It began as a simple local sweet shop and its products later became household names. But 11 years after being taken over by a huge multi-national, Terry's of York is to close. Mark Foster reports.

WHEN citrus peel importers Messrs Bayldon and Berry joined forces, they undoubtedly dreamed of success - but they could have had no idea just how big their baby would become.

It was 1767 when they opened a shop selling sweets in Bootham, the main thoroughfare into York from the north, and the business thrived locally.

But things started to change when apothecary Joseph Terry married into the family and became a partner in 1823, at the age of 30.

He began to develop the confectionery business, creating many new products, which were sold across the country as he took advantage of the developing railway network.

He died in 1850 and the business his three sons took over was a growing confectionery company that was already developing a national profile.

By 1886, Joseph Terry Jnr was only too aware of the potential of chocolate and he decided to tap into it by building a factory in Clementhorpe, York.

By the early 1920s, the long-established company was headed by Noel and Francis Terry and under their leadership it built new headquarters in Bishopthorpe Road, overlooking the racecourse, moving there in 1924.

In 1926, they introduced the Chocolate Apple and it was so successful that in the early 1930s it was followed by the Chocolate Orange.

That in turn was such a hit that by 1954 the company decide to stop making the apple equivalent and few remember it now.

The hugely popular All Gold was introduced in 1931 by sales manager George Stembridge, acting on his own initiative while Noel and Francis were in South America on business. On their return they forgave his presumption - and saw sales soar to 7m a year.

During the Second World War, the factory was given over to the manufacture of aeroplane propellers and many of the staff joined the forces, but once peace was declared and rationing over, chocolate manufacturing started once more.

The family remained in control until 1963. Since then, it has been owned in turn by Forte, Colgate-Palmolive and United Biscuits. It changed hands for the last time in March 1993, when Kraft Foods acquired it at a cost of £220m.

The end of Terry's doesn't mean the end of chocolate-making in York.

Joseph Rowntree's chocolate factory - a long time rival to Terry's - continues in the city making millions of bars, including the world famous Kit Kat.