Dive Brief:
- Jelly Belly Candy Co. will close its North Chicago, Illinois, confectionery plant on Oct. 11 and lay off 66 workers, according to a June 27 Worker Adjustment and Retraining Notification Act notice.
- Parent company Ferrara Candy Co., plans to move production to a different facility in the Chicago area and “hopes the employees stay with the company in different positions,” according to an emailed statement to Manufacturing Dive.
- Ferrera anticipates no impact on the Jelly Belly brand, its products or customer service. “Jelly Belly remains a critical component of our growth trajectory," the company said in the statement.
Dive Insight:
Ferrara Candy acquired Jelly Belly in November 2023, along with its nearly 800 employees and facilities in California, Illinois and Thailand. Ferrera manufactures 20 major candy brands such as Black Forest, Nerds, SweeTarts and Trolli.
During the acquisition, Jeff Brown, then the EVP of global operations and distribution of Jelly Belly, became its CEO, according to the November 2023 press release.
In Q4 2023, Ferrara also acquired Brazil-based candymaker Dori Alimentos. Along with the Jelly Belly Candy acquisition, the deals brought nearly $500 million of additional sales into Ferrara’s portfolio, according to its fiscal year 2023 earnings report.
During the year, the candy company also increased its manufacturing facilities from seven to 14 and expanded its global footprint to Mexico, Brazil and Thailand.
The confectionary industry has been making consolidation moves for years. In 2017, Ferrero Group, the global chocolate conglomerate behind Ferrero Rocher and Nutella, bought the U.S.-based Ferrara Candy to grow its gummy and seasonal candies in the U.S. market.
Ferrero also has an Illinois facility network. Ferrero North America opened its first chocolate processing facility in North America and third ever globally in Bloomington on May 7. The $75 million expansion grew Ferrero’s existing manufacturing campus in Bloomington, which manufactures Crunch, 100 Grand and Raisinets, as well as now Kinder Bueno, Ferrero Rocher and Butterfinger.
Ferrara still operates as an independent, private company with operations in 27 locations in North America, Brazil, China and Thailand which includes manufacturing, distribution, sales and R&D facilities, according to its website.
