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Oct 01, 2000

Spangler Candy Pursues Growth Opportunities

Bryan, OH October 2000:

Spangler Candy Company will pursue opportunities for growth under the leadership of Dean L. Spangler, the company's new CEO.

Growth plans will focus on its core lollipop and candy cane business. The company will also utilize brand licensing and contract manufacturing, both new activities for the 94-year old private company.

"We believe that to be successful in today's market, we must welcome and embrace change," said Mr. Spangler. "We cannot be satisfied with finding the right answer; we must find the BEST right answer."

The road to that right answer lies in a strong emphasis on Dum Dum Pops®, the company's flagship brand, and on new product development, including brand extensions and brand licensing.

The results of research done in early 2000 by Leo Burnett, USA, suggest that Spangler Candy should maximize the power of the Dum Dum brand. Dum Dum Pop sales continue to grow each year and Dum Dums is a brand with demonstrated market strength. "We are the Dum Dum company," said Mr. Spangler. "We plan to leverage the strength of this long-established brand."

At the same time, Spangler will continue to expand with new products and utilize licensed brands, such as Jelly Belly® Candy Canes, new this year, and Atomic Fireball® Lollipops and Lemonhead® Lollipops, scheduled for release in early 2001. "The Jelly Belly Candy Cane is easily Spangler's biggest new product in our history," Mr. Spangler said, "and our market tests of Lemonhead Lollipops and Atomic Fireball Lollipops have been very encouraging." All three of these new products are manufactured in the company's Bryan, Ohio plant.

Spangler Candy is finalizing an agreement with Sunrise Confections to manufacture some of its red-and-white candy canes in Mexico. "Expansion of our candy cane production in Mexico will provide several advantages for Spangler Candy," Mr. Spangler said. "It will free manufacturing space in Bryan to meet the increasing lollipop demand."

In addition, Mr. Spangler noted that the cost of production is significantly lower in Mexico than in the United States, allowing the company to compete more effectively. "The red-and-white candy cane market has become extremely price competitive," he said. "We sell our red-and-white candy canes today for less per cane than we did 25 years ago."

"Sunrise Confections is a perfect partner for our company,"added Mr. Spangler. "Their facility will be world-class and they have assembled an impressive management team. Most importantly, they share our commitment to quality in all of their activities."

Because of planned expansion of lollipop production, Mr. Spangler said the company anticipates no loss of jobs at the Ohio plant due to contract manufacturing in Mexico.

Spangler Candy will celebrate its 100th anniversary in six years, Mr. Spangler noted. "Preservation of market share and margins is dependent upon an operating and marketing commitment to continual improvement in all aspects of our business."

"Our domestic competitors and customers continue to consolidate and global competitors seek to pump product into the U.S. consumer economy. We will continue to meet these new challenges with the standards that have guided our company for three generations.

 

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