Charms plans $97.7 million Covington factory expansion

Manufacturing and distribution expansion

Charms plans to invest $97.7 million in its manufacturing plant and distribution center in Covington, Tennessee. The project is expected to create 62 jobs and bring employment to nearly 500 people after completion. The investment and hiring figures were announced by the Tennessee government on 12 February 2025. They describe the planned expansion, with the larger workforce dependent on completion rather than already in place.

Charms was established in 1912 and has manufactured candy in Covington since 1973. Tootsie Roll Industries acquired the business in 1988. The Covington operation makes products including Blow Pop, Sour Balls, Fluffy Stuff cotton candy and Squares. The new investment covers both manufacturing and the distribution center at the existing location.

Production and delivery network

Tootsie Roll owned manufacturing, warehousing and distribution facilities in Covington, as recorded in its 2023 annual filing. The company also leased warehouse space near Covington and Chicago. Its confectionery products reached customers through food and grocery brokers and direct sales. Customer channels included:

Wholesale candy, food and grocery distributors.
Supermarkets, discount chains and membership clubs.
Vending operators and e-commerce merchants.

The parent company built inventories and its seasonal workforce during the second and third quarters in preparation for Halloween and back-to-school sales. Other seasonal occasions included Christmas, Valentine’s Day and Easter. These operating arrangements formed part of the broader manufacturing and distribution business into which the planned Covington expansion fits.

Tootsie Roll Industries

Parent-company investment and financial context

Tootsie Roll Industries continued to plan manufacturing investments to meet customer demand, improve product quality, expand selected product lines and increase operating efficiency. Its February 2025 earnings announcement set out those priorities alongside the parent company’s 2024 financial results. Net earnings for the year were $86.827 million, compared with $91.912 million in 2023. Those figures covered the parent group rather than the Charms factory alone.

The 2024 results included an $11.010 million nonrecurring, noncash charge from writing off deferred tax assets. Adjusting for that charge, the company put annual net earnings at $97.837 million. Higher investment income, leasing revenue and more favorable foreign exchange also benefited earnings. The company expected higher cocoa and chocolate costs in 2025 as older supply contracts expired and more expensive contracts took effect.