Six members of Hershey's board were ousted over the weekend, illustrating the differences between the confectioner’s management and the charitable trust that controls the company.

A further two members of the board resigned yesterday, The Wall Street Journal reported today. New chief executive David West and Robert Cavanaugh, a member of the Hershey Trust, remain directors.

Over the course of the year Hershey has lost market share to rival Mars and also been hit by high dairy costs. Last month the company reported a 66 per cent drop in net income, blaming increased competition, high dairy costs and restructuring charges.

The board and the trust have been at odds for some time over the company's performance. At one stage the Hershey Trust met representatives of Cadbury Schweppes to discuss a merger without inviting the then chairman, president and chief executive Richard Lenny.

Mr Lenny recently stood down as chief executive and plans to leave the company at the end of this year. Kenneth Wolfe, a former Hershey chief executive, was named a director and will replace Lenny as chairman at the start of the new year.

Cadbury Schweppes today declined to comment amid market speculation of a tie-up between the two groups.

The Hershey Trust, which controls 78 per cent of the voting power and 31 per cent of the chocolate maker’s shares, asked the six board members to resign and has already named replacements.

It said it would elect two additional members next year.

In early October, days before Lenny announced his intention to retire, the Trust issued a statement criticising Hershey’s performance and said that the company’s long term prospects required the board and management to "aggressively pursue strategies for domestic and international growth”.

Analysts at Sanford C Bernstein said that shares may rise today on the news as investors speculate about the board’s options, including the sale of the company.

They added this was a clear indication that the Trust wants to be more involved in the running of the company.

In comes:

Charles Davis from Goldman Sachs, Edward Kelly of The Carlyle Group, Arnold Langbo of Kellogg, James Nevels from the Hershey Trust,Thomas Ridge, Ridge Global LLC; Charles Strauss of Unilever North America; Kenneth Wolfe and Leroy Zimmerman from Hershey Trust.

Out goes:

Jon Boscia - director since 2001, Governance Committee chairman, Executive Committee member

Robert Campbell director since 1995, Compensation and Executive Organisation Committee chairman, Audit Committee and Executive Committee chairman

Gary Coughlan - director since 2003, Audit Committee and the Compensation and Executive Organisation Committee member

Harriet Edelman - director since 2003, Audit Committee and the Compensation and Executive Organisation Committee member

Mackey McDonald - director since 1996, Governance Committee and the Compensation and Executive Organization Committee member

Marie Toulantis - director since 2003, Audit Committee and the Governance Committee member

Bonnie Hill - director since 1993, Governance Committee and the Compensation and Executive Organisation Committee member

Alfred Kelly - director since 2005 Audit Committee and the Governance Committee member

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