Coming to America: Haribo to build first US factory

By Oliver Nieburg & Douglas Yu

- Last updated on GMT

Haribo currently ships products to the US from its factories in Europe. ©iStock/Razvan
Haribo currently ships products to the US from its factories in Europe. ©iStock/Razvan

Related tags: Compound annual growth rate, Vice president, Nutrition, Us, Haribo

Haribo plans to construct one of the world’s largest confectionery facilities in Wisconsin.

The new-build plant will be operational by 2020 and will be its first production site in the US.

The German company said it had examined many sites over several years before deciding to acquire property in Kenosha County in South-Eastern Wisconsin.

Top growing sugar confectionery firm in the US

Wes Saber, executive vice president and CFO at Haribo of America, said the plant would be “one of the largest facilities in the confectionery industry”.

Haribo currently serves the global market from 16 factories in Europe.

The company's 500,000 sq ft US facility will be one of the largest investments in new operations by an overseas business in Wisconsin history, according to the office of Wisconsin Governor Scott Walker. 

Walker and Wisconsin Economic Development Corporation (WEDC) leaders have been meeting with business executives around the world to attract new business operations to the state, according to a release issued by the state. 

Governor Walker also said the $242m investment will create 400 jobs for Wisconsin.

Hans Guido Riegel, managing partner of the Haribo Group, said: "Haribo of America is the fastest growing sugar confectionery business in the USA.”

Haribo in the US

Haribo has been present in the US since 1982. Its top-selling product in the country is its original Gold Bears brand.

Haribo had a 1.8% value share of the US sugar confectionery market in 2016, making it tenth, behind market leader Hershey and second-placed Mars-Wrigley, according to Euromonitor International.

The research firm said sugar confectionery was the fastest-growing segment of the US confectionery category in 2016, with a 4% value sales rise to $11.3bn.

However, it expects the category will be challenged by changes to nutrition facts labels, which will require manufacturers to list ‘added sugars’ in grams and as a percentage daily value by July 2018.

Euromonitor expects the change will affect the category amid a US sugar scare and concerns over childhood obesity.

But it projects US sugar confectionery retail value sales will record a +4.3% compound annual growth rate (CAGR) up to 2021.

Related topics: Manufacturers, Candy

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