Dive Brief:
- Jonathan Dee, the longtime president of Smarties Candy Co., is stepping down from the position he's held for 40 years, and the family company's third generation is stepping up, according to emailed company statements.
- Coming in as company co-presidents are Dee's daughter, Sarah Dee, and her cousins, Jessica Dee Sawyer and Liz Dee. All three are in their 30s and have been working in various positions at the family business for more than a decade.
- Three female co-presidents are unusual in any company, and family continuity is becoming less common. According to Forbes, fewer than one-third of family businesses survive the transition from first- to second-generation ownership, and another 50% don’t survive the transition from the second to the third generation. Smarties is reportedly one of the few family-owned, mass-production confectionary companies left in the U.S.
Dive Insight:
Those rainbow rolls of 15 tart tablets that come in six colors and flavors have been available in the U.S. since 1949. Smarties are manufactured 24 hours a day both in New Jersey and Newmarket, Ontario, and the company turns out billions of the classic variety each year. On a list published last year of the 25 most popular Halloween candies in America, Smarties were ranked No. 23.
The incoming co-presidents have already introduced various innovations at the company and have more ideas in the works. They helped design a faster candy press and a new wrapping machine, which took production from 125 Smarties rolls per minute to 200. More recently, they launched Smarties 'n Creme, a larger candy tablet that is half cream and half fruit. The company also turns out lollipops, candy necklaces and Love Hearts for Valentine's Day.
The women have invested in solar energy, installing a 674kW solar project last year on the roof of the company's facility in Union, New Jersey, with the goal of generating half the power needed. Responding to consumer trends, the company emphasizes that its products are vegan, gluten-free and dairy-free and are made in peanut-free manufacturing facilities.
Since the three women formally joined the family business, sales have increased by 15%, and Smarties does almost no advertising for its products. The company does take advantage of social media channels such as Facebook and Twitter and encourages customers to send in photos of their artwork made from Smarties, among other interactive suggestions.
Even though the new Smarties co-presidents already know their way around the company, it's likely they will continue to have access to first-hand advice whenever they need it since their grandfather, company founder Edward Dee, now 93, still comes into the office and remains chairman of the board.