Warren Buffet Likes His Chocolate
WARREN BUFFETT munches his way through piles of See's Candies Inc. peanut brittle as he answered questions during Berkshire Hathaway Inc.'s annual shareholders meeting in Omaha, Neb. Berkshire's Chairman Buffett bought See's in 1972 for $25 million. See's is taking a run at becoming as familiar across the U.S. as International Dairy Queen Inc., also a Berkshire unit, and Coca-Cola Co., whose biggest shareholder is Berkshire.
The company is cultivating Internet sales and operating more gift shops during the Christmas season, when See's gets half its revenue. The drive follows a failed effort 30 years ago to put See's black-and-white-tiled stores in malls from St. Louis to Houston. After 85 years in business, See's still has more than three-quarters of its 200 stores in California.
Some publicity is helping grow the business. Talk show host Ellen DeGeneres featured See's products on her Valentine's Day program. The company also had a two-day spot on the Wheel of Fortune game show, with a year's supply of See's candy offered as a prize. See's is one of the top sellers of premium chocolate candy in the US. Gourmet chocolate sales surged 14 percent in the U.S. last year to $1.6 billion, compared with less than a 1 percent rise for all chocolate to $15.2 billion,
See's successful strategy has been to operate seasonal gift shops for six weeks during November and December, in more than 30 states from Washington to Maine to Florida. By setting up kiosks in malls, See's attracts holiday shoppers as well as boosting its brand recognition, helping Web and catalog sales. The company plans to open 100 Christmastime shops this year, an increase from 90 in 2005, and to add 10 every year. See's candy has been sold year-round since 2003 at Lord & Taylor department stores in cities including New York and Boston.
