Joyco, Sweet success

Manufacturing in Action, Source : The Manufacturer US

W.H. Parson unwraps the story of candy and finds Joyco USA in the center of it

Man has always had a sweet tooth. Cavemen risked bee-stings to take honey from hives, and honey was one of the ingredients of the first man-made candy: In ancient Egypt, China, and the Middle East, it was mixed with fruit and nuts to make an early form of confectionery. The high cost of sugar in the Middle Ages made sweets a treat for the rich, but by the 17th century, boiled sugar candies were being widely enjoyed in England and in the American colonies. By the beginning of the 19th century, candy making had become an industry, and factories were established to manufacture products from sugar extracted from sugar beet. Homemade hard candies, such as peppermints and lemon drops became popular in America during that time. By the mid-1800s, over 380 American factories were producing candy—mostly “penny candy,” which was sold loose from glass cases in general stores. Now, candy is big business. In 2001, 7 billion pounds of it, with a wholesale value of nearly $16 billion, was eaten in the USA. Estimated Retail Sales were $24 billion, made up of $13.1 billion for chocolate, $7.6 billion for non-chocolate, $2.8 billion for gum, and $500 million for “unspecified” types of candy.

A significant proportion of the nation’s—and, indeed, the world’s—taste for candy is satisfied by the international confectionery giant, Joyco. Joyco was founded in Spain in 1977 and rapidly expanded at home. In the following decade, the company began operating in the rest of Europe and set up facilities in Mexico, China, and the US. In the 1990s, Joyco’s interests grew to include India, Russia, and the Philippines. It now has 11 factories and 25 commercial offices throughout the world, employing a total of 3,000 people.

The Joyco USA story starts in 1984, when General de Confitieria incorporated an affiliated company in the US under the name of Conusa Corporation. Originally, Conusa distributed only bubble gum and hard-candy imported from Spain, but in 1988, Conusa purchased a manufacturing plant from Nabisco in Canajoharie, New York, together with the Bonkers and Beechies brands. In 1992, Conusa Corporation changed its name to Richardson Brands Company when it purchased all assets of the former Richardson Brands, Inc., including the well established After Dinner Brand. In 2002, Richardson became Joyco USA, firmly brand-ing the company as part of the international Joyco family. General de Confitieria used to operate eight candy companies, all with different names and images, but in 1999 it wanted a new name that was short, simple, memorable, and reflected the inter-national interests of the group: 85 percent of the company’s turnover was outside Spain. The com-pany opted for Joyco, a name made up of elements of English, the language of global business. The Joyco logo consists of an anagram designed to suggest two childlike faces within two stylized gum bubbles, and was carefully designed to reflect the aims and ambitions of the group.

Joyco USA has headquarters in Miami, Florida, and production facilities in Canajoharie, New York. Its 180,000-square-foot factory is 40 miles west of Albany, and the high standards and up-to-date technology there have helped earn it the state’s Good Manufacturing Practice Seal of Approval. Canajoharie manufactures products for some of the world’s largest food and pharmaceutical companies, and produces chewy candy, panned candies, pressed mints, and coated gums. Joyco USA currently markets brands such as After Dinner Mints, Bonkers, and Beechies, as well as the full-line of Colombina brand candies. Annual revenues total approximately $27 million.

Last year was the Joyco Group’s 25th anniversary, and the company made a number of significant advances. Integration of all group companies under the Joyco name was consolidated. Growth in 2002 was particularly strong in Spain, India, USA, and in the gum base operation. Joyco’s overall turnover grew by seven percent by volume. Nominal turnover in 2002 was euro 300 million, but would have been higher had it not been for the strength of the euro against the dollar and most of the currencies where Joyco operates. The dollar depreciated by 17 percent against the euro last year, and the Mexican peso by 34 percent, and this significantly affected incomes.

Joyco invested heavily in its brands and innovation processes in 2002 and launched a number of new products and product variants. Solano expanded in Europe, with the sugar-free variant being introduced in Portugal, Italy, Benelux, and Greece. The range of Solano flavors was also increased: It is now available in strawberry & cream and blackberry & cream. Solano was launched in China, where a new production unit has been set up. The Boomer line was extended in several countries: colors, acid, and jelly were added in Western Europe, Splash in Russia, and Supersour in India. The Toy Division was reinforced with Twist, a supersoft gum, and Cool Kisses, a deposited candy lipstick. Trex chewing gum was introduced in India.

2002 was also a year of significant new alliances and ventures for Joyco. A new plant was constructed in Cali, Colombia, in association with La Colombina, and Joyco USA took over the distribution of the La Colombina portfolio in the US. Joyco improved its operational efficiency with new productivity drives, process re-engineering, and new applications. The company implemented SAP throughout its Spanish operations, and has plans to extend SAP to European affiliates, and implement selective B2B applications in the pursuit of efficiency gains. Joyco also established an intranet connecting the companies in the group. Current ambitions are to increase turnover by ten percent and to continue to innovate in new production processes, brands, and product lines. Joyco is working to enhance its market position through its unique product portfolios and especially the geographic distribution of the Solano line. There are plans to start up a third party manufacturing unit.

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