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, but kept the Hershey Chocolate Company because he felt that there was a large market for
chocolate confections.