See's Candies Explained

See's Candy Shops, Inc.
Trade Name:See's Candies
Type:Subsidiary
Founder:Charles See
Location City:South San Francisco, California
Location Country:United States
Key People:Pat Egan (CEO)
Industry:Retail and candy
Products:Chocolate, candy, brittle
Revenue:US$ $410 million (2016)[1] [2]
Profit:US$ over $80 million (2019)[3]
Owner:Berkshire Hathaway
Num Employees:1,500 year-round, 6,000+ seasonal

See's Candy Shops, Inc., doing business as See's Candies, is an American manufacturer and distributor of candy, particularly chocolates. It was founded by Charles See, his wife Florence, and his mother Mary in Los Angeles, California in 1921. The company is now headquartered in South San Francisco, California.[4] See's kitchens are located at its headquarters and are also maintained at its original factory in Los Angeles,[5] where there are also retail shops. It also has an office in Carson, California.[6] The company has been owned by Warren Buffett's Berkshire Hathaway Corporation since 1972.

Location and market area

The See's Candies company primarily sells its products at its own stores, along with those of fellow Berkshire Hathaway subsidiary Nebraska Furniture Mart. See's Candies operates more than 200 stores in the following U.S. states: Alaska, Arizona, California, Colorado, Hawaii, Idaho, Illinois, Indiana, Kansas, Minnesota, Montana, Nebraska, New Mexico, New York, Nevada, Oklahoma, Oregon, Texas, Utah, Virginia, and Washington.[7] Most See's Candies stores are found in shopping centers. However, the company also operates a number of stand-alone stores, along with stores inside airport terminals across the United States. More than 70% of the company's stores are in California. There are also stores outside the U.S. in Hong Kong, the Philippines, Taiwan, Singapore, and South Korea (taking advantage of the proximity of its main plant to San Francisco International Airport).[8] [9] Seasonallyprimarily during the year-end holiday shopping seasonSee's also offers its product in select markets in kiosks at malls and other shopping centers.[10]

See's sells its product outside these areas directly to consumers via mail order catalog and online orders, in order to control the age of its product.

In March 2020, See's Candies temporarily suspended operations due to the COVID-19 pandemic, the first such suspension since World War II, when it became difficult to acquire sugar and other ingredients due to the war effort.[11] The company began to restore operations a month later, after implementing appropriate safety precautions.[12]

In 2020, See's Candies opened a store in Abu Dhabi in Nation Towers.[13]

History

Charles Alexander See II (1882–1949) arrived in the United States from Canada in 1921[14] with his wife Florence MacLean Wilson See (1885–1956) and his widowed mother Mary Wiseman See (1854–1939). Mary See had developed the recipes that became the foundation of the See's candy business while helping run her husband's hotel on Tremont Island, one of the Thousand Islands, in Ontario, Canada.

The family opened the first See's Candies shop and kitchen at 135 North Western Avenue in Los Angeles in November 1921. They had twelve shops by the mid-1920s and operated thirty shops during the Great Depression. See's first white and black "all porcelain" store was opened in Bakersfield, California on May 1, 1941.[15]

In 1936 See's opened a shop in San Francisco. It moved operations to make creams and truffles (60% of product sales)[16] to South San Francisco in order to take advantage of the location's cold weather.

Laurance A. See's divorce from his wife Elizabeth led to a landmark community property opinion in 1962 by Chief Justice Roger J. Traynor of the California Supreme Court for a unanimous court.[17] According to the opinion, Laurance worked for See's Candies, Inc. for the entirety of the twenty-one years of his marriage, served as president of its retail subsidiary for most of that time, and "received more than $1,000,000 in salaries from the two corporations". The See case is still included in 21st century textbooks for future lawyers[18] and financial advisers.[19]

In 1972, the See family sold the company, which generated $4 million in pre-tax profit that year, to Berkshire Hathaway for $25 million.[20] On January 3, 1972, Blue Chip obtained a controlling interest in See's Candy Shops. Blue Chip later acquired 100% of See's for an overall price of $25 million. Wesco Financial Corporation was an 80.1% owned subsidiary of Blue Chip Stamps until its complete merger into Berkshire Hathaway in 2011. Warren Buffett has called See's "the prototype of a dream business." (2007)[21] At a 1996 luncheon in San Francisco, Charlie Munger revealed that See's was the first high quality business that Berkshire ever bought. Previous to that point, Berkshire had focused on undervalued assets that could be bought cheaply. The See's acquisition influenced their commitment to buying businesses with a strong reputation and brand recognition.[22]

See's production and warehouse workers are unionized.[23] [24]

The 'couverture' chocolate used by See's is provided by the nearby Guittard Chocolate Company,[25] and nuts come from Mariani Nut Company of nearby Winters, California.[26] On June 20, 2012, See's Candies was recognized by the Guinness Book of World Records for the world's largest lollipop, a giant chocolate lollipop weighing and measuring 4feet long, 3feet wide, and 5inchesft11inchesin (ftin) high, equivalent to 145,000 regular-size lollipops.[27] The previous largest lollipop record stood at .

In popular culture

In 1952, Lucille Ball and Vivian Vance spent a half day at the See's Candies store on La Cienega Boulevard in Los Angeles, learning to dip chocolates and work the production line, in preparation for the "Job Switching" episode of I Love Lucy. The episode, which featured Lucy and Ethel getting jobs in a chocolate factory, became one of the most popular in the show's history.[28]

Singer Cher was working at See's in 1962 when she met Sonny Bono; she quit her job to become his housekeeper.[29]

In a 1987 Kidsongs video "What I Want to Be", the Kidsongs Kids visit the See's Candies factory during the "The Candy Man" song sequence.

In 1994, at a See's Candies location in South San Francisco, a driver delivering a bulk order of chocolate fell asleep while his truck was hooked up to one of the vats and pumping; the adjacent El Camino Real and Spruce Avenue were flooded with chocolate. Workers had to shovel it away from the storm drains once the fog had cooled it.[26]

A factory was visited to research the Sugar Rush sequence for Wreck-It Ralph.[30]

See's Candies was featured by Huell Howser in California's Gold Episode 908.[31]

Every year the South San Francisco facility mounts oversized holiday decorations atop its plant for Christmas, Thanksgiving, Valentine's Day, Mothers' Day, and Independence Day.[32]

On Mindy Kaling and Lang Fisher's 2020 Netflix show, Never Have I Ever, main character Devi Vishwakumar's mother keeps a cabinet of See's Candies as housewarming/hostess gifts.[33] [34]

Notes and References

  1. Web site: 2016 Global Top 100 Candy Companies - 50-26 - Candy Industry . www.candyindustry.com . June 28, 2018.
  2. News: Patrick . Morris . Warren Buffett Bought This Company for $25 Million. Now It Makes Nearly $100 Million Every Year . June 28, 2018 . . July 13, 2014.
  3. News: Mohamed . Theron . Warren Buffett's favorite business is a little chocolate maker with an 8000% return. Here are 5 reasons why he loves See's Candies. . September 29, 2022 . . December 21, 2021.
  4. "About Us." See's Candies. Retrieved on January 18, 2009.
  5. Web site: A Peek Inside the See's Candy Factory . Food Gal . Jung . Carolyn . October 29, 2008 . June 28, 2018.
  6. "Contact Us." See's Candies. Retrieved on January 18, 2009.
  7. Web site: See's Candies Official Chocolate Shop Locator . 2023-06-18 . chocolateshops.sees.com.
  8. https://www.sees.com/locations/international See's International Shop locations
  9. Web site: See's Candies Official Chocolate Shop Locator . 2023-06-18 . chocolateshops.sees.com.
  10. Web site: About Us - See's Candies. www.sees.com. June 28, 2018.
  11. News: Lin II . Rong-Gong . Coronavirus forces See’s Candies to suspend production for first time since World War II . Los Angeles Times . March 28, 2020 . subscription.
  12. News: Zavoral . Linda . Coronavirus: See’s Candies is resuming operations, reopening — but slowly . The Mercury News . April 22, 2020 . subscription.
  13. Web site: Sees Candies now in UAE.
  14. https://www.sees.com/about-us/sees-family/ See's Candies website
  15. Bakersfield Californian, April 10, 1941, Page 12, "first all-porcelain store"
  16. Web site: Behance. www.behance.net. June 28, 2018.
  17. See v. See, 64 Cal. 2d 778 (1966).
  18. Book: Blumberg . Grace Ganz . Community Property in California . 2022 . Aspen Publishing . Frederick, Maryland . 9781543829587 . 231 .
  19. Book: Burrage . Thomas F. . Little . Sandra Morgan . Divorce and Domestic Relations Litigation: Financial Adviser's Guide . 2003 . John Wiley & Sons . Hoboken, New Jersey . 9780471456155 . 75 .
  20. Web site: Warren Buffett basks in sweet success of See's Candies, Bank of America deals. Calvey. Mark. March 2, 2015. www.bizjournals.com. February 21, 2017.
  21. Peter Bevelin (2012). A Few Lessons for Investors and Managers from Warren E. Buffett. PCA Publishing and Intermountain Books.
  22. News: Calvey . Mark. Chuck Huggins, former See's Candies CEO, dies at 87 . . August 21, 2012. May 30, 2013.
  23. Web site: Hawkes . Alison . See's Candies strike settled . San Mateo Daily Journal . April 7, 2022.
  24. Web site: Union-Made in America Halloween . AFLCIO . April 7, 2022.
  25. Web site: Inside a Happy Habit: A Factory Tour of See's Candies. Tamara. Palmer. June 15, 2009. June 28, 2018.
  26. Web site: The secrets of See's Candies. August 22, 2012. June 28, 2018.
  27. Web site: See's Candies creates world's largest lollipop. July 23, 2012. Guinness World Records. January 21, 2013.
  28. Book: Pick, Margaret Moos . 2005 . See's Famous Old Time Candies: A Sweet Story . registration . San Francisco . Chronicle Books . 9780811848671 . 57392982 . 91.
  29. Web site: See's Candies Case Study. January 26, 2015. June 28, 2018.
  30. Web site: 'Wreck-It Ralph' Shines Bright with New Lighting and Effects Technology . 2024-07-07 . Animation World Network . en.
  31. Web site: See's Candy – California's Gold (908) – Huell Howser Archives at Chapman University .
  32. http://www.everythingsouthcity.com/wp-content/uploads/2013/11/Santa-getting-put-up-on-Sees-2013.jpg
  33. Web site: 'Never Have I Ever' Season 1: All of Your Biggest Questions Answered (Exclusive) Entertainment Tonight. June 28, 2021. www.etonline.com. en-US.
  34. Web site: See's Candies Product Placement Seen On Screen. June 28, 2021. en-US.