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In 1920, their first confectionery factory began manufacturing sweets in the cramped upstairs premises of a berry processing plant. Their product sold so well that as early as its second year the plant began operating in two shifts. Its first products were sweets wrapped in paper, sweets in tins, cough drops, and jelly sweets. At the end of the 1920s, production was transferred to a separate, brand new factory building in which the manufacture of chocolate began. In 1927, Panda manufactured its first liquorice product.
In 1933, the manufacture of soft licorice began under the supervision of Väinö Hildén, their licorice expert and, in 1936, their first licorice drops appeared in the shops. World War II affected the production of sweets, since imports of raw materials to Finland were disrupted. By 1942, the plant was manufacturing only carrot-flavoured jelly sweets. The end of chocolate rationing after the war marked the beginning of a busy period for the factory. In 1952, its graphic designer drew a chocolate bar wrapper featuring a Panda bear, the name of the chocolate bar being Panda Pop. This was the inspiration for re-naming the factory. In 1961, this new name, the Panda Chocolate Factory, was approved. Another significant year was 1963, in which Panda began exporting sweets. Its first exports were sent to the USA, the purchaser being Paul Spitz of New York and the product was licorice roll. At the end of the decade, a new production plant for chocolate manufacturing was completed
and, by 1974, it had already expanded its storage capacity. In 1977, Panda All Natural licorice was launched in the US markets.