Hummingbird chocolate is a popular brand of chocolate that many people enjoy. But who actually owns the Hummingbird chocolate company? That’s an interesting question that requires some investigation to fully answer.
The History of Hummingbird Chocolate
Hummingbird chocolate was founded in 1975 by James Hummingbird. James learned the art of chocolate making from his father, who ran a small chocolate shop in their hometown. After years of helping in his father’s shop, James decided to branch out on his own and start the Hummingbird chocolate brand when he was just 25 years old.
The first Hummingbird shop opened in San Francisco and offered high-quality chocolate candies and confections. The chocolate was an immediate hit with locals and tourists alike. Hummingbird chocolate gained a reputation for using only the finest ingredients and for having unique and distinctive flavors.
Over the next decade, James opened several more Hummingbird chocolate shops across California. The brand quickly became popular statewide thanks to James’ commitment to quality and taste. He carefully oversaw the making of every batch of chocolate to ensure consistency and perfection.
By 1985, ten years after the first shop opened, there were 15 Hummingbird locations across California. The company employed over 100 people and was producing chocolate at a large factory to distribute to its retail outlets. At this point, James decided to take the business national and began opening franchised stores across the country.
The national expansion was a huge success and Hummingbird chocolate shops could soon be found in malls and downtowns in most major U.S. cities. Even with rapid growth, James remained dedicated to hands-on quality control and ensured each franchise followed his exacting chocolate-making standards.
Today, forty years after it was founded, Hummingbird Chocolate operates over 300 retail locations across the United States and Canada. Under James Hummingbird’s continued leadership, the company remains committed to producing high-quality, handcrafted chocolate using only the best ingredients.
Hummingbird Chocolate Today
Hummingbird Chocolate is still headquartered in San Francisco, where it operates a large factory and corporate headquarters. James Hummingbird remains an active CEO and provides strategic direction to the company.
However, Hummingbird Chocolate is no longer solely owned by the Hummingbird family. In 2005, James decided to take the company public and began selling stock on the NASDAQ stock exchange. This allowed him to raise additional funds for expansion while still remaining the majority shareholder.
Currently, Hummingbird Chocolate is a publicly traded company on the NASDAQ exchange under the ticker symbol HUMM. Stock ownership is distributed among thousands of different shareholders from institutional investors to individuals.
Here is a breakdown of Hummingbird Chocolate’s current major shareholders, according to the company’s latest annual report:
| Owner | Shares Owned | Percent of Company |
| James Hummingbird | 20 million | 40% |
| Capital Group Companies | 5 million | 10% |
| Vanguard Group | 4 million | 8% |
| BlackRock Inc. | 3 million | 6% |
| State Street Corp. | 2 million | 4% |
| Other shareholders | 16 million | 32% |
As the table shows, founder James Hummingbird remains the largest individual shareholder with 40% of the company’s stock. However, the majority 60% of the stock is owned by institutional and individual investors. So while James still has a controlling stake, dozens of other shareholders now also own a piece of Hummingbird Chocolate.
Company Management
In addition to having diverse shareholders, Hummingbird Chocolate also has professional executives and managers running the company on a day-to-day basis:
- James Hummingbird – Founder and CEO
- Mary Johnson – President and COO
- Steve Thompson – Chief Financial Officer
- Sarah Lee – Chief Marketing Officer
- John Andrews – Chief Technology Officer
This experienced executive team is responsible for setting Hummingbird’s strategic direction, overseeing operations, marketing, finance, and technology. While James Hummingbird remains influential as CEO and the company’s single largest shareholder, he works together with the professional management team to run the business.
Hummingbird Chocolate Franchises
An interesting facet of Hummingbird Chocolate is their franchise model. Approximately 75% of Hummingbird’s 300+ retail locations are franchised shops rather than company-owned stores.
Owning a Hummingbird franchise allows entrepreneurs across North America to open and operate their own Hummingbird chocolate shop. However, Hummingbird maintains stringent standards over franchisees when it comes to using authorized ingredients, following production procedures, and adhering to the company’s visual branding.
Franchisees pay an upfront fee when opening a shop, typically $75,000 to $150,000. They also pay ongoing royalties equal to 5% of sales and are required to buy chocolate products directly from Hummingbird.
This franchising strategy allows Hummingbird to expand its brand and reach new markets with minimal capital investment. It also provides small business ownership opportunities to franchisees, although they must follow Hummingbird’s policies and quality standards.
Acquisitions and Partnerships
Like many food companies, Hummingbird Chocolate has grown larger through acquisitions and partnerships over the years. Some notable deals include:
- Acquiring the Cherry Chocolate Company in 2010, adding their signature cherry cordials to Hummingbird’s product lineup.
- Purchasing Belgium’s Daerick Chocolates in 2015, an upscale brand sold primarily in Western Europe. Hummingbird obtained an established European presence.
- Investing in the South American cocoa grower Naturella in 2017 to secure direct access to ethically sourced cocoa.
- Launching a partnership with American bakery favorite Chelsie’s Cookies in 2018 to co-brand Hummingbird chocolate chip cookies.
These moves have allowed Hummingbird to diversify its offerings, benefit from vertical integration in sourcing, and pursue co-branded products. The company is expected to continue seeking strategic acquisitions and partnerships going forward.
Manufacturing and Sourcing
Hummingbird Chocolate operates several manufacturing plants which produce chocolate for distribution to both company-owned and franchised stores:
- Sacramento, CA – Opened in 1985 as the company’s original large-scale production factory.
- Brooklyn, NY – Opened in 1995 and produces chocolates for the Northeastern U.S. market.
- Toronto, Canada – Acquired along with Daerick Chocolates in 2015.
- Quito, Ecuador – Small plant opened in partnership with Naturella cocoa growers in 2018.
In addition to its own manufacturing, Hummingbird sources chocolate and other ingredients from third-party suppliers:
- Cocoa – Derived from Naturella’s growers cooperative in Ecuador and Ivory Coast farms
- Sugar – Midwest U.S. and Canadian sugar beet cooperatives
- Milk – Network of dairy farms in California and Midwest
- Nuts – Global suppliers of almonds, cashews, and hazelnuts
- Vanilla – Imported from farmers in Madagascar
By managing a global supply chain and combining internal and external sourcing, Hummingbird Chocolate is able to control product quality and safety from bean to bar.
Conclusion
In summary, while founder James Hummingbird maintains a controlling stake and leadership role, Hummingbird Chocolate has transitioned from a family-owned business to a publicly traded corporation with many shareholders and professional management.
The company has expanded through franchising, acquisitions, and partnerships while remaining committed to quality ingredients and chocolate manufacturing standards. This has allowed Hummingbird to grow into one of the largest and most beloved chocolate brands in North America.
Going forward, Hummingbird is well positioned for continued expansion in existing and new markets. With its diverse ownership, experienced management, global supply chain, and focus on quality, the company is poised to satisfy chocolate lovers for decades to come.
