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Rowntree's of York, England, have been making "Chocolate Beans" since at least 1882. The product was renamed "Smarties Chocolate Beans" in 1937. Rowntree's were forced to drop the words "chocolate beans" in 1977 due to trading standards requirements (the use of the word "beans" was felt to be misleading) and so adopted the "Milk Chocolate in a Crisp Sugar Shell". Later, the sweet was rebranded as "Smarties".

Smarties are no longer manufactured in York; production has now moved to Germany, where a third of them were already made. Outside Europe, Nestlé's largest production facility for Smarties is in Canada, where Nestle has been manufacturing products since 1918.

Source: http://en.wikipedia.org/wiki/Smarties

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