadium, a community building and a hotel in his town. A foreman once told Milton that his steam shovel could do the work of 40 workers.

Milton immediately ordered him to get rid of the shovel and hire 40 workers. Although Milton managed to keep all of his workers employed, he had to shorten work hours and suspend bonuses during the depression. As a result, some workers became bitter and began a sit-down strike, which involved occupying factories until demands were met. Fortunately, other workers took matters into their own hands and ended the strike. Milton was deeply wounded. He had fought to keep his workers employed and, in return, they ended up betraying him. Still, Milton did not fire or demote any of the workers who participated in the strike.

He was even very happy to see them show up at his birthday party. That same year, seven years later, Milton died of pneumonia at the age of 88. As he invested his entire fortune in his school and home for orphaned children, Hershey Chocolate Company continued to reach new heights of success. It became the manufacturer behind 90% of the milk chocolate produced in the United States and ended up offering a wide variety of popular products through new inventions, acquisitions and licensing, including Kit Kat bars, Reese's Pieces, York Peppermint Patties, Jolly Ranchers, Mounds and Almond Joy. Today, the Hershey Chocolate Company is worth 21 billion.

This is the story of how a 12-year-old school dropout discovered the secrets of making candy and overcame failure and bankruptcy before building one of America's greatest fortunes. For more inspiring stories and advice from today's most successful leaders, don't forget to subscribe to our channel.