Hershey Move to Mexico

If you like your chocolate with a south-of-the-border flavor, it's coming soon to a retailer near you. Hershey announced that production of Reese's products and KitKat will move to Monterrey, Mexico.

Hershey will cut as many as 250 jobs at its hometown Reese's candy factory as part of a wider move to reduce domestic labor costs by switching production to contractors and a new plant in Mexico, the candy company said Tuesday.

Labor costs are 90 to 95 percent cheaper in Mexico and raw materials are 10 percent cheaper. In total, Hershey foresees cutting 1,500 jobs in a restructuring program that will save $190 million per year. Included is last month's closing of a plant in Smith Falls, Ontario, which affected more than 500 workers. Also, Hershey products will now be made in India and South Korea.

Two of three Hershey, Pennsylvania, plants will remain open.

For now.