Favorite Brands International facts for kids
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| Industry | Confections |
|---|---|
| Successor | Nabisco |
| Founded | July 1, 1995 |
| Defunct | November 19, 1999 |
| Headquarters |
,
United States
|
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Number of locations
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11 plants |
|
Area served
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North America |
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Key people
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| Products |
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| Brands | Jet-Puffed Marshmallows |
| Revenue |
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| Owner | Texas Pacific Group |
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Number of employees
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4,000 |
Favorite Brands International was a company that made yummy sweets like marshmallows and caramels. It started in 1995 when a group called Texas Pacific Group bought the candy part of Kraft Foods, Inc.. The company grew quickly by buying other candy makers. However, it eventually faced financial trouble and was bought by Nabisco in 1999.
How Favorite Brands Started
In early 1995, a big food company called Kraft General Foods decided to make some changes. They combined their different food businesses into one large company, Kraft Foods, Inc.. This new company wanted to make more money.
So, Kraft Foods decided to sell its candy section. This part of the company made popular treats like Jet-Puffed Marshmallows and Kraft Caramels. It also included a factory in Kendallville, Indiana, and special machines for making marshmallows in other places like Buena Park, California, Garland, Texas, and Canada.
On July 1, 1995, two investment groups, Texas Pacific Group and InterWest Partners, bought these candy businesses. At the time, these businesses were making about $150 million in sales each year. This was the beginning of Favorite Brands International.
Growing the Company
After Favorite Brands International started, it quickly began to grow. Al Bono was the first president and chief executive officer of the company.
In May 1996, Favorite Brands bought a big competitor called Kidd & Co. This company was located very close to Favorite Brands' main factory in Kendallville, Indiana. Kidd & Co also had a factory in Henderson, Nevada.
A few months later, in October 1996, the factory in Ligonier was changed into a warehouse. All the candy making was moved to the factories in Henderson and Kendallville. The employees from the Ligonier plant also moved to these other locations.
Favorite Brands continued to expand by buying more candy companies. They bought Sathers, Inc., which was located in Round Lake, Minnesota. Sathers was a large company with about $200 million in sales each year.
Then, on August 31, 1996, Favorite Brands bought Farley Foods USA. Farley Foods was even bigger, with about $300 million in yearly sales and five factories where they made their candies.
Later, in 1998, there were some changes in the company's leadership. Mark Upson, who had joined as president and chief operating officer in March 1998, left the company in May of that year. Al Bono, the chairman and chief executive officer, also left in July 1998. He said he had "differences in operational issues with the board," which means he disagreed with the company's leaders on how things should be run.
Company's End and Sale
Favorite Brands International faced some financial difficulties. On September 29, 1999, another well-known food company, Nabisco, announced that it would buy Favorite Brands.
Nabisco paid $475 million for Favorite Brands. They also took on $600 million of debt that Favorite Brands owed to other companies. This purchase meant that Favorite Brands International stopped being an independent company. Its brands, like Jet-Puffed Marshmallows, became part of Nabisco.
