Beloved candy company shutters after 141 years as costs soar

A Texas candy company with roots dating back more than a century is winding down most of its operations as rising costs and shrinking margins pressure the long-running family business.

Lammes Candies, an Austin-based confectioner founded in the 1800s, said it will begin an "orderly wind-down of operations" after 141 years of continuous family ownership, according to a statement posted to the company’s Facebook page.

"This was not an easy decision," the company said. "Lammes Candies has been more than a business – it has been a family legacy spanning generations."

In an interview with FOX 7 Austin, company vice president Lana Schmidt pointed to mounting economic pressures that have made it increasingly difficult to sustain the business.

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"The economy, you know, with the raw materials going up, labor is going – it’s just everything is escalating," Schmidt said. "There’s not a huge margin in confections."

The company said it will fulfill remaining orders and continue selling products online while inventory lasts, with its flagship Airport Boulevard location remaining open temporarily.

Lammes has already closed its Round Rock location, with its remaining retail footprint expected to wind down in the coming weeks.

The closure underscores broader challenges facing small businesses, particularly in fast-growing cities like Austin, where rapid expansion during the pandemic era has been followed by shifting economic conditions and rising operating costs.

Founded in 1885 after the Lamme family reacquired the business, the company became known for its pecan pralines and other handcrafted sweets, building a loyal customer base across Texas and beyond.

Ahead of the shutdown, the company is offering a final round of seasonal products, including its chocolate-covered strawberries for Mother’s Day, calling the limited run a "farewell" to customers after more than a century in business.

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"We’ve been so honored to be part of your celebrations and your sweetest moments," the company wrote in a separate post. "Now we’re asking one last thing: savor every bite."