Lancaster Caramel Company

The Lancaster Caramel Company of Lancaster, Pennsylvania was founded by Milton S. Hershey in 1886. It was Hershey's first successful candy company and helped him build a reputation. The Hershey Chocolate Company became a subsidiary of the Lancaster Caramel Company in 1894. He sold the company for $1 million in 1900 to the American Caramel Company, but kept the Hershey Chocolate Company because he felt that there was a large market for chocolate confections. The American Caramel Company was created on March 28, 1889 when the Breisch-Hine Co. of Philadelphia and the P. C. Wiest Co. of York, Pennsylvania merged. After acquiring the Lancaster Caramel Company in 1900, the American Caramel Company became famous by including baseball and other cards in with their candies. With the addition of Lancaster Caramel Company, the American Caramel Company grew to control 90% of the caramel in the country.