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Necco

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Adapted from the English Wikipedia article Necco, available under CC BY-SA 4.0Updated 24 July 20258 sources
Necco
Company typePrivate (formerly)
IndustryConfectionery
PredecessorBall and Fobes, Bird, Wright and Company, Chase and Company
Founded1901
FounderConsolidation of several confectionery producers including Chase brothers
Defunct2018 (plant closure)
FateAssets sold to Round Hill Investments LLC; later acquired by Spangler Candy Company; brand assets sold to various companies
SuccessorSpangler Candy Company (partial)
Headquarters
Revere, Massachusetts
,
United States
Area served
United States (primarily)
Key people
Domenic Antonellis (former CEO), Richard Krause (former CEO), Michael McGee (former CEO)
ProductsNecco Wafers, Sweethearts Conversation Hearts, Clark Bar, Haviland Thin Mints, Sky Bar, Candy Buttons, Mary Jane candies, and others
Number of employees
~700 (2003), ~500 (2018) (2003, 2018)

Necco (also stylized as NECCO) was an American candy manufacturer founded in 1901 under the name New England Confectionery Company. This formation resulted from the consolidation of several small confectionery producers in the Greater Boston region, with origins tracing back to the 1840s.

In May 2018, Necco was acquired for $17.33 million by Round Hill Investments LLC, a firm led by billionaire C. Dean Metropoulos. Shortly thereafter, Round Hill entered bankruptcy proceedings, during which Spangler Candy Company purchased Necco’s assets.

Necco gained widespread recognition for its signature product, Necco Wafers—originally known as "Hub Wafers"—which date back to 1847. Its prominent brands also included the seasonal Sweethearts Conversation Hearts, Clark Bar, Haviland Thin Mints, and Sky Bar.

Origins

The company’s roots lie with Chase and Company, established by brothers Oliver R. and Silas Edwin Chase in 1847.[1] The Chase brothers developed and secured a patent for the first American candy manufacturing machine,[2] revolutionizing candy production with equipment that created various sweets, including their hallmark sugar wafers.

20th Century Developments

In 1901, three confectionery firms—Ball and Fobes (founded in 1848 by Daniel Fobes), Bird, Wright and Company (established in 1856), and Chase and Company—merged to form the original Necco enterprise.[1] The following year, they moved operations to a newly constructed facility in Boston’s Fort Point–South Boston Waterfront district, which became the largest U.S. factory exclusively dedicated to candy manufacturing.[3][4]

The Boston Wharf Company developed this 1902 manufacturing site at 253 Summer Street and 11-37 Melcher Street, influencing local geography through street names such as Necco Court, Necco Street, and Necco Place.[5] In 1907, the complex was expanded with additional buildings connected via an internal bridge. The site’s proximity to rail lines and waterways facilitated efficient transportation and storage of raw materials like sugar and molasses; notably, the Domino Sugar plant was also located nearby.

By 1906, Necco implemented a profit-sharing program,[2] fostering employee involvement amid the confectionery sector’s expansion. Around this period, entrepreneur David L. Clark introduced the Clark Bar near Pittsburgh, which gained popularity among World War I soldiers,[1] while Charles Miller developed the Mary Jane candy in Boston; both products achieved national acclaim.[4]

In 1927, Necco inaugurated a new facility on Massachusetts Avenue in Cambridge—the largest factory worldwide devoted solely to candy production at that time.[2][1]

Throughout much of the mid-1900s, Necco held a leading market position. During World War II, the U.S. Government requisitioned substantial quantities of Necco wafers because of their long shelf life and resilience during transportation,[2] continuing until 1945.[4]

For a period, Necco was the exclusive licensed distributor of Rolo candies within the United States,[6] later introducing a comparable product named "Milk Chocolate Caramel Roll" after losing distribution rights to Hershey.

By 1963, despite financial difficulties yet remaining family-controlled, Necco was purchased by United Industrial Syndicate based in New York. Domenic Antonellis assumed the role of CEO in 1978,[3] guiding the company for nearly thirty years.[7]

From the post-war era through the 1990s, Necco expanded its footprint through acquisitions across North America and Europe,[8] securing production rights for numerous branded candies. Significant acquisitions included Page & Shaw (1960), Wisconsin’s Stark Candy Company (1988)—which brought Sweethearts conversation hearts into Necco’s lineup reinforcing its dominance in that category—and Clark Bar America, Inc. (1999). By the year 2000, Necco employed around 1,200 workers.[2]

2000s

By 2003, Necco had centralized its operations at its Revere, Massachusetts facility, which functioned as the company’s international headquarters and employed more than 700 individuals. Annual revenues had leveled off near $100 million by 2005.

The original Necco premises located at 250 Massachusetts Avenue in Cambridge underwent a transition in 2004, becoming the Novartis Institutes for Biomedical Research. Its distinctive water tower was repainted to symbolize the new biomedical focus. The building earned a spot on the U.S. National Register of Historic Places in 2005.

In December 2007, a buyout led by private equity firm American Capital Strategies, together with Clear Creek Capital and CEO Domenic Antonellis, initiated a strategic redirection for Necco. Shortly thereafter, the company shuttered its Pewaukee, Wisconsin factory in March 2008. In August of the same year, Richard Krause, formerly with Procter & Gamble, was appointed CEO and announced ambitions to boost revenue by 30% by 2011 through domestic and international brand expansion.

Although Necco was put up for sale in November 2010, it remained unsold into early 2011. In July 2013, a legal dispute arose with the United Service Organizations over trademark usage following the termination of their marketing partnership; this lawsuit was resolved privately by February 2014.

Company tax breaks

In 2011, it was reported that Necco had not fulfilled its job creation obligations tied to a tax increment financing (TIF) agreement with the city of Revere. Employing 483 workers fell short of the required targets, leading to the Massachusetts Economic Assistance Coordinating Council revoking Necco’s certification in the economic development program. Despite this setback, the Revere city council and mayor chose to uphold the company’s tax incentives, resulting in savings of $300,000 and lowering annual property taxes to $750,000. Heightened public attention emerged as major clients such as CVS and Target expressed concerns over Necco’s financial stability.

Sale and closure

In May 2017, Necco’s manufacturing complex and headquarters in Revere were sold for $54 million to real estate firms Atlantic Management and VMD Companies, with Necco continuing to lease the premises until August 2018. By March 2018, CEO Michael McGee issued warnings about possible layoffs impacting nearly all of the roughly 500 employees—the largest workforce in Revere—if a buyer was not secured. This prompted a surge in online purchases of Necco products amid fears they might be discontinued.

The FDA issued serious sanitation violation citations against Necco in May 2018, including rodent infestations—marking the company’s fifth such warning. Subsequently, Necco’s assets went to auction; Spangler Candy Company initially won with an $18.83 million bid but later withdrew. The company was eventually sold for $17.33 million to Round Hill Investments, owned by billionaire C. Dean Metropoulos, operating briefly under Sweethearts, LLC.

By July 2018, Round Hill announced plans to close the Revere plant due to previously undisclosed sanitation problems, resulting in about 230 layoffs. At that time, Necco held the distinction of being America’s oldest candy manufacturer. Displaced workers quickly found employment opportunities elsewhere. It was later confirmed that Spangler Candy Company acquired the business and intended to restart production of Necco wafers, Sweethearts, and Canada Mints; other product lines were sold separately.

The Clark Bar brand was purchased by Boyer Candy Company in September 2018. Additional Necco brands and equipment were auctioned off: Candy Buttons were acquired by Doscher's Candies; Banana Split chews, Mint Julep candies, and Slap Stix lollipops went to Mega Candy Co.; Haviland Thin Mints and Mighty Malt Milk Balls were sold to Log House Food. Select brands such as Sky Bar were sold through online auctions; Mary Jane candies were licensed by Spangler to Atkinson Candy Company.

In October 2019, Amazon leased the former Necco factory in Revere for use as a distribution hub.

Brands

The Haviland division contributed to Necco’s range by manufacturing confections such as Haviland Thin Mints and Bridge Mix, broadening the company’s assortment.

  1. ↑ 1.0 1.1 1.2 1.3 Cite error: Invalid <ref> tag; no text was provided for refs named necco history
  2. ↑ 2.0 2.1 2.2 2.3 2.4 Cite error: Invalid <ref> tag; no text was provided for refs named loc
  3. ↑ 3.0 3.1 Cite error: Invalid <ref> tag; no text was provided for refs named bbj2004
  4. ↑ 4.0 4.1 4.2 Cite error: Invalid <ref> tag; no text was provided for refs named book
  5. ↑ City of Boston Fort Point Channel District Map
  6. ↑ Jason Liebig, "Our Big Rolo Roundup!"
  7. ↑ Cite error: Invalid <ref> tag; no text was provided for refs named msnbc09
  8. ↑ Cite error: Invalid <ref> tag; no text was provided for refs named jsol2008
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