BRYAN — In a reversal, Spangler Candy Co. said Monday that it has acquired the Necco Wafers and Sweethearts candy lines following a well-publicized bankruptcy by their original maker, the New England Confectionery Co.
Spangler, located in Bryan, announced in June that it had acquired the two candy products but failed to complete its purchase. The properties later were sold to Round Hill Investments LLC, a Greenwich, Conn., investment firm owned by the family of billionaire Dean Metropoulos.
Round Hill renamed its acquisition Sweetheart Candy Co. LLC.
In announcing its acquisition, Spangler — the maker of the classic Dum-Dum lollipops, Circus Peanuts, and seasonal candy canes — did not disclose from whom it had purchased the candy lines or the purchase price.
But the Boston Globe reported that Round Hill announced on July 24 that it had sold the New England Confectionery Co. to an unnamed confectionery manufacturer. It also said it had ceased operations at the Necco factory in Revere, Mass., as of July 27.
Spangler said the Necco Wafers, Sweethearts, and Canada Mints brands plus manufacturing equipment were obtained “following a series of transactions precipitated by the New England Confectionery Company bankruptcy.”
Because production of both candies has ceased, Spangler said it will take time to restart operations.
“There are a lot of manufacturing challenges and unanswered questions at this point, and we want to make sure these brands meet consumer expectations when they re-enter the market. We look forward to announcing the Sweethearts relaunch for the 2020 Valentine season, and hope to reintroduce Necco Wafers to the marketplace in 2019,” Spangler CEO Kirk Vashaw said.
Spangler has not decided whether the two candy lines will be made in Boston or Bryan.
If they were to be made in Bryan, available production space no longer is a question.
Spangler also said it has acquired an adjacent 20-acre campus owned by New Era Ohio LLC, a company that made custom machined and assembled components. The site has a 405,458-square-foot manufacturing plant and 50,829 square feet of office space.
Spangler said it plans to renovate the site to provide additional warehouse space and room for future expansion and growth. Newer warehouse space of 184,000 square feet will be brought up to food-grade standards and be used for equipment storage.
In June it looked like Spangler’s attempt to acquire Necco Wafers and Sweethearts was all but dead, with the Williams County candymaker walking away from its winning bankruptcy bid of $18.83 million to purchase the Boston company. As the second-highest bidder, Round Hill was allowed to buy the company.
But a court-appointed trustee in the bankruptcy case said Round Hill refused to complete its purchase of the candy firm because it claimed it was unaware of a Food and Drug Administration compliance issue within the factory. An FDA warning letter in May said a 2017 inspection of the factory found evidence of rodent activity and unsanitary conditions throughout the facility.
Despite that, Round Hill said earlier it had been thrilled to acquire Sweethearts and Necco Wafers, the latter of which has a devoted following.
Since the company stopped operations in July, Necco Wafers have been hard to come by with aficionados hoarding the candy. The Cracker Barrel store in Perrysburg, which sells retro candy, said it did sell the wafers but sold out long ago and hasn’t gotten new supplies for months.
Facebook is full of posts from candy fans lamenting its temporary demise and supplies of Necco Wafers have been appearing on eBay at inflated prices: two 2.02-ounce rolls for $8 and three rolls for $20.
For Spangler, the addition of Sweethearts represents an opportunity to capitalize on a third holiday for candy purchases. Dum-dums are a favorite purchase at Halloween and the company dominates with candy canes at Christmas.
“The combination of Dum-Dums, candy canes, Sweethearts, and Necco Wafers will make Spangler a strong company within the global confectionery market and will be a catalyst for growth,” Mr. Vashaw said. “Our new brands and our campus expansion will have direct benefits to our consumers, customers, suppliers, employees and the communities where we do business.”
Necco Wafers, a round chalky candy, and Sweethearts, an inscribed candy, have been around for more than 100 years.
Necco Wafers date to 1847 and were eaten by Union soldiers during the Civil War and also were popular in World War II because they were easy to transport and did not melt. Sweethearts were invented in 1901 and are immensely popular at Valentine’s Day.
“Sweethearts and Necco Wafers are iconic brands with rich hundred-year-plus histories. These are perfect additions to our portfolio of traditional candies,” Mr. Vashaw said. “We are particularly excited about the Sweethearts brand. Many people have memories of sorting through their box of Sweethearts to find just the right message to share.”
Contact Blade Business Writer Jon Chavez at jchavez@theblade.com or 419-724-6128.
First Published September 24, 2018, 11:22 p.m.
