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About Tootsie Roll Industries, Inc.

Neither taffy nor caramel nor chocolate, Tootsie Roll Industries' success is wrapped in brown-and-white waxed paper. As one of the country's largest candy companies, it makes and sells the vaguely chocolate-flavored Tootsie Roll, which has been produced with the same formula and name for more than a century. The company also makes such well-known candies as Sugar babies, Junior Mints, Charleston Chew, and Sugar Daddy. Tootsie Roll Industries sells its candy directly and through brokers to thousands of retail customers across the US (although Walmart and Dollar Tree together account for around 35%). Around 90% of its product sales comes from the U.S.

Operations

Tootsie Roll Industries products are marketed in a variety of packages designed to be suitable for display and sale in different types of retail outlets. They are sold through approximately 30 candy and grocery brokers Generally all of Tootsie Roll's revenue comes from products sold in the market.

Geographic Reach

Illinois-based, Tootsie Roll Industries' has manufacturing, warehousing and distribution facilities in Tennessee, Massachusetts, Wisconsin, Pensylvania, Spain, Canada, and Mexico. Its primary market the US generate more than 90% of product sales and the rest comes from Canada, Mexico and other countries.

Sales and Marketing

The company has approximately 2,000 customers in the US. Which include include wholesale distributors of candy and groceries, supermarkets, variety stores, dollar stores, chain grocers, drug chains, discount chains, cooperative grocery associations among others. Wal-Mart Stores, Inc. is its largest customer accounting for about 25% of net product sales.

Financial Performance

In 2019, consolidated net sales were $523.6 million compared to $515.3 million in 2018, an increase of $8.4 million or 2%. Successful marketing and sales programs contributed to the increases in sales for both the fourth quarter and twelve months of 2019 compared to the corresponding periods in the prior year.

In 2019, net earnings were $64.9 million compared to $56.9 million in 2018.

Cash held by the company at the end of 2019 increased by $28.1 million to $139.3 million compared to $139.3 million in the prior year. Cash provided by operations was $100.2 million while cash used for investing activities was $15.0 million primarily for purchase of available for sale securities. Cash used for financing activities was $57.2 million mainly for shares purchased and retired.

Strategy

Although the company does research and develops new products and product line extensions for existing brands, it also improves the quality of existing products, improves and modernizes production processes, and develops and implements new technologies to enhance the quality and reduce the costs of products. The Company does not expend material amounts of money on research or development activities.

Tootsie Roll Industries, Inc.

7401 S Cicero Ave
Chicago, IL 60629-5885
Phone: 1 (773) 838-3400

Firm Stats

Employer Type: Publicly Owned
Stock Symbol: TR
Stock Exchange: , NYSE
VP Marketing and Sales: Thomas E. Corr
VP Finance and CFO: G. Howard Ember
Chairman and CEO: Ellen R. Gordon
Employees (This Location): 850
Employees (All Locations): 2,000

Major Office Locations

Chicago, IL

Other Locations

Chicago, IL
Cambridge, MA
Hazle Township, PA
Covington, TN
Delavan, WI
Concord, Canada