The candy retail industry has suffered from a combination of economic issues this year, including fallout from higher cocoa prices, rising labor costs, and consumers cutting back on spending on non-essential items.
Inflation and rising interest rates increased the cost of doing business and prompted consumers to tighten their belts on spending.
Cocoa prices also hit a high in the fourth quarter of 2025 and remain elevated, according to Tracey Allen, an agricultural commodities strategist at J.P. Morgan.
“The hangover from last year’s fourth-quarter highs in cocoa prices has come to roost…This reflects a historic increase in the cost of doing business and a decline in cocoa bean availability, which has weakened industrial demand in an environment where cost pass-through is often limited by supermarkets and retailers,” Allen said.
Financial issues have led candy companies to consider whether to remain in business, with certain companies deciding to close operations.
Lammes Candies closes all stores
Iconic candy store chain Lammes Candies is closing all of its locations due to changing market conditions and long-term sustainability issues after operating for 141 years, the chain’s owners said in a notice posted at its Round Rock, Texas, store.
The Austin, Texas-based, family-run candy manufacturer, which established its business in 1885, announced the closing of its Round Rock location on April 24 in the posted notice, My San Antonio reported.
The message also said Lammes Candies would close its last remaining location at 5330 Airport Blvd. in Austin, which includes the company’s manufacturing facility. The company had not determined the closing date for the Austin store, according to co-owner Lana Schmidt.
Candy store chain had 7 locations
Six years ago, Lammes Candies operated seven locations in the Texas Hill Country, according to its website.
Lammes Candies originally sold ice cream and gem, a frozen fruit dessert made from whole milk, until sugar rationing during World War II led to a phase-out of ice cream and gem.
After the war, ice cream and gem were sold again, but their popularity faded, and in 1965 the Lammes discontinued the products and, instead, began focusing on candies, according to its website.
‘Texas Chewy’ was its top candy
Lammes Candies is best known for its Texas Chewy Pecan Pralines, which debuted in the candy shop in 1892. The “Texas Chewy” is the company’s top-selling product, producing 2,000 pounds of the candies each day, according to the website.
In addition to its Texas Chewy Pecan Pralines, Lammes produces Longhorns, consisting of pecans, caramel, and chocolate; Choco’Adillos, with caramel, almonds, and chocolate; Cashew Critters, with caramel, cashews, and chocolate; and a variety of other candies.
