Tootsie Roll
Tootsie Roll, Inc.
Sharon Ungar Lane, Bentley College
Alan N. Hoffman, Bentley College
INTRODUCTION: “Tootsie Roll’s good fortunes are an accumulation of many small decisions that were probably made right plus bigger key decisions, such as acquisitions, that have been made right, and a lot of luck.” Mel Gordon, CEO – Tootsie Roll, 1993
Tootsie Roll Industries, Inc., a niche candy maker, has often been voted one of Forbes magazine’s “200 Best Small Companies of America.” A top quality producer and distributor of Tootsie Rolls and other candy, Tootsie Roll Industries maintains a 50% market share of the taffy and lollipop segment of the candy industry, and sales have increased each year for the past nineteen years. The world’s largest lollipop supplier, the company produces approximately 16 million lollipops and 37 million individual Tootsie Rolls a day.
EARLY HISTORY
In 1896, Leo Hirschfield, a young immigrant from Austria, set up a small shop in Brooklyn, New York, to make candy from a recipe he had brought from Europe. As he rolled the sweet, chewy, chocolate candies, his thoughts wandered to his young daughter, Clara “Tootsie” Hirschfield, and he named his new confection the “Tootsie Roll.” He wrapped the Tootsie Rolls individually in paper to keep it clean and sanitary, and priced them a penny each.
Hirschfield’s Tootsie Rolls were an immediate success, and demand quickly outpaced supply. Hirschfield realized he would need more capital to promote and expand his business. After just one year, he merged his operation with a local candy manufacturer, Stern & Saalberg, which incorporated eight years later, and officially changed its name to the Sweets Company of America in 1917.
From 1922 to 1966, the Sweets Company of America set up manufacturing facilities around the United States to meet growing demand for Tootsie Roll products. Having captured America’s sweet tooth with Tootsie Roll, the company expanded its product line in the 1930s, developing a series of
Sharon Ungar Lane, Bentley College
Alan N. Hoffman, Bentley College
INTRODUCTION: “Tootsie Roll’s good fortunes are an accumulation of many small decisions that were probably made right plus bigger key decisions, such as acquisitions, that have been made right, and a lot of luck.” Mel Gordon, CEO – Tootsie Roll, 1993
Tootsie Roll Industries, Inc., a niche candy maker, has often been voted one of Forbes magazine’s “200 Best Small Companies of America.” A top quality producer and distributor of Tootsie Rolls and other candy, Tootsie Roll Industries maintains a 50% market share of the taffy and lollipop segment of the candy industry, and sales have increased each year for the past nineteen years. The world’s largest lollipop supplier, the company produces approximately 16 million lollipops and 37 million individual Tootsie Rolls a day.
EARLY HISTORY
In 1896, Leo Hirschfield, a young immigrant from Austria, set up a small shop in Brooklyn, New York, to make candy from a recipe he had brought from Europe. As he rolled the sweet, chewy, chocolate candies, his thoughts wandered to his young daughter, Clara “Tootsie” Hirschfield, and he named his new confection the “Tootsie Roll.” He wrapped the Tootsie Rolls individually in paper to keep it clean and sanitary, and priced them a penny each.
Hirschfield’s Tootsie Rolls were an immediate success, and demand quickly outpaced supply. Hirschfield realized he would need more capital to promote and expand his business. After just one year, he merged his operation with a local candy manufacturer, Stern & Saalberg, which incorporated eight years later, and officially changed its name to the Sweets Company of America in 1917.
From 1922 to 1966, the Sweets Company of America set up manufacturing facilities around the United States to meet growing demand for Tootsie Roll products. Having captured America’s sweet tooth with Tootsie Roll, the company expanded its product line in the 1930s, developing a series of