Sweet success: Chip Huggins joins Joseph Schmidt Confections Sweet success: Chip Huggins joins Joseph Schmidt Confections (March 26, 2003)

By Jonah D. King
Special to the Almanac

In the classic novel by Roald Dahl, eccentric chocolate baron Willy Wonka relinquished control of his world-famous candy empire to penniless dreamer Charlie Bucket. In the real world things happen quite differently.

On March 12, Joseph Schmidt, founder and chief executive officer of Joseph Schmidt Confections of San Francisco, stepped down as president after 20 years at the helm of the chocolatier known best for its chocolate truffles and artistic creations.

Replacing Mr. Schmidt is Charles "Chip" C. Huggins, an Emerald Hills resident who most recently served as director of purchasing for See's Candies. He had worked for the South San Francisco-based chocolate giant for 29 years.

Chocolate is in Mr. Huggins' blood. His father, Charles N. Huggins, is president and chief executive officer of See's Candies, and has worked for the company since 1951.

When the Berkshire Hathaway group purchased See's Candies from the See family in 1972, chairman Warren Buffet named the elder Huggins to head the company. Shortly thereafter, Chip Huggins came to work for his father.

"Virtually everything I've learned in this business, I've learned from my dad," said Mr. Huggins in a recent interview. "He was very enthusiastic about me getting into it. We had a great 29 years together, and he's taught me some terrific things."

Mr. Huggins said Mr. Buffet told him he would be a candidate to eventually succeed his father, but the president of See's Candies had already stated his intention to remain in his current position until he turns 100, Chip Huggins said.

And that seemed too long to wait. Mr. Huggins' desire to take the reins of a company brought him to Joseph Schmidt Confections, where the top man was only too eager to step aside to devote his energy to designing confections.

"Joseph Schmidt is 64, and he was looking toward retirement. He didn't want to be president of the company anymore, but did want to keep his creative role. I think he's much happier now," said Mr. Huggins.

Citing Mr. Huggins' experience as an executive, Joseph Schmidt said he views the hiring as a major triumph. "We are confident that Chip is the ideal person to lead the company to new heights," he said in a news release.

The courtship started rather informally. "We knew each other previously," said Mr. Huggins. "A mutual friend told me to give him a call, and so I did. He wanted to know whether I wanted to be president and whether I was interested in being an owner."

Mr. Huggins is a Menlo College graduate with a law degree from John F. Kennedy University in Orinda. He stays involved in the community as a director of both Peninsula Community Foundation and the Boys and Girls Clubs of San Francisco.

The art of candy and marketing

As an executive at See's Candies, Mr. Huggins was involved in many facets of the business, including the negotiation of leases for See's stores in 13 states, the development and launch of new products, and initiation of the program that placed See's Candies carts in shopping malls.

That experience may indeed serve him well at Joseph Schmidt Confections, but he quickly noted great differences between the two companies. "They're virtually opposites," he said.

First of all, See's operates more than 200 candy shops throughout the western United States, while Joseph Schmidt Confections has had the same single store since 1983.

While many of See's candies might be described as functional chocolate-delivery devices, Joseph Schmidt's confectionery creations are works of art. "It's cutting-edge edible art, and I was attracted to the artistic aspect," Mr. Huggins said.

He has targeted Joseph Schmidt Confections' stagnant department store business as an area that will need to improve. "The company doesn't have enough real estate on the shelves, and we've been frustrated over shrinking margins," he said.

Mr. Huggins said his short-term goals for the company include testing the market in high-end shopping malls and expanding its retail exposure. He said that over the long term it will be important to increase the visibility of the company, and that he will push for a greater advertising effort through print media and the company's Web site. "Right now, we're pretty much unknown," he said.

In the current recession, Mr. Huggins said, Joseph Schmidt Confections has experienced a dip in sales, "but other people I've talked to in the industry have the same problem." He said he is buoyed by the knowledge that, overall, the industry doesn't lend itself to prolonged slumps, and he is optimistic about the future.

Joseph Schmidt Confections' retail store still does business in its original location at 3489 16th St. in San Francisco. Joseph Schmidt's creations are sold locally at Draeger's and Andronico's markets, Neiman Marcus, Bloomingdale's and Macy's department stores. Orders can be placed on-line by visiting the company's web site at www.jsc.com.