1 00:00:01,871 --> 00:00:04,178 Before it fizzled, 2 00:00:04,395 --> 00:00:06,745 made you pucker, 3 00:00:06,745 --> 00:00:07,833 or broke your jaw, 4 00:00:08,530 --> 00:00:11,185 hard candy was either medicinal. 5 00:00:11,185 --> 00:00:12,273 And they were a way to make 6 00:00:12,273 --> 00:00:14,449 taking medicine more palatable. 7 00:00:14,449 --> 00:00:16,581 The spoonful of sugar makes the medicine go down. 8 00:00:16,581 --> 00:00:18,714 Or something outside the reach 9 00:00:18,714 --> 00:00:20,411 of most Americans. 10 00:00:20,411 --> 00:00:22,805 Candies were originally the treat for the rich. 11 00:00:22,805 --> 00:00:24,763 It was very, very expensive. 12 00:00:24,763 --> 00:00:27,592 Until one underestimated confectioner 13 00:00:27,592 --> 00:00:29,899 happens upon a new kind of sweet. 14 00:00:29,899 --> 00:00:31,292 There's a texture 15 00:00:31,292 --> 00:00:35,339 unlike anything anyone has ever had before. 16 00:00:35,339 --> 00:00:36,688 What do we call it? 17 00:00:36,688 --> 00:00:37,385 Tootsie. 18 00:00:39,474 --> 00:00:42,520 His genius will inspire a jobless salesman 19 00:00:42,520 --> 00:00:44,305 to reimagine candy. 20 00:00:44,305 --> 00:00:46,133 Tropical fruits were something 21 00:00:46,133 --> 00:00:49,440 that people can't normally get. 22 00:00:49,440 --> 00:00:52,965 Creating a novelty that will sweep the nation. 23 00:00:52,965 --> 00:00:54,489 They'll be the biggest thing in candy 24 00:00:54,489 --> 00:00:55,229 in the next decade. 25 00:00:57,187 --> 00:00:58,841 They'll catapult a treat 26 00:00:58,841 --> 00:01:00,582 that costs a mere penny. 27 00:01:00,582 --> 00:01:03,585 Charms and Tootsie are not just that kind of candy brands. 28 00:01:03,585 --> 00:01:05,587 They're really part of our lineage. 29 00:01:05,587 --> 00:01:09,895 Into a $15.4 billion industry. 30 00:01:09,895 --> 00:01:11,767 This was a legendary innovation 31 00:01:11,767 --> 00:01:13,682 and one that completely changed everything. 32 00:01:38,272 --> 00:01:41,710 At the turn of the 20th century, 33 00:01:41,710 --> 00:01:43,929 a new sensation is sweeping the nation. 34 00:01:43,929 --> 00:01:46,758 In 1900, the Hershey Bar 35 00:01:46,758 --> 00:01:50,936 has sparked an unprecedented craze for sweets in America 36 00:01:50,936 --> 00:01:52,373 Milton Hershey 37 00:01:52,373 --> 00:01:55,202 was really the Henry Ford of chocolate. 38 00:01:55,202 --> 00:01:58,379 What he did is really revolutionized chocolate 39 00:01:59,075 --> 00:02:02,861 by making it available to the masses. 40 00:02:02,861 --> 00:02:04,298 Before this, candy, 41 00:02:04,298 --> 00:02:06,430 specifically hard candy and chocolates 42 00:02:06,430 --> 00:02:08,389 were originally the treat for the rich. 43 00:02:08,389 --> 00:02:11,043 It was very, very expensive. 44 00:02:11,043 --> 00:02:13,524 As Hershey democratizes chocolate, 45 00:02:13,524 --> 00:02:17,963 sales of his bar skyrocket to $600,000 in the first year, 46 00:02:17,963 --> 00:02:21,141 over $21 million today. 47 00:02:21,141 --> 00:02:25,145 But beyond Hershey, the candy landscape is largely dominated 48 00:02:25,145 --> 00:02:26,624 by local sweet shops. 49 00:02:29,453 --> 00:02:32,456 Candy in America is small scales. 50 00:02:32,456 --> 00:02:35,024 So when you went to a candy shop, 51 00:02:35,024 --> 00:02:37,853 it's the candy shop that's making that candy. 52 00:02:37,853 --> 00:02:39,811 Candy would've been made by hand 53 00:02:39,811 --> 00:02:43,598 in five, 10-pound batches at a time. 54 00:02:43,598 --> 00:02:47,689 A shopkeeper would have to take a jar down and scoop out 55 00:02:47,689 --> 00:02:50,126 and put it on a scale and into a little bag, 56 00:02:50,126 --> 00:02:51,780 and that's how candies were sold. 57 00:02:53,434 --> 00:02:55,523 The success of Hershey's chocolate bars 58 00:02:55,523 --> 00:02:58,656 inspires a new breed of sweet makers, 59 00:02:58,656 --> 00:03:01,790 eager to grab their share of a potential new market. 60 00:03:06,011 --> 00:03:08,579 In New York City, one ambitious employee 61 00:03:08,579 --> 00:03:12,148 at a confectionary company called Stern and Salberg 62 00:03:12,148 --> 00:03:15,630 is desperate to make his own mark on the business. 63 00:03:15,630 --> 00:03:17,675 He was an Austrian immigrant 64 00:03:17,675 --> 00:03:22,419 who had a family history of candy making. 65 00:03:22,419 --> 00:03:23,986 He really wanted to make a name for himself, 66 00:03:23,986 --> 00:03:25,509 but so far it's the company 67 00:03:25,509 --> 00:03:27,685 that's reaping all the benefits of his hard work. 68 00:03:29,426 --> 00:03:31,385 His name is Leo Hirshfield. 69 00:03:32,995 --> 00:03:35,302 He'll go on to create one of the most popular candies 70 00:03:35,302 --> 00:03:39,480 of all time that one day will earn $600 million a year. 71 00:03:41,395 --> 00:03:44,920 But right now, Hirshfield's company is not known for candy. 72 00:03:46,617 --> 00:03:48,010 For five years- - Okay. 73 00:03:49,446 --> 00:03:50,578 He's been innovating 74 00:03:50,578 --> 00:03:53,233 with a different kind of sweet, 75 00:03:53,233 --> 00:03:58,020 the first successful instant gelatin called Bromangelon. 76 00:03:59,891 --> 00:04:00,936 Bromangelon. 77 00:04:02,329 --> 00:04:03,721 Bromangelon. 78 00:04:03,721 --> 00:04:06,681 That's just, it's crazy. 79 00:04:06,681 --> 00:04:09,727 I don't think you'd ever use a term like Bromangelon. 80 00:04:09,727 --> 00:04:12,948 You go, "God, that sounds delicious." 81 00:04:12,948 --> 00:04:16,430 Despite its complex name, Bromangelon makes the process 82 00:04:16,430 --> 00:04:18,736 of making gelatin remarkably simple. 83 00:04:20,782 --> 00:04:23,654 Before, you really could only get gelatin 84 00:04:23,654 --> 00:04:27,267 through the very long process of boiling bones 85 00:04:27,267 --> 00:04:30,008 to extract the gelatin from it. 86 00:04:30,008 --> 00:04:33,621 All the user has to do is add boiling water, stir it, 87 00:04:33,621 --> 00:04:35,013 and put it in a mold, 88 00:04:35,013 --> 00:04:37,102 and they've got a gorgeous gelatin dessert. 89 00:04:38,016 --> 00:04:38,930 Okay. 90 00:04:40,236 --> 00:04:41,629 People wanted something quick, 91 00:04:41,629 --> 00:04:42,717 easy, and affordable. 92 00:04:42,717 --> 00:04:44,414 Then Bromangelon comes along 93 00:04:44,414 --> 00:04:46,721 and the packets cost 10 to 15 cents each, 94 00:04:46,721 --> 00:04:49,463 and they're available in a wide variety of flavors. 95 00:04:51,421 --> 00:04:53,075 And Hirshfield's Bromangelon 96 00:04:53,075 --> 00:04:55,425 becomes a sensation. 97 00:04:55,425 --> 00:04:58,123 Magazines publish new and interesting ways to use it 98 00:04:58,123 --> 00:04:59,255 beyond dessert. 99 00:05:00,909 --> 00:05:03,999 People really just sort of went a little crazy with it, 100 00:05:03,999 --> 00:05:06,958 serving roast Turkey with cherry Bromangelon 101 00:05:06,958 --> 00:05:11,963 or the shredded wheat 102 00:05:11,963 --> 00:05:14,096 apple gelatin sandwich. 103 00:05:15,227 --> 00:05:17,578 Why? 104 00:05:17,578 --> 00:05:19,319 As odd as it sounds, 105 00:05:19,319 --> 00:05:23,584 yes, people were putting meat inside these gelatin molds 106 00:05:25,281 --> 00:05:27,022 and people were eating it up literally and figuratively. 107 00:05:28,240 --> 00:05:29,154 Okay. 108 00:05:30,373 --> 00:05:31,853 Hirshfield's success 109 00:05:31,853 --> 00:05:34,116 sparks a wave of copycats. 110 00:05:38,120 --> 00:05:41,863 And soon, one small startup unseat Bromangelon 111 00:05:41,863 --> 00:05:44,039 as the country's most popular gelatin. 112 00:05:44,822 --> 00:05:45,693 Leo. 113 00:05:49,566 --> 00:05:51,046 Oh my. 114 00:05:52,482 --> 00:05:57,182 In 1904, a product called Jell-O launched in America. 115 00:05:58,358 --> 00:06:02,013 Their sales soar past Bromangelon. 116 00:06:03,363 --> 00:06:05,756 It was my creation. 117 00:06:05,756 --> 00:06:09,717 And the name Jell-O becomes synonymous 118 00:06:09,717 --> 00:06:12,546 for the product that Leo Hirshfield invented. 119 00:06:13,938 --> 00:06:17,159 By 1906, Jell-O's newest flavor 120 00:06:17,159 --> 00:06:19,074 is already its best seller. 121 00:06:20,423 --> 00:06:22,033 Jell-O's beaten them to the punch 122 00:06:22,033 --> 00:06:25,559 by sweeping in on the newest trend, chocolate flavor. 123 00:06:25,559 --> 00:06:27,169 Bromangelon starts to fall behind. 124 00:06:28,997 --> 00:06:31,695 As sales of Jell-O hit the modern equivalent 125 00:06:31,695 --> 00:06:35,743 of $8 million, Hirshfield is desperate to fight back. 126 00:06:37,832 --> 00:06:40,138 He feels he's come up with a hit product once, 127 00:06:40,138 --> 00:06:41,662 he can do it again 128 00:06:41,662 --> 00:06:45,579 or both he and the company will pay the price. 129 00:06:45,579 --> 00:06:47,798 Hirshfield begins experimenting 130 00:06:47,798 --> 00:06:51,454 with creating his own chocolate version of gelatin. 131 00:06:51,454 --> 00:06:54,892 Leo Hirshfield is a very smart man, 132 00:06:54,892 --> 00:06:58,940 and he knows that if he can create a new chocolate treat 133 00:06:58,940 --> 00:07:03,292 that he can package and sell, that that is a surefire win. 134 00:07:04,902 --> 00:07:06,513 Hirshfield starts trying out 135 00:07:06,513 --> 00:07:09,603 different techniques, hoping to create something unique. 136 00:07:10,734 --> 00:07:12,693 He's tinkering in the lab, 137 00:07:12,693 --> 00:07:15,130 he's working with his chocolate gelatin, 138 00:07:15,130 --> 00:07:18,307 trying to figure out different ways he can use it. 139 00:07:19,264 --> 00:07:21,049 So Leo Hirshfield decides 140 00:07:21,049 --> 00:07:24,792 he's gonna take his chocolate gelatin and bake it 141 00:07:25,923 --> 00:07:27,229 because why not? 142 00:07:28,926 --> 00:07:30,841 As he heats his gelatin mold, 143 00:07:31,015 --> 00:07:33,714 an unexpected creation takes shape. 144 00:07:33,975 --> 00:07:36,586 Oh. 145 00:07:36,586 --> 00:07:39,328 There's a texture unlike anything 146 00:07:39,328 --> 00:07:42,331 he or anyone has ever had before. 147 00:07:47,684 --> 00:07:51,340 It's sort of like a denser, more chewy marshmallow. 148 00:07:52,950 --> 00:07:56,780 It's not really a taffy, it's not really a caramel. 149 00:07:56,780 --> 00:07:58,869 It's gummy and chewy, 150 00:07:58,869 --> 00:08:02,090 but it doesn't fit easily into any category. 151 00:08:05,615 --> 00:08:08,139 He's thinking, "This is tasty, 152 00:08:08,139 --> 00:08:09,793 it's delicious, but what is it? 153 00:08:09,793 --> 00:08:12,100 Maybe this isn't a dessert at all." 154 00:08:12,100 --> 00:08:14,581 Maybe this is something entirely different. 155 00:08:16,017 --> 00:08:18,802 Tasked to create a Jell-O killer, 156 00:08:18,802 --> 00:08:22,806 Hirshfield instead creates a candy with hit potential. 157 00:08:30,074 --> 00:08:31,032 It doesn't melt. 158 00:08:32,207 --> 00:08:33,948 There's no air conditioning, 159 00:08:33,948 --> 00:08:36,254 so a lot of places can't even sell chocolate 160 00:08:36,254 --> 00:08:37,647 in the summertime. 161 00:08:37,647 --> 00:08:39,693 So melting is a huge issue. 162 00:08:42,478 --> 00:08:44,611 This could be bigger than your gelatin. 163 00:08:47,701 --> 00:08:49,529 Company head, Julius Stern, 164 00:08:49,529 --> 00:08:51,487 can see that Hirshfield's creation 165 00:08:51,487 --> 00:08:53,707 might just give Hershey a run for his money. 166 00:08:54,838 --> 00:08:55,883 What do you call it? 167 00:08:58,146 --> 00:09:02,890 I was hoping to name it after my daughter, Tootsie. 168 00:09:04,021 --> 00:09:06,067 Leo Hirshfield's daughter, Clara. 169 00:09:06,067 --> 00:09:09,026 Her nickname was said to be Tootsie. 170 00:09:09,026 --> 00:09:12,856 The Tootsie Roll is released nationwide in 1908, 171 00:09:12,856 --> 00:09:15,555 priced at just a penny each. 172 00:09:15,555 --> 00:09:18,775 He really felt that these had to be sold in bite-sized. 173 00:09:18,775 --> 00:09:20,864 But the way bite-sized candies were being sold, 174 00:09:20,864 --> 00:09:22,605 they were sold in jars. 175 00:09:22,605 --> 00:09:24,433 And he realized that if they put a bunch of these in a jar, 176 00:09:24,433 --> 00:09:25,695 they're just gonna stick together. 177 00:09:25,695 --> 00:09:27,044 So he did something 178 00:09:27,044 --> 00:09:30,047 that no other bite-sized candy manufacturer 179 00:09:30,047 --> 00:09:31,092 or seller was doing. 180 00:09:33,573 --> 00:09:36,010 Even more revolutionary than its taste 181 00:09:36,010 --> 00:09:37,925 is the way it's sold. 182 00:09:37,925 --> 00:09:42,016 So Tootsie is the first individually wrapped candies. 183 00:09:42,016 --> 00:09:45,236 This was unlike, I mean, anything else 184 00:09:45,236 --> 00:09:47,325 that was on the market. 185 00:09:47,325 --> 00:09:48,805 This was a major change. 186 00:09:48,805 --> 00:09:51,025 It reduced labor for the operations of the store. 187 00:09:51,025 --> 00:09:53,593 It allowed the candy to be sold self-serve 188 00:09:53,593 --> 00:09:54,811 so anyone could grab it. 189 00:09:55,899 --> 00:09:58,772 Tootsie Roll is also the first penny candy 190 00:09:58,772 --> 00:10:01,731 with its brand name printed right on every piece. 191 00:10:01,731 --> 00:10:03,211 That was incredibly innovative 192 00:10:03,211 --> 00:10:05,866 because it allowed a consumer 193 00:10:05,866 --> 00:10:08,346 to know that they were getting that same quality 194 00:10:08,346 --> 00:10:09,434 every single time. 195 00:10:11,001 --> 00:10:13,134 Sales from the outset are more than Hirshfield 196 00:10:13,134 --> 00:10:14,701 could ever have imagined. 197 00:10:14,701 --> 00:10:16,485 After the Tootsie Roll, 198 00:10:16,485 --> 00:10:20,228 you see a lot of individually wrapped candies coming out. 199 00:10:20,228 --> 00:10:22,883 You see things like the Hershey Kiss coming out. 200 00:10:22,883 --> 00:10:25,755 Other candies are being wrapped either in aluminum foil 201 00:10:25,755 --> 00:10:28,932 or paper, and suddenly all these other companies 202 00:10:28,932 --> 00:10:30,804 are swooping in. 203 00:10:30,804 --> 00:10:32,240 Thanks to Hirshfield's creation, 204 00:10:32,240 --> 00:10:33,720 the company Stern and Salberg 205 00:10:33,720 --> 00:10:36,070 pivot from being just a gelatin dessert producer 206 00:10:36,070 --> 00:10:37,898 to being one of the first national candy producers 207 00:10:37,898 --> 00:10:39,073 in the country. 208 00:10:40,074 --> 00:10:41,989 But their meteoric rise 209 00:10:41,989 --> 00:10:44,426 is about to fuel fierce challengers. 210 00:10:47,821 --> 00:10:50,867 Just 20 miles west of Manhattan, 211 00:10:50,867 --> 00:10:53,870 a high school dropout named Walter Reid Jr. 212 00:10:53,870 --> 00:10:55,959 is struggling after a recent string 213 00:10:55,959 --> 00:10:57,918 of failed business ventures. 214 00:10:57,918 --> 00:10:59,397 Walter Reid Jr. 215 00:10:59,397 --> 00:11:02,226 had an entrepreneurial spirit from a young age. 216 00:11:02,226 --> 00:11:05,099 Even as a kid, he was coming up with schemes 217 00:11:05,099 --> 00:11:08,058 to collect parts from the local factory 218 00:11:08,058 --> 00:11:12,933 where he lived in Baltimore and resell them to toy makers. 219 00:11:12,933 --> 00:11:14,586 He most recently worked as a salesman 220 00:11:14,586 --> 00:11:16,719 for a local New Jersey chewing gum producer, 221 00:11:16,719 --> 00:11:18,895 and he spent a lot of time in candy shops. 222 00:11:18,895 --> 00:11:21,202 He started to see what Hershey and Tootsie Roll 223 00:11:21,202 --> 00:11:23,421 were doing with their wrapped chocolates and other candies, 224 00:11:23,421 --> 00:11:25,641 and he wondered if there was an opportunity to seize 225 00:11:25,641 --> 00:11:27,774 with other types of candies. 226 00:11:27,774 --> 00:11:29,645 He tried a bunch of different business ideas. 227 00:11:29,645 --> 00:11:31,603 None of them really worked. 228 00:11:31,603 --> 00:11:33,823 And so he was looking to do something 229 00:11:33,823 --> 00:11:36,086 no one had seen before. 230 00:11:36,086 --> 00:11:38,393 What Reid is about to stumble upon 231 00:11:38,393 --> 00:11:41,526 will transform candy and make him the head 232 00:11:41,526 --> 00:11:44,529 of one of the biggest candy companies in the world. 233 00:11:44,529 --> 00:11:46,836 But today, he just needs a job. 234 00:11:55,671 --> 00:11:58,239 In 1912, only a few years 235 00:11:58,239 --> 00:12:00,415 after the launch of the Tootsie Roll, 236 00:12:00,415 --> 00:12:03,026 a former gum salesman, Walter Reid, 237 00:12:03,026 --> 00:12:05,507 is searching for inspiration. 238 00:12:05,899 --> 00:12:07,944 Reid is 32 at this point. 239 00:12:07,944 --> 00:12:10,338 He's still young, but he hasn't found something 240 00:12:10,338 --> 00:12:12,862 he can really wrap his arms around yet as a businessman. 241 00:12:16,692 --> 00:12:17,954 Reid sees his chance 242 00:12:17,954 --> 00:12:20,914 to finally make his mark on the candy industry 243 00:12:20,914 --> 00:12:23,655 by adopting Tootsie Roll's approach. 244 00:12:23,655 --> 00:12:27,311 But he wants to do it with totally new flavors. 245 00:12:27,311 --> 00:12:29,270 He realizes he wants to do something 246 00:12:29,270 --> 00:12:31,272 that people can't normally get. 247 00:12:32,926 --> 00:12:34,754 I know it sounds weird at the 21st century 248 00:12:34,754 --> 00:12:38,366 when we can walk into any supermarket at any time of year 249 00:12:38,366 --> 00:12:41,021 and get any fruit we want. 250 00:12:41,021 --> 00:12:44,807 But in the early 1900s, tropical fruits like oranges 251 00:12:44,807 --> 00:12:47,157 or delicate things like strawberries, 252 00:12:47,157 --> 00:12:49,769 they were rare, they were luxuries, 253 00:12:49,769 --> 00:12:54,034 and they were flavors that people were seeking out. 254 00:12:54,034 --> 00:12:56,601 Fruits at this time were still seasonal 255 00:12:56,601 --> 00:12:57,951 and very much regional. 256 00:12:57,951 --> 00:12:59,430 There weren't refrigerated trucks 257 00:12:59,430 --> 00:13:01,606 regularly crisscrossing the country 258 00:13:01,606 --> 00:13:04,609 and refrigerated train travel was still in its infancy. 259 00:13:04,609 --> 00:13:06,263 If you lived in northern state, 260 00:13:06,263 --> 00:13:09,266 the idea of eating a fresh orange from California 261 00:13:09,266 --> 00:13:11,616 or Florida was completely unthinkable. 262 00:13:15,925 --> 00:13:18,145 Walter Reid pours his life savings, 263 00:13:18,145 --> 00:13:21,888 $2,000 or nearly 65,000 today 264 00:13:21,888 --> 00:13:24,455 into creating his all new candy. 265 00:13:25,630 --> 00:13:27,110 Unlike Leo Hirshfield, 266 00:13:27,110 --> 00:13:29,721 Reid does not have a background in confectionary, 267 00:13:29,721 --> 00:13:31,898 but he is a born salesman. 268 00:13:31,898 --> 00:13:33,421 These could be lighter. 269 00:13:33,421 --> 00:13:34,465 Reid understands people. 270 00:13:34,465 --> 00:13:35,815 He knows what they like 271 00:13:35,815 --> 00:13:37,947 and he knows how to get their attention. 272 00:13:37,947 --> 00:13:38,992 But Reid's strategy 273 00:13:38,992 --> 00:13:41,342 hinges on repurposing a candy 274 00:13:41,342 --> 00:13:44,171 traditionally reserved for medicinal purposes. 275 00:13:46,303 --> 00:13:48,349 Originally, hard candies actually 276 00:13:48,349 --> 00:13:50,220 started out as medicine 277 00:13:50,220 --> 00:13:53,528 and they were a way to make taking medicine more palatable. 278 00:13:53,528 --> 00:13:55,617 A spoonful of sugar makes the medicine go down. 279 00:13:56,792 --> 00:13:58,925 Like if you wanted to solve upset stomachs, 280 00:13:58,925 --> 00:14:00,187 add iron to it. 281 00:14:00,187 --> 00:14:02,189 If you wanted to solve depression, 282 00:14:02,189 --> 00:14:04,278 add an extractive heroin to it. 283 00:14:04,278 --> 00:14:05,322 All these ingredients 284 00:14:05,322 --> 00:14:06,758 are not allowed anymore, 285 00:14:06,758 --> 00:14:07,585 but they didn't know what 286 00:14:07,585 --> 00:14:09,196 it would do long term. 287 00:14:11,502 --> 00:14:13,809 To bring hard candy into the future, 288 00:14:13,809 --> 00:14:16,203 Reid works with a confectioner 289 00:14:16,203 --> 00:14:18,988 to create an all new rainbow assortment 290 00:14:18,988 --> 00:14:22,209 of fruit flavors he deems exotic. 291 00:14:22,209 --> 00:14:25,821 They are lemon, lime, grape, orange, and cherry. 292 00:14:25,821 --> 00:14:27,779 Those seem pretty basic now 293 00:14:27,779 --> 00:14:30,217 if you look at any sort of fruit-flavored candy. 294 00:14:30,217 --> 00:14:34,221 But in 1912, they were considered tropical flavors. 295 00:14:35,657 --> 00:14:37,615 So Reid cuts each piece in a small square, 296 00:14:37,615 --> 00:14:39,530 about three quarters of an inch on each side, 297 00:14:39,530 --> 00:14:40,967 and about half an inch thick. 298 00:14:40,967 --> 00:14:43,360 It's the perfect size to pop in your mouth. 299 00:14:44,884 --> 00:14:46,363 Like Tootsie Rolls, 300 00:14:46,363 --> 00:14:49,671 Reid aims to sell his hard candy in wrapped packages 301 00:14:49,671 --> 00:14:52,369 distributed nationwide. 302 00:14:52,369 --> 00:14:55,895 He's even come up with a way to undercut Tootsie on price. 303 00:14:57,809 --> 00:15:00,508 So he puts 10 in a package and then charges 5 cents. 304 00:15:00,508 --> 00:15:03,076 So each piece of candy costs less than one penny. 305 00:15:04,729 --> 00:15:06,818 But he's finding his pack of candies 306 00:15:06,818 --> 00:15:08,211 has major issues. 307 00:15:11,693 --> 00:15:14,435 So the individual candy starts sticking to each other 308 00:15:14,435 --> 00:15:15,653 as soon as the package gets near heat 309 00:15:15,653 --> 00:15:17,351 or is exposed to moisture. 310 00:15:18,656 --> 00:15:20,920 So instead of 10 individual pieces of candy, 311 00:15:20,920 --> 00:15:23,400 you got one big sticky chunk. 312 00:15:26,577 --> 00:15:29,145 Reid recognizes that each candy square 313 00:15:29,145 --> 00:15:32,627 must be individually wrapped before being encased in a pack. 314 00:15:34,934 --> 00:15:36,892 He's leveraged every penny he has. 315 00:15:36,892 --> 00:15:38,981 He's been at this for two years. 316 00:15:38,981 --> 00:15:41,462 As good as Walter Reid's candies are, 317 00:15:41,462 --> 00:15:42,985 unless he could find some kind of packaging, 318 00:15:42,985 --> 00:15:45,292 he can never take them to the marketplace. 319 00:15:47,076 --> 00:15:48,904 At the end of his financial rope, 320 00:15:48,904 --> 00:15:51,254 Reid discovers a new invention 321 00:15:51,254 --> 00:15:53,822 that's fascinating European manufacturers. 322 00:15:56,694 --> 00:15:59,132 Created in France four years earlier, 323 00:15:59,132 --> 00:16:01,961 this unique material is the brainchild of chemist 324 00:16:01,961 --> 00:16:02,962 Jacques Brandenberger. 325 00:16:05,007 --> 00:16:07,227 He's experimenting with making cloth waterproof, 326 00:16:07,227 --> 00:16:10,839 and he applies a liquid viscose rayon to his fabric. 327 00:16:10,839 --> 00:16:13,276 And ultimately, this process creates a fabric 328 00:16:13,276 --> 00:16:15,626 that's just way too stiff to be useful. 329 00:16:15,626 --> 00:16:17,150 But in the process of this failure, 330 00:16:17,150 --> 00:16:20,762 he notices this thin film that peels off of the fabric. 331 00:16:20,762 --> 00:16:23,721 He says, "You know what? This could be something." 332 00:16:23,721 --> 00:16:25,854 Brandenberger names his creation 333 00:16:25,854 --> 00:16:28,726 after cellulose, its main component. 334 00:16:28,726 --> 00:16:32,339 And the word diaphane, which means transparent. 335 00:16:32,339 --> 00:16:35,211 He calls it cellophane, 336 00:16:35,211 --> 00:16:37,692 available in the United States only recently. 337 00:16:37,692 --> 00:16:40,825 So far, it's used to protect boxes, not food. 338 00:16:40,825 --> 00:16:43,132 Whitman, the chocolate company, 339 00:16:43,132 --> 00:16:45,874 famously began using this newfangled 340 00:16:45,874 --> 00:16:49,138 plastic-like product of cellophane to wrap the box. 341 00:16:53,055 --> 00:16:55,710 Walter Reid says, "Wait a minute. 342 00:16:55,710 --> 00:16:59,018 This may be the solution to all my problems." 343 00:17:00,584 --> 00:17:02,978 People had never seen something you could see through 344 00:17:02,978 --> 00:17:05,502 to see the product that you were going to eat. 345 00:17:07,461 --> 00:17:11,204 It looked like glass, but it was flexible like paper. 346 00:17:11,204 --> 00:17:13,032 It was amazing. 347 00:17:17,427 --> 00:17:18,733 With a shiny new product 348 00:17:18,733 --> 00:17:20,865 that can be shipped nationwide, 349 00:17:20,865 --> 00:17:24,217 Walter Reid believes he can revitalize hard candy. 350 00:17:26,523 --> 00:17:29,831 They were one of the first to package hard candies 351 00:17:29,831 --> 00:17:33,400 that were portable so that somebody could take a piece 352 00:17:33,400 --> 00:17:34,966 and save it for later. 353 00:17:34,966 --> 00:17:36,055 You could hand a piece to your friend, 354 00:17:36,055 --> 00:17:37,969 they could save it for later, 355 00:17:37,969 --> 00:17:40,146 and that was huge. 356 00:17:40,146 --> 00:17:43,845 Reid releases his hard candy creations in 1914. 357 00:17:45,107 --> 00:17:47,066 Their bright colors and fruity flavors 358 00:17:47,066 --> 00:17:50,243 inspire their name, Tropical Charms. 359 00:17:53,811 --> 00:17:58,555 Charms had really merged the concept of jewels 360 00:18:00,122 --> 00:18:03,038 and candy being something kind of beautiful 361 00:18:03,038 --> 00:18:04,692 with all the colors. 362 00:18:04,692 --> 00:18:09,218 Reid understood that people wanted candy 363 00:18:09,218 --> 00:18:11,481 for fun as well. 364 00:18:11,481 --> 00:18:13,918 Reid's product proves so popular 365 00:18:13,918 --> 00:18:16,791 that not even the first World War can hamper its momentum. 366 00:18:18,445 --> 00:18:21,622 In fact, the war helps Reid to expand his business. 367 00:18:24,233 --> 00:18:27,149 So when the US enters World War I in 1917, 368 00:18:27,149 --> 00:18:29,238 Reid goes to the war department and convinces them 369 00:18:29,238 --> 00:18:32,372 that Lemon Charms would make a fun, delicious, 370 00:18:32,372 --> 00:18:34,461 and wholesome addition to field rations. 371 00:18:34,461 --> 00:18:37,377 Before you know it, we start shipping them the candy. 372 00:18:37,377 --> 00:18:39,118 If you can be the brand 373 00:18:39,118 --> 00:18:41,294 that's in your soldier's ration pack, 374 00:18:41,294 --> 00:18:43,078 you've got a customer for life 375 00:18:43,078 --> 00:18:44,558 and they're gonna get their kids into your brand. 376 00:18:44,558 --> 00:18:47,822 He sees a huge opportunity in front of him. 377 00:18:53,610 --> 00:18:57,875 Although Charms is gaining fast, by 1918, 378 00:18:57,875 --> 00:19:00,791 Tootsie Roll is still the bestselling penny candy brand 379 00:19:00,791 --> 00:19:02,271 in the US. 380 00:19:02,271 --> 00:19:03,925 So at this point, 381 00:19:03,925 --> 00:19:06,667 in over 700 million Tootsie Rolls have been sold. 382 00:19:06,667 --> 00:19:08,843 It's a runaway success. 383 00:19:08,843 --> 00:19:10,975 Stern and Salberg changed the name of their operation to 384 00:19:10,975 --> 00:19:13,674 the Sweets Company of America, and then they go public, 385 00:19:13,674 --> 00:19:16,416 becoming the very first candy company traded on the floor 386 00:19:16,416 --> 00:19:17,678 of the New York Stock Exchange. 387 00:19:20,115 --> 00:19:21,464 Things are looking bright 388 00:19:21,464 --> 00:19:23,423 for the business that launched the Tootsie Roll. 389 00:19:24,859 --> 00:19:27,905 That is for everyone but the man that invented it, 390 00:19:27,905 --> 00:19:28,863 Leo Hirshfield. 391 00:19:30,517 --> 00:19:31,822 What's this? 392 00:19:31,822 --> 00:19:33,346 An agreement. 393 00:19:34,912 --> 00:19:37,176 The entire world knows Tootsie Roll, 394 00:19:37,176 --> 00:19:39,656 but no one knows Leo Hirshfield 395 00:19:39,656 --> 00:19:42,355 and he's still ultimately an employee. 396 00:19:42,355 --> 00:19:46,881 From now on, I'd receive a piece of the profits. 397 00:19:48,143 --> 00:19:50,276 When this company goes public 398 00:19:50,276 --> 00:19:52,539 and suddenly there's all this wealth flowing in, 399 00:19:52,539 --> 00:19:54,541 he's not entitled to any of it 400 00:19:54,541 --> 00:19:56,804 and he really feels he should be a partner. 401 00:19:56,804 --> 00:19:59,720 He even feels he should be the president of the company. 402 00:19:59,720 --> 00:20:01,983 You get paid very well. 403 00:20:01,983 --> 00:20:03,680 That's not the point. 404 00:20:03,680 --> 00:20:05,029 I invented it. 405 00:20:12,559 --> 00:20:13,734 It's not gonna happen. 406 00:20:20,610 --> 00:20:23,918 Leo Hirshfield undoubtedly has incredible talents, 407 00:20:23,918 --> 00:20:27,182 but he doesn't really have the business acumen 408 00:20:27,182 --> 00:20:29,924 and the business knowledge to negotiate, 409 00:20:29,924 --> 00:20:33,536 and ultimately he realizes 410 00:20:33,536 --> 00:20:35,625 he's never going to have ownership 411 00:20:35,625 --> 00:20:40,674 of this incredibly big hit that he has created. 412 00:20:40,674 --> 00:20:42,328 Without the means to gain more control 413 00:20:42,328 --> 00:20:47,028 over his creation, Hirshfield sees his dream slipping away, 414 00:20:47,028 --> 00:20:49,857 and he's lost all hope of reclaiming it. 415 00:21:00,302 --> 00:21:03,566 By 1922, Leo Hirshfield has created 416 00:21:03,566 --> 00:21:06,613 one of the most successful candies in the country, 417 00:21:06,613 --> 00:21:09,050 but his bosses, Stern and Salberg, 418 00:21:09,050 --> 00:21:11,531 are reaping all the rewards. 419 00:21:11,531 --> 00:21:14,708 At this time, Leo Hirshfield's wife becomes very sick 420 00:21:14,708 --> 00:21:17,841 and she ends up being sent to a sanitarium to recover. 421 00:21:17,841 --> 00:21:20,801 All of the aspects of his life are kind of falling apart. 422 00:21:20,801 --> 00:21:24,326 At that point, he does hit some hard times. 423 00:21:24,326 --> 00:21:27,808 Life was tough and I think he was really troubled. 424 00:21:29,375 --> 00:21:31,290 Hirshfield makes a tragic decision. 425 00:21:38,297 --> 00:21:41,474 On January 13th, 1922, 426 00:21:41,474 --> 00:21:43,780 Leo Hirshfield takes his own life. 427 00:21:45,304 --> 00:21:47,828 Leo Hirshfield, despite his sad ending, 428 00:21:47,828 --> 00:21:49,482 made his mark on America. 429 00:21:49,482 --> 00:21:52,441 You see someone really living the American dream. 430 00:21:52,441 --> 00:21:55,270 He came from another country. 431 00:21:55,270 --> 00:21:59,361 He revolutionized a candy industry with both confections 432 00:21:59,361 --> 00:22:02,146 and machinery and just remembering him 433 00:22:02,146 --> 00:22:03,539 and eating a Tootsie Roll 434 00:22:03,539 --> 00:22:05,585 is a great way to pay homage to his memory. 435 00:22:07,021 --> 00:22:09,502 It's a sad end for Hirshfield. 436 00:22:09,502 --> 00:22:13,027 And now, the company that profited from his genius 437 00:22:13,027 --> 00:22:15,029 must learn to survive without it. 438 00:22:21,035 --> 00:22:23,429 In New Jersey, Walter Reid's company 439 00:22:23,429 --> 00:22:25,039 is facing its own challenges. 440 00:22:27,258 --> 00:22:29,260 Of course, he's been chasing Tootsie since the outset, 441 00:22:29,260 --> 00:22:31,437 but now there's this whole group 442 00:22:31,437 --> 00:22:33,961 of individually wrapped candies he has to compete with. 443 00:22:33,961 --> 00:22:35,571 You got Hershey's kisses, 444 00:22:35,571 --> 00:22:37,530 you got Chuckles fruit jellies, you got Mary Jane's. 445 00:22:37,530 --> 00:22:39,532 There's all these different candies now. 446 00:22:41,708 --> 00:22:43,187 As he confronts a barrage 447 00:22:43,187 --> 00:22:46,626 of competitors eroding his profits, 448 00:22:46,626 --> 00:22:50,151 Reid feels fresh heat from an emerging newcomer, 449 00:22:50,151 --> 00:22:53,546 a brand of hard candy known as LifeSavers. 450 00:22:56,375 --> 00:23:01,118 So LifeSavers' origins were really 451 00:23:01,118 --> 00:23:06,297 in the world of candies that aided digestion. 452 00:23:06,297 --> 00:23:09,518 The flavors were peppermint or winter green. 453 00:23:10,650 --> 00:23:12,260 By 1925, 454 00:23:12,260 --> 00:23:15,524 LifeSavers is taking direct aim at Charms. 455 00:23:16,873 --> 00:23:19,702 LifeSavers releases fruit flavor drops 456 00:23:19,702 --> 00:23:22,052 in orange, lime, and lemon, 457 00:23:22,052 --> 00:23:23,706 and they're consistently experimenting 458 00:23:23,706 --> 00:23:27,580 with new flavors like cola, root beer, and butter rum. 459 00:23:27,580 --> 00:23:28,929 The more they innovate, 460 00:23:28,929 --> 00:23:30,409 the more attention they take away from Charms. 461 00:23:31,845 --> 00:23:33,150 Fruit-flavored LifeSavers 462 00:23:33,150 --> 00:23:35,414 explode in popularity, 463 00:23:35,414 --> 00:23:39,374 transforming the company into a $1.5 million operation. 464 00:23:40,767 --> 00:23:42,986 Walter Reid's probably shaking in his boots. 465 00:23:42,986 --> 00:23:46,250 He understands that he has to grow his business 466 00:23:46,250 --> 00:23:47,904 through different types of candy. 467 00:23:52,169 --> 00:23:54,650 Then Reid finds an interesting confection 468 00:23:54,650 --> 00:23:57,566 that's recently become popular around the northeast. 469 00:23:58,393 --> 00:24:00,134 Confectioner George Smith 470 00:24:00,134 --> 00:24:03,529 is the one said to have invented it in 1908. 471 00:24:03,529 --> 00:24:06,532 So he has the genius idea of taking a hard candy 472 00:24:06,532 --> 00:24:09,404 and putting it on a stick. 473 00:24:09,404 --> 00:24:11,145 Smith names his invention 474 00:24:11,145 --> 00:24:14,627 after a popular racehorse called Lollipop. 475 00:24:16,890 --> 00:24:18,935 Candy on the stick becomes the next big trend. 476 00:24:18,935 --> 00:24:21,329 You see individualized versions 477 00:24:21,329 --> 00:24:23,940 being sold in local beach town candy shops 478 00:24:23,940 --> 00:24:25,376 in New England and New Jersey 479 00:24:25,376 --> 00:24:28,031 and the name lollipops becomes universal. 480 00:24:31,382 --> 00:24:34,298 Reid Jr. realizes that a Charms' lollipop 481 00:24:34,298 --> 00:24:36,518 could be a perfect new product, 482 00:24:36,518 --> 00:24:39,303 and he begins producing them in his factories. 483 00:24:41,001 --> 00:24:42,655 The advantage there is mainly practical 484 00:24:42,655 --> 00:24:44,178 because he can use the equipment 485 00:24:44,178 --> 00:24:46,485 he already has been using to make his Charms. 486 00:24:46,485 --> 00:24:49,618 All he has to do is add sticks and it becomes a lollipop. 487 00:24:49,618 --> 00:24:51,794 However, his production line 488 00:24:51,794 --> 00:24:52,839 runs into a problem. 489 00:24:56,146 --> 00:24:59,802 He basically had to heat up your sugar mixture, 490 00:24:59,802 --> 00:25:02,152 let it cool, put a stick in. 491 00:25:02,152 --> 00:25:05,068 Lollipops had been completely round 492 00:25:05,068 --> 00:25:08,507 and they were a little difficult to produce. 493 00:25:08,507 --> 00:25:11,118 The lollipops are not cooling even, 494 00:25:11,118 --> 00:25:13,120 compromising their structure. 495 00:25:13,120 --> 00:25:15,383 Round lollipops, they're harder to make 496 00:25:15,383 --> 00:25:18,734 because the center is thicker than the top and the bottom, 497 00:25:18,734 --> 00:25:21,345 and so it takes longer for that center part to cool. 498 00:25:21,345 --> 00:25:22,695 So they do crack a little bit. 499 00:25:24,044 --> 00:25:25,524 If Reid can't solve 500 00:25:25,524 --> 00:25:28,091 his lollipop manufacturing problems, 501 00:25:28,091 --> 00:25:32,356 LifeSavers stands ready to dominate the hard candy market. 502 00:25:42,105 --> 00:25:45,021 With new national competitors breathing down his neck, 503 00:25:45,021 --> 00:25:47,894 Walter Reid is struggling to figure out 504 00:25:47,894 --> 00:25:51,506 how to make lollipops on an industrialized scale. 505 00:25:51,506 --> 00:25:54,509 Round lollipops are just a big challenge 506 00:25:54,509 --> 00:25:57,425 to manufacture in large numbers. 507 00:25:57,425 --> 00:25:59,819 If you're a small shop, you can do the nice, 508 00:25:59,819 --> 00:26:01,908 slow, cool, right? 509 00:26:01,908 --> 00:26:04,998 But if you are trying to create in bulk and fast, 510 00:26:04,998 --> 00:26:06,782 that's gonna create voids. 511 00:26:06,782 --> 00:26:10,177 It doesn't give you the nice sort of lollipop ball 512 00:26:10,177 --> 00:26:11,221 that we have today. 513 00:26:14,137 --> 00:26:16,400 Reid comes up with a novel solution. 514 00:26:16,400 --> 00:26:19,403 The answer doesn't lie in cooling the round pops, 515 00:26:19,403 --> 00:26:21,710 but rather in a bold re-imagining 516 00:26:21,710 --> 00:26:24,321 of their very shape, 517 00:26:24,321 --> 00:26:26,106 the flat lollipop, 518 00:26:28,108 --> 00:26:29,849 Because it's flatter, it allows the candy 519 00:26:29,849 --> 00:26:31,764 to cool more uniformly and more quickly. 520 00:26:33,461 --> 00:26:37,117 Not only did it allow Reid to mass produce his lollipops, 521 00:26:37,117 --> 00:26:40,424 it was also cheaper for him to ship them around the country 522 00:26:40,424 --> 00:26:44,080 because the flat shape took up less space in a box. 523 00:26:44,080 --> 00:26:46,605 After first revolutionizing hard candy, 524 00:26:46,605 --> 00:26:49,869 Reid now aims to transform the lollipop 525 00:26:49,869 --> 00:26:54,482 from a small time New England delight into a national brand. 526 00:26:54,482 --> 00:26:57,311 He calls his creation Charms Pops. 527 00:26:58,529 --> 00:26:59,487 This is perfect. 528 00:27:00,401 --> 00:27:02,098 So he releases 11 flavors 529 00:27:02,098 --> 00:27:03,665 and they're sold for 5 cents a piece, 530 00:27:03,665 --> 00:27:05,319 which is really steep for hard candy, 531 00:27:05,319 --> 00:27:07,451 but he thinks that the shape and the packaging 532 00:27:07,451 --> 00:27:08,975 will make it feel more premium 533 00:27:08,975 --> 00:27:11,107 than the hodgepodge of handmade lollipops 534 00:27:11,107 --> 00:27:13,240 already cluttering up the candy shelves. 535 00:27:13,240 --> 00:27:16,025 The packaging itself, again, back to cellophane, 536 00:27:16,025 --> 00:27:17,766 branded cellophane. 537 00:27:17,766 --> 00:27:20,551 And as a consumer, you could see the candy you were getting. 538 00:27:20,551 --> 00:27:24,947 So it's totally innovative, it's totally unique. 539 00:27:24,947 --> 00:27:27,820 Ever the salesman, Reid markets Charms Pops 540 00:27:27,820 --> 00:27:30,170 as a superior candy experience, 541 00:27:30,170 --> 00:27:32,912 attracting not only kids, but also adults. 542 00:27:32,912 --> 00:27:35,741 The Charms flat lollipops become a huge hit, 543 00:27:35,741 --> 00:27:37,830 and they become associated with flapper girls 544 00:27:37,830 --> 00:27:39,570 wearing their flapper dresses going from parties 545 00:27:39,570 --> 00:27:41,311 sucking on lollipops, 546 00:27:41,311 --> 00:27:43,618 which is one of the most iconic parts of the Roaring '20s. 547 00:27:43,618 --> 00:27:46,577 By 1926, Charms is producing 548 00:27:46,577 --> 00:27:48,667 a quarter of a million lollipops. 549 00:27:51,147 --> 00:27:53,933 but Reid's success is short-lived. 550 00:27:55,848 --> 00:28:00,374 In October 1929, the US stock market crashes 551 00:28:00,374 --> 00:28:03,159 and the country spirals into the Great Depression. 552 00:28:04,160 --> 00:28:06,510 Candy sales suffer instantly. 553 00:28:06,510 --> 00:28:07,903 People wanted 554 00:28:07,903 --> 00:28:10,514 not to be spending money on little candies. 555 00:28:10,514 --> 00:28:11,690 They need a full meal. 556 00:28:11,690 --> 00:28:13,692 That really upended the industry 557 00:28:13,692 --> 00:28:15,215 and the approach to candy making. 558 00:28:16,564 --> 00:28:19,480 Penny Candy can't compete with candy bars, 559 00:28:19,480 --> 00:28:22,831 which now start adding ingredients like coconut, nuts, 560 00:28:22,831 --> 00:28:25,399 and even toffee to their chocolate. 561 00:28:25,399 --> 00:28:28,315 Brands like Snickers, Zag Nuts, and even Heath Bar 562 00:28:28,315 --> 00:28:29,316 become cheap meals. 563 00:28:32,145 --> 00:28:33,929 Sweets Company of America 564 00:28:33,929 --> 00:28:36,410 is among the candy makers taking a hit. 565 00:28:36,410 --> 00:28:38,455 Julius Stern and Jacob Salberg 566 00:28:38,455 --> 00:28:40,022 have now lost their great inventor, 567 00:28:40,022 --> 00:28:42,024 their sales are tanking, 568 00:28:42,024 --> 00:28:44,548 and they're trying anything they can 569 00:28:44,548 --> 00:28:46,376 to keep their company afloat. 570 00:28:48,117 --> 00:28:50,946 As the Depression shutters 80,000 businesses, 571 00:28:50,946 --> 00:28:53,427 the company makes a desperate gamble. 572 00:28:55,342 --> 00:28:57,344 They try by adding peanuts 573 00:28:57,344 --> 00:28:59,389 and caramel to the Tootsie Roll, 574 00:28:59,389 --> 00:29:01,652 trying to bulk up the candy 575 00:29:01,652 --> 00:29:03,611 like other popular candies at the time, 576 00:29:03,611 --> 00:29:05,221 and no one is interested in them. 577 00:29:05,221 --> 00:29:07,397 And they're actually quite unappetizing. 578 00:29:08,659 --> 00:29:10,661 In a precarious financial position, 579 00:29:10,661 --> 00:29:13,360 they reach for one more Hail Mary 580 00:29:13,360 --> 00:29:15,666 Stern and Salberg turned to their employees 581 00:29:15,666 --> 00:29:19,409 to come up with new ideas and new ways to sell Tootsie Roll. 582 00:29:21,237 --> 00:29:24,110 One of his employees comes up with a great idea. 583 00:29:24,110 --> 00:29:28,027 Luke Weisgram is chewing on a Tootsie Roll at home 584 00:29:28,027 --> 00:29:30,725 when his daughter offers him a lick of her lollipop, 585 00:29:30,725 --> 00:29:32,945 and he licks it while chewing that Tootsie Roll 586 00:29:32,945 --> 00:29:34,642 and inspiration strikes. 587 00:29:34,642 --> 00:29:37,297 And he says, "What if you put the two together?" 588 00:29:37,297 --> 00:29:41,388 So he pitches a lollipop with a Tootsie Roll inside of it. 589 00:29:42,432 --> 00:29:44,086 In today's day and age, 590 00:29:44,086 --> 00:29:46,785 combining two completely different foods is commonplace, 591 00:29:46,785 --> 00:29:48,656 but at the time, this is revolutionary. 592 00:29:49,700 --> 00:29:51,485 By 1931, 593 00:29:51,485 --> 00:29:55,271 the company's shares have tumbled some 43%. 594 00:29:55,271 --> 00:29:56,882 Tootsie Roll's owners are really hoping 595 00:29:56,882 --> 00:30:00,407 that by combining the lollipop with the Tootsie Roll, 596 00:30:00,407 --> 00:30:02,104 they could turn things around for the company. 597 00:30:02,104 --> 00:30:05,020 They're scrambling to get it on shelves. 598 00:30:05,020 --> 00:30:06,456 Desperate to hang on long enough 599 00:30:06,456 --> 00:30:08,284 to release their new lollipop, 600 00:30:08,284 --> 00:30:11,113 the company is struggling to keep creditors at bay. 601 00:30:12,941 --> 00:30:15,596 All we're asking for is another 60 days. 602 00:30:15,596 --> 00:30:18,207 I already gave you 60 days. 603 00:30:18,207 --> 00:30:20,906 You're not the only ones that are stretched thin right now. 604 00:30:22,864 --> 00:30:26,215 They owe money to people on the ingredient side, 605 00:30:26,215 --> 00:30:30,350 on the packaging side, including Bernard Rubin's company, 606 00:30:30,350 --> 00:30:32,961 which has sold Tootsie Roll boxes, 607 00:30:32,961 --> 00:30:35,311 display boxes from the beginning. 608 00:30:35,311 --> 00:30:36,791 This is what I wanted to show you. 609 00:30:42,666 --> 00:30:45,321 They'll be the biggest thing in candy in the next decade. 610 00:30:47,149 --> 00:30:49,848 Just imagine them displayed in one of your boxes. 611 00:30:51,458 --> 00:30:53,895 Since Tootsie Roll is his biggest client, 612 00:30:53,895 --> 00:30:56,202 Rubin can't pressure the owners for payment 613 00:30:56,202 --> 00:30:58,378 without jeopardizing his own company. 614 00:30:59,553 --> 00:31:01,120 But he gets an idea. 615 00:31:01,120 --> 00:31:03,949 Bernard Rubin is a savvy businessman. 616 00:31:03,949 --> 00:31:06,429 This is a very smart man. 617 00:31:06,429 --> 00:31:09,476 He got a preview and he really thinks with that product, 618 00:31:09,476 --> 00:31:10,956 there's life in that old dog. 619 00:31:10,956 --> 00:31:14,089 And so he sees this as his opportunity to strike. 620 00:31:14,089 --> 00:31:16,309 Rubin devises a clever plan 621 00:31:16,309 --> 00:31:18,615 that promises to rescue his key contract 622 00:31:18,615 --> 00:31:20,661 and more intriguingly, 623 00:31:20,661 --> 00:31:23,751 might land him the reigns of a candy empire 624 00:31:31,890 --> 00:31:33,369 In late 1931, 625 00:31:34,980 --> 00:31:37,634 the Tootsie Roll Company finally unleashes 626 00:31:37,634 --> 00:31:41,421 its secret new creation, the Tootsie Pop. 627 00:31:44,163 --> 00:31:47,993 It's sweet, it's tangy, it's fruity, it's chocolatey. 628 00:31:47,993 --> 00:31:51,997 It's a hard candy, but it's also a chewy candy inside. 629 00:31:51,997 --> 00:31:56,131 Making Tootsie Pops is still a closely guarded secret. 630 00:31:56,131 --> 00:31:57,828 Even when they've done their factory chores, 631 00:31:57,828 --> 00:32:01,267 they won't let people entirely see how they finish. 632 00:32:01,267 --> 00:32:02,964 The Tootsie Pop launches with 633 00:32:02,964 --> 00:32:06,576 strawberry, watermelon, and chocolate flavors. 634 00:32:06,576 --> 00:32:09,014 Even during these hard financial times, 635 00:32:09,014 --> 00:32:11,755 it provides a crucial lifeline for the company. 636 00:32:14,280 --> 00:32:15,803 While the Tootsie Pop 637 00:32:15,803 --> 00:32:17,936 certainly saves them from going under, 638 00:32:17,936 --> 00:32:20,416 they're not exactly raking it in. 639 00:32:20,416 --> 00:32:21,940 They did have a lot of debt, 640 00:32:21,940 --> 00:32:24,290 and it takes time to get a return on your investment. 641 00:32:25,769 --> 00:32:28,163 As shareholder confidence waivers, 642 00:32:28,163 --> 00:32:31,123 Bernard Rubin devises a cunning plan. 643 00:32:33,081 --> 00:32:35,605 Bernard Rubin was crafty. 644 00:32:35,605 --> 00:32:37,999 He takes an outsider's perspective 645 00:32:37,999 --> 00:32:41,263 by looking at Tootsie Roll from every angle 646 00:32:41,263 --> 00:32:45,224 and really sees it's troubled. 647 00:32:45,224 --> 00:32:48,009 Rubin contacts shareholders one by one 648 00:32:48,009 --> 00:32:50,925 to offer them an opportunity to unload a losing asset 649 00:32:50,925 --> 00:32:52,144 by selling their shares to him. 650 00:32:53,710 --> 00:32:54,973 Bernard Rubin 651 00:32:54,973 --> 00:32:57,932 completes his ingenious strategy in 1935. 652 00:32:59,499 --> 00:33:02,806 Rubin managed to buy 6,200 shares in the company, 653 00:33:02,806 --> 00:33:05,287 which gave him controlling interest in the company. 654 00:33:05,287 --> 00:33:07,463 Thus, he names himself president. 655 00:33:09,726 --> 00:33:12,642 With all his money now tied up in the company, 656 00:33:12,642 --> 00:33:14,383 Rubin needs to do something 657 00:33:14,383 --> 00:33:16,342 to pull it back to profitability. 658 00:33:20,346 --> 00:33:22,565 The Tootsie Roll really fell off 659 00:33:22,565 --> 00:33:26,134 during the Great Depression, but what Rubin recognized 660 00:33:26,134 --> 00:33:29,398 is that people wanted a bigger product. 661 00:33:29,398 --> 00:33:32,010 One of the things about Tootsie Roll 662 00:33:32,010 --> 00:33:34,925 is it's also not the meal replacement 663 00:33:34,925 --> 00:33:36,579 that a candy bar was. 664 00:33:36,579 --> 00:33:37,667 Longer. 665 00:33:40,061 --> 00:33:42,194 Rubin aims to meet consumer demand, 666 00:33:42,194 --> 00:33:45,675 but a bigger Tootsie Roll alone won't cut it. 667 00:33:45,675 --> 00:33:48,330 He needs to boost profit margins. 668 00:33:49,897 --> 00:33:53,379 He looked at the candy from a sizing perspective 669 00:33:53,379 --> 00:33:55,990 by looking at packaging suppliers, 670 00:33:55,990 --> 00:33:59,167 the cost of the ingredients, everything, 671 00:33:59,167 --> 00:34:02,040 and really cuts costs across the board. 672 00:34:03,258 --> 00:34:05,782 One of Rubin's biggest changes he makes 673 00:34:05,782 --> 00:34:08,089 is by adjusting the recipe 674 00:34:08,089 --> 00:34:10,613 to use more cost effective ingredients. 675 00:34:10,613 --> 00:34:14,139 He's basically thinning it out to make it go further. 676 00:34:14,139 --> 00:34:16,141 Make them all this long. 677 00:34:16,141 --> 00:34:17,881 So he took the Tootsie Roll 678 00:34:17,881 --> 00:34:21,102 from an original size of about two to two and a half inches 679 00:34:21,102 --> 00:34:24,540 and increased the size to three and a half inches. 680 00:34:26,151 --> 00:34:30,372 So if you look at original wrappings, they're thick. 681 00:34:30,372 --> 00:34:34,376 He was able to make them a little bit thinner, longer, 682 00:34:34,376 --> 00:34:35,899 and give people the perception 683 00:34:35,899 --> 00:34:38,772 that they were buying something larger, 684 00:34:38,772 --> 00:34:43,168 but cut the cost of the Tootsie Roll to produce. 685 00:34:43,168 --> 00:34:46,040 He's able to use the bigger size on packaging 686 00:34:46,040 --> 00:34:49,826 to justify a price increase. 687 00:34:49,826 --> 00:34:52,568 Increasing the price from two to 5 cents, 688 00:34:52,568 --> 00:34:54,440 the new cost-effective Tootsie Roll 689 00:34:54,440 --> 00:34:57,269 helps return the company to its former glory. 690 00:34:58,922 --> 00:35:01,447 He increased sales 12 times. 691 00:35:01,447 --> 00:35:04,189 He's able to start turning more of a profit again. 692 00:35:04,189 --> 00:35:07,757 Bernard Rubin basically saved the company. 693 00:35:07,757 --> 00:35:09,498 Soon after he takes over the company, 694 00:35:09,498 --> 00:35:12,849 he moves them into 120,000 square foot factory 695 00:35:12,849 --> 00:35:14,373 in New Jersey. 696 00:35:14,373 --> 00:35:17,811 He is really putting the pedal to the metal now. 697 00:35:17,811 --> 00:35:19,682 Rubin boosts production 698 00:35:19,682 --> 00:35:22,772 and funnels additional resources into advertising. 699 00:35:22,772 --> 00:35:25,253 In the 1940s, they're doing ads 700 00:35:25,253 --> 00:35:28,126 with stars like Gene Autry. 701 00:35:28,126 --> 00:35:32,304 Frank Sinatra is famously a fan of the Tootsie Roll. 702 00:35:32,304 --> 00:35:34,871 He actually had it in his contract 703 00:35:34,871 --> 00:35:38,223 to have Tootsie Rolls in his dressing rooms. 704 00:35:38,223 --> 00:35:40,181 Legend has it that Ol' Blue Eyes 705 00:35:40,181 --> 00:35:43,880 was actually buried with some Tootsie Rolls in his coffin. 706 00:35:43,880 --> 00:35:44,838 Ring a ding, baby. 707 00:35:46,405 --> 00:35:49,103 As Rubin Reinvigorates the Tootsie Roll, 708 00:35:49,103 --> 00:35:50,713 Walter Reid struggles. 709 00:35:52,672 --> 00:35:54,674 With the Tootsie two-in-one lollipop, 710 00:35:54,674 --> 00:35:57,285 the Charms' flat pop is under threat, 711 00:35:57,285 --> 00:35:59,679 and the company needs fresh perspective. 712 00:36:01,246 --> 00:36:04,118 And this is the lab. 713 00:36:04,858 --> 00:36:08,862 Research, development, it all starts here. 714 00:36:10,864 --> 00:36:13,083 Walter Reid Jr., the founder, 715 00:36:13,083 --> 00:36:15,173 brings in his son, Walter Reid III. 716 00:36:16,435 --> 00:36:18,306 Reid III is a recent grad 717 00:36:18,306 --> 00:36:20,178 of Lehigh University in Pennsylvania. 718 00:36:20,178 --> 00:36:22,702 He's got a lot of ambition and a business degree. 719 00:36:22,702 --> 00:36:24,399 So his father gives him a job 720 00:36:24,399 --> 00:36:26,140 in the family business right out of college. 721 00:36:26,140 --> 00:36:28,534 He's thinking he's been groomed to run the company 722 00:36:28,534 --> 00:36:29,665 and he think he's just gonna stroll 723 00:36:29,665 --> 00:36:31,232 right into the executive offices 724 00:36:31,232 --> 00:36:33,669 and take his seat at the top of the mountain. 725 00:36:34,801 --> 00:36:36,194 When do I start? 726 00:36:37,499 --> 00:36:39,066 Walter Reid III 727 00:36:39,066 --> 00:36:41,329 will one day bring the company back from the brink, 728 00:36:42,287 --> 00:36:43,940 becoming a millionaire, 729 00:36:43,940 --> 00:36:46,682 and creating one of the most beloved sweets of all time. 730 00:36:48,902 --> 00:36:52,210 But to do it, he'll have to begin at the bottom. 731 00:36:53,298 --> 00:36:56,388 You can start with the floors. 732 00:36:56,388 --> 00:36:57,693 This place is a mess. 733 00:37:06,049 --> 00:37:08,095 By the late 1960s, 734 00:37:08,095 --> 00:37:11,838 control of Tootsie Roll has passed to Bernard Rubin's niece 735 00:37:11,838 --> 00:37:16,016 and her husband, who now face a fresh challenge, 736 00:37:16,016 --> 00:37:18,801 appealing to a new generation. 737 00:37:18,801 --> 00:37:20,586 Tootsie Roll was one of the first advertisers 738 00:37:20,586 --> 00:37:22,414 on children's programs, 739 00:37:22,414 --> 00:37:26,200 and they understood the power of TV 740 00:37:26,200 --> 00:37:28,637 and understood the power of advertising 741 00:37:28,637 --> 00:37:31,858 before a lot of candy companies did. 742 00:37:31,858 --> 00:37:33,425 Tootsie introduces 743 00:37:33,425 --> 00:37:38,125 one of the most iconic commercials of all time in 1970. 744 00:37:38,125 --> 00:37:41,302 What it does is it poses a question 745 00:37:41,302 --> 00:37:45,175 that people never knew they wanted to know. 746 00:37:45,175 --> 00:37:47,003 How many licks does it take 747 00:37:47,003 --> 00:37:49,310 to get to the Tootsie Roll Center of a Tootsie Pop? 748 00:37:49,310 --> 00:37:51,443 A good question. 749 00:37:51,443 --> 00:37:52,748 Let's find out. 750 00:37:52,748 --> 00:37:56,752 One, two, three. 751 00:37:56,752 --> 00:37:57,579 Three. 752 00:37:59,320 --> 00:38:01,366 The brilliance of this commercial 753 00:38:01,366 --> 00:38:04,064 is not only is it introducing you to a product, 754 00:38:04,064 --> 00:38:06,632 it's giving you something to do with it. 755 00:38:06,632 --> 00:38:08,416 Kids are trying to lick. 756 00:38:08,416 --> 00:38:09,939 How many licks does it take 757 00:38:09,939 --> 00:38:11,941 to get to the Tootsie Roll Center of a Tootsie Pop? 758 00:38:11,941 --> 00:38:14,901 The Tootsie Roll Company actually commissioned 759 00:38:14,901 --> 00:38:19,209 a scientific study to ascertain the real number. 760 00:38:19,209 --> 00:38:22,169 364 licks will get you to the center of a Tootsie Pop. 761 00:38:22,169 --> 00:38:23,997 Go ahead, look it up right now. I'll wait. 762 00:38:25,041 --> 00:38:27,000 See, told you 364. 763 00:38:31,526 --> 00:38:34,660 Walter Reid III, succeeding his late father, 764 00:38:34,660 --> 00:38:36,966 now steers the company towards a future 765 00:38:36,966 --> 00:38:40,143 dominated by the Tootsie Pop craze. 766 00:38:40,143 --> 00:38:41,928 The business is floundering 767 00:38:41,928 --> 00:38:44,147 and they're really looking for a new hit product 768 00:38:44,147 --> 00:38:48,587 that will make them a household brand like Tootsie Rolls. 769 00:38:48,587 --> 00:38:50,458 Charms and Charms Pop are staying afloat, 770 00:38:50,458 --> 00:38:52,852 but it's not what anyone would call cool. 771 00:38:52,852 --> 00:38:54,810 It's the candy your grandparents give you. 772 00:38:54,810 --> 00:38:56,464 It's not something that kids in the '70s 773 00:38:56,464 --> 00:38:58,814 are considering groovy. 774 00:38:59,598 --> 00:39:01,077 No, no, no. 775 00:39:01,077 --> 00:39:03,341 It's two flavors layered on top of each other. 776 00:39:04,254 --> 00:39:05,168 Something unique. 777 00:39:06,953 --> 00:39:08,998 Determined to rival the beloved Tootsie Pop, 778 00:39:08,998 --> 00:39:12,698 Reid is prepared to go all in on developing a similar 779 00:39:12,698 --> 00:39:14,526 two-in-one candy concept. 780 00:39:15,875 --> 00:39:17,355 I never said it was gonna be easy. 781 00:39:23,622 --> 00:39:24,362 I'll call you back. 782 00:39:27,060 --> 00:39:30,629 In 1972, Reid finds a potential answer. 783 00:39:36,112 --> 00:39:37,375 Thank you. 784 00:39:37,375 --> 00:39:40,595 He figures out a way to wrap gum 785 00:39:40,595 --> 00:39:44,860 around a stick, and then using that 786 00:39:44,860 --> 00:39:47,254 coat hard candy on the top. 787 00:39:47,254 --> 00:39:48,690 It's the first lollipop 788 00:39:48,690 --> 00:39:51,171 with a soft bubblegum center 789 00:39:51,171 --> 00:39:54,261 and an entirely new approach to making lollipops. 790 00:39:57,307 --> 00:39:59,745 Would you look at that. 791 00:39:59,745 --> 00:40:01,137 It starts out with like a classic 792 00:40:01,137 --> 00:40:02,748 just lollipop experience, 793 00:40:02,748 --> 00:40:04,924 but the inside is a bubble gum. 794 00:40:04,924 --> 00:40:08,667 If you can make your candy have like stages of experiences, 795 00:40:08,667 --> 00:40:10,712 it's like going on a ride. 796 00:40:10,712 --> 00:40:12,366 And it's a catchy name 797 00:40:12,366 --> 00:40:16,544 and it perfectly tells you what is gonna happen. 798 00:40:16,544 --> 00:40:18,198 It's called the Blow Pop. 799 00:40:21,941 --> 00:40:26,075 Blow Pop immediately gets the idea across of this lollipop 800 00:40:26,075 --> 00:40:27,773 with bubblegum in the center 801 00:40:27,773 --> 00:40:29,905 that you can then blow bubbles with. 802 00:40:29,905 --> 00:40:33,082 It was totally simple and a great marketing idea. 803 00:40:33,082 --> 00:40:35,302 In 1973, 804 00:40:35,302 --> 00:40:38,566 the Blow Pop debuts in five fruit flavors. 805 00:40:38,566 --> 00:40:41,439 It was just like you turned a lollipop 806 00:40:41,439 --> 00:40:44,746 into just hours of entertainment for a kid 807 00:40:44,746 --> 00:40:46,705 'cause after licking a lollipop 808 00:40:46,705 --> 00:40:47,836 for the better part of an hour, 809 00:40:47,836 --> 00:40:50,448 they have this bubblegum prize inside 810 00:40:50,448 --> 00:40:53,189 that they're then able to chew. 811 00:40:53,189 --> 00:40:55,278 Before long, they're churning out 812 00:40:55,278 --> 00:41:00,109 5 million Blow Pops a week with $38 million in sales, 813 00:41:00,893 --> 00:41:02,198 beating out Tootsie Pops 814 00:41:02,198 --> 00:41:04,636 as the largest lollipop company in the world. 815 00:41:04,636 --> 00:41:07,073 Yet their reign is short lived. 816 00:41:07,595 --> 00:41:09,292 Tootsie Roll's response to Charms 817 00:41:09,292 --> 00:41:10,946 by making a bid to take them over. 818 00:41:10,946 --> 00:41:13,732 It's a classic case of if you can't beat them, buy them. 819 00:41:13,732 --> 00:41:16,865 Walter Reid III doesn't necessarily wanna sell, 820 00:41:16,865 --> 00:41:21,217 but many shareholders were willing to sell to Tootsie 821 00:41:21,217 --> 00:41:22,349 for $65 million. 822 00:41:24,394 --> 00:41:25,961 In 1988, 823 00:41:25,961 --> 00:41:28,529 the sale makes Tootsie Rolls Incorporated 824 00:41:28,529 --> 00:41:31,140 the largest lollipop manufacturer 825 00:41:31,140 --> 00:41:33,795 and one of the largest candy makers in the world. 826 00:41:35,580 --> 00:41:37,016 Charms and Tootsie Roll, 827 00:41:37,016 --> 00:41:40,280 they pretty much created the sort of national branded 828 00:41:40,280 --> 00:41:42,543 penny candy industry, right? 829 00:41:42,543 --> 00:41:44,632 It can't be overstated how important that was 830 00:41:44,632 --> 00:41:46,982 and how it led to hundreds and hundreds of brands 831 00:41:46,982 --> 00:41:49,507 that followed in the decades since. 832 00:41:49,507 --> 00:41:52,858 Today, there are over 44,000 Tootsie Rolls 833 00:41:52,858 --> 00:41:56,775 produced every minute, about 740 a second, 834 00:41:56,775 --> 00:42:00,648 and $68 million worth of Charms candies, 835 00:42:00,648 --> 00:42:03,999 are still sold anually- Charms and Tootsie, 836 00:42:03,999 --> 00:42:08,351 these were candies that I have shared with my mom, my dad, 837 00:42:08,351 --> 00:42:12,094 my grandparents, my great-grandparents. 838 00:42:12,094 --> 00:42:13,922 But what's so cool 839 00:42:13,922 --> 00:42:16,751 is the fact that you can still get these candies. 840 00:42:16,751 --> 00:42:18,623 They're really part of our lineage, 841 00:42:18,623 --> 00:42:21,974 the warm and truly sweet moments of our lives.