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3 ex-Topps execs seek sweet success [The Record (Hackensack, N.J.) :: ](Record (Hackensack, NJ) Via Acquire Media NewsEdge) Aug. 21--What could be more fun than working for a candy company? Starting your own candy company. At least that's how Scott Silverstein sees it. The former CEO of The Topps Co. Inc. and two former execs of the candy-gum-trading-card company A former CEO of The Topps Co. Inc., he and two former execs of the candy/gum/trading card company have founded Yolo Candy (yes, that's "you only live once") in Mahwah, hoping to grab a piece of the U.S. candy business, which has $33 billion in annual sales. They're getting ready to launch a still-secret product for kids that they hope will be the kind of brand name – like Ring Pops or Baby Bottle Tops, which they worked on at Topps -- that will become part of millions of childhoods (and generate millions in sales). In the meantime, Yolo has introduced its first product, Linda's Lollies, a gourmet lollipop brand that came into their company by chance. Linda's Lollies, which retail for $1, were created by Linda Harkavy, who ran the brand for three decades. When she was ready to sell, she made a deal with Yolo. Yolo added some flavors, such as Mango Chile and Blueberry Muffin, and changed the look of the lollipops with new color combinations on a purple plastic stick. They have gotten the pops into Bed Bath &and Beyond, Barnes & Noble college bookstores and other new outlets. Linda's main competition is New Hampshire-based Original Gourmet Lollipopsof New Hampshire, which are sold in CVS, Costco, Stop & Shop and other large chains. But Yolo is ready to do battle. "We bring a lot of experience and know-how to the party. We're confident we can compete effectively," Silverstein said. Linda's Lollies -- which appeal to adults as well as kids -- are not the main focus of Yolo's three executives, who work in a 1,700-square-foot office with one employee. Instead, they've got their eyes on a product to be displayed at supermarket cash registers – the place where the demands of cranky children meet the lowered defenses of parents, leading to impulse candy purchases. The candy men are not ready to disclose details about the new product, which they expect to introduce in the fall. But it won't be chocolate; they focus on so-called sugar candy, which is consumed most heavily by children. "We want to entertain and delight kids," said Silverstein, 53. Silverstein joined Topps in 1993; the company had been founded by his wife's grandfather and his brothers in Brooklyn in 1938. Silverstein rose to become CEO, but left the company in 2010, a few years after Topps was sold to an investment group led by former Disney CEO Michael Eisner. Silverstein persuaded two former Topps colleagues to join him in co-founding Yolo two years ago: John Budd, 55, chief operating officer, and Brent Greer, 44, chief sales officer. Budd was a vice president of marketing for Topps, responsible for new product development, and was the architect of Ring Pops, Push Pops and Baby Bottle Pops. Greer was vice president of sales at Topps. "As John introduced new products, I'd be the one trying to get them on the shelf," Greer said. Under their leadership, Greer and Budd said, candy sales at Topps quadrupled. Brands like Ring Pops and Baby Bottle Tops "have real meaning to kids and are part of their childhoods," Silverstein said. Food and snack companies compete fiercely for the limited real estate on retailers' shelves, and typically must pay to get space near the cash registers, said according to Craig Rosenblum of Willard Bishop, an Illinois consultant to the supermarket industry. And more than 80 percent of new food products fail, Rosenblum said. Given those challenges, Rosenblum said a start-up food company should focus on advertising and marketing to get consumers excited about its offerings, and on providing displays that make it "simpler for retailers to carry these products." According to Budd, Yolo will likely market its new kids' product with television ads and point-of-purchase displays, which he called the most effective marketing tools. Yolo's execs think they'll be helped by their experience and many contacts in the candy business. They also think stores will make room for them because a new product is likely to boost sales in a way that doesn't happen with products that are simply variations on a theme -- for example, a different flavor of M&Ms. "Part of our investment thesis is there a lack of innovation in candy," Silverstein said. "Some of the larger companies are mostly interested in focusing on existing brands that have been around for many, many years. That opens up the door to people willing to take chances. We have a good track record of doing that and creating new brands from scratch." Silverstein declined to discuss the financing behind Yolo, but was willing to make a prediction about revenues. Looking ahead five years, he said, "if we didn't have $30 [million] to $50 million in [annual] sales, we would be disappointed." In the meantime, the three are having a good time starting up their business. They chose to rent the space in Mahwah because it's within commuting distance of all their homes -- Silverstein lives in Westchester County, N.Y., and Budd and Greer live in Morris County. Silverstein said he takes on a lot of tasks he would never have to handle if he had the large staff he had at Topps, but he doesn't mind. "These are great days," he said. "I think this is a lot of fun and I wouldn't want to go back." Echoing the company name, Budd said: "You only live once. You might as well work with people you enjoy, trust and respect, and that's what we're doing." ___ (c)2014 The Record (Hackensack, N.J.) Visit The Record (Hackensack, N.J.) at www.NorthJersey.com Distributed by MCT Information Services |