Ellen Gordon, a 93-year-old great-grandmother, embodies the quintessential Midwestern grandma—warm smile, stylish attire, and a penchant for giving out candy. But this is no ordinary grandma; she is the CEO of Tootsie Roll Industries, one of America’s iconic candy companies, and a billionaire in her own right. Unlike many in her position, Ellen remains actively involved in the daily operations of the company, demonstrating that success can indeed come with a sweet twist.
A Candy That Wouldn’t Melt
The story of the Tootsie Roll begins with Leo Hirshfield, an Austrian immigrant who arrived in the United States in 1884. Settling in Brooklyn, Leo, who hailed from a lineage of candy makers, opened a small shop specializing in traditional Austrian chocolate bars by 1896. However, he soon faced a challenge: the chocolate melted easily in the New York heat, jeopardizing his sales.
Determined to create a confection that could withstand the summer temperatures, Leo experimented with chocolate alternatives, leading to the invention of the Tootsie Roll, named after his daughter Clara, affectionately called “Tootsie.” The candy quickly became a favorite in New York, praised for its resilience in hot weather, making it an affordable treat for children.
By 1917, Leo had transformed his venture into “The Sweets Company of America,” and by 1922, the company went public on the New York Stock Exchange. His innovations, including the popular Tootsie Pop, reminded many Americans of simpler joys, especially during tough times like the Great Depression.
Challenges and Triumphs through the Decades
Despite early successes, the company struggled during the 1930s, leading to a semi-hostile takeover by Bernard D. Rubin in 1935. Rubin implemented significant changes, including increasing the size of the Tootsie Roll and relocating manufacturing to Hoboken, New Jersey, where costs were lower. This strategy proved effective, but it was World War II that truly propelled Tootsie Roll into prominence, as the candy became a staple in soldiers’ rations.
When Bernard passed away in 1948, the company was generating around $12 million annually—roughly $160 million today. His brother William took over until his illness in 1962, when Ellen Gordon, his daughter, stepped into leadership as President and COO, with her husband Melvin serving as CEO. Together, they rebranded the company as Tootsie Roll Industries and expanded its portfolio with beloved treats like Charleston Chew and Junior Mints.
Under their guidance, Tootsie Roll adopted a low-profile approach in corporate communication, eschewing the standard practices like investor conferences and glossy reports, yet achieving steady growth over the decades.
The Billionaire Grandma at the Helm
Upon Melvin’s death in January 2015, Tootsie Roll had a market cap of $2 billion, with Ellen and Melvin holding nearly half of the company’s shares, granting them a combined net worth of around $980 million. Remarkably, despite speculation of a potential acquisition after Melvin’s passing, Tootsie Roll remains independent, and as of now, Ellen’s net worth stands at approximately $1.58 billion, given the company’s current market cap of $3.25 billion.
Throughout her tenure, Ellen has defied expectations, steering the company without falling prey to industry pressures that led other brands to corporate buyouts. Her story is particularly noteworthy given the rivalries in the candy industry, especially as competitors like the Wrigley Company were absorbed by conglomerates like Mars and Berkshire Hathaway.
In the sweet world of confectionery, Ellen Gordon is not just another face; she is a pioneering figure maintaining the charm of a family-run business while overseeing one of America’s most beloved candy brands. Although she may seem like a typical Midwestern grandmother, her influence and legacy as Tootsie Roll’s CEO illustrate that appearances can be deceiving.
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