Hershey acquires iconic Canadian candy maker Allan Candy Co.
Deal extends Hershey’s Sweets & Refreshment manufacturing capacity in North America, adds famous Canadian confectionery brands to the Hershey portfolio.
The company is well known across Canada for its iconic confectionery brands, including Allan, Big Foot, Hot Lips and Laces. The candy maker also is a leader in the Canadian Easter novelty chocolate segment and the Canadian candy cane category.
Also, more than half of Allan Candy’s current manufacturing capacity already is used to make Hershey Sweets & Refreshment products such as Jolly Rancher hard candies and Lancaster caramels for North America.
“The addition of Allan Candy’s high-quality manufacturing capabilities and confectionery portfolio greatly enhances our North American business,” says Steven Schiller, senior v.p., global sweets & refreshment. “Allan has been a long-standing sweets manufacturing partner that will strengthen our sales and profit performance.”
The acquisition of Allan Candy builds on The Hershey Co.’s long-standing business in Canada and its commitment to the Canadian market.
In 2011, The Hershey Co. acquired British Columbia-based Brookside, which today is its sixth global brand alongside Hershey’s, Kisses, Reese’s, Jolly Rancher andIce Breakers.
With the purchase of Allan, Hershey now operates three confectionery manufacturing facilities in Canada, including Allan Candy’s 170,000-sq.-ft. facility in Granby, Canada, which is part of the acquisition.
Hershey’s operations in Canada now total approximately 900 employees across the country who work in the company’s second largest sales market in the world.
“The acquisition of Allan Candy extends Hershey’s ability to serve consumers across Canada by adding a number of iconic Canadian confectionery brands to our portfolio,” explains Rohit Grover, v.p. Hershey Canada. “We are delighted to welcome Allan Candy to Hershey and continue working with them to make great-tasting, high-quality products for The Hershey Co. as well as their popular branded products.”
Hershey previously announced during its third-quarter conference call and in its 10-Q filed on Sept. 28, 2014, that it had signed a purchase agreement with Allan.
The acquisition will not affect Hershey’s previously announced adjusted earnings per share-diluted outlook for 2014 provided on Oct. 29, 2014.