The Lancaster Caramel Company was incorporated on February 8, 1894 and the Hershey Chocolate Company was formally organized as a subsidiary. In the Spring of 1900, believing caramels were a fad, Milton Hershey sold the assets of the caramel business including the factory, the machinery, the confectionery formulas, stock on hand and the Crystal A trademark for $1 million in cash to the American Caramel Company. Hershey kept the Hershey Chocolate Company subsidiary plus the chocolate making equipment because he felt that there was a large market for chocolate confections.
