If you’re a young consumer, or young at heart—a “kidadult,” perhaps, a phrase that Jeff Greenwald, national director of sales, Hilco Sweets, is fond of using—you’ve most likely heard of CandyRific and/or Hilco Sweets. If you haven’t heard of them, you’ve probably seen their products on shelves at Target or other national stores.

The two companies sell confections and novelty products, utilizing popular licensed brands such as Star Wars, Disney movies like Lilo & Stitch, or TV shows like Gabby’s Dollhouse. Also, both companies have a storied history: Hilco has been in the confectionery business for 38 years, and CandyRific will celebrate its 25^th anniversary this year.

Origins

Hilco quickly recognized the potential of combining candy and toys, leading to a focused specialization in novelty candy. The brand was acquired by CandyRific 11 years ago.

“The original Hilco was founded by Neil Cohen. Woolworth [department store] asked Neil to create high-value, low-cost toys. When he presented his ideas, Woolworth suggested adding candy to the toys, thus Hilco Candy was born,” says Lou DiMarco, president, Hilco Sweets.

The name "Hilco" comes from Neil's wife, Hilda, and "Co" is for company, he explains.

“Later, when Rob [Auerbach] purchased the company, he focused on brand intervention, shifting Hilco into consumer brands. Hilco became one of the first companies to partner with major CPG brands in the non-chocolate segment,” DiMarco notes.

When Hilco was acquired by CandyRific, it marked a new chapter in the company's history, he says. This acquisition spurred a strategic shift from toys and candy to consumer product confections, while maintaining the core values of fun, innovation, and affordability.

This evolution culminated in the rebranding to Hilco Sweets in 2022. Since then, Hilco Sweets has forged strategic partnerships with brands such as Kraft Heinz (Kool-Aid), Impact Confections (Warheads), and Hostess Brands (Twinkies, Ding Dongs, and other treats). Alongside these partnerships, Hilco Sweets continues to expand its own portfolio of fun novelty confections, DiMarco says.

The mission of Hilco’s sister brand, CandyRific, established in 2000 by Rob Auerbach, is to bring consumers of all ages fun and interactive products. With the company’s success of the Candy Fan, it grew its product line with items like Fanimation, a Candy Fan that treats consumers to an animated LED light show, as well as licensed product lines featuring the industry’s biggest properties. Two and a half decades later, the company has sold more than 130 million Candy Fans.

In addition, CandyRific has distribution with most of the major retailers in the U.S. and distributors in almost every major market in the world. It has appeared on the Inc. 500 and Inc. 5000 lists of fastest growing companies in the U.S. consecutively for eight years, and was named one of Louisville’s Businesses of the Year for 2016.  

Products, then and now

Frank Puglia, EVP of licensing and product development, CandyRific, says the company’s number one product is its Candy Fan.

“We offer [it] in multiple versions ranging from non-licensed trendy characters such as Axolotl’s to licensed characters like Stitch and The Avengers. We also offer many other novelty options, like our latest Candy Cases and Mini Backpacks, that target multiple price points and a wider consumer demographic,” he explains.

One of the first products CandyRific launched was its Cool Fan—the company’s original fan and what evolved to be its modern-day Candy Fan, Puglia says.

One of Hilco's initial products was a Kool-Aid Man Character Pop (similar to a baby bottle, but with a “cool factor,” notes DiMarco). The brand then introduced branded popping candy and stick gum under the Kool-Aid brand. Hilco always focused on novelty items; however, the focus on branded consumable novelties began around 2018, he adds.

In 2025, consumers should expect to see new brand partnerships and innovations under Kool-Aid, Warheads, and Hostess, in addition to Kona Ice.

“Expect everything from gummies to rock candy, new canes, and a very exciting innovation in popping candy!” exclaims DiMarco.

Kona collab

In terms of branded items and partnerships, both companies look for "evergreen" brands and products, defined as having at least three more years of growth potential beyond the fad/trend phase. Kona Ice satisfies that niche.

The brand, which serves up customized shaved ice through its self-serve Flavorwave system, is partnering with both Hilco Sweets and CandyRific through a new licensing agreement for confections. Kona Ice has nearly 3,000 points of sale across the U.S., but the partnership marks the first time its signature flavors will be available in confections.

The candy line will feature a variety of formats, including dual-flavored gummies, lollipops, popping candy, and seasonal sweets. The first product will be a seasonal assortment launching in time for the 2025 holiday season. The confections will originally be available in Kona Ice’s top four flavors, and later all of its top 10 flavors.

“The way the project [started out] is that Kona was researching adding candy spoons to their vehicles,” says Emily Edmondson, EVP, Hilco Sweets. “They worked with [us] directly on that, and it was to be a complement to their trucks. At the same time, they were looking at expanding into licenses, [although] they [already] have apparel and accessory, like stickers. But they thought—because they are a flavor-based company, how do they expand their reach?”

The process started in 2024, and Kona rolled out the candies in February 2025—a very quick turnaround, says Edmondson.

“We were evaluating Hilco’s stance in terms of brands [we] want to align with, and they really stood out, for a couple of reasons. First, they’re community- and kid-focused. They’re all about ‘do good, be good’ and the FlavorWave experience. ‘How do we bring that FlavorWave experience to market?’ is really what we are challenging ourselves with,” she notes, adding that all of Kona Ice’s trucks will have access to the products.  

Greenwald states the response from the Kona Ice franchisees so far has been phenomenal: “This gets us excited because they will also be promoting the Kona brand, and when [franchisees] get behind it, you know that it’s going to work.”

Initial ideas

“We’ve got a lot of exposure around the country—we have about 1900 franchises around the country with Kona and then another 1,000 points of sale with smaller kiosks. I [originally] didn't want to get into the candy business, [as] we’re very good at mobile vending—but this [is an] opportunity to expose the brand a little farther,” says Tony Lamb, CEO, Kona Ice.

Kona originally talked to several confectionery producers whom they were considering to make the candies. Originally, Lamb wanted to look for a company that had a line of candy which could use Kona Ice’s branding and see if there was some traction. Once it chose Hilco and CandyRific, the two companies researched and presented Kona Ice with information on what they felt like would be the strongest products to feature in the lineup.

“Hilco is much smarter than we are in the candy space, so we leaned on them a lot and [asked] what they thought [in terms of format],” Lamb explains. “They showed us several options, but it’s not like they showed us every option—they said it wasn't completely our decision. We are trusting them to make these decisions.”

“In the early days, I’m sure there will be a little bit of trial and error as we go through it, but we’re excited about that,” he adds. “We are excited about Hilco—they are a Kentucky company, we're a Kentucky company, and they were incredible when we met them and were just really wonderful to work with. We are cautiously, wonderfully, excited about the relationship.”

“We are honored that Kona Ice chose us to be its first licensing partner, and it means even more as we are both Kentucky-based companies,” says Edmondson. “Kona Ice is a beloved brand tied to childhood joy and community events, is family-friendly, and has over 55 signature flavors. Kona Ice and Hilco Sweets are a perfect pairing, bringing the Kona Ice experience to retailers nationwide.”

What’s next

“I’ve got so many plans for candy [expansion],” exclaims Lamb. “You know—I think we are going to take this first step and kind of see where it goes, and watch it closely. We like to watch the data real close and see. We don't want anything to bifurcate our brand or take attention away, [but] I think this has got success written all over it in a lot of ways. Certainly everyone involved in the relationship is very excited about it.”

CandyRific and Hilco Sweets have a three-year contact with the brand to make the Kona Ice-flavored candy. Lamb says Kona Ice will see what the next few years look like, and go from there.

Lamb’s personal favorite product from the new product line is the Pop Rocks, he adds.

“Just from a nostalgic [point of view], it’s the Pop Rocks. I tried those, and was like—oh yeah, this brings back all the memories. How many can you cram in your mouth at one time?” he laughs. “The candy canes have tested really well, and the dip stick [powder with a stick]. I think that’s going to go really, really well—I think that’s what Kona’s customers are used to, a selection of different things. That's what makes Kona so unique—people get to make their own concoctions all the time.”