Hershey's profit up on price rise

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The US's second-biggest chocolate maker, Hershey, has announced a 40% rise in full-year profits, after it increased its prices.

Profit increases in each quarter of 2009 contributed to full-year profits of $436m (£273.6m).

Its profits in the final three months of 2009 were $126.8m, up 54% from the same period a year ago.

Hershey reportedly tried to put a bid together for UK rival Cadbury, but in the end it did not table an offer.

Cadbury's takeover by US company Kraft is expected to be confirmed later on Tuesday.

Hershey is set to face a tougher competition from the newly-merged firm and could also face rising cocoa, milk and sugar prices.

The company expects sales to grow by 3-5% in 2010 and intends to increase its spending on advertising by about 25-30%.

Hershey's brands include Reese's peanut butter cups, Twizzlers and Hershey's chocolate bars.