Haribo enters ‘new phase’ of US growth

ROSEMONT, ILL. — Haribo is a 106-year-old cornerstone of the confection industry and the creator of several iconic gummy candies, including its flagship Goldbears, along with Twin Snakes and Peaches.

While competition is fierce among the growing list of competitors vying for gummy dollars, Haribo is currently the No. 1 gummy candy brand by volume in the United States, according to data from NIQ over the 52-week period ended Aug. 8. The company also holds US household penetration of nearly 41% today.  

Haribo was founded in 1920 in Bonn, Germany, by Hans Riegel, who came up with Haribo by combining his name and the company’s origin city: HAns RIegel BOnn. Today, Haribo’s global headquarters is in Grafschaft, Germany, and the company remains a family-owned, private business.

While Haribo is truly a global brand — currently sold in nearly 200 countries — in recent years, the company has dedicated significant resources to expand its share of the US market. In 2023, Haribo opened a manufacturing facility in Pleasant Prairie, Wis., where today, 80% of all Haribo candy sold in the United States is made. It was the largest investment in global manufacturing in Haribo’s history.

More recently, the US segment of Haribo — known as Haribo of America, Inc. — named Jon Hughes the president and CEO of Haribo of America in July. It’s a newly created position that Hughes said is an important milestone for the company. Hughes was Haribo’s UK and Ireland managing director prior to his new role.  

“The (US) business has gone through a fantastic period, a decade-long growth trajectory,” Hughes said, speaking to Food Business News. “But we’re just now starting to enter a new phase. I think there’s an opportunity now as we think about how we want to drive disciplined growth in the years ahead. The brand and marketing, sales, operations, supply chain, innovation, customer partnerships, really trying to align the whole business around sustainable long-term growth. I think the timing for my role is really around that.”

Market challenges

In the United States today, there are several disruptive elements facing not just Haribo, but the candy industry as a whole. These include the impact of the make America healthy again (MAHA) movement, which demonizes sugar and pushes for the removal of artificial colors — backed by the US Food and Drug Administration (FDA) — and the continued rise of GLP-1 weight-loss medication, which reduces the appetites of those taking the drug.

“I think consumers still want choice,” Hughes said. “They’re still looking for those moments of fun, those things that taste great as well, and can be a little treat at any point in the day. I think the (confectionery) category will be relatively resilient. I think we play a special role within that because of our link to creating those moments of unconcerned consumption, unconcerned moments of happiness.

“On the colors and flavors point more broadly, I think the most important thing is that the FDA has issued guidance, we’ll continue to follow that guidance and we’ll adapt as needed. We offer a variety of different treats in the US made with fruit and vegetable juices for color already. We have a lot of experience on this topic around the world and from Europe as well. So, we’re looking forward to supporting whatever the consumer wants, and I’m pretty confident that we’ll be able to meet those needs going forward.”

Hughes added that one of Haribo’s most successful packaging formats is mini-bags, so it is already well positioned to address GLP-1 consumers, reduced appetites and those seeking portion control.

Innovation and retail

Some of Haribo’s recent product innovations include Sour Sodas gummies and the new multi-flavored, multi-textured Balla Bites, which debuted in August.

 The company also has a history of collaborating with pop culture entities to create products that align with the ongoing trend of nostalgia in candy and snacks. For example, Haribo has a long-running, successful collaboration with the Smurfs, and more recently, the Harry Potter franchise, producing themed gummies shaped like Harry Potter characters, pets and props, including the latest, Draco Malfoy, debuting this year.

“We’re quite careful with the brands that we want to work with, because we want to make sure there’s a really great fit,” Hughes said. “That it actually delivers something meaningful for consumers rather than just badging stuff. We’re looking for fandom, nostalgia, discovery and joy, and when we find a collab that ticks those boxes for us, then we’re keen to work with it.”

Hughes added that the consumer is at the heart of Haribo’s product development strategy, particularly as the company grows in the US market.

“The focus for us is going to be on consumer-led innovation,” he said. “To try and get a deep understanding of the consumer and what their needs and wants are, and where the opportunities are within the category that we can really play in.”

One way to gain immediate feedback from consumers is through Haribo’s retail outlets. The company has 80 stores globally, and recently opened its first two US stores in August — one in Woodbury, NY, the other in Wrentham, Mass. — which carry US Haribo candy as well as some available only in Europe, giving customers a chance to sample a wide spectrum of Haribo’s offerings.

“It’s a great range of merchandise and a great pick-and-mix wall for people to come and build their own mixes and experience their fan favorites,” Hughes said.

Looking ahead, Hughes understands that growing the US market is not a simple cut-and-paste project based on the success of other Haribo initiatives abroad.

“One of the big challenges (in the United States) is just how large and complex and competitive the market is here,” he said. “I think the (Pleasant Prairie) factory is a big step forward for us. That really helps support long-term growth here in the US. It gives us shortened supply chains, makes us quicker to market, and helps us develop local innovation that’s really tailored to the market here.”