Farley's & Sathers Candy Company

Farley's & Sathers Candy Company

Company type	Holding company
Industry	Confectionery
Founded	2002
Founder	Catterton Partners
Fate	Merged with Ferrara Pan Candy Company in 2012 to form Ferrara Candy Company; acquired by Ferrero Group in 2017
Area served	United States
Products	Candy, fruit snacks, marshmallows, caramel products

Farley's & Sathers Candy Company was created as a holding entity to bring together multiple smaller confectionery brands and enterprises under a single organizational structure. Established in 2002 by Catterton Partners, it took over assets from the former Farley Foods and Sathers Candy Company segments that were once part of Kraft Foods. Since its inception, the company has broadened its brand lineup through further acquisitions.

In 2012, L Catterton Partners combined Farley's & Sathers with Ferrara Pan Candy Company, retaining majority ownership and rebranding the combined entity as Ferrara Candy Company. Then, in November 2017, the Ferrero Group revealed plans to acquire Ferrara Candy Company, a transaction completed in December 2017, thereby strengthening Ferrero’s presence within the U.S. candy sector.

History

Farley's and Sathers joined forces with Dae Julie Company and Trolli under Favorite Brands—Dae Julie was absorbed into Farley, while Sathers and Trolli continued as separate operations. Favorite Brands was later purchased by Nabisco, which subsequently merged with Kraft Foods. As Kraft divested various holdings, Farley & Sathers emerged as an independent business, though it relinquished certain divisions such as the fruit snack line that was later acquired by Kellogg.

Kraft initially retained Trolli's North American operations but then sold them to the Wrigley Company, which were eventually reacquired by Farley & Sathers. The histories of these companies are closely connected: Sathers procured bulk candies from Farley; meanwhile, Farley's expansion benefited from the decline of E.J. Brach's, which merged with Brock of Chattanooga to form Brach and Brock—later purchased by Farley & Sathers—restoring its presence in fruit snacks despite losing early market leadership.

Over time, many manufacturing plants and distribution hubs were either consolidated or shut down to improve operational efficiency.

Sathers

The Sather Company was founded in 1936 by John Sather, a grocer based in Round Lake, Minnesota. Initially, he bought large shipments of cookies to distribute throughout southwestern Minnesota.

By the early 1960s, Sathers had grown its distribution network to cover five Midwestern states and added a nut roasting facility. The adoption of telemarketing in 1967 expanded its reach to eleven states and necessitated enlarging its fleet with tractor-trailers.

Primarily functioning as a repackager, Sathers acquired bulk candy from manufacturers such as Farley Candy Company and Haviland Candy Company (a division of NECCO), then repackaged these products into smaller retail units. The company was an early adopter of packaged "pegboard" or "hanging bag" candy—a format that has since become a staple marketing approach within the confectionery industry. Its innovative use of telemarketing—introduced due to high salesforce turnover caused by low wages—enabled customers to place orders by phone while managing their own stocking, marking a significant change in sales tactics.

Sathers expanded nationally in 1972 after winning half of Kmart’s nationwide candy contract. The acquisition of Chattanooga-based Kitchen Fresh Company in 1983 secured the remaining portion of Kmart’s business. Additional acquisitions included Bayou Candy Division (1985), Powell's Candy Company, and Northstar Candy Company (both in 1991). By this time, Sathers operated three production facilities—a nut roasting plant in Chattanooga, Tennessee, confectionery plants located in Hopkins, Minnesota, and New Orleans, Louisiana—and maintained two distribution centers.

Farley

Gunther Farley and his siblings established the Gunther Chocolate Company in 1870, which later merged with another candy business owned by the Farley family in 1891, forming the Farley Candy Company.

As the business grew, it shifted its base from Chicago to Skokie, Illinois, in 1951. Under the leadership of Preston Farley, representing the third generation until 1968, the company concentrated on jelly products and other starch mogul-produced confections. Preston Farley developed the Farley Jet Cooker, a device subsequently licensed to the Staley Company and still applied in confectionery manufacturing today.

In 1974, William Ellis took full control of the company and acquired Lakeside Candy Company located in Zion, Illinois, recognized for its individually wrapped hard candies such as starlight mints and butterscotch. By 1981, Farley was operating facilities in Skokie, Zion, and a newly obtained 103,000 square-foot plant formerly owned by Peter Paul-Cadbury, which became the primary site for chocolate production.

The company expanded further in 1985 by opening a 265,000 square-foot plant in Chicago dedicated to fruit snacks and gummy candies made with real fruit juice and enriched with vitamins. In 1988, a 50,000 square-foot packaging and distribution center was established in Compton, California, to better serve the West Coast market. That same year, Farley leased a 253,000 square-foot warehouse in Bedford Park, Illinois. With four manufacturing plants and two distribution centers at this point, Farley ranked as the second-largest bag candy manufacturer nationwide and was the leading producer of private-label general line candies.

Continuing its expansion strategy, in 1990 Farley acquired a 142,000 square-foot former E.J. Brach's facility in Melrose Park to manufacture hard candies including cost-efficient Starlight Mints. In response to capacity demands, the company purchased a 144,000 square-foot production plant and a 100,000 square-foot warehouse in Oklahoma City and Moore respectively by 1993.

By 1994, Farley secured a lease on a 480,000 square-foot warehouse and distribution center located closer to major expressways in Chicago and near its main manufacturing site.

In August 1996, Favorite Brands International acquired Farley Foods; William Ellis retained a 14.3% ownership stake. This acquisition represented a pivotal development in Farley's corporate growth and organizational transformation.

Favorite Brands International

Founded in July 1995 after purchasing Kraft Foods’ branded and private-label caramel and marshmallow operations for roughly $204 million, Favorite Brands International (FBI) emerged as North America’s largest marshmallow manufacturer and top wrapped caramel producer. The acquisition was financed by Texas Pacific Group (TPG) alongside InterWest Partners. At that time, Kraft’s caramel segment commanded over half of the market share while its marshmallow division exceeded 60%. FBI also took over Kraft’s industrial caramel and marshmallow businesses, dominating the dehydrated marshmallow sector with a near-total market share of 98%, supplying ingredients for breakfast cereals, hot cocoa mixes, and taffy apples.

Favorite Brands International - Acquisitions

(intercompany sales eliminated - million $'s)

Name	Date	Price	Sales
Kraft Marshmallow & Candy	September 25, 1995	$204	$151
Farley Foods	August 30, 1996	$204	$284
Sathers Candy & Trucking	August 30, 1996	$107	$166
Kidd & Company	August 30, 1996	$30	$33
Dae Julie & Candyland	January 27, 1997	$42	$56
Mederer U.S. - Trolli	April 1, 1997	$117	$62

Following the acquisition, FBI retained rights to use the Kraft brand name for two years until September 1, 1997. The Kendallville facility in Indiana—an established site situated on a sprawling 32-acre property—became FBI’s central manufacturing hub after consolidating four Kraft marshmallow production lines previously located in Buena Park (California), Canada, and Garland (Texas). This consolidation improved efficiency across FBI’s confectionery operations.

Acquisitions of Sathers Candy and Farley Foods

In 1996, Favorite Brands broadened its product lineup by purchasing both the Sathers Candy Company and the Farley Food Company.

Kidd Marshmallows

That same year, Favorite Brands also acquired Kidd & Company, which ranked as the second-largest producer of marshmallows and marshmallow creme in the United States, reporting sales above $32 million in 1995. This move gave Favorite Brands control over the two dominant marshmallow manufacturers in North America.

Kidd was established in 1895 by Albert Eugene Kidd, initially manufacturing a variety of goods before concentrating solely on marshmallows and marshmallow creme by 1938. The company’s original casting technique was eventually replaced by an innovative extrusion process patented by Alex Doumakes in 1948, transforming marshmallow production and setting new industry benchmarks. Over time, Kidd expanded its manufacturing capacity, including a facility in Ligonier, Indiana, which later grew to .

In 1987, Kidd constructed a plant in Henderson, Nevada; this facility was destroyed during the 1988 PEPCON explosion but was rebuilt in 1989. It functioned as a primary manufacturing and distribution center for the West Coast until its eventual shutdown.

Following Favorite Brands’ acquisition, production operations were transferred from Ligonier to a former Kraft plant located in Kendallville, Indiana. After Kraft acquired Favorite Brands in 2000, the Henderson facility was closed in 2001, consolidating production at Kendallville. The Henderson site has since been repurposed for maintenance activities by Clark County.

Although marshmallow manufacturing ceased locally, Ligonier honors Kidd’s heritage through the annual Marshmallow Festival held since 1992.

Acquisition of Dae Julie

In early 1997, Favorite Brands purchased Dae Julie, a candy importer founded by David Babiarz in 1963. Babiarz introduced Candyland in 1990, specializing in gummy candies produced at a modern facility in Des Plaines, Illinois. Due to trademark restrictions, products were marketed under the Dae Julie brand name. At the time of acquisition, Dae Julie was a leading gummy manufacturer with annual sales exceeding $40 million at manufacturer pricing. The U.S. gummy candy market was estimated between $150 million and $175 million, with competitors such as Nabisco’s Gummi Savers, Trolli, Farley Candy, and Ferrara Pan.

Acquisition of North American Trolli Operations

Later that year, Favorite Brands incorporated Trolli’s North American business into its portfolio. Trolli originated from a German firm founded by Willi Mederer in 1948 (originally named Wilmed) and was rebranded as Trolli in 1975. The company introduced gummy worms to the market in 1981 and expanded U.S. production with a facility in Creston, Iowa by 1986. Favorite Brands acquired Trolli’s U.S. manufacturing plant and secured licensing rights for North American distribution, achieving a 15% share of the gummy market by 1997.

Overview of Favorite Brands

Established in 1995 to unify leading U.S. marshmallow manufacturers, Favorite Brands rapidly became the foremost branded marshmallow producer with a commanding 79% market share and dominated ingredient marshmallows with a 98% share supplying major cereal producers. Its Fruit Snack division ranked second nationally with a 22% share, while its Sathers brand led convenience store sales.

The acquisitions of Trolli and Dae Julie in 1997 propelled Favorite Brands to become the second-largest gummy candy company. By the end of that year, it ranked as the fourth-largest confectionery manufacturer in the United States—behind Hershey, Nestle, and Mars—with annual revenues surpassing $750 million.

Despite strong brand portfolios and market presence, Favorite Brands experienced rapid leadership changes—three CEOs within three years—and faced difficulties integrating diverse operations and product lines. Transitioning from privately held firms to a centralized management lacking confectionery expertise resulted in operational inefficiencies, elevated overhead costs including costly office space leases, and diminished promotional efforts.

The company’s strategy relied on synergy among acquisitions to counterbalance financing expenses; however, heavy debt burdens and asset overvaluation weakened this approach. Integration challenges persisted due to varying operational models and customer bases across acquired entities. Loss of key personnel damaged trade relationships and disrupted product fulfillment processes, enabling competitors to capture retail shelf space.

Additionally, Favorite Brands lost licensing rights to use the Kraft name in October 1997 and encountered intensified competition from rivals such as Brach’s within lucrative fruit snack and gummy segments. Sales teams remained segregated along legacy brand lines without effective cross-selling collaboration.

As financial reserves dwindled, Texas Pacific Group injected additional capital but restructuring progressed slowly; twelve redundant distribution centers were closed only by 1998. Expensive consulting engagements produced limited improvements amid ongoing financial pressures.

Cultural conflicts arose between Kraft’s brand-centric philosophy and value-oriented brands like Sathers and Farley’s. Sales organizations remained separate entities limiting integration advantages under Favorite Brands’ corporate framework.

Ultimately, fragmented operations led to divestitures: Nabisco acquired Favorite Brands for $475 million cash in 1999—significantly less than Texas Pacific Group’s approximate $700 million investment—and announced closure of headquarters by early 2000. Later that year Nabisco merged with Kraft.

Following these transactions, components of Favorite Brands were sold or integrated: Farley’s Fruit Snack line was retained briefly before sale to Kellogg; Trolli was divested separately to Wrigley in 2005; marshmallow production returned to Kraft. Despite initial growth ambitions, these acquisitions failed to deliver anticipated value or market dominance.

Farley's and Sathers

Farley's and Sathers came into existence in January 2002 in Round Lake, Minnesota, following the acquisition of assets from Kraft Foods for approximately $50 million. At that time, the brands acquired had reported sales around $220 million in 2001. The transaction included trademarks, the Sathers Trucking operation, the principal distribution center, and six additional facilities, among them three Farley manufacturing plants such as the former Dae Julie site located in Des Plaines, Illinois. Since this initial purchase, the company has grown by securing further brand acquisitions.

Henry Heide Candy

In May 2002, Farley & Sathers expanded its portfolio by obtaining several Hershey-owned brands, notably Henry Heide Candy products like Jujyfruits, Jujubes, Dollars, and Gummi Bears. Established by Henry Heide in 1869, the brand introduced "juju" candies in 1920. The key distinction between Jujubes and Jujyfruits lies in their thickening agents—potato starch versus corn starch—and their curing durations, which influence their texture firmness.

Originally formulated with ju-ju gum derived from the jujube tree, these confections now primarily contain corn syrup. The Jujyfruits assortment includes shapes such as pineapple, tomato, raspberry, grape cluster, asparagus, banana (marked with "HEIDE"), and pea pod. Their flavors encompass raspberry, licorice, lime, orange, and lemon.

The "Red Hot Dollars" brand emerged in the 1930s; at that time "Red Hot" was slang for a dollar. After Farley's and Sathers took over from Hershey, the flavor profile changed from a mild raspberry to a spicy cinnamon.

Hershey had previously acquired Henry Heide Candy Inc. in 1995. Farley and Sathers purchased these brands in June 2002 when they were generating roughly $40 million annually.

Chuckles

In May 2002, Farley & Sathers also took ownership of the Chuckles brand from Hershey.

Chuckles was created by Fred W. Amend, who had a background with the Heide Candy Company. After working in various candy industry roles, Amend founded the Amend Company in Danville, Illinois in 1921 to produce marshmallow confections and later jelly candies. The product name—suggested by his wife Tulita—was intended to represent a non-chocolate option during an era dominated by chocolate products. Despite economic hardships during the Great Depression, Chuckles maintained consistent sales.

The Amend Company was sold to Nabisco in 1970. In 1986, Nabisco sold both the company and its manufacturing facility to local investors for $10 million; however, rights to the Chuckles brand were transferred separately to Leaf Inc., a subsidiary of Huhtamaki Oy based in Helsinki, Finland. The Danville plant was renamed Tempo Confections and continued producing candy under contract.

Hershey acquired Chuckles in 1996 through its purchase of Leaf Inc.'s confectionery division.

Amazin' Fruit

Also acquired from Hershey in May 2002 was Amazin' Fruit, originally launched by Hershey about ten years earlier to enter the gummy candy segment. Created as a competitor to brands like Trolli, it featured real fruit juice and initially used bear shapes before switching to fruit designs. A cross-promotion with Jurassic Park: The Lost World introduced dinosaur-shaped gummies.

Now and Later

In late 2002, Farley & Sathers acquired Now and Later from Kraft. Launched in 1962, the brand’s name invited consumers to enjoy some pieces immediately while saving others for later enjoyment. Its marketing slogans transitioned from "Eat some now, Save some for Later" to "Hard 'N Fruity now and Soft 'N Chewy Later," highlighting the candy's evolving texture as it softens over time.

Charles Cari, the founder, honed his toffee-making skills at W.F. Schrafft's & Sons in Boston before establishing his own candy business in Brooklyn in 1919. In 1953, Harry and Joseph Klein purchased the company for $25,000 and created Phoenix Candy Company, focusing primarily on seasonal Halloween confections. Now and Later was introduced as a product available year-round, supporting nationwide growth through expanded manufacturing capabilities.

Phoenix Candy changed hands several times: sold to Beatrice Foods in 1978, then acquired by Finland’s Huhtamäki Oyj in 1983 and merged into Leaf, Inc. The Finnish investment group Kouri Capital bought Phoenix Candy in 1986 and rebranded it as Phoenix Confections. Nabisco took ownership in 1992, with Kraft later gaining control of Now and Later following its acquisition of Nabisco in 2000.

The original flavor lineup included Red, Green, and Blue varieties; under Beatrice Foods’ management, these were renamed Strawberry, Apple, and Grape.

Intense Fruit Chews

Intense Fruit Chews were obtained from Kraft at the end of 2002. Initially part of Nabisco’s Lifesavers portfolio, this product line became part of Kraft’s assets after its 2000 Nabisco acquisition.

RainBlo

First created by Leaf Confectionery in 1940, RainBlo was the pioneering bubble gum featuring a hollow flavored center that enabled users to blow colored bubbles. The brand changed ownership multiple times—including under W.R. Grace and Huhtamäki Oy—before Hershey acquired it via its 1996 purchase of Leaf.

Fruit Stripe

Originating in the early 1960s as part of Beech-Nut’s gum offerings, Fruit Stripe became a Hershey brand in 2000 through a broader acquisition of Nabisco’s gum products.

Hot Dog!

Acquired from Hershey in 2003 within a four-brand gum purchase, Hot Dog! is a novelty gum shaped like a sausage with cherry or cinnamon flavors. It is commonly sold at ballparks and hot dog stands.

Super Bubble

Developed after World War II by the Thomas Weiner Company, Super Bubble initially succeeded with a five-cent price point before introducing a one-cent version in 1948. The brand was acquired by General Mills in 1969, then later passed to Leaf and eventually Hershey in 1996.

Bobs Candies

Founded in 1919 by Bob McCormack in Albany, Georgia, Bobs Candies grew to become the world’s leading manufacturer of candy canes. The company underwent several name changes before adopting Bobs Candy Company in 1933.

Starting with coconut, peanut, stick, and hard candies, Bobs expanded its product range to include chocolates and pecan treats—most notably "Bobs Pe-Kons." After a tornado destroyed its factory in 1940, operations resumed within six months.

To combat production issues caused by southern Georgia’s humidity, Bobs installed air conditioning in 1946 and introduced moisture-resistant wrappers three years later. Significant automation advances came through inventions by Father Harding Keller—McCormack’s brother-in-law—including the patented Keller Machine that twists candy canes into their distinctive spiral stripes. Keller gained national attention as a contestant on What’s My Line during the 1960s.

During the late 1960s through the 1970s, Bobs expanded its Albany facility to more than 130,000 square feet, doubling production capacity twice. A second plant opened in Kingston, Jamaica, in 1984 to manufacture unwrapped sugar stick candy.

In 1985, Bobs acquired Fine Candy—a competitor with $4 million annual sales—and further expanded its Georgia facility by an additional 175,000 square feet in 1994.

By 2001, approximately 500 million candy canes were produced annually at the Georgia plant. Between 2001 and 2004, half of production was shifted to Mexico to benefit from lower sugar expenses.

Farley & Sathers purchased Bobs Candies in 2005; by the end of that year all operations in Albany were closed with production fully relocated to Mexico.

Reacquisition of Trolli in North America

Originally part of Favorite Brands, Trolli became a Nabisco brand in 1999 before being acquired by Kraft in 2000. In 2004, under Kraft's ownership, Trolli introduced the Roadkill candy line—gummi creatures imprinted with tire marks—which quickly drew criticism from animal welfare advocates and was subsequently withdrawn from the market.

By 2005, Kraft divested Trolli to Wrigley as part of a $1.48 billion sale that included other confectionery brands such as Altoids and Lifesavers. Later that same year, Wrigley transferred Trolli to Farley and Sathers Candy to concentrate on core brand realignment.

Brock Candy Company

Established in 1906 by William E. Brock in Chattanooga, Tennessee, Brock Candy transitioned from crafting handmade penny sweets to mechanized production using automatic moguls by the 1920s. The firm specialized in jelly and marshmallow confections and was among the first to utilize cellophane wrapping. Signature offerings included Chocolate Covered Cherries introduced in the 1930s and the Brock Bar nut roll developed during World War II amid sugar rationing.

The company expanded significantly in the 1950s, acquiring a new site to enhance manufacturing and distribution capabilities by the 1960s. Production operations were relocated to this advanced facility in 1976.

In 1978, Brock acquired Schuler Chocolates based in Winona, Minnesota, which owned traditional products like the Chicken Dinner candy bar (originally produced by Sperry Candy) and the Duck Lunch bar. Schuler also held certain rights connected to the Milky Way bar prior to Mars' acquisition of that brand.

During the 1980s, Brock diversified into gummy candies and fruit snacks while growing its contract manufacturing services. The acquisition of Shelly Brothers in 1990 brought patented clear candy molding technology into Brock's portfolio. By 1993, Brock had secured a 30% investment in Dublin's Clara Candy to facilitate entry into European markets.

Brock went public through an initial public offering distributing 2.3 million shares representing nearly 63% ownership, marking a pivotal development in its corporate expansion.

E.J. Brach's Candy

Founded in 1904 by Emil Brach with an initial $1,000 investment, Brach's began operations at a Chicago storefront called "Brach's Palace of Sweets," initially utilizing a single kettle alongside his sons Edwin and Frank. By expanding equipment investments, Brach reduced production costs and offered candy at 20 cents per pound—significantly undercutting competitors who charged around 50 cents. By 1911, weekly output reached 50,000 pounds.

By 1923, Brach operated four factories and invested $5 million into constructing a consolidated plant at 4656 West Kinzie Street, designed by Alfred S. Alschuler. This facility produced up to 2.2 million pounds weekly across 127 candy varieties and later incorporated chocolate grinding and panning departments. After a devastating explosion in 1948 claiming eleven lives, reconstruction efforts expanded capacity beyond four million pounds annually with a workforce of approximately 2,400 employees within a 2.2 million square foot plant—then recognized as the largest candy manufacturing site worldwide. Employment peaked near 4,500 before production largely shifted to Mexico in 2003; the original complex was demolished by 2014.

Prior to World War II, Brach's manufactured candy bars such as the chocolate-covered peanut butter "Swing Bar." Post-war strategies emphasized bulk and bagged candies, leveraging Halloween's growing popularity by promoting products like candy corn packaged for individual servings.

In 1958, Brach's pioneered the Pick-A-Mix concept—enabling customers to select assorted candies sold by weight—modernizing traditional barrel candy displays for supermarket environments.

American Home Products acquired Brach's in 1966. By 1986, Brach's commanded roughly two-thirds of the U.S. bagged candy segment and held about 7% of the $9 billion national confectionery market with $640 million in revenue, over $75 million pretax earnings, and a workforce numbering approximately 3,700.

In 1987, Swiss multinational Jacobs Suchard purchased Brach's for $730 million; however, sales declined sharply to $470 million by 1989 accompanied by losses nearing $50 million. By 1993 sales further decreased to $400 million with $26 million losses despite increasing U.S. candy consumption. This period was marked by high executive turnover with nine CEOs over seven years, relocation of headquarters to a suburban Chicago penthouse office, workforce reductions of nearly 900 employees (42%), loss of major retail clients including Walgreens and Walmart due to product line cuts from roughly 1,700 items down to around 400 as well as scaled-back holiday promotional efforts.

Under Klaus Jacobs' leadership, key management roles were replaced with European executives unfamiliar with American consumer preferences; rebranding as Jacobs Suchard Inc. diminished brand equity and market position.

In 1990 Phillip Morris acquired Jacobs Suchard excluding U.S.-based Brach's operations which Klaus Jacobs managed via Van Houten & Zoon Holding AG. Persistent strategic conflicts arose between branded product focus versus commodity offerings amid ongoing leadership instability and attrition among sales personnel.

In September 1994, E.J. Brach's purchased Brock Candy Company for $140 million; Brock reported $112 million in sales and $6.5 million profits that year. Previously attempted mergers under American Home Products were blocked due to antitrust concerns. The combined company initially operated under the name Brach and Brock Candy Company before adopting the brand Brach's Confections.

In 2003 Barry Callebaut AG acquired Brach's Confections; KJ Jacobs AG—the principal stakeholder of Brach's—was also a significant shareholder in Barry Callebaut. The transaction included assuming $16 million in debt along with financing restructuring over five years for a nominal purchase price of one dollar.

Acquisition of Brach's Confections

On September 17, 2007, Barry Callebaut AG revealed the divestiture of Brach's Confections to Farley's & Sathers, a transaction finalized on November 16, 2007, with the financial terms undisclosed. Following the announcement, Barry Callebaut's stock appreciated by over 1%, as market analysts perceived the sale as a strategic step toward enhancing the company’s profit margins. Brach's was recorded on Barry Callebaut’s balance sheet at an estimated value of 30 million Swiss francs (approximately US$16 million), and no significant extraordinary profit was anticipated from the transaction. At that period, Brach's contended with heightened competition amid a stagnant U.S. confectionery market, generating annual gross revenues close to $270 million—comprised of roughly 75% sugar-based candies and 25% chocolate products.

This acquisition elevated Farley's & Sathers into the ranks of the top 25 global confectionery firms and incorporated Brach’s fruit snack segment, reintroduced chocolate offerings, and broadened its general candy assortment. In the year following the purchase, Farley's & Sathers reported revenues totaling $590 million.

Ferrara Pan Candy

The origins of the Ferrara family enterprise trace back to Salvatore Ferrara’s emigration from Nola, Italy to New York in 1899, followed by his establishment of a bakery in Chicago’s "Little Italy" neighborhood in 1908. Initially specializing in candy-coated almonds known as "confetti," the business transitioned toward candy manufacturing after forming a partnership with brothers-in-law Salvatore Buffardi and Anello Pagano. They constructed a dedicated facility at 2200 W. Taylor for producing panned confections.

Nello Ferrara, representing the second generation and serving as a military attorney during post-World War II Japan trials, inspired the launch of Atomic Fireballs in 1954—a product now sold at a rate of 15 million units weekly. The company moved its operations to Forest Park in 1959, which remains its headquarters today.

Salvatore II, part of the third generation, was instrumental in creating the Lemonhead brand introduced in 1962; this line currently produces around 500 million units annually. The fruit candy range expanded with additions such as Cherryheads, Grapeheads, and Melonheads following a rebranding effort to unify market presence.

Ferrara’s portfolio also featured Jawbreakers, Boston Baked Beans, Red Hots, Long Fellers licorice pieces, Gr-r-r-oats cereal bars, and Try-umph chewing gum. In addition to their proprietary products, Ferrara Pan distributed Kraft Toblerone chocolates until losing that contract in 2008; subsequently, it invested over $20 million to develop a comparable product line which has since been discontinued.

The fourth generation saw Salvatore II’s son Nello positioned as heir apparent; he balanced his role within the company while pursuing minor league hockey.

Experts on family-run businesses highlight that succession beyond the founder is often complex due to intertwined personal relationships and business objectives. Leaders frequently face challenges separating familial loyalty from operational performance, which can undermine shareholder confidence during economic downturns. It is uncommon for family enterprises to endure into their fourth or fifth generations.

After more than a century of operation, divergent family priorities—including dividend expectations, capital gains interests, and leadership ambitions—complicated governance structures. Managing these competing demands became critical in negotiating the eventual sale of the company.

Acquisition of Ferrara Pan Candy

In May 2011, Salvatore Ferrara II was asked to leave a board meeting and departed voluntarily; he subsequently contacted law enforcement when the board resumed without his presence. That summer, Ferrara initiated merger discussions with Liam Killeen, who was then serving as CEO of Farley's & Sathers.

By May 2012, the Ferrara Pan Candy product lines had been incorporated into the Farley's & Sathers portfolio. The acquisition was funded through a $425 million term loan maturing in 2018, $330 million in equity from Catterton Partners and Ferrara Pan, along with a $125 million credit facility due in 2017.

Moody's downgraded the loan rating in May 2013, citing factors such as elevated leverage, declining sales volumes, increased costs of distribution, and postponed realization of synergy benefits. After the acquisition, the former Sathers headquarters located in Round Lake, Minnesota—employing over 200 people in 2010—was closed, with new corporate offices established in Oakbrook Terrace, Illinois. Additionally, one of two facilities in Chattanooga, Tennessee was shut down, and Sathers Trucking operations were discontinued.

In July 2012, a decade-long lease was signed for office space spanning several floors within a 31-story building in Oakbrook Terrace. At the time of acquisition, CEO Salvatore Ferrara II reported combined annual revenues of $1 billion: $350 million attributed to Ferrara Pan and $650 million from Farley's & Sathers. Moody’s pro-forma revenue estimate for 2012 stood at approximately $823 million.

Ferrara stepped down as CEO in February 2014, marking the end of 106 years of family leadership. In May 2014, Moody's further downgraded the company's debt ratings due to weak financial indicators including high leverage levels, poor liquidity, delayed synergy cost savings, thin profit margins, and negative free cash flow relative to debt.

In March 2015, the term loan facility was increased by $40 million to $465 million with maturity extended to June 2018; Moody's classified this adjustment as a Moderate Credit Negative but maintained the overall credit rating. Preliminary unaudited net sales for 2014 were reported at $870 million. Revenues for 2016 were approximately $859 million.

In 2017, additional plant closures and workforce reductions were announced. This included shuttering the Trolli manufacturing site in Creston, Iowa—the town’s third largest employer—following OSHA violations and labor disputes. Further layoffs occurred at the Bolingbrook, Illinois distribution center.

Ferrara Candy Today (formerly Farley's & Sathers)

Ferrara Candy is a confectionery manufacturer headquartered in Oakbrook Terrace, Illinois, operating four production facilities (two located in the United States and two in Mexico) alongside two US distribution centers situated in Illinois and Texas. The company holds a dominant position in the US market, producing 92% of all mellowcreme candies nationwide. It leads production of candy canes and conversation hearts and accounts for nearly all jelly bean consumption across the country. Ferrara operates 21 out of the nation’s 40 starch moguls and runs between 700 and 800 pans simultaneously—significantly outpacing competitors. Its weekly gummy candy output across all plants reaches one million pounds. The company employs approximately 3,000 individuals.

Formed from multiple legacy businesses that once operated over five million square feet of manufacturing space and employed more than 10,000 workers at their peak, Ferrara now primarily functions as a unified brand portfolio and marketing organization.

Ferrero acquires Ferrara

In October 2017, Ferrero SpA, a privately owned enterprise based in Luxembourg and recognized for products such as Nutella, Fannie May, and Tic Tac within the United States, completed the acquisition of Ferrara. The deal was valued at roughly $1.3 billion, inclusive of debt obligations.

Chronology

• 1860s: Establishment of Henry Heide Candy Company
• 1890s: Founding of Farley Candy Company
• Early 1900s: Commencement of Brach's Candies production; Brock's Candy launches penny candies and brittles
• 1920s: Formation of Bob's Candies
• 1930s: Sathers Candy Company is founded
• 1960s: Dae Julie begins as an importer, later transitioning into manufacturing
• 1980s: Trolli Gummis initiates production in the US
• 1994: Brach's gains controlling stake in Brock's Candy
• 1995: Favorite Brands International is created by acquiring Kraft's Caramel, Marshmallow, Dinner Mints, and Peanut Brittle lines; Henry Heide brand sold to Hershey
• 1996: Favorite Brands expands by purchasing Farley Foods, Sathers Candy, and Kidd Marshmallow
• 1997: Acquisition of Dae Julie and Trolli Gummi businesses by Favorite Brands
• 1999: Nabisco acquires Favorite Brands International
• 2000: Merger of Nabisco with Kraft Foods under Phillip Morris ownership
• 2002: L Catterton Partners forms Farleys & Sathers Candy Company from former Farley Foods, Sathers Candy, and Kraft Taffy assets; integrates Chuckles and Henry Heide brands obtained from Hershey
• 2003: L Catterton acquires four gum product lines from Hershey
• 2005: Acquisition of Trolli Gummi from Wm. Wrigley Jr. Company and Bob's Candies by L Catterton
• 2007: L Catterton purchases Brach & Brock Candy Company
• 2012: L Catterton acquires Ferrara Pan Candy Company and rebrands it as Ferrara Candy
• 2017: Ferrara Candy is sold by L Catterton to Ferrero SpA

External links

• History of Heide