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Non-Industry Promotional Products Firms |
(Please note: As several companies declined to provide updated information, some of the material here represents what The Counselor could collect on its own from other sources.)
Prudent Publishing Co. Inc.
Ridgefield Park, NJ
Sales: $16 million (E)
Workforce: 80
Privately held
F Alan Solow, chairman/CEO
Prudent, founded in 1929 by Ralph Solow, has its roots in the industry; it was originally a calendar publisher and promotional products distributor. It later began to produce diaries and pop-out-style holiday cards, and in the 1970s, turned most of its concentration toward exclusive-design personalized/customized holiday cards for business-to-business use. While it still offers calendars, diaries and holiday cards remain the bulk of its business. Prudent occupies approximately 10,000-square-feet at its headquarters, and sells solely through mail-order to companies throughout the United States. It operates a branch in Landing, NJ, and 100% of the capital stock is owned by the corporate officers.
Day-Timers Inc.
East Texas, PA
Sales: $205 million (E)
Workforce: 1,500-2,000
Privately held
F Dave Clark, president
A manufacturer/reseller/marketer and direct marketer of business planners/diaries, time-management systems/services and stationery/writing instruments, Day-Timers was established in 1947 as a joint venture between Morris Perkin, an attorney, and Dorney Printing Co. To help lawyers stay on top of their hectic schedules, Perkin designed a “Lawyer’s Day” planner, which he gave to attorney friends as holiday gifts. Demand grew quickly, and the Dorney family took over the fulfillment duties, developing the line into a business that eventually offered over 30 different Day-Timer formats, as well as other related products.
In 1972, the firm was acquired by Beatrice Cos. Inc., which operated it as a division until 1981, and a subsidiary thereafter. In 1988, Beatrice sold Day-Timers to Fortune Brands Inc., which made it a subsidiary of its ACCO World Corp. division, a
manufacturer/marketer of a diverse range of office products. Personalization and logo-imprinting is available for most Day-Timer products. In addition to its warehouse/office/call center in Allentown, PA, Day-Timers has subsidiary operations in Canada, Australia, New Zealand and the United Kingdom. Day-Timers sells to millions of customers directly by catalog sales and its Web site, as well as through commercial contract dealers/wholesalers and office supply superstores (Staples, Office Depot, etc).
Amway Corp.
Ada, MI
Sales: $5.1 billion (E at retail)
Workforce: 10,000
Privately held
Steve Van Andel, chairman
F Dick DeVos, president/CEO
Amway was founded by Jay Van Andel and Rich DeVos in 1959, offering L.O.C., a household-cleaning product. Today, the company offers over 450 exclusive home-care, personal-care, nutrition/wellness, home technology and commercial products to consumers and businesses worldwide, through an international independent salesforce of over 3 million in 53 affiliate markets.
In addition to its own products, Amway also produces a catalog offering several thousand brand-name products through which consumers can make purchases, and a business-to-business gift program called Amagift, consisting of product catalogs at various price points that can be used by companies as incentives and/or holiday gifts. Other services offered through its independent agents include the Franklin Day Planner and MCI long-distance service. All sales are made on a face-to-face, person-to-person basis, the same method employed at the firm’s inception.
Beyond its 3 million square-foot headquarters complex, which also serves as a manufacturing plant, Amway and its affiliates maintain other manufacturing plants in China and Buena Park, CA. It has two main catalog distribution centers in North America, in Ada and Dayton, NV and eight regional distribution centers in Ada; Norcross, GA; Honolulu; Dayton, NJ; Denver; London, Ontario, Canada; Arlington, TX; and Kent, WA. There are hundreds of additional distribution outlets in Asia, Central/South America, New Zealand, Europe, Africa and Australia. The company has 53 affiliates worldwide.
In 1993, Amway filed a registration statement to offer 7.5 million public shares in Amway Asia Pacific Ltd., a sister company comprised of seven existing Amway affiliates, which opened operations in China in 1995. Amway Asia was listed on the New York and Australian stock exchanges and another sister company, Amway Japan (Tokyo), was also publicly traded. In 1999, Amway repurchased its stock, reverting both Amway Asia and Amway Japan to privately-held firms. Worldwide, Amway occupies over 6 million-square-feet.
Executive Greetings Inc.
New Hartford, CT
Sales: $120 million (E)
Workforce: 500
Privately held
F Lee Bracken, president/CEO
While one of Executive Greeting’s subsidiaries, Baldwin Cooke Co., is a Top 40 distributor of pens, mugs, etc., and another, Deerfield Collection, functions as a supplier offering exclusive calendars and all-occasion/holiday cards, the firm has other operations that fit into the promotional-products arena in terms of product offerings.
The organization’s “starting point” company was Grayarc, a manufacturer of metal filing cabinets founded in New York in 1929 that still operates as a subsidiary. Grayarc was purchased by Dictaphone Corp. in 1968, which was in turn acquired by Pitney Bowes Inc. (Stamford, CT) in 1979. In 1980, Pitney Bowes bought The Drawing Board, a Dallas-based office-supply, holiday card and business-forms mail-order firm, and in 1981, consolidated it and Grayarc into the Wheeler Group. Wheeler acquired Baldwin Cooke in 1988, and, in 1992, was purchased by Butler Capital Corp., a Manhattan-based holding company. Butler renamed the organization Executive Greetings shortly afterwards. The company was again acquired by Berhman Capital in 1999.
Executive Greetings basic subsidiaries include: Grayarc; Baldwin Cooke; Deerfield; Drawing Board; U.S. Diary Co; HRDirect; Readymade; Turnkey; Rainbow; Gopromotions.com; Sa-So and Curtis-Rand, which it acquired in April. It maintains two offices beyond its New Hartford location – New Britian, CT, and Grand Prairie, TX.
Tiffany & Co.
New York, NY
Sales: $1.6 billion
Workforce: 5,900
Publicly Held
F William R. Chaney, chairman
F Michael J. Kowalski, president/CEO
A name that’s become almost synonomous with fine jewelry and gifts such as silverware, timepieces, and crystal/china, Tiffany was founded in 1837 by Charles Lewis Tiffany. It achieved international recognition in 1867 by winning a gold medal for silver craftmanship at the Paris Exposition Universelle. It ultimately became the premiere U.S. silversmith, and silver/goldsmith to 17 European crowned heads. Since then, Tiffany has become renowned for its innovative techniques and designs. It was the first American firm to embrace the 925/1000 silver purity measure, later adopted as the national standard. It was also responsible for the concept of using color gemstones in fine jewelry, cutting diamonds for brilliance rather than size, and the six-prong, or Tiffany setting, the most popular engagement ring in the world.
Louis Comfort Tiffany was the firm’s first design director, and creator of the well-known stained-glass lamps. Other notable events in its history include the redesign of the Great Seal of the United States in 1885 and its creation of the Vince Lombardi trophy for the Super Bowl. Today, Tiffany operates over 100 retail stores worldwide.
Its Corporate Sales division, while its roots go back to the Civil War, was officially established in 1960. Using items from Tiffany’s own inventory or custom-created merchandise, it specializes in the design/manufacture of awards and trophies;
structuring/developing employee recognition programs/awards; catalogs; and creating commemorative items for special events and business gifts. Many are engraved or personalized, the vast majority of which is done in-house. Tiffany sells primarily in three channels – retail, international retail and direct marketing. The latter, which includes catalog and corporate sales as well as those from the Web site, netted $155.5 million in sales for 2000. Tiffany maintains a warehouse/distribution/manufacturing facility in Parsippany, NJ and other manufacturing facilities in Pelham, NY, West Virginia, Milan and Paris, and is currently building a new facility in RI. It trades on the NYSE system under TIF.
Russell Corp.
Alexander City, AL; and Atlanta, GA
Sales: $1.2 billion
Workforce: 15,000
Publicly held
F John Ward, president/chairman/CEO
An international branded apparel company specializing in activewear, casual wear and athletic uniforms,
Russell was established by Benjamin Russell in 1902 as a manufacturer of womens’ undergarments. The company got into athletic apparel in 1925 as an outgrowth of some of its existing styles and products. Its major brands include Russell Athletic, Jerzees, Cross Creek and Mossy Oak, marketed to sporting-goods dealers, department/specialty stores, mass merchandisers, golf pro shops, college bookstores, screenprinters, mail-order houses, apparel distributors and other apparel manufacturers.
Russell decorates by means of screenprinting and embroidery and is a major producer of team uniforms for all level of sports ranging from little league to Major League Baseball. It has self-owned or joint ventures in 10 countries. Russell Corp. moved its corporate headquarters, along with the headquarters of Russell Athletic, Jerzees, and Russell International to Atlanta in 1999, but maintains corporate functions in Alexander City, along with the headquarters of Russell Fabrics and Russell Yarn. It maintains manufacturing plants in AL, NC, Mexico and Honduras. It trades on the NYSE system under RML.
ART International Inc.
Markham, Ontario, Canada
Sales: $2.3 million
Workforce: 16
Publicly held
F Simon Meredith, president
ART was established by Harvey Kalef in 1986 as Xerart Corp. The name was changed a year later to Artagraph Reproduction Technology Inc. The present management took over in 1993, changing the name again in 1998. In addition to a concentration on contract printing, the company manufactures reproductions of oil paintings by Impressionist and Post-Impressionist artists such as Monet, Van Gogh, Renoir, Degas, and so on. These are offered in two formats; “Works of A.R.T.” are reproduced on paper. “Canvas Impressions” I and II, marketed under the Artagraph Editions trademark, are produced on canvas via a special patented molding process that enables the raised brushstrokes and surface texture of the originals to be recreated almost exactly. Artagraph Editions also include signed/numbered limited editions by noted contemporary artists. The firm distributes through several channels, including home furnishing and other retail stores, as well as direct marketers, art publishers, etc. ART’s Markham location serves as an administrative and manufacturing plant. The firm also deals with other distributors and marketing firms worldwide. It trades on the over-the-counter NASDAQ system.
O.C. Tanner Co.
Salt Lake City, UT
Sales: $269 million (E)
Workforce: 2,200
Privately Held
F Kent Murdock, president/CEO
A major supplier/manufacturer of service recognition awards, Tanner was founded in 1927 when Obert Tanner, a high-school teacher, conceived the idea of a graduation pin. He eventually opened a manufacturing shop and by the mid-1940s, had pioneered the business by expanding into the corporate community in the form of recognition and service awards.
Today, Tanner offers almost 4,000 award products covering a wide range of name-brand products. It provides awards to 86 Fortune 100 firms and thousands of other companies in over 160 countries. Most are customized with corporate logos and/or symbols. The line includes fine custom jewelry, rings, watches, active/sports accessories, clocks, electronics, office accessories, crystal and other gifts. Tanner additionally offers complete administrative, promotional and training services. It also recently developed the first fully integrated online award programs. The firm was selected as the official supplier for victory and commemorative medals for the 2002 Winter Olympic Games. In addition to its 479,000-square-foot headquarters in Salt Lake City, Tanner maintains a manufacturing/customer service center in Burlington, Ontario, Canada, and has numerous regional sales offices throughout North America. The Tanner family owns 100% of the capital stock.
WearGuard Corp.
Norwell, MA
Sales: $260 million (E)
Workforce:1,300
Privately held
F David Gold, president
A subsidiary of the Philadelphia-based Aramark Uniform and Career Apparel Group, the largest uniform firm in the world with annual revenues exceeding $1.4 billion, WearGuard deals in men’s/women’s uniforms and work clothes.
The firm was founded in 1952 by Eugene Salem as Eastern Uniform Co. Inc. It changed its name to WearGuard in 1986 and was acquired by Aramark in 1992. It derives its annual revenue from the direct sale of uniforms to businesses throughout the United States, Canada and the United Kingdom. WearGuard sells primarily through frequently-mailed catalogs, but also utilizes outbound telemarketing as well as an outside sales force. Its forte is embroidering or silkscreening company names/logos on a wide assortment of products. Its personalization services are provided to customers ranging from single-person shops to major corporations. The firm is known for its high quality of customer service, and maintains state-of-the-art systems and production faclities to help ensure this.The parent company owns 100% of the capital stock.
Bloomingdale’s Inc.
New York, NY
Sales: $1.8 billion
Workforce: 10,500
Publicly held
F Michael Gould, chairman/CEO
A subsidiary of Federated Department Stores Inc. (Cincinnati, OH) Bloomingdale’s was founded in 1872 by Lyman and Joseph Bloomingdale as the East Side Bazaar, offering women’s fashions. In 1886, it moved to its present location at 59th St. and Lexington Ave. as a department store. By 1929, it occupied an entire city block, which remains the chain’s flagship and headquarters store. In addition, Bloomingdale’s was one of the founding companies that established Federated in 1929.
Over the years, the store became internationally famous as a trendsetter and for its selection of exclusive merchandise. While its corporate-services division was established approximately 19 years ago, it wasn’t aggressively marketed until 1994, when it was revamped and realigned. Targeted to corporate customers for
their business gift-giving, recognition, employee program, incentive, etc., needs, Bloomingdale’s offers a representative selection of items in its business-to-business catalog, but can provide almost anything requested in the store’s inventory as well as special merchandise not normally stocked.
Monograms, personalization and logo imprinting are also offered, done on- or off-premises, depending on the item. While the service can be provided by any one of Bloomingdale’s 23 stores nationwide, the New York store remains the official headquarters, through which all orders are processed. Federated is traded on the NYSE system. Its total 2000 sales were approximately $17.7 billion.
Excelled Sheepskin & Leather
Coat Corp.
New York, NY
Sales: $50.5 million (E)
Workforce: 210
Privately held
F Myron Goldman, president
A manufacturer/importer of men’s, women’s and children’s leather, sheepskin and wool jackets, coats, vests and pants, Excelled was established in 1927 by Sol Goldman. The firm was acquired by U.S. Industries in 1970, and repurchased by the Goldman family, which owns 100% of the capital stock, six years later. Excelled sells largely to department stores, mail-order houses and specialty shops. Approximately 10% of its sales involves custom-logoed work for licensed properties as well as schools, athletic teams, businesses and other organizations. Imprinting is done off-site at several decorators the firm works with on a continual basis. In addition to its Manhattan headquarters, Excelled occupies a 150,000-square-foot factory in Carteret, NJ and another in Chicago of the same size.
Lands’ End Inc.
Dodgeville, WI
Sales: $1.3 billion
Workforce: 7,400-9,600
Publicly held
F David Dyer, president/CEO
A direct merchant of business/casual clothing, shoes, accessories and soft luggage, Lands’ End was founded by Gary Comer, a former ad copywriter, in 1963 in Chicago. Originally called Lands’ End Yacht Stores Inc., the firm offered hardware and equipment for sailboats. By 1977, it continually focused on clothing, and in 1978, relocated to its present location. Today it distributes over 236 million catalogs annually and receives an average of 45,000 calls daily.
Its first Corporate Sales division catalog, now issued four times a year, appeared in 1993. Geared to businesses and organizations, Lands’ End Corporate Sales provides apparel/accessories, custom embroidery services and gift-certificate programs for promotions, sales incentives, employee gifts and in conjunction with special events. The division also outfits and counsels companies on business-casual issues, including establishing guidelines and enforcing policies. Sales for the divsion in fiscal 2000 were about $140 million, just over 10% of Lands’ End overall sales.
In 2000, the company became one of the first apparel retailers to establish business-to-business e-commerce partnerships with online procurement companies. Also offered is the design/construction of online custom stores for companies, and shopping tools such as Logo SnapShot and Lands’ End Live, offered on it’s corporate sales Web site. To date, 10 virtual stores have been built. Lands’ End went public in 1986, and trades on the NYSE system. Its headquarters occupies 200 acres. In addition to 16 outlet stores, it operates luggage-manufacturing plants in West Union and Elkader, IA and facilities in Reedsburg, WI and Cross Plains and in the United Kingdom, Germany and Japan.
Hallmark Cards Inc.
Kansas City, MO
Sales: $4.4 billion
Workforce: 20,945
Privately held
F Donald Hall, chairman
F Irvine Hockaday, CEO
Hallmark was founded by Joyce C. Hall in 1910 as a mail-order business for picture postcards. It experienced several periods of significant growth, and is now the largest greeting-card manufacturer in the world, published in over 30 languages and distributed in over 100 countries.
Hallmark consists of three major divisions – Personal Expressions, involving cards, calendars, Christmas ornaments, collectibles, gifts, gift wrapping/trim, party goods, software, stickers and writing paper; Hallmark Entertainment Inc. (based in New York), involving the production of family oriented television shows; and Personal Development, involving art supplies, crayons, markers, modeling materials, creativity kits, creative software and model kits.
In 1997, to meet the changing needs of consumers, Hallmark introduced Expressions From Hallmark, a new brand of cards and personal-expression products, available through mass-merchandising channels. Its Hallmark Business Expressions entity, part of the Personal Expressions arm, was established in 1994 as a method of helping businesses develop loyal relationships with clients. Essentially, the division functions as a consulting service to firms helping them achieve their business objectives by creating measurable, broad-based programs that typically involve the use of a custom-created greeting card as part of the overall marketing/communications plan. Clients include several NFL teams and Fortune 500 firms. Business Expressions also offers a “stock” catalog for firms who wish to order cards but don’t have a current need for an entire program.
In addition to sales offices in Oak Brook, IL; Atlanta; Kansas City, MO; Newport Beach, CA; and White Plains, NY, Hallmark operates manufacturing/production centers in Kansas City; Lawrence, Topeka and Leavenworth, KS; distribution centers in Enfield, CT and Liberty, MO; and production/distribution facilities in Toronto; Munich; Dublin; Austria; Guam; New Zealand; Dundee (Scotland) and the Caribbean.
Its major subsidiaries include Crown Center Redevelopment Corp. (Kansas City), a real-estate developer; Binney & Smith Inc. (Easton, PA), a manufacturer of crayons (Crayola brand) and art materials; Halls Merchandising Inc. (Kansas City), a chain of two retail stores; Litho-Krome Co. (Columbus, GA), a lithographer; DaySpring Cards Inc. (Siloam Springs, AR), a producer for Christian personal-expression products; Ensemble Co. (Lenexa, KS), which produces/sells/markets products to alternative distribution channels; InterArt (Bloomington, IN), a greeting-card and related products concern; Irrestible Ink (Ely and Two Harbors, MN), a provider of handwriting services; Picture People (Foster City, CA), a portrait studio; Tapper Candies (Cleveland), a manufacturer of inteactive candy, toy and party favors; and William Arthur (West Kennebunk, ME), specializing in high-end holiday cards, invitations/announcements and social/business stationery.
Hallmark occupies 3 million-square-feet at its headquarters. Over two-thirds of its capital stock is owned by the Hall family; the remaining third by its employees via a profit-sharing plan.
L.L. Bean Inc.
Freeport, ME
Sales: $1 billion (E)
Workforce: 4,800
Privately held
F Leon Gorman, president/CEO
One of the best-known mail-order retailers in the world, Bean was established by Leon Leonwood Bean in 1912, offering outdoor gear and waterproof hunting boots. Annually, it now produces approximately 70 different catalogs, distributes about 200 million of them, receives approximately 18 million phone calls and mails out about 12 million packages. Bean stocks 16,000 different items, including clothing, footwear, tote bags, soft luggage, dog beds, sporting goods, furnishings, domestic goods, watches, pocketknives, camping gear and more, 90% of which bear the L.L. Bean label.
The firm’s Corporate Sales Division was created in the 1970s to provide business-to-business incentives and gifts. The catalog offers a representative selection of products available for imprinting or personalization, but Bean will also work with clients on any other item from its retail catalogs. Bean does all embroidery of logos, etc. in-house; other processes such as screenprinting and embossing are outsourced.
In addition to its 700,000-square-foot headquarters, Bean operates a 109,000-square-foot retail store in Freeport and liquidation outlet stores in Freeport, Portland and Ellsworth, ME; Nashua, Concord and North Conway, NH; Wilmington and Rehobeth Beach, DE; and Bend and Lincoln City, OR. It also has telecommunications/customer service centers in Portland, Waterville and Lewiston, ME, and a manufacturing facility in Brunswick, ME. Internationally, Bean entered into a licensing/distribution agreement with L.L. Bean Japan, which currently operates 20 stores there. The majority of the firm’s capital stock is owned by the Bean family.
Cartier Inc.
New York, NY
Sales: $225 million (E)
Workforce: 500
Privately held
F Simon J. Critchell, president/CEO
Established in 1847 by Louis-François Cartier, Cartier is another internationally known designer, manufacturer, distributor and retailer of fine jewelry, watches and gifts (pens, clocks, crystal, key rings, frames, fragrances, etc.). It has served as crown jeweler to 19 royal houses.
In addition to inventing the baguette cut and handling the sale of both the Hope diamond (1910) and the 69.4-carat stone purchased by actress Elizabeth Taylor (1968), Cartier is also credited with the design of the first modern wristwatch, in 1904; Art Deco jewelry; the tank watch; the “invisible” setting; the mystery pocketwatch; and the world’s smallest wristwatch, among other things.
In 1993, it became part of the Vendome Luxury Group, an umbrella company that also encompasses Alfred Dunhill, Mont Blanc, Piaget, Baume & Mercier, Vacheron Constatin, Chloe, Panerai, Sulka, Hackett, James Purdy & Sons and Seeger. Cartier today has 172 stores worldwide as well as a network of 10,000 authorized dealers in 123 countries. Cartier Corporate Gifts, begun in 1980, publishes two catalogs of selected goods for the purpose of business-to-business and incentive gifts and awards. Other merchandise outside of the catalog may also be selected by buyers. Custom engraving of personalization, logos, monograms, signatures, crests and so on is available on most silver/gold and stationery items.
G. Neil Cos.
Ft. Lauderdale, FL
Sales: over $45 million (E)
Workforce: 360
Privately held
Gary Neil Brown, CEO
F Terry Jukes, president
A mail-order and direct marketer of human-resources-related products, including forms, employee awards, legal compliance postings, etc., G. Neil was founded by Brown in 1988. The firm’s catalog includes a small selection of promotional products as well. While most of the customized products G. Neil sells are personalized via engraving, approximately 10% of its merchandise is custom-logoed, at clients’ requests. Imprinting and engraving is done in-house. G. Neil’s headquarters occupies over 70,000-square-feet.
Nambe Inc.
Santa Fe, NM
Sales: $22 million (E)
Workforce: 300
Privately held
F Jim Weyhrauch, president
Nambe, a producer of utilitarian metalware with a decidedly fine-art flair, was founded in 1951 by Pauline Cable. The firm was acquired by its present ownership in 1981, and at that point, its line became greatly expanded, offering more styles and designs, including a highly artistic Studio Line. The functional aspect of the great majority of the items, however, was and is retained.
Nambe, which sells largely through upscale department stores and specialty shops, entered the corporate market in 1988. Products for its corporate sales are sold via independent sales reps. Most of its corporate sales are stock items that are custom engraved, often employing a company’s logo or corporate symbol. All of Nambe’s offerings, with the exception of its crystal line, are composed of a special alloy that resembles sterling silver, but is more durable and maintenance-free.
In addition to its 22,000-square-foot headquarters and 47,000-square-foot production facility, Nambe has retail showrooms in Santa Fe, Taos and Old Mesilla, NM, and Durango, CO. Corporate officers own 100% of the capital stock.
Coach Leatherware Inc.
New York, NY
Sales: $525 million (E)
Workforce: 2,200
Publicly held
F Lewis Frankfort, chairman/CEO
A division of the Sara Lee Corp. in Chicago since 1985, Coach was established in 1941 by Miles Cahn as a family-run workshop with a small group of leather artisans producing high-quality, handcrafted leather goods. Today, all Coach products, which include wallets, handbags, business cases, travel cases, belts, portfolios and the like are still hand-manufactured a piece at a time, and are of the same quality level.
While Coach occasionally supplied product to the business arena for a number of years, it introduced its first corporate catalog in 1994. The catalogs feature a specially inventoried group of selected items that have proven to be the most popular sellers over the years. However, all Coach products are available for corporate purchase. Most businesses tend to purchase the products for sales or recognition awards, holiday gifts and incentives.
In addition to its 65,000-square-foot Manhattan headquarters, Coach manufactures globally and has an over 500,000-squarefoot worldwide distribution and customer-service center in Jacksonville FL. The firm sells through major department stores and operates over 140 retail stores nationwide, as well as in Japan and Europe. Sara Lee, Coach’s parent firm, is traded on the NYSE system.
Tee Jays Manufacturing Co. Inc.
Florence, AL
Sales: $124.2 million (E)
Workforce: 2,152
Privately held
F John Terry Wylie, president
Tee Jays was founded in 1976 by Terry and Paul Wylie, and became a subsidiary of Tee Jays Holding Corp., also in Florence, AL, in 1988. A manufacturer of T-shirts, fleece activewear, tank tops, golf/polo shirts and baseball-style jerseys, the company primarily provides blanks and private-label goods to decorators and retailers. Tee Jays also offers custom-imprinted clothing, which is done via screenprinting, and embroidery, both done on-site at its headquarters.
New England Business Service Inc. (NEBS)
Groton, MA
Sales: $485.3 million
Workforce: 3,920
Publicly held
F Robert J. Murray, chairman/president/CEO
A manufacturer, direct marketer, wholesaler and retailer of printed and imprinted business/computer forms, stationery, business-related software and similar merchandise, NEBS was founded in 1952 by Al Anderson, who saw a need for such forms by small businesses. Today, the company supplies materials to several specific small business markets (retailers, contractors, wholesalers, manufacturers, small professional offices) as well as on a more general basis. NEBS went public in 1977, trading initially on the NASDAQ system, and now trading on the NYSE.
The majority of its business (over 80 percent) is done via mail order/phone, but it also maintains a small retail operation in Woburn, MA, as well as a direct nationwide salesforce of approimately 350.
Several years ago, in order to diversify its product line and fulfill customer requests, NEBS began carrying a limited line of promotional products, including greeting/holiday cards, T-shirts and sweatshirts, labels, caps and magnets in its Ad Ideas catalog. In 1998, it added a line of personalized work clothing (shirts, jackets, hats, aprons, coveralls, etc.) under the name Company Colors WorkWear, as well as Human Resources Essentials, a line of products for human resources departments that includes employee forms, guide books, and incentive gifts. These three areas represent a small but emerging portion of its overall sales.
In addition to its headquarters, which houses its principal telemarketing operation, NEBS maintains a telemarketing center in Flagstaff, AZ, and manfacturing/distribution facilities in Peterborough, NH; Sudbury and Townsend, MA; Maryville, MO; Thorofare, NJ; Clarksville, TN; Santa Fe Springs, CA; and Athens, OH, as well as Canada, England and France.
In 1997, NEBS made three major acquisitions: Chiswick Trading Inc. in Sudbury, MA, a distributor of packaging goods, wrapping paper, bows, bags and so on; Standard Forms Ltd., a UK-based producer of business forms; and Rapidforms Inc., a Thorofare, NJ manufacturer of business forms. In 1998, it acquired McBee Systems Inc. (Parsippany, NJ) and McBee Systems of Canada Inc., a supplier of business-forms and check-writing systems. In March 2000, NEBS entered into a strategic alliance with Advantage Business Services Holdings Inc., acquiring 10% of the firm. This allowed it to offer payroll processing services. In 1999, a small division of NEBS became listed as a promotional products distributor. In July 2000, NEBS acquired PremiumWear Inc., a Top 40 supplier.
Quill Corp.
Lincolnshire, IL
Sales: $740 million
Workforce: 1,300
Publicly held (subsidiary)
F Larry Morse, president
Founded by Jack Miller in 1956, Quill grew from a one-person operation to the country’s premier direct marketer of office supplies with over 800,000 customers nationwide, including businesses, schools, churches, professional offices of all types, government offices, industrial operations and other organizations. In recent years, Quill has expanded its 20,000-plus product offerings to include items specifically used by these customer groups, including promotional products (e.g., T-shirts, balloons, caps, portfolios, pens, etc.) and custom imprinting. The latter two, which represent a “moderate but growing” portion of Quill’s sales, were added in 1996 in response to customer requests. All imprinting is outsourced.
Quill mails its targeted catalogs, including one specific to promotional products, on a monthly and semi-annual basis.
In addition to its 407,000-square-foot headquarters, the company maintains eight regional distribution centers across the country (Ontario, CA; Coppell, TX; Canton, GA; Grove City, OH; Portland, OR; Lakeland, FL; Agawam, MA; and Lebanon, PA).
In June, 1998, Quill was acquired by Staples Inc. for $685 million in stock. While a wholly-owned subsidiary of Staples, it continues to function as an independent business. Last year, Quill expanded its customer base into Europe and now maintains a call center and 80,000-square-foot distribution center in Dudley, England, with business offices in Birmingham, England. It also maintains a growing e-commerce business via its Web site.
Cintas Corp.
Cincinnati, OH
Sales: $1.8 billion
Workforce: 22,000+
Publicly held
F Robert J. Kohlhepp, president/CEO
Cintas, which dates back to 1929, designs, manufactures, and implements corporate-identity uniform programs. The firm is now beneficially owned by the officers and directors of the group. Cintas operates through four main internal avenues. The corporate group provides strategic planning, financial, accounting, data-processing, marketing, and similar services. It incorporates the merchandising unit that offers stylized, custom-designed uniforms for national companies. The rental division serves a diverse group of corporate customers, of all sizes, on a nationwide basis. The national account division serves over 300,000 customers in the transportation, petroleum, food-processing, automotive, and other industries through direct sales and national rental programs. The manufacturing/distribution division produces its own uniforms and develops exclusive new/innovative garment designs that bear company imprints and logos.
Cintas operates over 200 uniform-rental operations nationwide, and operates 13 garment-manufacturing plants and six distribution centers. Its revenues have increased at a compound annual rate of 24% since going public 13 years ago. It trades on the NASDAQ system.
In addition to its headquarters in Cincinnati and branches across the country in over 249 cities, Cintas also operates several Canadian facilities.
JC Penney Co. Inc.
Plano, TX
Sales: $32.6 billion
Workforce: 270,000
Publicly held
F Allen Questrom, chairman/CEO
JCPenney was founded in 1902, when James Cash Penney opened the Golden Rule Store, one of a small chain, in the mining town of Kemmerer, WY. When Golden Rule’s partners, Guy Johnson and Thomas Callahan, dissolved their alliance in 1907, he became sole owner and, two years later, established a headquarters in Salt Lake City. In 1913, the firm changed its name to the present and relocated to New York the next year. Between 1920 and 1930, Penney opened over 1,250 stores across the country, and sales surpassed $1 billion in 1951. The company moved to its present location in 1992.
Targeting middle-income consumers, Penney focuses attention to its private and national brand names for apparel and soft home furnishings, which offers a broad range of products available through stores and its catalog. Penney’s corporate division is involved in many programs such as recognition and incentives, offering items that may not be normally stocked in the retail outlets, sometimes imprinted.
The company operates approximately 1,080 stores within the United States, Puerto Rico and Mexico. It also operates 50 Renner stores in Brazil. The Eckerd Drug Stores division operates about 2,650 stores throughout the Southeast, Sunbelt and Northeast regions. JCPenney Catalog, including e-commerce, is the country’s largest catalog merchant of general merchandise. The firm also sponsors JCPenney Afterschool, a partnership that provides after-school programs to help children reach their full potential. Penney trades on the NYSE system.
Standard Register Co.
Dayton, OH
Sales: $1.3 billion
Workforce: 8,200
Publicly held
F Peter Redding, president/CEO
Standard offers customized document management and workflow solutions to the healthcare, financial and general business markets. Founded in 1912 by William C. and John Q. Sherman as the Standard Register Co., it began selling autographic registers featuring Theodore Schirmer’s then-revolutionary paper-feeding mechanism. The firm invented the carbon separator in 1933.
In 1981, Standard acquired Lambooy-Unique Co. (Terre Haute, IN), to position itself as a major competitor in the pressure-sensitive label market. Four years later, it ranked in the Fortune 500. In 1986, Standard acquired the U.S. Business Forms Division of Burroughs Corp., becoming the second-largest business forms company in the world. In 1997, Standard acquired UARCO Inc., a wholesale stationery/office supply firm based in Chicago, and in June 2000, launched SMARTworks.com Inc., a wholly-owned subsidiary for e-procurement of print services and integrated document management via the Internet.
Today, Standard backs a nationwide force of 1,000 sales consultants and support teams with 59 production facilities, delivering business forms, labels, electronic documents, intelligent printing/mailing systems, plastic card imaging, packaging, distribution, digital/commercial printing, outsourcing and fulfillment services. Clients can also get customized products (documents and software) and services. Standard first offered stock to the public in 1956. In 1996, it became listed on the NYSE system under the symbol SR.
PC/Nametag/div. Topitzes & Associates Inc.
Madison, WI
Sales: $7 million (E)
Workforce: 30
Privately Held
F Nicholas Topitzes, president
Founded in 1980 by Topitzes, the company provides meeting and convention supplies/services. In 1985, its PC/Nametag software was introduced. Since then, under the dba of PC/Nametag, it has sold meeting supplies and specialties, which make up approximately 80 percent of its business. In addition, the firm continues in computer software development and provides meeting/convention registration assistance. PC/Nametag’s primary market is meeting planners, for whom it provides an extensive catalog of convention-related products including tote bags, name tags, signage, pens, awards and gifts, lanyards and Stack-A-Ribbon awards.
Staples Inc.
Framingham, MA
Sales: $11 billion
Workforce: 50,000
Publicly held
F Thomas G. Stemberg, Chairman/CEO
Founded in 1986 in Brighton, MA by supermarket executive Thomas Stemberg, and powered by the 1990s growth of small-business entrepreneurs, Staples has grown into a multibillion dollar enterprise with major television ads, top-of-mind awareness and 1,300 stores in six countries. The company has started to reach beyond retail with mail-order, Internet, and, just recently, promotional products.
Staples operates more than 900 stores in the United States, 118 in the United Kingdom and Germany, and plans to open 150 new stores this year. Staples Direct, a division, offers several catalogs, including one devoted to promotional products. Another division, Staples Contract and Commercial, targets the office product needs of medium- and large-sized corporations. A third, Staples.com, is its online business unit.
Billing itself as the first office superstore chain, Staples pursued a strategy of maintaining a one-stop shop of moderately-priced office products for small and mid-sized firms. Staples superstores sell over 7,000 brand-name products. The company also pursues the retail strategy of everyday low prices. The company is one of the fastest-growing specialty retailers in U.S. history. In 1997, Staples abandoned a merger with Office Depot after the deal drew scrutiny from the Federal Trade Commission. Staples is traded on the NASDAQ system under the symbol SPLS.
Harry And David Co.
Medford, OR
Sales: $400 million+ (E of parent co.)
Workforce: 435
Privately Held
F William Williams, president/CEO
A division of Bear Creek Corp., Harry and David, a mail-order firm specializing in fruit baskets and gift boxes, had its origins in 1914 when two brothers, Harry and David Holmes, took over their family’s Royal Riviera pear orchard, selling them to first-class hotels/resorts in the U.S. and Europe. The Depression killed that market, and in 1934, the brothers decided to offer the pears by mail as holiday gifts. By the end of the year, they booked over 2,000 orders, largely business-to-business gifts. With the added interest of the consumer market, the business steadily grew into the world’s most successful mail-order fruit-gift company.
Today, the firm offers hundreds of food and non-food products, including plants, cakes, nuts, bath products and much more, including, of course, its well-known fruit. It has 8 million customers worldwide and mails out over 80 million catalogs a year, in addition to its online sales. Products are offered packaged in baskets, bags and many other creative ways, including the popular Fruit-of-the-Month Club.
Harry and David’s corporate gift division, which represents a substantial portion of its sales, offers stock and custom-designed personalized/logoed gift packages. These can also be combined with apparel and other outdoor goods from the firm’s Northwest Express division. All imprinting is done off-premises.
Bear Creek, a holding company, was established in 1986. A sister company, Jackson & Perkins, which offers roses and other horticultural products via mail-order, was started in 1972.
Starbucks Corp.
Seattle, WA
Sales: $2.2 billion
Workforce: 47,000
Publicly held
F Howard Schultz, chief global strategist
F Orin Smith, CEO
Originally founded by Gordon Bowker, Zev Siegl and Gerald Baldwin, Starbucks began in 1971 as a Seattle retailer offering coffee beans and coffee-related merchandise, and supplying area restaurants. In 1983, Schultz, then director of retail operations/marketing, decided to develop American coffee bars following a visit to Italy. A successful venture in downtown Seattle led to his founding Il Giornale, a coffee/espresso bar using Starbucks beans, in 1985. Two years later, Schultz and other investors acquired Starbucks via an asset purchase, renaming Il Giornale and opening in several cities. Today, Starbucks has 2,100 locations worldwide servicing almost 10 million customers weekly.
As a result of several business partnerships, it’s become the exclusive coffee supplier to a number of establishments, including Barnes & Noble bookstores. In addition, it markets Starbucks ice cream and frozen novelties and bottled coffee beverages through joint ventures with Dreyer’s Grand Ice Cream Inc. and PepsiCo, respectively. It has also produced a series of music CDs.
Starbucks mail-order division, launched in 1988, offers gift packages of its coffee blends and related goods, including mugs, jars, thermoses, etc., bearing the Starbucks name and/or logo. It introduced a similar catalog, specifically for business gifts, in 1998, and combined the catalogs in 1999. Starbucks trades on the NASDAQ system in the U.S. and Hong Kong.
Equity Marketing Inc.
Los Angeles, CA
Sales: $232.3 million
Workforce: 140
Publicly held
F David Kurtz, chairman/CEO
A provider of custom promotional products and services, Equity began life in 1984 as Marketing Equities International, a travel-incentive firm. Several years later, Equity was established as a division, providing custom products for various promotional purposes. The first project was for Burger King Inc., followed by other fast-food giants such as Arby’s Inc. and Roy Rogers Inc. Eventually, Equity was spun off as a separate organization. The company went public in 1994.
Today, 90% of Equity’s business involves creating products, generally custom toys, for use in promotional programs. It does this for a number of major corporations, including Burger King, CVS Pharmacies Inc., Coca-Cola Corp., Havoline Inc., Exxon Corp., and many others. The remaining 10% of its business is given over to retail consumer sales, where Equity markets its own line of toys, including several licensed properties. The vast majority of its products are produced in China and Hong Kong.
In 1998, Equity acquired Corinthian Marketing Inc., the producer/distributor of Headliners collectible licensed sports figurines, repositioning it a year later into a successful licensed personalities line.
In addition to its Los Angeles headquarters, Equity maintains branch offices in West Boyleston, MA and St. Augustine, FL, and a quality-control center in Hong Kong. It trades on the NASDAQ system under the symbol
EMAK.
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