A longtime taffy maker has found the pull of Utah to be very strong.
The Taffy Shop LLC will expand in St. George, adding 77 jobs over the next seven years. The $15.3 million project is the next step for the company, founded as a concession stand on the shores of the Great Salt Lake in 1974. The manufacturing operations will be at the Fort Pierce Industrial Business Park, with the project aided by a tax credit incentive awarded by the Governor’s Office of Economic Development board.
“Saltwater taffy is a really fun product. It reminds people of really good memories and traveling, and it’s just a really great nostalgic treat that we’re trying to bring back with a modern twist on it, and we’ve having some success,” said Jeff Wilson, CEO and founder, who with his wife bought the company in 2012. “We’ve got quite a bit of momentum [and] traction right now. We’re growing very quickly.”
Wilson told the GOEO board that the company traditionally was driven by e-commerce and social media but lately has gotten the attention of large retailers, many of which are looking for private-label products or co-branding with customized wrappers.
“We have more demand right now than we have capacity for, so we have the opportunity to bring manufacturing from the East Coast to the state of Utah — back to our roots, back to our origin. … We’ve got this proud Utah legacy and heritage and we’re growing extremely quickly.”
The family-owned company offers more than 80 taffy flavors, specializing in customizable small-batch taffy in reusable bags, catering to events, gifts and individuals. According to GOEO documents, with the relocation of manufacturing, the company intends to be better equipped to handle high-volume orders for large retailers. The company’s website indicates the company manufactures more than 1.4 million pieces of taffy monthly and has over a million U.S. customers.
Wilson said his goal is to make Taffy Shop the largest saltwater taffy company in the world, “and I believe we’ll get to that goal here in the next 12 to 24 months because we’re moving very quickly.”
Chad Thomas, St. George’s economic development director, said the city is “ecstatic” for the project.
“While it may not be massive in terms of capex (capital expenditure), it has a huge impact in our community,” Thomas told the board. “It really demonstrates the American dream here, and it helps solidify and maintain the city of St. George’s status as the No. 1 place in America to start a business. ... We’re so thrilled that Jeff is willing to risk it all to bring these types of jobs to Southern Utah and to take a risk on Utah and St. George.”
The GOEO board’s incentive is in the form of a tax credit of up to $839,773 over seven years. The project is expected to result in new total wages of $21.7 million during that time, with the new jobs paying an average of $66,656. New state tax revenue is estimated at over $3.2 million over seven years.
“This is a great win for our community,” St. George Mayor Jimmie Hughes said in a news release about the project. “We welcome Taffy Shop’s investment in St. George and the creation of new high-paying jobs that will benefit our residents and strengthen our local economy for years to come.”
GOEO does not provide upfront cash incentives. Each year that an incentivized company meets the obligations in its contract with GOEO, it will qualify to receive a portion of the new, additional state taxes the company paid to the state.