See’s Candies expands in California, shouldering rising prices along the way (2024)

Did someone say candy?

Few names in California are as synonymous with chocolate-covered confections as See’s Candies.

The company has expanded its California footprint with recent store additions in Temecula and another in Bakersfield.

Established more than 100 years ago, the South San Francisco-based chocolate maker operates more than 240 candy shops across the U.S. and an e-commerce platform. See’s produces more than 26 million pounds of candy a year with many of its original creations still available today.

The privately held company’s success has not come without challenges. See’s leadership says it has shouldered price increases as a result of inflation and supply chain backups. But the company and chocolate makers nationwide are reporting booming sales as pandemic-weary customers reach for something sweet to take the edge off.

In the year through October 30, U.S. chocolate sales hit $17.7 billion, according to data from market research firm IRI, up from $14.6 billion for the year in 2019.

See’s, which is privately held, generates an annual income of about $410 million, according to zippia.com.

The company also faced adversity during the Great Depression when more than 12 million Americans were out of work.

See’s competitors were still selling their candy at 80¢ a pound during the economic downturn, forcing many to close their doors. Charles See wisely managed to reduce his prices without depleting the bottom line, charging only 42¢ a pound for pre-paid orders of more than 50 pounds.

See’s Candies expands in California, shouldering rising prices along the way (1)

We asked company President and CEO Pat Egan to talk about the company, why it has lasted so long and which chocolates are favorites among customers. His answers have been edited for space considerations.

  • See’s Candies expands in California, shouldering rising prices along the way (2)

    See’s molasses chips are in production at the company’s Los Angeles factory on Monday, Nov. 12, 2018. (File photo by Axel Koester, Contributing Photographer)

  • See’s Candies expands in California, shouldering rising prices along the way (3)

    Charles See opened the first See’s shop in 1921 at 135 Western Ave. North in Los Angeles. (Photo courtesy of See’s Candies)

  • See’s Candies expands in California, shouldering rising prices along the way (4)

    See’s produces more than 26 million pounds of candy a year, and many of its original creations are still made today, including peanut brittle, chocolate walnut fudge and Victoria toffee. (Photo courtesy of See’s Candies)

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Q: See’s Candies has a rich family legacy dating back to 1921. What do you attribute the company’s success and longevity to?

A: There are two things: Our team makes the best candy on planet. All of our candies are made with the finest and best ingredients with no preservatives added. And of course, we wouldn’t be here 101 years later if it weren’t for our customers. They are the reason we are so focused on making the highest quality candy and continue to innovate and expand to new locations. We love being part of their traditions and seeing multi-generational families come into shops together.

Q: Are you dealing with any supply chain issues, and if so, how has that impacted your operations?

A: Supply chain issues have affected us all in some way. We are proud to be an American-made company, with all of our candies produced right here in California, and most of our suppliers and growers are here, too. That said, we have definitely seen very large price increases for our ingredients, packaging, services … you name it. We only use the highest quality ingredients, so we stick by our suppliers.

Q: What are some of the candy favorites among See’s customers?

A: Across the board, fan favorites are the Dark Scotchmallow and Milk Bordeaux. Here in Temecula, local customers also really love Pecan Buds and Milk California Brittle, and Lollypops are a favorite wherever you go. I must admit…Temecula has great taste!

Q: Does See’s offer seasonal candies during the holiday season?

A: All of our holiday offerings are now available both in shops and online. We have a wide variety of holiday-themed chocolates and candies, including boxed chocolates and stocking stuffers to Hanukkah Gelt. Last holiday season, we introduced the Holiday Bordeaux, which features a classic brown sugar cream center bundled up in white chocolate and topped with red and green sprinkles. We’ve reintroduced this piece into our candy line as a “limited time sweet.”

About Pat Egan

Title: President and CEO

Organization: See’s Candies

Hometown: Born in San Francisco, but grew up in Oregon

Previous experience: He has 12 years of experience with Berkshire Hathaway brands, including NV Energy and Pacific Power.

Favorite job: “My favorite and most interesting previous job was as a U.S. Forest Service firefighter and sawyer. I got paid to travel around the west, fight fires, sleep under the stars and eat as much as I wanted. I worked closely with a crew that are still friends to this day. This was the late 80s, so fires were less dangerous and unpredictable. But I got to go to the great Yellowstone conflagration in 1988 for a few weeks.”

About See’s Candies

Founded by Charles See, who moved to Pasadena with his wife and widowed mother, Mary See, in 1919. Drawing upon the homemade recipes Mary whipped up in their Pasadena bungalow, Charles opened the first See’s shop in 1921 at 135 Western Ave. North in Los Angeles.

Candy making: The company, which has been owned by Warren Buffett’s Berkshire Hathaway Corp. since 1972, maintains kitchens at its South San Francisco headquarters and at its original factory in Los Angeles. It also has an office in Carson and a small lollypop-only plant in Burlingame.

See’s trivia: A 1951 episode of “I Love Lucy” depicts Lucy and Ethel scrambling to wrap candies as the chocolates spill faster and faster off the conveyor belt. Actors Lucille Ball and Vivian Vance got some actual training in how to dip and wrap chocolates at See’s LA kitchen before filming the scene on a recreated production line in Hollywood.

See’s Candies expands in California, shouldering rising prices along the way (2024)

FAQs

Why is see's candy so expensive now? ›

See's produces more than 26 million pounds of candy a year with many of its original creations still available today. The privately held company's success has not come without challenges. See's leadership says it has shouldered price increases as a result of inflation and supply chain backups.

Does Warren Buffett still own See's Candies? ›

Hello, Berkshire Hathaway!

See's Candies became part of the Berkshire Hathaway family in January 1972, when Warren Buffett and Charlie Munger purchased the company. To this day, See's is one of Warren's favorite businesses!

How much did Warren Buffett pay for See's candy? ›

Munger and Buffett ultimately purchased See's Candies in 1972 for $25 million, paying 300% of book value, a move that was absolutely unprecedented for them. Whilst the price was expensive for Buffett at the time, he and Munger developed insights that solidified their conviction in the business.

What is the shelf life of a box of See's candy? ›

How long will boxed chocolates last? Most of our candies are meant to be sold and consumed within 60–120 days of production, when the candy is at its peak flavor level. Any candy not sold within our quality guidelines is pulled from the shelves and not sold to customers.

Why did candy prices go up? ›

Extreme heat and other weather conditions have put stress on cocoa crops in West Africa. That's caused prices to spike worldwide.

Who bought out sees candy? ›

Berkshire Hathaway purchased See's Candies in 1972. Born in Omaha, Nebraska in 1930, Warren Buffett has been dubbed the most successful investor of the 20th century.

What is so special about See's candy? ›

Only the finest and freshest ingredients were accepted in their candy kitchen, causing suppliers to coin the phrase "See's quality"—higher than "top quality." Thanks to Charles' passion and intelligence, See's not only survived the Great Depression and World War II, it thrived and continued to grow as a company.

Is See's candy still handmade? ›

Since 1921, See's candies and chocolates have been made from scratch in our own candy kitchens. Using fresh ingredients, time-honored recipes and techniques, our Candy Makers truly make magic happen in the kitchen! Take a virtual tour and see for yourself how many of our famous chocolates and candies are made.

What is the profit margin on See's candy? ›

Its gross margin was respectable throughout and had increased from 47% to 54%; the same goes for its operating margin. The chocolate manufacturer's net profit, much like its revenue, showed consistent growth, and the net profit margin climbed from 5.1% to 7.8% (see Table 2 below)

What does Warren Buffett get at McDonald's? ›

While being interviewed by journalist Rebecca Jarvis, he showed off his favorite places in the city, including the local McDonald's. When Jarvis asked what he typically ordered there, Buffett replied, “Three times out of four, I get the sausage McMuffin. Lunchtime I get the Quarter Pounder and fries.”

Is sees candy profitable? ›

Last year See's sales were $383 million, and pre-tax profits were $82 million.

Should I refrigerate See's candy? ›

What's the best way to store See's chocolates after I receive my order? We recommend storing chocolates at 60º to 70ºF and consuming within approximately 3–4 weeks after purchase.

Does See's candy give discounts? ›

Larger orders receive additional discounts and benefits. Along with discount pricing, orders of $500 or more enjoy free shipping to a single address, 10% loyalty savings and 14-month continued savings with See's annual discount. This extends to employees, so everyone at your company can use the discount.

Does See's chocolate ever go on sale? ›

Does See's Candy go on sale? Yes. We have seen some big sales at See's Candies.

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