Tootsie Roll Industries saw sales drop 6.3 percent last year to $715.5 million, attributing it to higher prices for candies. Cocoa and chocolate costs have increased, which has caused margin issues for the company. This, I must admit, comes as a shock to me. I, for one, am surprised that tootsie roles actually contain flavors and substances originating from plants, let alone bonafide cocoa. Either way, the pinch has the company looking to invest in its non-chocolate related businesses, which is one reason its subsidiary Charms is investing $97.7 million to build an expansion to the factory where Blow Pops are manufactured.
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