Archibald Candy Corporation

Fannie May Confection Brands, Inc. is an American chocolate manufacturer headquartered in Chicago and currently owned by Italian company Ferrero SpA. Fannie May manufactures a broad variety of products including enrobed, barks, caramels, squares, berries, twist wrapped, molded, flow wrapped, and boxed chocolates. In attempt to reach all consumers, Fannie May became allergy conscious carrying candy without gluten, milk, honey, oil(s), wheat, eggs, etc. The Union of Orthodox Jewish Congregations of America certified many of Fannie May's products to be kosher as well.

History and products

1920

Buttercreams

The first Fannie May shop was opened in 1920 by Henry Teller Archibald at 11 North LaSalle Street in Chicago. His Buttercreams are introduced and become an instant success.

1939

World War II

In the midst of World War II, the ingredients for Fannie May's recipes were hard to come by. However, they chose to not change their recipes. Fannie May's vision was to create premium chocolates without ever compromising the taste of their products.

1946

Pixies

In 1946, just after World War II, Fannie May created its most well-known candy to date, the Pixie.

1963

Mint Meltaways

Mint Meltaways come out which are a combination of dark chocolate and peppermint coated with chocolate or a green pastel confection.

1972

Trinidads

A new recipe, the Trinidad comes to fruition created from a rich dark truffle centers enrobed in white confection and toasted coconut. The name comes from the island nation that is a source for legendary cocoa and coconut.

1980s

Expansion

By the mid-1980's Fannie May had expanded southward from its first store in Chicago, Illinois, opening its first store in Missouri, and the business had benefited and been booming such that by the end of the decade Fannie May retail stores were scatted across more than 250 locations mostly still centered around the Midwest U.S.

1992

Carmarsh

The Carmarsh is created, bringing together caramel, marshmallow, and chocolate.

History & Ownership

After purchasing Fannie May from Archibald Candy, Alpine Confections moved production to the company's Ohio based Harry London Candies, which had been purchased by Alpine Confections a year earlier, hoping to make a profit with the history of the confectionery's brand and reopened it in October 2004. Led by entrepreneurs R. Taz Murray and David Taiclet, the integration of this acquisition was highly successful.

In April 2006, Fannie May was sold for $85 million plus an earnout to publicly traded Internet retailer 1-800-Flowers.com. Alpine Confections again tapped investment banker Paragon Capital Partners for this transaction. The e-commerce retailer has since built a new business division, Simply Chocolate, to replace their chocolate category. The new business was more of an online platform that allowed shoppers to select from their wide selection of candy, meeting their expectations. The chocolates and candy continue to be manufactured in Green, Ohio, under Fannie May Confections Brands Inc, while their corporate headquarters remains in Chicago, Illinois.

In March 2017, the Italian confectionery giant Ferrero SpA bought Fannie May from 1-800-Flowers.com, for $115 million.

Warehouse

On Thanksgiving Day 2014, a fire broke out in a Fannie May warehouse in Maple Heights, Ohio. While none of the staff or employees were hurt, the majority of the products from holiday orders were lost and the building was severely damaged. The only thing that survived after the warehouse fire in 2014 was the "Fannie May Strong" banner. It was pulled from the rubble and still hangs in the warehouse as a reminder.

Partnerships

Fannie May has been partners with a couple of Chicago sports teams, since they are solely based in Illinois and founded in Chicago. Fannie May was a sponsor of the Chicago Blackhawks. For a while, Fannie May played upon the hockey team's slogan creating, "Fannie May Strong One Team, One Goal". The Blackhawks store in downtown Chicago on North Michigan Avenue at one point had a Fannie May residing underneath it.

In early 2016, Fannie May decided to sponsor another famous Chicago team. They became partners with the 2016 World Series Champions, the Chicago Cubs. The Cubs announced before the 2016 season that Wrigley Field was undergoing some changes, but would be up and running before the home opener. One of these changes included a marketing opportunity for Fannie May. Replacing the Budweiser Suite is the Fannie May Bleacher Suite. Wrigley Field's largest luxury suite holds roughly 70-100 people and gives them a view of center field. The suite also offers amenities as well.

As the official chocolate of the Chicago Cubs, Fannie May has also introduced a line of Cubs candy. The candy is baseball themed with inspiration from the Chicago Cubs.

Changes

One change was the remodeling of the North Michigan Avenue store. Out of the five Fannie Mays in the Loop, this was the only one that had a remodel and has been reopened. "The Cafe at Fannie May" now has bakery items, a new modern space in and outside, and seating.

After the candy company filed for bankruptcy, more than 200 of its retail stores were closed. After six years of debt, Fannie May finally saw a turnaround and thrives because of both old and new business techniques, staying true to decades-old chocolate recipes while also expanding online and retail sales. In March 2017, the Italian confectionery giant Ferrero SpA bought the chocolate maker from 1-800-Flowers.com. The maker of Nutella announced a multimillion-dollar deal to buy out Fannie May and Harry London. The international company closed the deal on May 30, 2017 and paid $115 million. With over 80 stores and 150 employees, Fannie May continues to operate production facilities in Ohio, as well as distribution centers in Chicago and Ohio. Ferrero mentions that they hope to expand Fannie May as a whole. They want to provide Fannie May locations across the nation, not just in Chicago.

References

Further reading

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External links

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Fannie May Confections, Inc. History

Consumer M&A Article on Alpine Confection, Inc.'s Purchase of Fannie May

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Companies based in Chicago
Economy of the Midwestern United States
Confectionery companies of the United States
American chocolate companies
Ferrero SpA