Hellemn Candy is a small candy manufacturer located in Defiance, Ohio. Founded in 1912, the company offers a full line of candy products to the marketplace, including its popular HoHo lollipops, Christmas candy canes, and various chocolate treats.

Company Background

Operating from state- of- the- art manufacturing facilities, Hellemn employs 275 full- time associates. The company pays competitive wages and is noted for its employee- focused approach to daily operations. Its motto is, “ If our employees are happy, our customers will be happy.” Because of this, the company has never experienced an effort to unionize. Competitive advantages for Hellemn include its brand name products, state- of- the- art manufacturing facilities, highly liquid balance sheet, a proven management team, an abundant supply of nonunion labor, and its loyal customer base. Disadvantages are its size (Hellemn’s total assets are about 8% of Tootsie Roll’s and 2% of Hershey’s), its limited presence in certain candy product lines, and fewer available dollars to devote to research and development. Due to its relatively small size compared to competitors, the company also has low buyer power and cannot achieve significant economies of scale. Major customers include all the major retail chains. While these are important customers, Hellemn’s sales are not concentrated with any one retailer. Indeed, the company works hard to maintain excellent working relationships with each of its suppliers and customers. Sales are seasonal, with about 75% of sales occurring around Halloween, Christmas, and Easter. Throughout the remainder of the year, sales are fairly consistent from month to month. Hellemn is able to adjust its payroll according to operational needs. Manufacturing lead time is four months, and most of the company’s products have an average shelf life of about six months. Hellemn Candy is a family business. President Dale Hellemn is a fourth- generation descandant of the founder, and the chief financial officer, Vicki Hiler, is a third- generation descandant. Dale Hellemn owns 52% of the company’s common stock, and six other family members each own 8% as shown in the following table. Compensation for key employees (as shown in the previous table) was determined by competitive market surveys.

Financial Data

Financial information for Hellemn Candy is set forth in the following tables.

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Officers/Key Employees Title/Compensation Responsibility/Function Dale Hellemn President and CEO Responsible for all company operations and Is Chaiman of the Board of Directors Shareholder (52% interest) Member Board of Directors Annual Comp. = $250,000 Donald Hellemn VP in charge of Operations Pesponsible for all manufacturing operations Shareholder (8% interest) Member Board of Directors Annual Comp. $165,000 Letha Hellemn VPHuman Resources Fesponsible for all human resource functions Shareholder (8% interest) Member Board of Directors Annual Comp. - $100,000 181003 Fawad Saleem Controller/Treasurer Responsible for accounting and financial management Vicki Hiler Shareholder (8% interest) Member Board of Directors Annual Comp. - $125,000 Jason Hiler Marketing Director Responsible for all marketing functions Husband of Vicki Hiler Annual Comp. $105,000 Other Hellemn family They do not par ticipate actively in company management but serve as board members. Three other family members own 8% interest members