In 1893, Milton Hershey Saw a Chocolate-Making Machine at the Chicago World’s Fair: That Encounter Established the Foundation for Hershey Chocolate

Milton Hershey visited the World's Columbian Exposition held in Chicago in 1893, which was organized specifically for displaying innovations in technology and industry. There, he saw machines for producing chocolate, which showed that the production of chocolate can be done effectively on a large scale. This event became the starting point in his business activity. According to historical sources presented by Hershey Company and other relevant materials, this event is considered a change of focus. Initially, Hershey had been working as a manufacturer of caramels, but after visiting the exhibition, he discovered new opportunities connected with chocolate manufacturing. Chocolate machines, which he saw during the event, were not a curiosity. It was a way to produce chocolate efficiently.

According to industrial history research, such events were essential in sharing knowledge between entrepreneurs. It can be noted that world fairs were significant for transferring innovations from one sphere to another. It is supported by studies published in Business History Review.

From Observation to Implementation

Once back home from the fair, Hershey started diverting his attention towards making chocolate. For this, however, mere interest was not enough. He had to adapt the process and machinery he observed to his own. The literature on innovation in industry emphasizes the need for adaptation when adopting innovations. An entrepreneur rarely copies a system as it is but tries to modify it according to the resources available and market requirements. Similarly, Hershey adopted such an approach and integrated chocolate manufacturing into his business.

The change was very important since it coincided with changes in food production processes. With better production techniques, food items that used to be luxury commodities became affordable and available to everyone. Chocolate, too, which was a scarce commodity before, became readily available. Thus, the choice of Hershey’s new direction shows how exposure to technology can influence future business practices.

Building a Scalable Chocolate Industry

Consequences of Hershey’s actions can be traced through the development of his company and the whole chocolate industry. By focusing on mass production, Hershey contributed to the popularization of chocolate in the country. Historical studies have shown that industrialization is one of the most important factors that lead to the expansion of markets. The increase in efficiency led to a fall in prices and a rise in demand. Hershey’s decision perfectly illustrates this trend.

The importance of the 1893 visit to Chicago is evident because of the relationship between observing something and its implementation. Hershey was not limited by the admiration of machines. Instead, he took advantage of what he saw to change the path of his career.