American Licorice Company banks on capital investments to carry it through tough times
UNION CITY, Calif. American Licorice Company is counting on its “rainy day” savings funds to carry it through economic hard times, The San Francisco Chronicle this week reported.
The maker of well-beloved licorice treat Red Vines has said that it hopes that the $10 million in capital investments the company has banked in good years will be enough to carry it through the current cash-poor economy.
“We won’t call it recession-proof, but licorice has always held its own. It’s kind of a comfort food,” American Licorice plant manager John Nelson told the Chronicle. Still, touch times lay ahead for many independent companies. “Lines of credit are being frozen or reduced. … Or if they are new requests, may not be approved.”
To help buoy the effects of marketplace money drain, Nelson told the media, American Licorice Company is constantly seeking ways to improve productivity and efficiency. The company will also continue investing, he said, in order to keep its profit dollars flowing.