Tangerine Confectionery has announced the closure of its factory in Poole,Dorset,with the loss of up to 75 jobs.
A spokesman for Tangerine Confectionery told FoodManufacture.co.uk:"It's about maximising efficiency across our production lines."
The factory makes gums,jellies and foam-based products including Mojo tubs,Taveners Fruit Jellies,Squirrel Cherry Lips and Floral Gums.
Production will be transferred to other sites in Yorkshire and Lancashire as part of an ongoing review of the company's UK-wide confectionery manufacturing.
In a company statement,Tangerine Confectionery said transferring the manufacturing would enable the business to continue to be competitive by maximising its production capabilities across the UK.
The aim of this is to ensure that"some of the nation's much-loved products will continue to be produced".
The anticipated date for closure is the end of March 2013.
Tough market conditions
Graham Hunter,chief executive of Tangerine Confectionery said:"The decision to move production from the Poole site has not been taken lightly.With increasingly tough market conditions,Tangerine Confectionery needs to ensure it runs efficiently and this has resulted in the decision to move production to our other sites."
An employee consultation process will start with immediate effect.
Hunter said:"At this stage,our primary concern is the welfare of our 75 employees and we will be doing all we can to support them through the consultation period."
Tangerine Confectionery employs more than 1,300 people at seven sites across the UK.
Its sugar confectionery and popcorn brands include Barratt,which makes Sherbet Dip Dabs,Henry Goode liquorice,Lion gums,Princess marshmallows,Taveners mint humbugs and Butterkist popcorn.