JANESVILLE, Wis. — Impact Confections, a longtime Janesville-based candy manufacturer known for its iconic sour treats, is expanding its local operations to improve product quality, increase automation and position the company for long-term growth.
Founded in Janesville in 1981, Impact Confections was acquired in 2019 by Mexico-based KUA LLC. Since the acquisition, the company has pursued an aggressive growth strategy supported by ongoing capital investment, resulting in strong gains in both revenue and employment.
From its early beginnings, Impact Confections has grown into a diversified candy producer offering everyday and seasonal products, including its flagship Warheads sour candy brand and Melster Candies, known for marshmallow Circus Peanuts. The company also provides contract manufacturing services for hard candies, chewy non-chocolate gummies, spray candies and other confectionery products.
Strategic Investment Fuels Growth
Through targeted capital investments, Impact Confections has nearly tripled sales, reaching $80 million in 2023, and expanded its workforce to 240 employees. Company leadership recognized that sustaining this momentum would require continued modernization and a focus on efficiency and quality.
Working in collaboration with state officials, Impact Confections advanced a $12.4 million expansion at its Janesville facility designed to strengthen production capabilities and support future growth. In support of the project, the Wisconsin Economic Development Corporation (WEDC) awarded up to $215,000 in performance-based state tax credits, contingent upon the company meeting capital investment and employment benchmarks. The incentives were approved in October 2025.
Facility Modernization Enhances Capacity and Quality
The expansion marks the completion of the first major phase of modernization at the Janesville facility and represents the largest capital project in the company’s history. Key upgrades include the replacement of a 30-year-old starch molding machine with a new, high-capacity Mogul production line, the installation of a fully automated case packer to increase bagging efficiency, and the replacement of an aging candy finishing line with two new production lines.
Together, these improvements enhance product consistency, reduce downtime and significantly increase productivity through advanced automation.
“Each upgrade strengthens our capabilities, improves quality, and creates a more productive environment for our Janesville team to work in,” said Raul Peláez, CEO of KUA and Impact Confections.
State Leaders Applaud Expansion
Wisconsin Governor Tony Evers, who attended the expansion celebration, said the project highlights the strength of Wisconsin’s business climate and its appeal to international manufacturers.
“With this new addition, Impact Confections and KUA will not only produce better quality candy, decrease downtime and increase efficiency, but also set new standards for automation and long-term growth in Wisconsin,” Evers said.
