A chocolate company's comebackMaud Borup rebounds after a freight car accident ruins its building. (FSB Magazine) -- In some ways the errant freight car that tore through the factory of Maud Borup Chocolates in 2003 did the owners a favor. Sure, the incident - in which no one was injured - ruined the building, destroyed inventory and raw materials, and put the underinsured company's survival in question (see "Thrown off track," from the February 2004 issue). But, says co-owner Kim Kalan, "the train accident made us rethink our whole business." As they documented their operations for the insurance company, Kalan and her partner, brother-in-law Mark Kalan, quickly saw that their business was headed in the wrong direction. Since buying the venerable St. Paul chocolatier in 2001, they had added stores in Minneapolis and bought a chocolate factory in Parham, Minn. (the scene of the accident). Outside the Twin Cities, however, the Maud Borup name rang few bells. "We didn't have a brand," says Kim. So they bought one that would enable them to recast the company as an online candy emporium: Route 29 Napa (route29napa.com). The San Francisco--based company sold caramels on the Internet and was posting about $300,000 a year in revenue. The Kalans closed the three Maud Borup stores to focus on the web. Last year revenue jumped to $4.1 million, up from $950,000 in the year of the crash. In October, Route 29 Napa planned to roll out a new line in time for the holidays: licorice for kids made in the shapes of barnyard animals. Now Kim Kalan may have time to finally do something about replacing her factory, which remains unrepaired. |
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