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Tootsie Roll Corporation

In: Business and Management

Submitted By dking60
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Tootsie Roll Industries Inc.

Hope Benites, Daniel Hardesty, Derrick King, Muna Al Waidh


June 25, 2012
Larry Key

Tootsie Roll Industries Inc. Tootsie Roll Industries has been an American favorite for well over 100 years. “Beginning in a modest New York candy store with the Tootsie Roll's introduction in 1896, the Chicago-based company has grown to become one of the country’s largest candy companies, with operations throughout North America and with distribution channels in more than 75 countries.” The brand is successful with a diverse group, which allowed there superb taste and style in candy assortments to reach all demographics, including all ages and origins. This appeal has led to the growth and continuous success of the brand. Looking at current times, Tootsie Roll Industries strives to stay current and competitive in an international setting, with Mexico as its biggest international partner while maintaining steady growth in the United States. Examples of this include product diversification; new flavors (sour products), shapes (mini tootsies, square tootsies, etc.), sizes, gluten free, and kosher products. Despite the financial achievements of the company in past decades, ownership is seeking financing to support new ideas to further grow the company. In the past, particularly 2006 to 2007 the company experienced an overall decline. This decline was caused by many factors, such as a slower economy, which led to fewer sales, higher costs for raw materials, rising onetime costs of buying outstanding shares, and advertising dollars contributed to the lower share value. Nonetheless, the company worked to take cost cutting procedures and make departments more efficient to help rein in operating costs. Although this lower share dividend may...

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