H.B. Reese: The Dairy Farmer Who Took on Hershey and Created a Candy Empire
From milking cows to making millions
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Hi there, this is Max!
If you’re eating a Reese’s Peanut Butter Cup right now, congratulations—you’re holding one of the greatest candy creations of all time. But have you ever wondered who the genius behind it was?
Meet Harry Burnett Reese—the dairy farmer-turned-candy-visionary who didn’t just accidentally stumble upon the perfect combination of chocolate and peanut butter. No, he hustled, struggled, failed, and got back up again before building the multi-billion-dollar empire that now makes over $3 billion in annual sales
🎧 The Sweetest Place On Earth. Podcast
***
This is the story of how a broke dairy farmer with a dozen kids (okay, 16 to be exact) built a candy legacy that has outlasted wars, recessions, and every diet trend known to mankind.
From Milking Cows to Making Candy: A Sweet Start
H.B. Reese was born on May 24, 1879, in Frosty Hill, Pennsylvania, to a family that, unsurprisingly, didn’t have a trust fund waiting for him. Life was simple, and like most kids in rural America in the 1800s, he learned the value of hard work before he even hit puberty.
Fast forward to adulthood—he got married to Blanche Edna Hyson, and the two of them proceeded to create both a family and a workforce—because, well, 16 kids . Raising that many mouths wasn’t cheap, so Reese tried every job under the sun—he ran a fishing operation, a dairy farm, and even a frog-raising business (yes, you read that right) before stumbling into the one thing that would change his life: chocolate.
The Hershey Connection: Learning from the Master
In 1917, Reese landed a job working directly for the Willy Wonka of the era—Milton S. Hershey. He managed Hershey’s dairy farm, helping supply the milk needed to produce all that delicious chocolate. But Reese wasn’t just another farmhand—he was watching, learning, and dreaming about something bigger.
It didn’t take long before his entrepreneurial spirit kicked in. While still working for Hershey, he set up a candy-making operation in his basement, where he experimented with handmade confections that he sold to locals. Some of his first candy bars were named after his kids—like the Lizzie Bar and Johnny Bar .
By 1923, Reese had built up enough confidence (and enough side income) to go all in on candy-making, officially launching the H.B. Reese Candy Company in his own home.
But here’s the kicker: he made a bold move that would change everything—he used Hershey’s chocolate in all his products. Instead of trying to reinvent the wheel, Reese knew that the best chocolate in the game was already being made, so why not partner up?
And so, a beautiful, chocolatey alliance was born.
The Birth of Reese’s Peanut Butter Cups (a.k.a. The Greatest Candy Ever)
In 1928, after years of trial and error, Reese struck gold—or rather, peanut butter gold.
He had noticed that chocolate-covered peanut butter candies were already popular in Pennsylvania, but they weren’t easily available outside of the state. So, being the business-savvy guy he was, he created his own version, perfected the recipe, and wrapped them individually so they could be sold as a penny candy (a.k.a., one cent per cup).
The slogan? “Made in Chocolate Town, So They Must Be Good.”
And good they were. Great, actually. Reese’s Peanut Butter Cups quickly became his best-selling product, and by the time the Great Depression hit, while most businesses were struggling, his peanut butter cups were selling like crazy.
Why?
Because they were cheap, delicious, and addictive. A sweet escape for pennies, when every penny mattered. By the 1940s, sales were doubling every four years.
War, Chocolate, and Survival: Reese’s Smartest Business Move
During World War II, sugar rationing forced many candy makers to shut down or limit production. But Reese? He did the opposite.
Instead of trying to juggle multiple candy lines, he made a bold decision:
✖ Cancel everything.
✔ Go all in on Peanut Butter Cups.
By focusing on one product, he optimized production, streamlined his ingredients, and kept the business running smoothly when others couldn’t.
And guess what?
This “all-in” move paid off big time. After the war, Reese’s Peanut Butter Cups were more popular than ever.
Selling to Hershey: The $23.5 Million Decision
H.B. Reese continued to grow his company throughout the 1940s and early 50s. But in 1956, he passed away suddenly at the age of 76.
That left his six sons to run the company—and they had a decision to make.
In 1963, after much deliberation, the Reese family sold the H.B. Reese Candy Company to Hershey in a tax-free stock-for-stock merger.
The total deal? 💰 $23.5 million in Hershey stock 💰 666,316 shares
At the time, that seemed like a solid deal. But here’s where it gets really interesting...
A Billion-Dollar Legacy
Those 666,316 Hershey shares? They weren’t just any shares.
Over the decades, they split, grew, and increased in value, and by 2024, those shares are worth over $4.4 billion .
Yep. Billion. With a B.
And Reese’s Peanut Butter Cups? They are now Hershey’s #1 best-selling product, raking in over $3 billion a year.
A Sweet Ending
H.B. Reese didn’t live to see just how massive his candy empire would become, but his story is the ultimate underdog tale—a dairy farmer turned candy king, who risked everything for a dream.
And now?
His creation is the #1 Halloween candy in America, loved by millions, and a reminder that sometimes the simplest ideas—like chocolate and peanut butter—can lead to the most extraordinary successes.
So next time you unwrap a Reese’s Peanut Butter Cup, just remember:
You're not just eating candy. You're eating a legacy.
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