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Capital Cookies & Confections

Capital Cookies & Confections (CCC) is a high price-point specialty candy and cookie company based in Omaha, Nebraska. George Parker founded the company in 1956. Since then, the company has remained a family owned organization and grown to a permanent, full- time employee base of 85. The primary function of the company is manufacturing, and they have a varied product line dedicated to sweet treats. Their annual sales for 2014 were $15.5 million, and that figure has increased steadily at a minimum rate of 6% annually since 2008. CCC manufactures high quality, handcrafted culinary confections in the product lines of cookies, macaroons, and chocolates.

Capital Cookies & Confections Products

George Parker started the company using his mother’s well-loved chocolate chip cookie recipe. CCC has enjoyed great success from this cookie, and it continues to be a big seller and customer favorite, year round. In the cookie line, CCC also produces a wide variety of well-known cookie types, as well as specialty cookies for major holidays and special events.

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In 1976, Mr. Parker added the chocolates line, initiating the addition of the word Confections to the company name and product list. This expansion was made possible by a joint partnership with a small Europe-based chocolate company, Swiss Chocolatiers. Today, this Swiss Chocolatiers continues to make chocolate and then ships, in 500-pound blocks, to CCC. From there, CCC incorporates the chocolate into their products. This additional shipping component adds cost to the price point, but the chocolate is of such high quality that loyal customers continue to purchase the products without complaint regarding costs. The expansion of the chocolates line is the largest reason for the company’s recent revenue increase.

Shipping

Although based in Omaha, CCC ships their products worldwide. The company experimented with a store location in suburban Omaha in 2008. Unfortunately, the recession was a large factor in poor sales, and the company closed that facility and returned to their manufacturing-only business model.

Shipping adds a cost to the product price. Customers pay for ground shipping costs, and expedited shipping is available through a nationally known shipping provider. Because of the fine quality and delicate nature of the products, the risk of melting and breakage is very real. A broken or melted Thanksgiving chocolate turkey is considered a shipping failure and must be replaced at the company’s expense.

To meet their specialty shipping needs, CCC focuses on two primary areas: breakage and melting. To prevent breakage, all products are wrapped in a protective “bubble” covering, often in layers, to ensure a safe delivery. Melting is combatted by placing diligent attention on the destination’s season temperature and, when warranted, by including icepacks to keep the internal shipping box temperature to 65 degrees or cooler.

Sales and Marketing

Marketing is accomplished in several ways. CCC employs a small sales staff that services specialty and corporate orders. Joan Redman has been with the company for 25 years and is dedicated to corporate sales. Joan offers her clients the full catalog, as well as specialty chocolates or cookies bearing the client’s company logo.

Joan has enjoyed a strong and consistent client list while continuing to add new corporate clients annually. Her sales are consistent and growing.

CCC also has a Vice President of Sales and Marketing, Mike Newton. Mike has been with the company for 8 years and is responsible for growing their retail market. His primary customers are large, high- end anchor retail organizations. CCC has not engaged in sales to warehouse or low-cost retailers. Mike accomplishes his sales projections by contracting with area retail brokers who present the CCC portfolio throughout their networks.

CCC has always utilized a catalog for their primary consumer product presentation. They mail the catalog to their customer lists 3 times per year: fall, early spring, and summer. Aside from the mailing costs, the catalog is a considerable expense, as it is full color and includes celebrity endorsements and often adaptations of celebrity recipes using CCC chocolate.

In early 2005, CCC began marketing their products through a website. While this had a slow start, the company has seen great increases in online orders. Currently, sales break down to 65% online and 35% via the catalog. The online percentage has been increasing over the past 3 years.

Leadership Team

President & CEO

Miles Parker

In 2005, George Parker retired after 50 years in the business, and his son, Miles was placed in the President and CEO role. Miles was the impetus for the company to move to web-based marketing and ordering. Feeling that the future of sales was online, Miles acquired a significant amount of capital to invest in the initiative. His accomplishments include contracting for professional web development and management, as well as the growth of call center employees to handle the additional calls generated by the web presence. In 2009, the company upgraded their software to a more robust online order system but is currently considering another major upgrade of enterprise-wide software to include the online orders, supply chain, and human resources.

Vice President of Finance

Robert Oglethorpe, MBA

Robert joined the company in 2001, transitioning from a large investment banking organization. Robert has an accounting and finance background and is a rigid manager of his team of four cost accountants. Robert requires a deep analysis of proposed projects and pushes to see a return on investment within 2 to 3 years. Human Resources (HR) reports to Robert, and when necessary, he is the go-to person for employees to ask questions concerning their benefits and other HR issues. This support role is challenging for Robert as he has limited people skills and sees little value in traditional HR functions such as employee development and engagement.

Director of Human Resources

Jane Spelke

Jane is the Director of HR, and a cousin of Miles Parker. Jane has been with the company for many years, and working with CCC is her only professional job experience. Jane joined CCC after several years of traveling. Her uncle, George Parker, had a lot of faith in Jane’s ability and brought her into the company. 20 years later, she has been the primary HR representative for the organization. Jane is friendly, liked by everyone, and a hard worker.

Chief of Operations

Steve Scaff

The Chief of Operations (COO) position is new to CCC and is a natural progression from the Plant Manager role, which is now being filled by a woman who has been with the company for 15 years. Steve has a long history of transitioning to and from various consumer goods organizations since his own cookie company went bankrupt 8 years ago. He was referred to Miles Parker from a venture capitalist acquaintance. Since coming to CCC 9 months ago, Steve has implemented many changes to the manufacturing process to help improve efficiencies and increase production. He is a strong supporter of process improvement and lean manufacturing. A former Marine, Steve exhibits a strict management style that has caused some tension on the plant floor.

Research & Development

Monique Revlon

Monique is a French trained pastry chef and is adept at creating confections and sweets. She is creative and innovative, which has helped the company continue to offer novel products. The addition of the macaroons line was based on the research into the development and emerging consumer interest in this product. Monique runs an efficient kitchen but is thought of as fair, fun, and a good boss. She works long hours and expects the same dedication from her staff.

Shipping, Receiving, & Warehouse Manager

Charlie Brunston

The warehouse is the central site for all raw and finished product being received, shipped, and stored. The facility is divided into a shipping/receiving area with three docks, a short-term storage aisle, and the warehouse where raw and finished goods are stored. Charlie has been with CCC for 33 years and maintains the warehouse shipping and receiving with a diligence that is driven by personal pride and deep knowledge of the operations behind warehousing. Charlie manages a full-time team of seven, with additional packing and shipping employees brought on during the busy seasons.

These people, along with Mike Newton as Vice President of Sales & Marketing, are the leadership team that makes decisions and guides the company on a daily basis.

Employees

CCC is a cyclical manufacturing organization. Their biggest season occurs during the fall and winter holidays, Thanksgiving and Christmas, and accounts for half of their revenue annually. During the holidays, the company offers the broad product line of chocolates, cookies, and macaroons.

Preparation for the fall and winter holidays typically begins around August 1, when CCC will begin to contract for additional, but temporary, employees. A staffing agency is used to fill the employee requirements. The pace of production increases steadily from September through Thanksgiving, and drops by about 35% through Easter. After Easter, there are several months where CCC cuts back on employees, and all temporary employees are released.

The staffing agency sends potential employees based on whom they have in their talent pool. Often, these candidates are not U.S. citizens, primarily Hispanic and Eastern European (Croatian and Czech). Of the 85 regular, full-time employees, the racial and age groups are divided into the following categories:

|Race |Age (Years) |

|White: 76 |18–29: 27 |

|Black: 8 |30–40: 24 |

|Hispanic: 1 |40–55: 30 |

| |55 and older: 4 |

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