The first product of the Peter Paul Candy Manufacturing Company, established in 1919 in New Haven, Connecticut, was called "Konabar" and was a blend of coconut, fruits, nuts and chocolate. All products were made at night when air was coolest and sold fresh, door-to-door the following day. In 1920 the MOUNDS candy bar, sweetened coconut enrobed in dark chocolate, was introduced.

During World War II Peter Paul was faced with severe shortages of sugar and coconut which had been shipped from the Philippines before war broke out. Rather than sacrifice quality, the company discontinued some of its lesser selling brands and concentrated production on the MOUNDS candy bar. Over the years Peter Paul added several products to its line, including ALMOND JOY candy bar and YORK Peppermint Pattie.

Cadbury and Peter Paul merged in 1978, and Hershey Foods purchased the company's U.S. operations in 1988.