Sanders Confectionery
Sanders Confectionery is a Detroit-founded American confectionery brand known for hot fudge, bumpy cake, chocolates, baked goods, and historic soda-fountain traditions.
Last updated November 4, 2026
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Overview
Sanders Confectionery is an American confectionery brand with roots in Detroit, Michigan, where Frederick Sanders Schmidt established the business on June 17, 1875. Schmidt was German-born and used his middle name, Sanders, as the commercial name of the company. The business began as a candy shop and became associated with Detroit's emerging downtown retail and dining culture. Its first shop had originally been opened in Chicago but was relocated after the Great Chicago Fire of 1871. The company expanded beyond candy into ice cream, baked goods, sweet-cream sodas, desserts, and light meals. One of its best-known historic locations was the Pavilion of Sweets, opened in 1891 at Michigan and Woodward avenues. The site was later relocated and renamed the Palace of Sweets. Sanders stores combined retail confectionery counters with soda-fountain and dessert-service operations, creating a format that helped make the brand a prominent regional institution. By the middle of the twentieth century, Sanders operated dozens of stores across the Great Lakes region, with locations offering candy, fudge toppings, baked goods, lunches, sodas, and desserts. Sanders became particularly associated with products that remain central to its identity. Its hot fudge was based on a family recipe and developed into one of the brand's signature offerings. Bumpy cake, a butter cake covered with ridged bands of buttercream and ganache, became another distinctive product. Sanders is also connected with a popular account of the ice-cream float's development: when cream became sour, the company is said to have substituted ice cream in a cream soda. The story is not presented as an uncontested claim of invention, but it forms part of the brand's culinary folklore. The company also developed a reputation for operational and service innovations. It was an early Detroit business to offer carry-out service, use lower table-height seating rather than only high counters, and use dry ice to keep ice cream cold. Sanders was among the city's early users of electrically powered equipment. The company reportedly hired Henry Ford, then a young mechanic working for Edison Illuminating Company, to repair some of its motors. Manufacturing became an important part of the business. From 1941 to 1994, Sanders produced candy and related products at a Highland Park, Michigan, factory that employed as many as 300 people. The facility originally obtained fresh milk from an adjacent building known as the Cow Palace. The factory was sold in 1994 because its ceilings could not accommodate newer production equipment, and the former building was later destroyed by fire in 2012. Sanders reached a major scale in the postwar period. When founder Frederick Sanders's great-grandson John Sanders assumed operational leadership in 1962, the company reportedly had 111 stores and sold through malls and grocery stores across the United States. The business generated more than $20 million in annual sales at that time, according to the cited historical account. Later, recession, rising sugar and chocolate costs, and intensified competition placed pressure on the company. Sanders entered Chapter 11 bankruptcy in 1981, and its assets were ultimately purchased in 1988 by Country Home Bakery under a plan supported by the company's employees' union. The Sanders name and original recipes were acquired by Michigan confectioner Morley Candy Makers in 2002. In 2018, Morley and Sanders became part of Kar's Nuts. Kar's and Sanders were subsequently brought together under Second Nature Brands in 2021; CapVest Limited acquired Second Nature Brands in 2022. Sanders continues as a heritage confectionery brand, balancing retail shops and traditional dessert formats with broader distribution and online sales. The company has maintained a strong Detroit and Michigan identity while developing a wider national presence. Its history and artifacts are represented at the Detroit Historical Museum. During the COVID-19 pandemic, most of its remaining Metro Detroit retail locations temporarily closed, prompting greater emphasis on e-commerce, home delivery, and a revised retail strategy.
History
Frederick Sanders Schmidt founded Sanders on June 17, 1875. The German-born confectioner initially opened a candy store in Chicago, but moved the operation to Detroit after the Great Chicago Fire of 1871. He used Sanders, his middle name, as the business name. The Detroit shop began with candy and soon added ice cream, baked goods, and sweet-cream sodas. Sanders became part of Detroit's commercial and social life through stores that combined confectionery retail with counter service, soda fountains, desserts, and light meals. The Pavilion of Sweets opened in 1891 at Michigan and Woodward avenues and became the company's most recognizable historic store. It used a red-and-white awning and an architecturally distinctive tower with a cupola influenced by Moorish design. The location later moved to a former Hudson's site on Woodward Avenue and became known as the Palace of Sweets. The brand's culinary identity developed around family recipes and dessert culture. Its hot fudge became a signature topping, while bumpy cake gained recognition for the thick ridges of buttercream and ganache covering its surface. A company tradition also attributes an early ice-cream float to an incident in which sour cream was replaced with ice cream in a cream soda. Sanders is one of several businesses associated with that invention, so the story is best understood as brand lore rather than an exclusive historical attribution. During its expansion, Sanders operated neighborhood candy stores throughout the Great Lakes region. By the mid-twentieth century, many stores offered candy, fudge toppings, baked goods, sodas, desserts, and light lunches. The company was also credited with early adoption of carry-out service, lower seating designed around table-height counters, dry ice for ice-cream storage, and electric motors. Henry Ford, then a young employee of Edison Illuminating Company, was reportedly called upon to repair some of the company's early motorized equipment. Manufacturing was centralized at a Highland Park factory opened in 1941. The facility produced candy and other products until 1994 and employed up to 300 people at its peak. It originally received fresh milk from an adjoining Cow Palace, until municipal rules prevented that arrangement. The factory was eventually sold because its low ceilings could not accommodate modern equipment. The former building was destroyed by fire in 2012. John Sanders, the founder's great-grandson, took over operations in 1962. At that point Sanders reportedly had 111 stores and sold through malls and grocery stores nationwide, with annual sales exceeding $20 million. The business later struggled through Detroit and Michigan's prolonged economic downturn, higher costs for sugar and chocolate, and growing competition. Its flagship downtown store closed, and Stephen A. Horn became the second president from outside the Sanders family in 1979. Sanders filed for Chapter 11 bankruptcy in 1981 to protect itself from legal action by more than 700 creditors. The company employed approximately 1,200 people at roughly 50 retail outlets and its factory. In 1988, the Sixth Circuit Court of Appeals approved a plan from United Distributive Workers Council 30, enabling Country Home Bakery to buy the company's assets. Country Home Bakery later became separate from Sanders and was acquired by J&J Snack Foods in 2004. Morley Candy Makers acquired the Sanders name and original recipes in 2002. In 2018, Sanders became part of Kar's Nuts when Kar's acquired Morley and Sanders. Kar's and Sanders were united under Second Nature Brands in 2021, and CapVest Limited acquired Second Nature Brands in 2022. The brand remains associated with Michigan while reaching consumers through retail, grocery, distribution, and online channels. The number of Sanders shops in Metro Detroit declined to nine by 2014, with two additional outlets on Mackinac Island. By 2016, the company was described as developing a stronger national presence. The COVID-19 pandemic temporarily closed all but three of the remaining Metro Detroit retail locations in 2020. Strong local and nationwide online demand encouraged the company to increase home delivery and rethink its retail model. Sanders's historical artifacts are displayed at the Detroit Historical Museum, reinforcing its status as a long-running Detroit food institution.
- 2022
CapVest acquires Second Nature Brands
[1]CapVest Limited acquires the parent group containing Sanders.
- 2021
Second Nature Brands is established
[1]Kar's and Sanders are brought together under the Second Nature Brands corporate name.
- 2020
Pandemic prompts retail and delivery rethink
[1]Store closures during COVID-19 accelerate the brand's focus on home delivery and online sales.
- 2018
Sanders joins Kar's Nuts
[1]Sanders becomes a division of Kar's Nuts following its acquisition of Morley.
- 2002
Morley acquires Sanders name and recipes
[1]Morley Candy Makers purchases the brand identity and original recipes.
- 1994
Highland Park factory is sold
[1]The factory is sold because its physical structure cannot support newer manufacturing equipment.
- 1988
Country Home Bakery acquires company assets
[1]A court-approved plan allows Country Home Bakery to purchase Sanders's assets.
- 1981
Chapter 11 bankruptcy filing
[1]Sanders files for bankruptcy protection amid recession, cost inflation, and creditor pressure.
- 1979
First non-family president takes office
[1]Stephen A. Horn becomes only the second president outside the Sanders family.
- 1962
John Sanders assumes operations
[1]The founder's great-grandson takes over operations while the business has 111 stores and nationwide retail distribution.
Products and positioning
A heritage Detroit confectionery brand built around traditional recipes, regional nostalgia, dessert toppings, baked goods, and chocolate products, with distribution extending beyond its historic retail-store base.
Dessert topping
Hot fudge
Sanders hot fudge is one of the brand's defining products. Based on a family recipe, it is used as a topping for ice cream, cakes, and other desserts and represents the company's longstanding connection to soda-fountain and confectionery service.
Baked goods
Bumpy cake
Bumpy cake is a Sanders signature cake characterized by raised ridges of buttercream covered with ganache. Its unusual surface and rich chocolate profile have made it one of the most recognizable products associated with the Detroit brand.
Confectionery
Sanders chocolates and candy
The broader Sanders confectionery range includes chocolates, candy, fudge, and related sweets. These products extend the brand beyond its historic dessert counters and support grocery, gift, retail, and online distribution.
Dessert topping
Ice cream toppings
Sanders produces dessert toppings associated with ice cream and sundae service. The category reflects the company's historic soda-fountain roots and includes its well-known hot fudge as a central offering.
Bakery
Cakes and baked goods
Cakes and baked goods became part of Sanders's assortment soon after ice cream was added to the original candy business. These products helped establish the stores as complete dessert destinations rather than conventional candy shops.
Brand decisions
2020
Accelerate online sales and home deliveryStrategyBackground
The COVID-19 pandemic forced the temporary closure of all but three of the brand's remaining Metro Detroit retail locations.
Action taken
Sanders accelerated development of home delivery and a revised retail strategy in response to strong local and nationwide online demand.
Aftermath
The brand placed greater emphasis on e-commerce and broader distribution alongside its remaining physical stores.
2002
Sell brand name and recipes to Morley Candy MakersM&ABackground
Following the company's earlier financial restructuring and separation from Country Home Bakery, ownership of the Sanders identity changed again.
Action taken
Morley Candy Makers acquired the Sanders name and original recipes and added the products to its own portfolio.
Aftermath
Sanders continued as a Michigan confectionery brand and later became part of Kar's Nuts and Second Nature Brands.
1981
Seek Chapter 11 protectionOtherBackground
Sanders faced a prolonged regional recession, increased sugar and chocolate costs, and legal claims from more than 700 creditors.
Action taken
The company filed for Chapter 11 bankruptcy protection while continuing to operate its stores and factory.
Aftermath
A court-approved employee-union plan later enabled Country Home Bakery to acquire the company's assets in 1988.
Unsecured debt. Approximately $4 million (1981)
Recent events
- 2022
CapVest acquires Second Nature Brands[1]
M&A
UK-based private equity firm CapVest Limited acquired Second Nature Brands, the group under which Sanders operates.
- 2021
Sanders and Kar's united under Second Nature Brands[1]
M&A
Kar's and Sanders were consolidated under the Second Nature Brands corporate identity.
- 2020
Sanders accelerates online and home-delivery strategy during pandemic[1]
Other
COVID-19 restrictions forced most remaining Metro Detroit stores to close temporarily. In response, Sanders emphasized online demand, home delivery, and development of a revised retail strategy.
- 2018
Sanders becomes part of Kar's Nuts[1]
M&A
Sanders became a division of Kar's Nuts after Kar's acquired Morley Candy Makers and the Sanders business.
- 2002
Morley Candy Makers acquires Sanders name and recipes[1]
M&A
Michigan confectioner Morley Candy Makers purchased the Sanders name and original recipes and incorporated the products into its broader confectionery portfolio.
- 1994
Sanders sells Highland Park factory[1]
Other
The company sold its long-standing Highland Park manufacturing facility because its ceilings did not provide enough clearance for newer production equipment.
- 1988
Sanders assets acquired by Country Home Bakery[1]
M&A
The United States Court of Appeals for the Sixth Circuit approved a purchase plan proposed by the company's employee union, United Distributive Workers Council 30, allowing Country Home Bakery to acquire Sanders's assets.
- 1981
Sanders files for Chapter 11 bankruptcy protection[1]
Bankruptcy
The company sought Chapter 11 protection during a period of recession, rising ingredient costs, and competitive pressure. It reported more than 700 creditors and approximately $4 million in unsecured debt, while employing about 1,200 people across its retail and manufacturing operations.
Sources1 sources
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