Sugar prices may cost Chicago candy crown Food & Drink Weekly, June 20, 2005
Save a personal copy of this article and quickly find it again with Furl.net. It's free! Save it. Sugar prices may cost Chicago candy crown: Candymaking jobs will continue to disappear in Chicagoand other confection hubs if U.S. sugar prices--more than double the cost in other parts of the world--don't come down, say executives who have convened in Chicago for the National Confectioners Association annual convention. In the past decade, nearly half of the 13,600 candy manufacturing jobs inChicago, the U.S. candy capital, have disappeared as companies have shifted some operations to plantsin Mexico or Canada in search of cheaper sugar price s.
Tootsie is able to purchase sugar at world sugar prices and is not really effected by domestic sugar price supports. It is my understanding they received this waiver back in WW II. Because of the sugar rationing back then, Tootsie was waived and given the right to purchase world sugar from a specific port in Chicago so they could produce Tootsie rolls for the troops. Plus Tootsie produces product in Mexico and now Canada. I assume the Mexico production is a labor issue and the Canado production is from a recent purchase of Concord. I would suspect that Tootsie has more labor issues than sugar issues that would drive production to another country.