Sweet dreams in Smiths Falls as town awaits Hershey factory return

On his kitchen table, Brent Whiten lays out binders packed with photos and memorabilia from his time working at the nearby former Hershey chocolate factory in Smiths Falls, Ont.

Like so many residents of the town located about an hour's drive southwest of Ottawa, Whiten is searching for clues about what Hershey will do with the factory it re-purchased from a cannabis company almost two years ago.

"I'm always driving by to see if they've got the Hershey sign on there yet.... To this day, it does not have the Hershey sign," Whiten said.

"We don't know if it's staying or it's going, but I hope it does stay because we could use that for Smiths Falls for sure."

When CBC News visited the factory in mid-April, only a handful of vehicles sat in the vast parking lot. During the Hershey days, the lot was packed with hundreds of workers and busloads of visiting tourists and school groups.

The sign out front has no mention of Hershey or the previous owner Canopy Growth. White letters spell out "Visitor Centre."

Whiten was one of the last employees when Hershey left the town in the late 2000s. He started out packing boxes before he worked at the chocolate almond polishing station and eventually operated hot vats that melted the ingredients in Eat-More bars.

"They were good to us. Good to our family," he said, reminiscing about company parties, fundraisers and decades of stable work.

Sale to cannabis company

Whiten said some engineers continued to work at other Hershey locations and may be working on what's to come in Smiths Falls. But ever since it re-purchased the property in August 2023, the company has been tight-lipped about what will be made of the plant.

From 2017 to 2023, the historic factory was owned by Canopy Growth (formerly Tweed), a company that rode the hype of medical and then recreational cannabis legalization to pour hundreds of millions of dollars into the facility and double its size.

But the company has scaled back its presence in the town it was once credited as saving. It now operates a bottling plant across Hershey Drive from its old headquarters.

Amy Rensby, owner of C'est Tout Bakery and Bistro in downtown Smiths Falls, said the loss of a major employer in that facility hurts smaller operations.

"It certainly reduced the amount of business that we see here ... and across the community," she said, noting she used to fill two or three large catering orders for on-boarding and other company-hosted events.

She said there's hope Hershey will bring opportunity, even if right now it's mostly a source of intrigue and gossip.

"A lot of conversation, a lot of supposition, a lot of guessing about what maybe is happening out of the Hershey factory," Rensby said.

"I don't think a company buys or invests in a property like that … without the intention of coming to operate in some way, shape or form."

Hershey return a full-circle moment

Leslie Richardson, executive director of the Smiths Falls and District Chamber of Commerce, called Hershey's return a "sweet" full-circle moment for the town.

Growing up, she said young people often got a job either with Parks Canada at the Rideau Canal Locks or working in the factory. She herself spent one summer on the Oh Henry! line.

"We're not a one-industry town anymore. We are very resilient and we are very growth-minded," she said, pointing to the luxury rental business Le Boat.

Still, she said a large employer in the factory would have spin-off benefits for local plumbers, electricians and alarm system companies. Not to mention the sweets.

"I would hope we would get some candy, perhaps some licorice. I do fancy an Oh Henry! Bar," she said.

One theory winding through town like a licorice whip is that the company will start producing Twizzlers locally, but why that rumour has stuck is a mystery.

Tariff concerns

Mayor Shawn Pankow is still optimistic Hershey is planning to set up for the long term but understands why people are asking questions.

"For a while, it was quiet. People assumed Hershey was working on their plans," he said. "But since the tariff narrative has hit us all, more people have been concerned about [tariffs]."

"There's probably no impact on the future of this facility other than where they pivot the production lines. Would they pivot on the markets they may ultimately distribute to?"

The U.S. market is a big part of the success of the Canadian chocolate and candy industry. The exposure to that risk may delay major investments from candy companies.

Eighty percent of all sugar and confectionery product manufacturing sales in Canada go to the U.S., according to Farm Credit Canada. Statistics Canada lists chocolate and cacao products as Ontario's second largest food export, worth $1.86 billion last year.

Recent weather events are also driving up the cost of inputs, such as sugar and cocoa, according to economic consultant Sébastien Pouliot.

"Any firm must make that business decision thinking: are we expecting tariffs in the long term? Are they going to come back? Is that the new reality? Or it's just a fad that's going to last the short term?" Pouliot said.

In an email, Hershey said the company is early in its process and the timing is "premature" to speculate on job creation in Smiths Falls.

"The project is a strategic acquisition and is another step in our continuing investment in our supply chain network to enable our leading snacking powerhouse vision," spokesperson Todd Scott said.

Chocolate aroma

Meanwhile, the mayor and chamber of commerce are pointing to Hershey's sponsorship of Smiths Falls Old Home Week as a sign of the company's commitment to the community.

The festival is held every 25 years, partly to draw tourists and partly to act as a reunion for current and former residents.

"The biggest thing they wanted to know was the social and economic impact this festival would have on the community — they weren't really interested in the advertising," co-organizer Christa Dales-Donnelly said.

Even though Dales-Donnelly said organizers are talking with Hershey representatives — including about a potential parade float — they have questions like everyone else.

"Are there going to be jobs for one thing, and are there going to be tours so we can watch it again?" she said.

Though Brent Whiten wouldn't be working a line if the plant does reopen, he's eager to get back inside the doors.

"I'd love to go for a tour myself to see what it really looks like after all the changes," he said.

But most of all, he wants the return of the sweet smell he remembers from his childhood.

"I would like to see chocolate come back in the plant because the aroma of chocolate in the town, we miss that big time," he said.