Tootsie is now a powerhouse and can increase business in a big way just by replacing weaker competitors like Topps in the stores. This will halp pay for the acquisitions and position Tootsie for long term dominance.
Topps business is weak and in a tailspin. I like Tootsie's chances of taking their business and making greater earnings. No new products to introduce and test, just take other business from companies with declining revenues. There's a benefit to the stores too because they'll make more money with better selling products like Tootsie's.
What items does TR have that will replace Topps at retail? The two companies produce two diffent type candy items. TR has no competative item to Ring Pops, so what would they replace this item with? TR lollipop business is down and not being recovered by introduction of new items. The TR small pop is just taking sales from their bigger size pops. So, TR needs to focus on their brands like Tootsie Rolls, Andes Mints and their new gum brands. The Topps items are not that open to TR taking their spots. TR needs to focus on what they do well and stick to that.
Why does Tootsie have to replace Topps products with only their lollipops? They can replace Topps products with any other confection in their line (Tootsie Roll, Andes, new gum products, etc.). They can point out to the store owners that these Tootsie products outsell Topps products and should be in their space instead. A sweet is a sweet.
Tootsie's new gums can compete directly with Topps gums. Tootsie also has more to offer and can become the store's main supplier and possibly provide bigger discounts if the store buys a variety of Tootsie products. Lots of ways to increase business here if Tootsie realized that they are in the sweets business and their products can replace any other sweet.