Tootsie Roll Case Analysis

Running head: TOOTSIE ROLL INDUSTRIES FINANCIAL ANALYSIS

Financial Analysis of Tootsie Roll Industries

Daniel Pogue

Webster University

BUSN 5200

David Beck

Dec 8, 2010

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Financial Analysis of the Tootsie Roll Industries

PART I, COMPANY OVERVIEW:

a. Brief description of the company

Tootsie Roll Industries is recognized as one of the largest candy producers in

America. Tootsie's brands include some of the most popular and well-known candy

names: Tootsie Roll, Tootsie Pop, Charms Blow Pop, Mason Dots, Andes, Sugar Daddy,

Charleston Chew, Dubble Bubble, Razzles, Caramel Apple Pop, Junior Mints, Cella's

Chocolate-Covered Cherries, and Nik-L-Nip. They are sold in a variety of venues,

including supermarkets, warehouse and membership stores, vending machines, dollar

stores, drug stores, and convenience stores. Together, the Tootsie brands are strong

among every age group, culture, and demographic; for every occasion and event; and

during every economic climate, qualifying them as truly enduring, iconic American

confections. (Gordon, Tootsie Roll Industries, Mar 2010)

b. Company History

The Tootsie Roll story began in 1896, when Austrian-born Leo Hirshfield opened

a small candy shop in New York City. Taking advantage of his confectioner’s

background, Hirshfield hand-crafted a variety of products, including an individually

wrapped, oblong, chewy, chocolate candy that quickly became a customer favorite.

Sold at a penny apiece and affectionately named after Hirshfield’s five-year old

daughter, Clara, whose nickname was “Tootsie,” Tootsie Rolls propelled Hirshfield’s

modest corner store into burgeoning candy enterprise that has evolved in little more than

a century into the multinational corporation, Tootsie Roll Industries. (Tootsie Roll

Industries, Corporate History, Dec 2010) In 1905, Hirshfield moved the production to a

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