Kervan USA Breaks Ground on $20M Candy Production Facility
Turkish-owned confections manufacturer Kervan USA is charging up its American production capabilities, investing $20 million into a new facility in Lehigh Valley, Pa.
Kervan – which produces gummies, licorice and marshmallow candies including licensed Sunkist and Crayola lines – runs its U.S. headquarters out of Whitehall Township in the Lehigh Valley region, along with packaging and distribution facilities in New Jersey, which will be consolidated into the new production plant once construction is complete.
“This location made perfect sense, both proximity to the ports and the workforce,” said Kervan USA CFO Gokhan Kacmaz in a press release. “We saw a big opportunity. All this made the Lehigh Valley a great location to make this investment.”
Kervan USA CEO Burak Cezik also credited a population boom in the Lehigh Valley as also being a motivating factor in opening the facility.
The 90,000 sq. ft. plant is expected to open next year and will require around 40 new employees for a total on-site workforce of roughly 50 people.
Kervan manufactures over 200 candy varieties under its owned Bebeto and Yumy Yumy brands across Turkey, Poland and Egypt and intends to begin importing those brands to the U.S. in the near future, with eventual plans to manufacture them locally at the completed facility.
The move comes as gummy candies have seen a surge in popularity with American consumers, particularly Gen Z, as legacy brands like Trolli and emerging startups like Better Sour, 1UP, Rotten and others look to build better-for-you and clean label alternatives to mainstream competitors.
Sour candy and gummies in particular have been hot spaces for investment as well. Last month, Joyride closed a $30 million funding round while Better Sour secured investment from newly launched fund Taste Tomorrow Ventures. Last year, The Hershey Company bought Sour Strips for an undisclosed sum.
Gummies were also a major innovation item at this year’s Sweets & Snacks Expo in May, with brands like Welch’s, Nerds, Juicy Drop and Stuffed Puffs all debuting new products in the category.
