Guittard's Sweet Spot: A Chocolate Maker Competes With Both The Davids And The Goliaths

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Guittard's Sweet Spot: A Chocolate Maker Competes With Both The Davids And The Goliaths
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For many, the arrival of Scharffen Berger's bean-to-bar chocolate bars some 20 years ago--with their $10 prices, quirky origin stories and artsy wrappers--marked the starting point of the craft movement in American chocolate. For Gary Guittard, president of Guittard Chocolate, Scharffen Berger's arrival marked something darker."I smelled something dangerous for us," Guittard says.

He spent the next four years experimenting, a process Guittard says nearly did him in. Founded by Gary's great-grandfather in San Francisco in 1868, E. Guittard & Co. Chocolates & Cocoa survived the 1906 San Francisco Earthquake, the Great Depression and the sudden deaths of Gary's father and brother, then the company's president and its designated heir, respectively.

Guittard is the biggest American chocolate company most people have never heard of. It has never established a large retail presence, mostly to avoid competing with core customers like See's Candies, the iconic California confectioner owned by Warren Buffett's Berkshire Hathaway.

And then in 1989, after his father, 76, and brother, 46, died within six months of each other, his father of ALS and his brother of a heart attack, Gary took over the company. The loss was devastating personally, but he says he was ready:"I had a vision; I felt pretty confident. I just focused on the things that needed to be done and what came next. There wasn't any kind of 'aha' moment or 'Oh God' or 'Oh boy.

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