The retail candy industry has suffered a combination of economic problems this year, including the fallout from rising cocoa prices, rising labor costs and reduced consumer spending on non-essential items.
Inflation and rising interest rates increased the cost of doing business and led consumers to tighten their spending belts.
Cocoa prices also peaked in the fourth quarter of 2025 and remain elevated, according to Tracey Allen, agricultural commodities strategist at JP Morgan.
“The hangover from last year’s fourth quarter highs in cocoa prices has come to an end… This reflects a historic increase in the cost of doing business and a decline in the availability of cocoa beans, which has weakened industrial demand in an environment where cost pass-through is often limited by supermarkets and retailers,” Allen said.
Financial problems have led candy companies to consider staying in business, and some companies have decided 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-owned candy maker, which established its business in 1885, announced the closure 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 a 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 Gems, a frozen fruit dessert made with whole milk, until sugar rationing during World War II led to the phasing out of Ice Cream and Gems.
After the war, ice cream and gems were sold again, but their popularity waned, and in 1965, Lammes discontinued the products and instead began focusing on candy, according to its website.
‘Texas Chewy’ was their star candy
Lammes Candies is best known for its Texas Chewy Pecan Pralines, which debuted in the candy store in 1892. The “Texas Chewy” is the company’s best-selling product and produces 2,000 pounds of candy per day, according to the website.
In addition to its Texas Chewy Pecan pralines, Lammes produces Longhorns, which consist of pecans, caramel and chocolate; Choco’Adillos, with caramel, almonds and chocolate; Cashew Critters, with caramel, cashews and chocolate; and a variety of other sweets.