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You are at:Home » In 1928, a Former Hershey Dairy Worker Started Making Peanut Butter Cups in His Basement; 35 Years Later, His Sons Sold Reese’s to Hershey for $23.5 Million
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In 1928, a Former Hershey Dairy Worker Started Making Peanut Butter Cups in His Basement; 35 Years Later, His Sons Sold Reese’s to Hershey for $23.5 Million

20 October 20263 Mins Read

Reese’s Peanut Butter Cups are now one of America’s best-known chocolate treats, but they started as a small family business run by a man who was simply trying to make ends meet. 

Harry Burnett (H.B.) Reese began making candy in his basement in the 1920s, never knowing that his chocolate and peanut butter creations would eventually become a household name.

Born on May 24, 1879, in Pennsylvania, Reese grew up in a farming family. He tied the knot in 1900 and eventually had 16 children. With such a large family to support, he took on a variety of jobs, working as a butcher and factory worker, among other positions.

In 1917, Reese spotted an advertisement for a job on a dairy farm owned by Milton S. Hershey, the founder of the Hershey Chocolate Company. He took the position in Hershey, Pennsylvania, and spent several years working on the farm before moving to the company’s chocolate factory. 

That experience introduced Reese to the chocolate business and inspired him to try making his own candy. He began experimenting with recipes in his basement, using fresh ingredients and plenty of Hershey’s chocolate. Some of his early creations were even named after his children. 

By the 1920s, Reese’s homemade candies were selling well enough that he decided to turn his side project into a full-fledged business. He established the H.B. Reese Candy Company and continued developing new confections.

Los Angeles, Ca. A Reese’s cup for an illustration about the anatomy of a sugar rush.

Rick Loomis/Los Angeles Times via Getty Images

Reese’s biggest breakthrough came in 1928 when he began making chocolate cups filled with peanut butter. Originally known as “penny cups,” the treats cost just one cent each.

Before long, Reese was supplying local stores with five-pound boxes of his peanut butter cups, expanding his business beyond individual sales. As demand grew, Reese was able to leave his job at the Hershey factory and focus on his company. 

His business continued to grow, but World War II created new challenges. Shortages of ingredients and other supplies forced him to scale back production of many of his candies. He decided to focus on peanut butter cups, which had become his best-selling product. 

Sadly, Reese didn’t live to see just how successful his signature treat would become. He died of a heart attack in 1956, just days before his 77th birthday. His family continued running the company after his death. 

In 1963, six of his sons agreed to sell the H.B. Reese Candy Company to Hershey for $23.5 million. After the acquisition, Reese’s continued to expand under Hershey’s ownership.

The original chocolate-and-peanut-butter combination inspired a wide range of variations, from Big Cups and miniature versions to white chocolate and dark chocolate options. Today, the Reese’s lineup includes everything from Reese’s Pieces and cookies to Reese’s Puffs cereal, proving that the peanut butter cups were just the beginning. 

Related: In 1960, O.D. and Ruth McKee Put Their 4-Year-Old Granddaughter’s Picture on a Snack Cake Box; Little Debbie Became a Billion-Dollar Brand

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