"Together Talks" feature # 137: Arnold's Candies presented by KLS, freight company
Some Background on Arnold's Candies
Today's edition of "Together Talks" campaign, KLS had the opportunity to chat with Arnold's Candies and CEO/Owner, Rachel Wood. After 71 years Arnold's Candies is still manufacturing their world's best candies by hand in Akron, Ohio. The candies are gluten-free with no added preservatives and have sweet tooth satisfying flavors in every bite. Arnold's Candies uses the very best ingredients combined with old-fashioned technique to manufacture the finest quality candy.
When did the company begin?
1953
Story of how it was created?
Ted and Alice Arnold started Arnold's Candies and originally built it into a small fundraising business. Locals in the area would use the peanut brittle and sell it to be able to pay for their T-ball team's uniforms and similar fundraising activities. Nowadays a lot of our local customers come in and talk about how they used to sell this when they were in school or even when their parents used to sell the candy. Arnold's was built on the fundraising side of the business at first.
Around 2011, Ted was talking with his banker, Greg Dauphin. He told Greg how he wanted to retire. He was ready, and he just didn't have anybody to pass it on to. Greg purchased Arnold's candies and started to grow the company from there.
Greg started to get more into the retail side of the market. Instead of just doing local fundraising, he started to look more at not only the farm and feed markets all while also growing into grocers and larger stores across the U.S. The brand started to build up from there. That's kind of the same time that I came into the business as well.
I came to Arnolds Candies about six or seven years ago. I started with Greg originally as his secretary. I was interning because I was studying mechanical engineering at the University of Akron. I left Arnold's to go do an engineering internship and I just hated it more than anything. It just wasn't what I wanted to be doing. I wanted more hands-on work and I was just sitting in a cubicle working with computer programs. So I came back to Arnold's Candies, proved myself, learned what I could, and eventually bought the business from Greg.
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What separates your company from competition?
Arnold's Candies is built on quality. We have a super niche product, not everybody can just start making peanut brittle or peppermint puffs, butter mints, or traditional butter mints. If they do start they can't match the quality that we're able to maintain. We have a great team here and our cooks are trained to handle the candy in a very specific way, so we like to stick to our recipes. There is a chemistry of the sugar and the ingredients that you're putting into your product matters. We like to keep it simple and we use high-quality ingredients to make sure that the candy we're producing is the highest quality. Competitors have a hard time competing with us because of our ability to excel in quality and communication with our customers.
Our niche feels like a dying sector in the industry. So few companies still make it and the ones who do end up usually getting bought out. That is the reason that I bought Arnold's Candies. The company has been in this building since 1953. That history matters to me.
It came down to the fact if we were going to be sold or we might be being sold, I just didn't want to see everyone lose their jobs and our doors closed for another company to be absorbed by one of its competitors. That's really what makes us different is the fact that we are not afraid to operate as a small business. Our team of 12 moves mountains and we're able to produce a very high quality candy with that team as well.
What have been the biggest challenges?
The list is endless. Right now it is our growth. Greg, the owner I had purchased it from, had mentored me and did an excellent job of preparing me, unknowingly, to be in this position. When I started here, I didn't know that I would one day own this company, but I sat back and observed and over time, identified areas where we can grow. I've always had a vision and understanding that there is a huge market out there because there are not a lot of us left.
Focusing on the ability to expand our product lines with our customers has been impactful to our growth. Over the last couple of years, we've had some pretty rapid growth here, which is really, really exciting. Right now, what we're seeing is we're kind of at this in-between of being in our busy season, we need a second shift to remain efficient with our lead times. In our slower season, we don't necessarily need a second shift. That brings complications with hiring staff and training.
Reflect on a goal you set and how it made you feel to accomplish it?
I would have to say buying Arnold's Candies because I came in as an intern. My husband and I met when we were only 20. When I got this job, I was in my early 20s and we were only engaged, but he had so much faith in me to make my time at Arnold's worth it for us. I just saw the writing on the wall, I didn't want to do engineering anymore because I saw the real world of engineering was just not the same as what I had been learning in college. I loved being hands-on, the math, thinking, using my hands, and experimenting. In the engineering world, there are plenty of jobs, but there are not a lot of jobs that give you the ability and the trust to do more, but the candy factory did.
I started questioning if Greg wants to retire, who's going to take this? Over time, I added value to myself by learning food safety certifications and the auditing side of the business, which helped us to grow with larger customers.
The long-term goal my husband and I discussed was one day we could buy it. I'm 28 right now and not a lot of people in their twenties can't just go and buy a business, let alone one functioning on this level. We spent three or four years, not only talking with Greg but talking between ourselves, game planning, "How do we make the impossible happen? How do we purchase a business of this size and do it in a way that we can succeed?"
Overcoming the hurdles that come from that alone is probably one of the biggest things that we've been able to succeed in. Not only purchasing the business but being able to grow it since purchasing it and working with such a good team is very fulfilling.
Any business resources you would suggest?
I don't necessarily have a straightforward resource, the best thing I recommend to anybody is to do favors. A really long time ago, somebody told me the best thing you can do is to invest your time more than anything. A lot of times people are so worried about what they're making at an hourly rate or what their salary is. They forget about the value of what you can learn. For me, when I started at Arnold's, I saw not only a place where I could grow within the company but also help grow the company.
I had a direct line to be able to affect the success of the company. One thing that I just kept reminding myself was to put the work in right now and it will pay for itself later.
Sometimes doing favors for people without expecting anything else in return, volunteering your time in your local chamber, volunteering your time in your local government and just helping other small businesses in your community because you never know who people know. You never know what that might lead to. And that's been the most valuable resource specifically in my story to just learn everything you can from anybody you know without expecting anything in return. Don't just focus solely on the monetary value of everything. think about what you're learning, and think about the time that you're investing into things, if that's adding value to your knowledge, that's something worth investing time into.
How have you dealt with being the face of the company?
There are two parts to that. The private side is where I have my employees who have known me for years, and that's very easy for me. Everybody here has worked here for quite some time, and they're a great team. And I honestly really feel I would not be where I am if I didn't have such a great team.
The other side of that is being in the public eye, doing stuff like this. I am a very private person. So that's something I am trying to grow into, getting more comfortable about being louder about the things that I should be proud of and speaking out on things that matter about our company. I'm learning to be comfortable more in the public eye, but within the company itself, it came naturally to me just because of how close of a working relationship I had with the previous owner and our team.
What have you learned about entrepreneurship?
It's endless. You're learning every day, I'm still learning even now. I think the biggest thing is to be kind to yourself and remember that you don't know everything, nobody knows everything. Even the people that you think know more than you, sometimes they're in the same position, they are relying on the people around them for the knowledge they have.
Secondly, employee morale matters. The time and investment that you should put into that is probably one of the more important things that I find. Don't just hire somebody because they're a body, hire somebody because you think they're going to be a good fit to your team. Take your time and think about that, because that can have a lasting effect on you, and really at the end of the day, if you have employees who care, and employees who add value to your business it can make a huge difference.
Other than that, my husband has a saying he likes to use, "If you count your pennies, your dollars will take care of themselves." As a business owner, sometimes people can think about the big picture of things and they forget about the pennies. It can be a really important part of growth is remembering where you're starting from and the little things.
What do you need to work on as a leader?
My growth strategy is to be more efficient at what we do already, get even better at the quality, get even better at what we're doing, even faster, and service the customers we currently have by adding products to their line. If you're selling these two products at an excellent level, why don't we add a third and just see how they do? Expanding the brands that we already are working with, but also thinking forward and thinking about what is the next thing that we can work on, coming up with innovative ideas, and innovative candies that engage the younger audience. Keeping with tradition, but thinking about what is the next thing that we could bring to the line that might be interesting for a new customer to pick up.
What aspect of entrepreneurship do you appreciate the most?
Flexibility. I think it's one of those things that everybody sees the grass is greener when it comes to flexibility. I make my own time, but there are also many days when the buck does stop here. When everything goes wrong, I am the one who works until 8 p.m. if I have to. However, it has enabled me to have a lot of time with my son and my husband, Griffin. Griffin is my business partner here with me as well. So, for us to have that time to be flexible and add value to the other aspects of our lives is critical. Also, I would say finding ways to better our company for our employees.
They're a huge part of what makes the business successful. Finding out ways that can improve their lives and being able to take action on that has been a great benefit to being in this position as well.
Share a mistake and what you learned from that experience?
One time pretty early on, the owner had gone on vacation and I accidentally sent an order to the wrong customer. It felt like a huge mistake and it was difficult for me because I was so new. I was nervous but felt there was no way to overcome it except by being honest and transparent. When you make a mistake, whether you're the owner of the business or just an employee, you have to own it. It goes back to the culture I try to have here, being honest is the most important thing. If you make a mistake, nobody can hurt you for that, nobody can fault you for that. But when you're dishonest, that causes a whole lot of other problems.
What is your why?
Because I love it.
I studied business as part of a Six District Compact, a program in high school, that let students jump between schools. I chose to study business that featured an International Business and Marketing Institute where I took several classes throughout my high school day that were geared towards business. It's a great program, I'm genuinely lucky to have it offered to me and during those courses, I just had a knack for being creative. I enjoyed the business side of things. When I went to study in college I realized that I had learned so much about it in high school that I wasn't adding value to my knowledge in college. My heart always really enjoyed doing business.
When I came back to the candy factory, I found that I could use so many aspects of both my knowledge bases, I could work on machines, I could find ways to be more efficient, use my mechanical engineering knowledge, but also use my business knowledge. High school is not going to teach me everything about business, but that's where your mentorships and your networking come in as well which adds a huge value to your knowledge.
I got really lucky that I loved being creative. I loved marketing. I loved business. I loved networking. I loved all aspects of it. And it's just really fun to do it with a company that's so unique. The candy industry is just so much fun, go to a candy trade show and it is unlike any other trade show. It is just a blast. It was a little bit of luck just finding a candy factory that needed somebody to eventually step in as a business owner.
I just love it.
If you had a magic wand, what would you change about your industry?
I would love some smaller business owners who could get into the industry. This is funny because that's saying I would love some competition, but I think it's a dying trade. Not everybody just opens a candy shop anymore. Not everybody just starts making candies because it's expensive equipment. It's very much a lack of resources for people to be able to do it. I think it's especially difficult to get into just because you have to know what you're doing. It's a chemistry. You have to have some sort of passion for it. If you're passionate about making candy, you're likely not very passionate about knowing how to do business. I think a lot of business owners run into that problem where they have a passion and they want to own a business about that passion, but they don't know how to run a business. So then they end up failing because they aren't prepared for what it is. I would love to see more diversity in the types of candy companies that are out there. There are always the fun ones that are for tourists or just fun little shops here and there, but there are just not very many of us left who can manufacture candy on this level being a small business.
Do you have a moment that brings you the most joy?
I have so many moments. It's hard to pick just one because every day feels like a win in a different way. The day of buying it is pretty exciting. I'll probably pick that one, actually being able to buy the business. The day Griffin and I signed the papers. I'll never forget that minute walking into the elevator at the lawyers office looking at each other and thinking, "We managed to do the impossible!"
Piece of Advice
One book that I have found a lot of value in is Profit First by Mike Michalowicz. It shows you a way to dissect your problem if you don't have a full team of accountants. Profit First is a really good place to start. It's a book that is knowledgeable on looking at your cost of goods sold, your owner's income, and the money your business is making and thinking about what do I need and what do I want. Even before I bought Arnold's, it was just a book that was recommended to me by somebody who was on Forbes 30 under 30. I just by luck happened to get a chance to talk to them and asked what three books they would suggest for me to read. Profit First was one of them and it stuck with me.
The other thing is just learn everything you can from anybody you can and just be willing to put the work in. If it was easy, everyone would do it. You have to have that mindset of, "I know this is not going to be the easiest route, but in the long run, this might be what I am most passionate about. This might be something I'm willing to put work behind."
Also, just remember to add value to yourself. You can be a workhorse, but save the space for yourself to have a healthy relationship with your work. Just because your business is challenging does not mean you have to work more hours. You just have to look at the details and say, what am I missing here?
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In Closing
KLS wants to thank Arnold's Candies and CEO/Owner, Rachel Wood for today's "Together Talks" feature. Follow along for their journey with their social handles below!
Business Resources!
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Klimson Logistics Solutions - Together Talks with Arnold's Candies feature # 137
*Klimson Logistics Solutions is an Industry Leading Customer Service 3PL. Our focus and commitment to our clients has us striving to be the BEST customer service 3PL for LTL, FTL, Reefer, and Drayage in the country. KLS, freight company, is a 3PL providing nationwide logistics solutions. KLS shipping services include: LTL freight, FTL freight, Reefer LTL freight, Reefer FTL freight, and Drayage. Klimson Logistics Solutions thanks you for viewing our marketing campaign, "Together Talks". If you have any interest in being featured or questions regarding your freight operations please contact us today!
Why KLS?
Our precise and reliable effort.
We handle every shipment with the exact same process. It does not matter if you move one shipment a year or ten per day, you will receive the same level of customer service from us. When we started this company, we had one goal in mind, treat every shipment like it was our own. With our vast knowledge of the industry, we understood what a customer would want from a communication standpoint. We applied that process to be the standard here at KLS. Our reliability and being able to depend on our consistency is why we have such long-standing relationships with our clients.
Our Process?
Every shipment in our industry starts with a quote. We are firm believers that time is money, thus we strive to have quotes back in a 5-10 minute reply time for LTL and FTL, any FCL quotes are at the mercy of the carriers getting back to us. For LTL we have the flexibility to quote both off of NMFC and also Density depending on the carrier. Utilizing our services, you’re allowing us to use our expertise to class your freight accordingly to ensure we are providing the best rate we possibly can.
Once a quote has been submitted and a client chooses to proceed with KLS handling the arrangement of the shipment our full process begins. We create the BOL that will be used for the shipment. If it is a new location for our system, we will obtain all the important/special details (reference numbers, contact details, shipping hours, closed for lunch, dock/doors, etc.). We meticulously build every detail into our software for all future shipments involving that location. After we have both locations built and necessary reference numbers have been applied we will tender the shipment to the carrier. We use this method because it provides us a real time pickup number from the carrier to obtain updates prior to pickup. Our staff will either email the BOL directly to you or to the shipper (at your request) the minute after the tender has been accepted by the carrier. LTL carriers require a 2 hour window prior to close time in order to schedule it for a same-day pickup attempt.
The following morning you’ll receive an email from us. It will either provide the reason the pickup was missed (driver’s trailer filled up, driver missed the close time, truck broke down, shipper said no freight, etc.) or if the pickup was successful you will receive the PRO (tracking) number from us, along with the eta for delivery. Our staff will track it throughout the duration of transit and advise if anything happens that will alter the estimated delivery date. The day the shipment delivers we will email you with confirmation and the POD (Proof of Delivery), should you require it.
Your shipment has been quoted, scheduled, picked up, and delivered. The next step is waiting for the carrier to invoice us and make sure the rate matches up. If it does, we close out the invoice from the carrier in our system and automatically your invoice is created and sent to the requested party at your company. In the event the carrier has an additional charge on their invoice “Variance”, we will never send you an invoice with an additional charge without first identifying you of the charge.
Let us repeat, NEVER WILL WE JUST BILL OUT AN EXTRA CHARGE WITHOUT YOU BEING NOTIFIED.
You are our customer, we represent you. Should the carrier provide an extra charge on an invoice, “Lift gate, additional weight, reclass, detention, etc.) We notify you of the charge via email first. Second, within that email we identify what is required should you choose to dispute the charge. Again our goal is to honor your request, if you want to dispute, we will dispute. During a dispute we will provide you updates every step along the way. Once a dispute is closed out, whether it is approved or rejected, then we will invoice you as the invoice has been resolved.
For reference, our company only had 6.2% of all shipments go to dispute in 2022 and we successfully won 91% of those disputes on behalf of our customers.
This is our process for every single shipment you move with us. We don’t cut corners, we don’t hide from difficult situations. We believe in being available, honest, and transparent. We don’t ever want to tell you that a shipment is lost, damaged, misrouted, but it is our duty to notify you the second we find out something has gone wrong. We hate to present bad news, but it is part of the job. What you can guarantee is that we will work a shipment all the way through and turn over every stone until we get a resolution for our clients.
Services offered?
Our core business is LTL and FTL. Within these options we have options for both dry and refrigerated/frozen. We also offer FCL/Drayage options. Our company as a 3PL has nationwide options and services clients across the US.
Let’s breakdown our services more in-depth
LTL:
Standard and Guaranteed
CFS (Imports & Exports)
Tradeshows
Hazmat
Anything that is on a pallet can be moved LTL. Typically LTL is up to 10 pallets, but the sweet spot for a carrier is 6-8 pallets at most for an individual shipment. LTL quotes are good between 5-30 days depending on the carrier. LTL can be quoted either via NMFC or density to determine the class (we do this for you).
Volume:
Anything over 10-12’ of space in the truck is the technical rule for a volume shipment. When we run a quote for you we will determine if it qualifies for volume and provide you a rate if available. Volume moves allow you to get a reduced rate for larger shipments. The caveat to volume shipments it the quotes are only valid for 3-7 days and they move on capacity between terminals. If a terminal is backed up they will move their LTL freight first before the volume freight, which can lead to longer transit times for volume moves.
FTL/Dedicated/Expedited: 53’ Dry and Reefer 26’ Box trucks with lift gate Sprinter Van The main difference for FTL vs LTL is space and transit time. For standard pallets you can fit either 26 or 30 pallets in a 53’ dry van. The other main difference is transit time, for FTL each day counts in the transit time, whereas LTL does not count the day of pickup, weekends, or holidays in their transit time.
Reefer/Frozen:
LTL and FTL
We specialize working in the CPG space with food manufacturers. We regularly deliver to
the following locations:
Kehe
UNFI
Core Mark
DPI
Wegmans
Cugini
H.T. Hackney
Netrition
HEB
ALDI
Chambers and Owens
EBY Brown
Nassau Candy
Harris Teeter
Wakefern
NU INC
Long Distribution
What makes KLS different?
There are thousands of freight brokers and 3PL in our industry. Barrier to entry is rather easy and agents or owners will often hire sales people without any intention of properly training them. It results in high turnover for many freight companies and a forgettable experience for the client. We choose to operate differently through our consistency. We truly care about doing right by our clients and prospects too. While we would love to help provide our services to every company we speak with, that just isn’t realistic. We won’t always be the right fit for every company that moves freight and that is ok. Our authenticity as a shipping company sets us apart from the competition and that is backed up by our testimonials. We also run a marketing campaign bi-weekly called “Together Talks”. We interview, highlight, and promote two businesses every week. Our goal is to grow our network, make new connections, and learn something new with each collaboration. Check it out on our website and if you’re interested in being featured reach out.
Our company also runs a year long charity promotion. Book your first shipment through KLS and we donate to the charity of your choice in your name. Our way of thanking you for giving us an opportunity to show you the KLS way and what makes us one of a kind. This entire package is what we offer to every prospect and every client. Our goal is to help provide answers that customers may have when it comes to shipping. We want to always be available as a resource and will always offer a lending hand whenever we can.
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