OREM -- Generating more than a million pounds of chocolate confections and other goodies each year, Kara Chocolates continues to see its business grow.
This company distributes its chocolate to all 50 states and abroad. A wide range of products are produced in its 18,000-square-foot Orem production facility, 418 S. 1325 West, as well as in its four retail stores in Utah. Its first mail-order catalog will be mailed nationwide in August and September."It's another way to build our brand," said Steve Peterson, Kara Chocolates vice president. Peterson and his brother Rob purchased Kara Chocolates 5 1/2 years ago after checking out several business opportunities in the Intermountain West.
Peterson admits they knew nothing about chocolate at the time. However, they did have experience in marketing and business finance.
"We had people here that knew how to make candy," Peterson said. The brothers could let the employees worry about product quality while they worked on the business end. The Petersons also hired Michael G. Richards, who has been in the chocolate business for more than 25 years, as vice president of sales and marketing.
"We've gone out in a number of different areas, but our roots are still here in Utah," Peterson said. "These are the people that really know us."
The company couldn't find a better location. Peterson said Utah is the largest consumer of candy and ice cream per capita in the nation.
Kara Chocolates is ready to satisfy that craving, with items such as chocolate-dipped strawberries, potato chips, nut clusters and creams and apples dipped in caramel, chocolate and other toppings.
Its most popular product is its mint truffle, which is found at many hotels, restaurants and convenience stores. "It's the bread and butter of the company," Richards said.
Magleby's restaurant in Provo is well on its way to distributing its 2 millionth Kara truffle, he said.
The truffle recipe was created by Keith Cavanaugh, who started Kara Chocolates in 1986, Richards said. The truffles, which are produced in molds, are made in11 flavors, including Key Lime Truffle and Georgia Peach Dark Truffle. Peterson said Kara's best kept secret is probably the kind of flavoring and the amount used in its truffles.
The company also does a lot of private labeling -- placing the logos of companies on the wrappers of their chocolates.
Franklin Covey purchases truffles from Kara Chocolates with the Franklin Covey logo and passes them out at grand openings, trade shows and employee conferences, said Mike Trusty, retail marketing manager for Franklin Covey.
"They're fantastic, and people love them. They really do," Trusty said of the truffles.
Everything is made from scratch with only fresh ingredients.
Milk, cream and butter are delivered several times a week. The company uses 600,000 to 700,000 tons of sugar a year.
"We put a minimum of half a million pounds of chocolate through here a year," Richards said.
"It is unbelievable the amount of candy people will buy," Peterson said. Some customers visit Kara retail stores once a week and buy boxes of truffles with 40, 50 or even 100 pieces of candy per box.
Kara Chocolates products were featured for an hour on the QVC home shopping network a few years ago, and the company now markets its products on the network a few times a year. In about five minutes, the company will sell thousands of boxes of chocolate with 100 pieces per box.
"Things like that build you a national identity," Peterson said.
In another venture, Kara Chocolates has purchased Bailey's of Boston, a candy and ice cream business for which Kara Chocolates had been producing candy.
Seven years ago, the company began a program through which elementary school students sell Kara Chocolates as a fund-raiser for their school. Since then, the company has helped Utah schools and other groups raise more than $800,000 to help schools buy items such as playground equipment and textbooks.
LoriAnne Eldridge, Orem, has worked with the Kara Chocolates fund-raiser program to help raise money for Bonneville Elementary School where her children are students.
"There's not any other fund-raisers that have such a big margin as far as profit," she said, adding that 50 percent of each sale goes back to the school.
The Deseret News regularly features stories on businesses that create or produce products in Utah County for the retail market. Got a story idea? Call 437-7602 or e-mail Sharon Haddock at haddoc@desnews.com.