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See’s Candy CEO Brad Kinstler on the company’s expansion plans and the impact of cocoa, sugar costs.
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To a guy who has a total -- to put you can't control at the Oracle of Omaha is dream company.
He purchased sees candies -- California -- company forty years ago.
For 25 million dollars and has since that has since generated more than one point six billion dollars in profits for Warren Buffett.
Now the peanut -- hot but look these -- OK right now these are called polar bear -- white chocolate -- the car mole in the -- -- the thing.
Those are flying off the shelves she's experiencing another huge holiday retail season this is a cash machine enabling Warren Buffett.
To buy other companies.
Is c.'s expectations being met and how will cease finally open permanent stores on the East Coast because -- nothing -- -- Chicago joining us now -- -- Fox Business explicit in San Francisco.
Press him for he sees candies CEO.
And president you know you're the man of the holiday season definitely -- good to see you.
Good it's good to talk to listen we enjoy this holiday season it's it's really big business for us -- -- to be I mean that not only do you have.
More than 200 stores in -- and on the West Coast and anything west of Chicago but you open up these pop up stores -- little -- centers that do very well but now the big story is.
Here -- to eventually now trying to go national right now haven't you tried this before.
And -- the 1990s -- did open a few stores back in the midwest for a period of time and and at that time the competition was a little bit different than it is today the brand wasn't quite as well -- And you as you know California.
-- very growing population and and need the opportunities.
For the business was really back in the West Coast.
During those so those years so so they elected to pull back and and focus on the west's.
And that at this point.
We now see the -- the landscape a little bit differently and then we're we're very excited and -- opened several stores and Texas this year.
As well as Oklahoma and they're doing terrific.
Well here we go from these -- the lucky -- states Florida.
Georgia Pennsylvania.
And Maryland how did you choose those four states to start real stores.
Well we actually started in Texas this year with the two in Dallas two in Houston and one in San Antonio that but I don't know I'm never call myself I mean I'm not talking is yes because I'm a California girl discuss I've been -- -- -- utero with c.'s chief aka the the -- yeah I mean really it's unbelievable how everybody there knows their favorite ones we've got some here.
And you know I know everybody talks Brad about how the Bordeaux is the favorite of this is -- -- you know.
That's not my no way my favorite is the chocolate covered milk chocolate covered car -- I -- I would -- 50000 of them if they were put in front of me.
But you know the peanut brittle as of course Warren Buffett's favorite but how did you choose those 4 eastern states.
Well those those four states we -- holiday gift senators and every year have done so for over a decade.
And and of the product a sells like hot cakes.
In those locations so.
So we know that the brand is -- very well non very respected in those areas.
And and they will do very well when we put stores and job creation.
Is it and meaningful numbers.
You know -- in every shopping you know -- hire twenty people are so.
To to run the shop you know for the most part through the year will expand the employment obviously during the holidays but.
But it all adds up over time and then this year at Christmas we're employing over 7000 people and in our business so.
So we do our part.
You do your part I mean a 25 million dollar investment in 1972 for the big man Warren Buffett your boss turns into more than one point six billion in profits and I know every time I'm there for the annual shareholder meeting.
He and Charlie Munger.
Yeah they charge the floor yeah they have their dilly bars but they sit there for four hours.
Snapping off pieces of peanut brittle and shopping them in their -- it's unbelievable and he's actually said.
What you guys were smaller business.
He credits you for becoming the cash machine that enabled him to buy bigger companies.
Is that pressure on you in any way shape or form.
No I wouldn't say so -- waved hello it's it's our job just to run the business the way that.
That we can get the most out of it and and continue to service the customers with this great candy.
The pressure -- might come from -- the -- to fair amount of the candy so it keeps dishonor tell us.
Sounds like it and -- let me just quickly ask you because cocoa and sugar looking pretty affordable right now on the commodities -- Can you hedge can you buy it they got it seems like it's got a shelf life certainly how how tough does that make your business if if you if these prices skyrocket.
Well -- and over the last five years you've seen the cocoa markets.
As low as 15100 dollars a metric ton.
And as high as 3700 dollars a metric -- and care currently.
We're about 2500 dollars so we ride this roller coaster.
We do we buy ahead when the prices are right.
And generally just work our way through what we.
What we know will be a commodity that did see significant jumps as well as some dips from time to time.
Brad good luck with the holiday season.
Appreciate it loose nice talking -- a -- one -- the polar bear caused my mother's currently obsessed so yeah the polar bear -- the white chocolate with the nuts and the thing in the com.
Our hope not bad brat -- sees -- CEO and president live from San Francisco one of the hottest gifts this certainly west of Chicago outlook.
