How Sweet It Is -- U.S. Confectionery Companies Plan More than $1.6 Billion in Construction Investments

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Written by Eric Funderburk for IIR News Intelligence (Sugar Land, Texas)

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Summary

Americans love their sweets, and manufacturers of chocolate and candy confections are stepping up to the plate to expand their product lines and grow production of what's popular in the market at the moment.

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Heavy Spending for New Plants

Industrial Info Resources data find more than $1.6 billion worth of planned and underway construction at U.S. confectionery plants. Construction of grassroot plants accounts for most of the spending, followed at some distance by expansions at existing plants.

Current U.S. Confectionery Construction

One of the major U.S. confectionery projects currently under construction is an expansion from Tootsie Roll subsidiary Charms Company at its plant in Covington, Tennessee. Charms's biggest product line is the iconic Blow Pop line of lollipops and treats. Charms is increasing manufacturing and warehouse space in Covington by more than 200,000 square feet, which will house a new production line. General contractor RFW Construction kicked off work last year, and construction is expected to wind down toward the end of this year.

Other on-the-ground construction is primarily grassroot projects, including a new chocolates plant in Texas and a candy plant in Pennsylvania. In Rockwall, Texas, Chewters Chocolates is building a plant that will include four production lines to manufacture chocolate products on a contract basis for what the company refers to as "renowned brands," including organic and kosher offerings.

In eastern Pennsylvania, candy manufacturer Kervan has employed a Bethlehem, Pennsylvania-based contractor to head up construction of a 90,000-square-foot manufacturing facility that is expected to be completed in the coming weeks. Kervan is known for its broad range of gummy treats coming in various iterations of flavors and forms, including rings, bears, worms and, in the case of its cola-flavored gummies, soda bottles. The company also manufactures the Sunkist range of chewy fruit treats.

Future Construction

Planned U.S. confectionery projects vary in size and scope and include various grassroot construction, expansions and plant improvements.

Lovers of Kraft caramels or the company's Jet-Puffed marshmallow products line are in for a sweet treat knowing that Kraft plans to perform environmental upgrades at the major manufacturing plant for these products, located in Kendallville, Indiana. Kraft this year is expected to begin a major overhaul of the plant's utility systems that will increase energy efficiency and reduce emissions. The project is expected to last around 20 months, putting it on track for completion in the first half of 2028.

One of the largest U.S. confectionery projects on the books comes from Chicago-based Ferrera Candy Company, which is planning to invest $675 million in Orangeburg County, South Carolina, to construct around 750,000 square feet of new manufacturing and distribution space. Ferrera's candy lines include blockbuster products that have gained near-iconic status in the U.S., including NERDS candies, SweeTARTS, Laffy Taffy, Brach's, Jelly Belly jelly beans and Trolli gummy treats. Site preparations and improvements on the 918-acre parcel are expected to begin later this year, followed by the start of construction in early 2027, which is expected to last around two years.

Maintenance

In addition to capital projects, Industrial Info Resources' coverage of the U.S. confectionery industry also includes more than $45 million worth of maintenance projects planned to begin this year and next.

Key Takeaways

• Industrial Info Resources is tracking more than $1.6 billion worth of planned and current construction in the U.S. confectionery sector.
• The heaviest spending is designated toward grassroot plant construction, with leading candy manufacturer Ferrera planning the largest U.S. grassroot development in South Carolina.
• Other future projects include energy and emissions improvements at Kraft's caramels and marshmallow plant in Indiana.

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About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 trillion (USD).