Morinaga America revs up HI-CHEW production, opens second facility

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Source: Morinaga America

Confection manufacturer Morinaga America, Inc., invested $130 million to construct its Mebane, N.C.-based facility to produce its flagship brand HI-CHEW, which has grown 20% year-over-year in the non-chocolate category over the past seven years, Teruhiro Kawabe, CEO, Morinaga America, Inc., told FoodNavigator-USA.

Morinaga’s existing North Carolina facility manufactures more than two billion pieces of HI-CHEW annually, Kawabe explained.

"With this new facility, we expect to support our continued demand from US consumers and expand our footprint into new retailers," he added.

North Carolina serves as a ‘great partner’ to expand production

The decision to expand in North Carolina’s Orange County was influenced "Orange County's strategic location, combined with its infrastructure and skilled workforce, [which] provides Morinaga America with the resources necessary to enhance our operations and meet the demands of a competitive market," Kawabe explained.

The state's supportive business environment, including the One North Carolina Fund, also influenced Morinaga America's decision to invest in the region and expand its position as a key player in the US confectionery industry, Kawabe said.

Construction for the new factory is slated to begin in October and expected to be fully operational in January 2027. The company predicts the additional factory will create more than 200 jobs across production, quality assurance, maintenance and support staff for the Orange County, N.C. community.

The state continues to serve as a “great partner” for the company since opening its first manufacturing facility in 2015, Kawabe said.

Adapting to consumer preferences with new innovations

Mintel predicts continued growth for the non-chocolate confection market as consumers look for an "affordable and simple way to satisfy cravings and boost their mood." The category grew an estimated 8.3% this year reaching $14.4 billion in sales in the US, according to Mintel.

In the last three months, 90% of consumers purchased the confectionery products in, with nearly a quarter increasing their purchases. Gen Z and Millennials  are driving growth, with more than 40% reporting higher purchases. The category provides consumers with permissible indulgences for diverse occasions as products continue to highlight innovative features like alternative packaging, better-for-you formulations, flavors, formats, brand collaborations and textures, according to Mintel.

Kawabe attributed Morinaga America’s growth to aligning with evolving consumer preferences for familiar flavors, including HI-CHEW classics like Strawberry, Mango and Green Apple, and new ones, including HI-CHEW’s Fantasy Mix (Rainbow Sherbet, Blue Hawaii, Blue Raspberry) and Dessert Mix (Candy Apple, Strawberry Ice Cream, Key Lime Pie).

This year, the company launched HI-CHEW Gummies and HI-CHEW Gummies Sour “with a focus on reimagining the brand’s iconic chewlets and mouth-watering flavor in a new gummy form,” he said.

Additionally, the launch of HI-CHEW Bites addresses the growing trend of on-the-go snacking featuring its classis HI-CHEW flavors.