When did the Herman goelitz factory begin making special jelly beans?

Answer 1

David Klein, who is the subject of the 2010 documentary film: Candyman: The David Klein Story, created the jelly belly bean and a new kind of marketing for a jelly bean to be sold in single flavor in 1976. David approached Herman Goelitz Candy Company. David told them to make him a version of the mini gourmet jelly bean that he would call Jelly Belly. David asked his manufacturer, The Goelitz Candy Company, to make this jelly bean using natural flavors if possible. These innovating ideas made The Jelly Belly a success.

In 1980, Klein and his business partner were taken over by The Goelitz Candy Company for $4.8 million. David Klein states that the Goelitz Candy Company was determined to take over the trademark. The Goelitz Candy Company had a plan B if Klein would not sign over the trademark; They would stop manufacturing his Jelly Belly beans, and hope that Klein would run out of money with legal costs, and squeeze him out. The documentary portrays the takeover as hostile. The payout was spread over a twenty year period and was based upon future sales with a cap of 140,000 pounds per month. As part of the original contract David had to sign a 20 year non competitive clause which meant he could not be involved with another jelly bean until the year 2000.

The company is now worth an estimated 160 million as of 2011.