The Hershey chocolate factory in Smiths Falls was an eight-building complex on 39.6 acres of land with a total building area of 472,430 square feet. It was opened by the Hershey Company in 1963 and was the first Hershey plant to be opened outside the US.

The Beginning

It all began in June 1960. Members of the Smiths Falls chamber of commerce stood at the front of main street hoping to sell newcomers on the town by flagging down any cars they saw with an out-of-province license plate.

The first car they stopped had a Pennsylvania plate and carried executives from the Hershey company who were on the search for a location to set up their first ever Canadian facility.

After doing extensive research ,Hershey concluded the town was the right choice and by April of 1961 construction had started.

Smiths Falls was selected because of its adequate source of labor, plentiful supply of milk and water, and its location on direct railway lines.

This location also was conveniently between the main marketing areas of Toronto, Montreal and Ottawa.

On June 15 1963 the Smiths Falls Hershey plant was officially opened.

Opening day celebrations included tours of the factory, a parade of antique cars, bands, floats, Miss Grey Cup, Miss Eastern Ontario and Miss Smiths Falls. This was followed by an opening by provincial and town officials, an exhibition of the latest C.P.R. equipment on the plant’s siding and finally a dance at the Community Centre.

The Smiths Falls facility was the first to incorporate a Visitors Gallery – an elevated walkway where visitors could view the factory’s production. The Visitor Gallery received over 960 visitors on its opening day. 

The factory began production with 200,000 square feet of space capable of producing 200,000 bars a day. The first products produced at the factory were 5 and 10 cent chocolate bars, instant chocolate, cocoa, chocolate chips, and chocolate syrup.

In 1965 Hershey introduced the peanut butter cup and production lines were soon added to the Smiths Falls plant. By the end of 1966 the factory was employing over 100 people.

High Sales

In the mid 70s the cost of a chocolate bar had risen to 25 cents a bar and sales for the Smiths Falls plant had reached approximately $20,000,000 dollars per year.

Upgrades to the facility and minor expansions continued throughout the rest of the 70s and into the early 80s to accommodate the increased demand.

The plant’s 3 Millionth Visitor

In the early morning of February 7 1998 the factory received its 3 millionth visitor, a huge milestone for the factory’s role in the town’s tourism. Later, on August 13 1998 the plant received 86 buses in one day, a new record.

The 2001 shop expansion

By the end of the 90s the factory’s gift shop was struggling to handle the increasing numbers of visitors each year so throughout 1999 & 2000 plans were made to expand the plant’s store.

Construction on the new shop was done throughout spring 2001, doubling the size of the entire store. On July 19 2001 Hershey officially opened the newly renovated shop.

The 2001 – 2006 plant renovation

In 2001 Hershey began a $100,000,000 US investment which would be carried out over the next five years in order to modernize the plant. Upgrades to both the buildings as well as the production lines were carried out into August of 2006 making many areas throughout the factory state of the art.

A record number of visitors

Throughout the 2005 season the plant would receive over 450,000 visitors. This was the largest amount they had ever received in a given year, making it one of the largest tourist attractions in the Ottawa Valley.

The Contamination

On November 9 2006, salmonella was detected on a routine inspection of the plant which prompted an immediate recall. The plant and shop had to be temporarily shut down and the entire workforce was laid off until they traced it back to the source, it was later discovered Hershey had been sold a bad batch of soy lecithin. Hershey gradually rehired 200 employees to clean and decontaminate the facility and by December 2006 the plant was back up and running as usual. In 2009 some of the contaminated goods were stolen from a recycling plant and once again managed to find their way back onto store shelves in eastern Toronto; the thieves were eventually caught and charged. No illnesses were reported.

Closure

On February 11 2007, just a few months after Hershey had got their plant up and running again, it was announced the Smiths Falls plant would close and production would be moved to Monterrey, Mexico, as part of a global restructuring plan. Hershey confirmed the plant would remain open throughout 2007 and 2008 although production would slowly be phased out during this time.

The Final Days

By late November 2008 the plant was only running at 10% capacity. This was mostly due to a high Canadian dollar, brought on by the global recession of 2008.

On December 23rd 2008, the factory’s production was officially shut down along with the associated gift shop. Over 650 employees were laid off at this time however a skeleton staff was kept onboard into January 2009 in order to decommission the facility.

The Auction

In summer 2009 Hershey hosted an auction in order to clear out the building for future owners. Around 76 million dollars worth of chocolate and confectionery equipment was sold off to local facilities as well as factories as far away as Africa and Asia.

The Factory is Sold

On May 24 2012, the plant was sold to developer Icon International. The building was listed in 2009 for $9 million, however they purchased it for an estimated $2.6Million

Nearing Demolition

By the summer of 2013 the factory had been abandoned for nearly five years and was falling into disrepair. Quotes were being sourced for demolition which would happen over the next two years, however this would not come to be as the factory would soon find new ownership.

Tweed & Saumure building group

In September 2013 a medical cannabis startup known as Tweed announced they would be moving into the factory’s warehouse and starting an indoor cannabis grow op. The mayor of Smiths Falls stood in support of the project. 

Due to the sheer size of the building, the cost of buying such a facility was prohibitive so Tweed teamed up with local developer Saumure Building Group and bought the factory in November 2013 for an estimated $4 million.

By the summer of 2014 Tweed was up and running, using one quarter of the plant’s space.

The Tweed Expansion

In spring 2016, Tweed announced it would be expanding operations and taking over more of the factory’s space in hopes of cashing in on the impending legalization of marijuana. On December 24 2016, Tweed purchased the rest of the former Hershey plant from Saumure Building Group in order to ramp up production.

This expansion continued throughout 2017, overhauling the existing square footage as well as adding 126,637 square feet to the facility. The former Hershey gift shop and tour walkway were retrofitted to make way for a tour of their cannabis factory. What was left of the chocolate-making equipment was reused for a new line of cannabis infused chocolate.

The Tweed Visitor Centre

On August 23, 2018 Tweed officially opened the new visitor centre. The event was well met, however, the tour itself was limited as production was expected to ramp up over the next few months.

The Downfall of Tweed’s Operation at Hershey

On March 17 2020 the visitor centre was temporarily closed in the wake of the Covid-19 pandemic. Little did anyone know this would be the final day of operation at the gift shop. The company was falling into distress and was cutting back wherever possible. By 2022, hundreds were being laid off.

Tweed and the Hershey Factory Part Ways

On February 9 2023, nearly 10 years after they opened up, Tweed announced they would be closing their operation at the Hershey factory, laying off 800 employees. The factory would be decommissioned by mid summer and would once again be looking for another owner

The return of Hershey Canada Inc

On August 17 2023, in a remarkable turn of events, Hershey announced it would be buying the factory they had left behind some 15 years before as part of a plan to return to Smiths Falls.

Article by Harrison Barconnor