Ferrara Candy Company
Leading confectionery manufacturer producing Nerds, Laffy Taffy, and seasonal candies.
PE-OWNED
Acquired by KKR2012-10-22
What Made It Great
Strong portfolio of nostalgic candy brands with seasonal expertise and broad distribution
What PE Will Likely Do
Cheaper and lower-quality ingredients used in Ferrara's candy products like Nerds, Laffy Taffy, and seasonal offerings
Reduction in package sizes for Ferrara's candies while maintaining or increasing prices (shrinkflation)
Consolidation of Ferrara's manufacturing facilities, leading to disruptions in supply and potential quality issues
Changes to Ferrara's candy recipes and formulations to reduce costs, impacting taste and consumer experience
Expected Timeline
“0 to 6 months months”
Minimal visible changes as ownership transition takes place
“6 to 12 months months”
Behind-the-scenes supplier changes and formula modifications begin
“12 to 18 months months”
Consumers start noticing quality differences in Ferrara's candy products like smaller sizes, changes in texture and flavor
“18 to 36 months months”
Ferrara's brand reputation begins to suffer, with increasing consumer complaints about quality and value
Similar Cases
Other companies that followed a similar path after PE acquisition
What You Can Do
Actions
Be on the lookout for changes in Ferrara's candy products, such as smaller package sizes, changes in texture or flavor, and increased prices
Consider stockpiling favorite Ferrara candies if you notice quality degradation to ensure continued access to the products you love
Provide feedback to Ferrara and KKR if you observe significant changes in the quality of their candy products
Alternatives
Look for family-owned or employee-owned businesses