Archibald Candy Corp., the maker of Fannie May and Fanny Farmer candy, said Wednesday that it has signed a preliminary agreement to sell the brands and some assets to Utah-based Alpine Confections Inc.
If the deal goes through, Alpine would make Mint Meltaways, Pixies and other Fannie May favorites in its factories.
But the sale would not affect Archibald’s plans to close all of its 228 retail stores by Feb. 15 or the closing of its West Loop factory this weekend.
“Our belief is that Alpine represents the best strategic opportunity for the Fannie May brand to survive, and enables consumers to continue enjoying their favorite Fannie May products,” James Ross, chief restructuring officer for Archibald, said in a statement.
Ross said the proposed sale of the Fannie May and Fanny Farmer brands does not include the Laura Secord division, a Canadian premium candy that Archibald acquired in 1999.
“Alpine is pretty much a natural acquirer from the perspective of what they have done over the past few years,” said Joel Kaplan, a partner in Skokie’s Knechtel Laboratories, which helps candymakers develop new candies.
News about the fate of Archibald and Fannie May candies has been trickling out since Archibald employees disclosed two weeks ago that they had obtained a budget forecasting document detailing company plans to file for bankruptcy, close the factory by this weekend and shutter the stores. Company officials have declined to comment about the document.
For Chicagoans intent upon obtaining a Fannie May fix, the proposed sale could be the last best hope for maintaining a connection to a candy that they have grown up with. Fannie May stores have been flooded with customers since the company on Friday confirmed its plans to close the stores.
“All of us at Alpine Confections are deeply committed to making sure that consumers continue enjoying their favorite Fannie May and Fanny Farmer candies for many years to come. Fannie May will be a flagship brand for us,” said R. Taz Murray, co-president of Alpine, in a statement. He said that the candy would be made in one of Alpine’s four plants.
Alpine was founded in 1994 by two Harvard Business School graduates who were in the same 90-student section. Both appear to have a sweet tooth.
It has grown quickly since the two acquired Kencraft Inc., which is based in Alpine, Utah. Since then they have acquired Maxfield’s Candy in Salt Lake City and Dynamic Chocolates in Vancouver. Last summer, they acquired Canton, Ohio-based Harry London Chocolates, an 80-year-old chocolate company that sought Chapter 11 federal bankruptcy protection.
Archibald first crossed paths with Alpine two years ago when Alpine ousted Fannie May candies from the nation’s Hallmark stores. Now, Alpine manufactures Hallmark-branded candy for the stores. In addition, it makes Mrs. Field’s candy, Maxfield’s, Dolce d’Or and Botticelli.
Despite its fast growth, Alpine remains relatively small. It is the 98th-largest candy manufacturer in the country, with sales of $40 million in 2002, according to Candy Industry, a trade publication. Prior to the Harry London purchase, Alpine employed 650 people.
By comparison, Archibald recorded sales of $183 million in 2002 and employs more than 3,500 people. Laura Secord operates 170 stores in Canada.
Although Fannie May and Fanny Farmer brands may have found a new home, the future of the stores is up in the air. Industry officials say Archibald has been talking to Russell Stover Candies in Kansas City, Rocky Mountain Chocolate Factory and See’s Candies Inc., which is owned by Omaha-based Berkshire Hathaway Inc., about acquiring some of the stores.