NatureSweet, Tomato Groups Urge Saving 2019 Agreement
With broad support from tomato producers, trade associations, state and local leaders, and beyond, NatureSweet has submitted comments to the U.S. Department of Commerce strongly urging the government to preserve the 2019 Tomato Suspension Agreement, which is critical to ensuring stability and fair practices in the market for fresh tomatoes.
A small group of domestic tomato producers is petitioning the Department of Commerce to terminate a longstanding trade agreement between the United States and importers of fresh tomatoes from Mexico. The Tomato Suspension Agreement, which has been in place in various forms since 1996 and was most recently renegotiated in 2019, ensures fair trade practices and a stable market for imports of fresh tomatoes from Mexico to the United States. Without the 2019 Suspension Agreement in place, NatureSweet and countless other companies would face tariffs of more than 20 percent on the import of fresh tomatoes into the United States.
“The suspension agreement is critical to keeping specialty tomato varieties on American grocery store shelves,” says Skip Hulett, vice president of general counsel for NatureSweet. “Nearly all of the grape and cherry tomatoes consumed by American families come from Mexico, where growing conditions are ideal for year-round production.”
NatureSweet, an agricultural company headquartered in Texas, has been producing high-quality, flavor-rich produce for more than 30 years. The company has operations in both the United States and Mexico and employs more than 6,000 agricultural workers. Terminating the suspension agreement would not only impact NatureSweet’s ability to provide fresh produce to Americans, but it would also jeopardize jobs and the company’s ability to continue transforming the lives of agricultural workers in North America.
“We provide year-round jobs, pay our employees almost 40 percent above the median wage for agricultural workers, we help our workers obtain access to improved medical care services, education, and develop careers,” says Hulett. “This tariff would punish companies like NatureSweet, which are doing the right thing.”
In a compliance audit released this month, the Department of Commerce found zero consequential violations of the agreement by importers of fresh tomatoes. Importers continue to play by the rules to deliver fresh, quality tomatoes to American families.
Recently, a coalition of more than 400 companies across the supply chain representing 32 states signed a letter to the Commerce Department urging the Department to keep the agreement in place. NatureSweet will continue to partner with industry leaders to encourage Commerce to reach a resolution that allows economies on both sides of the border to continue thriving.
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Ferrara to Acquire Jelly Belly Candy Company
Ferrara Candy Company will acquire Jelly Belly Candy Company through CTH Invest, the lead holding company of Ferrara. Financial terms of the transaction were not disclosed.
The proposed acquisition would combine Jelly Belly Candy Company’s more than 100 flavors of Jelly Belly jelly beans and gourmet specialty confections with Ferrara’s broad portfolio of sugar candies. Once the acquisition closes, nearly 800 global Jelly Belly employees and its facilities in California, Illinois and Thailand will join the Ferrara organization.
Jeff Brown, who is the executive vice president of global operations and distribution of Jelly Belly, will become its chief executive officer.
Jelly Belly Candy Company’s roots date back to its founding in Illinois in 1869 and it has continued to be family-owned and operated by the fourth, fifth, and sixth generations of the Rowland candy-making family. Its signature brand of Jelly Belly jelly beans has been one of the most loved and recognizable candy products in the world since its introduction in 1976. Its extensive portfolio includes more than 100 flavors of its well-known jelly beans and a wide variety of other candies.
The company is also well-known for its specialty retail confections, including jelly bean lines such as BeanBoozled jelly beans and Sport Beans Energizing jelly beans. Today, Jelly Belly distributes its products in more than 60 countries across five continents and has a strong track record of sustained and profitable growth.
Headquartered in Chicago for more than 115 years and privately owned, Ferrara is the leading U.S. sugar confections company and the manufacturer of 20 beloved brands such as Black Forest, NERDS, SweeTARTS and Trolli. Ferrara is a Ferrero related company.
“As we considered the future of Jelly Belly Candy Company, we have been steadfast in our commitment to create a win-win situation for our employees, consumers, and products,” said Herman Rowland, Sr., Chairman of the Board of Directors of Jelly Belly. “When I met with the Ferrara team, I recognized a like-minded group that shares our knowledge and passion for the candy business and has the talent and resources to grow our products and the careers of our people around the world. I am confident of the continued success of Jelly Belly as part of the Ferrara portfolio.”
“Since our inception almost a century and a half ago, Jelly Belly Candy Company has been focused on providing exciting new flavors and continuous innovation, and we are extremely proud of the deep affinity we’ve built with our fans around the world,” said Lisa Brasher, President and Chief Executive Officer of Jelly Belly. “Ferrara’s interest reflects the substantial value of our storied brand, built on our team’s many successes, and the opportunity to drive continued growth. We look forward to being a part of this impressive company.”
“We are excited to bring Jelly Belly’s imaginative products and talented team into the Ferrara community,” said Marco Capurso, Chief Executive Officer of Ferrara. “Our dedication to creating high-quality, innovative sugar confections for the world and our deep relationships with retailers aligns perfectly with the Jelly Belly track record and passion for quality, reliability, and customer service. We look forward to working together to build on the success of all our brands.”
The transaction is expected to close by the end of 2023 and is subject to certain closing conditions.
Raymond James acted as exclusive financial advisor and Foley & Lardner LLP served as legal counsel to Jelly Belly. Davis Polk & Wardwell LLP served as legal counsel to Ferrara Candy Company.
For more than 115 years, Ferrara has created sugar confections that enable moments of sweetness, celebration, and connection for candy lovers of all generations. Today, the company is a leading sugar confectioner in the United States with its broad portfolio of Ferrara products and a leader in Brazil through its Dori Alimentos products.
Ferrara boasts a passionate team of more than 7,500 employees creating and delivering hundreds of products sold under 20 popular brands like NERDS, SweeTARTS, Laffy Taffy and Trolli to more than 66 million U.S. households annually and popular Dori snacking products under brands such as Dori, Gomets, Pettiz and Yogurte 100 in Brazil.
Ferrara’s innovation success has been driven by deep consumer insights, strong retailer co-creation and partnerships, and a dedication to diversity of thought, experience, and people. A privately held company, Ferrara has its global headquarters in Chicago and an operational network of more than 27 locations in North America, Brazil and China that includes manufacturing, distribution, sales, and R&D facilities. Ferrara is a privately held Ferrero related company.
With candy-making roots dating back to 1869, Jelly Belly Candy Company began making Jelly Belly jelly beans in 1976. Today, Jelly Belly confections are sold all over the world and the company has remained family-owned and operated by the fourth, fifth, and sixth generations of the candy-making family.
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Pearl Street Acquires Famous Brands International Franchising
Pearl Street Equity LLC and its affiliates has acquired Famous Brands International franchising business, the parent company of two internationally renowned brands, Mrs. Fields and TCBY. Financial terms of the transaction were not disclosed.
The acquisition aligns with the recent appointment of Joe Lewis as president and chief operating officer of Famous Brands Franchising. Lewis has over 25 years of leadership experience at high-growth retail and food and beverage franchisor organizations, including notable names such as Smoothie King, Twist Brands, and Smalls Sliders.
Lewis will continue to lead the Famous Brands Franchising growth strategy and pursue opportunities to expand the global reach of two iconic brands, Mrs. Fields and TCBY, in both domestic and international markets.
“We are thrilled about this new chapter for Famous Brands Franchising as a stand-alone company and are confident Pearl Street is the ideal strategic partner for the future,” Lewis said. “This transaction will take our franchisee support to the next level while enabling investment to grow both brands globally and bring our delicious products to more customers and families.”
Pearl Street continues to invest in and partner with companies demonstrating immense growth potential and vision for industry leadership. By adding Famous Brands Franchising to its portfolio, Pearl Street is reinforcing its commitment to supporting companies with the potential to have significant impact in their respective markets.
Famous Brands International is the parent company that owns and manages two category defining, iconic brands: Mrs. Fields and TCBY. The company markets and distributes its products such as cookies, frozen yogurt, brownies, berries and cakes, through its franchise stores. Serving millions of loyal customers around the world, Famous Brands maintains a presence in the United States, Canada, Australia, Hong Kong, Morocco, Panama, Taiwan and the Bahamas with over 350 franchised locations.
The company is leveraging the category leading brand awareness of its iconic brands to pursue growth in both domestic and international markets. Famous Brands is headquartered in Salt Lake City.
Pearl Street is a New York-based, single-family office. Pearl Street and affiliates have investments in venture capital, public and private equity, real estate and credit strategies.
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