Tootsie Roll Industries, Inc. Business Reports

Demand is driven by consumer tastes and population growth. The profitability of individual companies depends on manufacturing efficiency, supply chain efficiency, and marketing. Large companies have advantages in economies of scale in manufacturing and purchasing. Small companies can compete effectively by offering premium and specialty products. The industry is capital-intensive: average annual revenue per employee is about $490,000. Imports are a major source of competition for US producers. Most of the world's cocoa is produced outside the US; Hawaii is the only US cocoa source. For chocolate candy made directly from cocoa beans, imports account for about 85 percent of the US market. Imports account for about 20 percent of the US market for nonchocolate candy. Chocolate and nonchocolate candy imports come mainly from Canada, Mexico, Malaysia, the Netherlands, Ivory Coast, and China. Major candy export markets are Canada, Mexico, and South Korea. Exports account for 30 percent of US production of chocolate candy directly from cocoa sources. Exports make up 8 percent of US nonchocolate candy production.