The captivating story of Hershey's spans nearly a century and a half of industrial and social change. It was in the year 1894 that candy manufacturer Milton Hershey made the decision to try adding chocolate coating to his caramels. Calling this new enterprise the Hershey chocolate company, he located it near the area he had been born, amid the rolling farmland of Derry township, pa. By the summer of 1905, with the milk from nearby dairy farms and the spirit of hard-working local people, his new factory started turning out delicious milk chocolate.