A Summer to Remember Print
The Sugar Beat

By now, it’s no secret that U.S. candy companies have been enjoying big profits and sustained growth despite the economic recession. In fact, U.S. government data show candy production increasing nearly 9 percent since 2004, and 2.5 percent since the recession started in 2008.

But even by the industry’s lofty standards, this summer has been one for the ages. The past six weeks alone have been marked with news of expansion, employment opportunities, skyrocketing sales, and even an induction into Forbes list of the world’s richest.

Here’s just a sampling of the good news put out by the industry’s National Confectioners Association since July 21.

“Mars Chocolate North America has broken ground on a 350,000-square-foot manufacturing facility in Topeka, Kan.” (Editor’s note, that facility will reportedly create 200 full-time jobs).

“Richardson Brands in Canajoharie, N.Y., which makes 80% of the world's rock candy, has seen sales rise 5% a year during the economic downturn and expects to add 80 jobs in 2012.”

“Hershey said net earnings more than doubled in the second quarter, and sales rose 7.5%, to $1.33 billion.”

“Michele Ferrero, 86, of the Ferrero Group came in at No. 32 on this year's Forbes list of the richest people in the world, with a fortune of $18 billion. He took over his family's company in the 1950s and changed the recipe for one of its most famous products, Nutella, before embarking on an international expansion.”

“BestSweet, which makes Baskin-Robbins' Smooth & Creamy Hard Candy, said it will invest $6.4 million to expand operations in Mooresville, N.C., adding 37 jobs.”

“Kellogg reported a profit of $343 million, up from $302 million the previous year. Sales rose 11% to $3.39 billion.”

“Spangler Candy Co. said it will boost candy-cane manufacturing capacity at its facility in Bryan, Ohio, investing about $400,000 and adding between 20 and 30 jobs.”

Members of the National Confectioners Association will be on Capitol Hill this week to discuss sugar policy with lawmakers. Whether or not they choose to share any of their good news from the past few weeks remains to be seen.

Don’t be surprised if they don’t though. The association has long called America’s no-cost sugar policy a financial burden—even if the volumes of stories about record sales and job creation prove the complete opposite to be true.

The fact is, everyone seems to be doing well under sugar policy. It doesn’t cost taxpayers a dime, sugar producers are recovering from decades of job losses and plant closures, and even the policy’s opponents are turning heads on Wall Street for their economic prowess.

 

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