Sunday, November 8, 2015

Brachs -- America's Candy Maker?

Frankly, the sugar crop supports by the federal government approach the ridiculous.  Currently U.S. producers of beet sugar get 24 cents per pound regardless of the price on the world market. In exchange they have growing allotments that are penalized if exceeded. World market price for sugar for 3Q 2015 was $.1591 per pound. This represents a difference of 8+ cents for each pound used in candy products. How do you keep this 8¢ per pound if you're the manufacturer? You make your candy outside the U.S., dumping U.S. jobs in the process. Does the sugar industry have that many more jobs than candy manufacturing?  That would be good to know--and who knows what other industries have moved manufacturing out of the country as a result of this price support.

In 2002, Life Savers production left the U.S. with the owner Kraft Foods complaining about sugar prices as the main reason. The mayor of Holland, Mich. where the plant had been previously, was quoted as saying the price of sugar was costing Life Savers "$90 million" a year. Sugar growers stated the cost difference in a pack of Life Savers was "about a penny". I'm guessing the Life Savers people were thinking "why should we put that money into a sugar grower's pocket, when we can move the plant, and put it in ours."

 And Mars, Inc., a $30 billion plus company--where do they make their candy destined for U.S. consumption? Evidently they opened a new plant in Topeka, KS in 2013, but it is mentioned in the article it's the first new plant in the U.S. since the 1970's. As a very secretive, privately held company, Mars is hard to track.

Which brings us to Brach's, a long-time Chicago candy maker (great back story here). Currently owned by Ferrara Candy, which picked up the brand when it merged with Farley & Sathers in 2012, one of their products that I have loved for years are their jelly beans.  Hopefully, they won't mess with the recipe (a la Life Savers, and Brach's orange slices, and a hundred other products), but I happened to read the last bag I bought.  I saw a bit of irony with their claims of "America's Candy Maker" and the small print with where it was made.  See for yourself.

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