Candy maker Charms will invest $97.7 million to expand its Blow Pop factory in Covington, Tennessee, Gov. Bill Lee said in a Feb. 12 press release.
The money will create 62 jobs and also bolster its distribution center. Once the project is completed, the factory will have nearly 500 workers, according to the release.
Charms was established in 1912 and the Covington plant, which has been operating since 1973, makes various candy brands including Blow Pop, Sour Balls, Fluffy Stuff cotton candy and Squares, according to the website.
Chocolate candy maker Tootsie Roll Industries acquired the company in 1988.
For the full year, Tootsie Roll Industries’s net sales dropped approximately 6.3% year-over-year to $715.5 million. The candy manufacturer generated sales of $191.4 million in its fourth quarter, a nearly 2% decline compared with the previous year, according to the company’s Feb. 12 securities filing.
Tootsie attributed the sales decline to slower demand in the face of higher candy prices. While progress was made to improve margins, the company said in an investor filing that cocoa and chocolate costs have climbed this year as new, costlier supplier contracts take effect.
Nevertheless, Tootsie remains focused on the longer term and will continue to invest in factory operations to meet product demands, improve quality, expand manufacturing capacity as well as increase operational efficiencies, the confectionary maker said in its earnings filing.
