The eucalyptus trees and sunny beaches of Orange County have made Aussie company Chocolate Graphics International feel at home.
Since opening its U.S. headquarters in a 1,800-square-foot office in a Tustin business park earlier this year, the Queensland, Australia-based company has adapted to the area.
“Orange County feels just like home: the weather, beaches, Eucalyptus trees, everything,” said John Taylor, president of Chocolate Graphics.
It was more than sunny skies and sand that drew Chocolate Graphics to OC to launch its expansion in the states, Taylor said.
“It’s a thriving business center,” Taylor said. “Orange County has a sophisticated business image, and we see ourselves fitting in with it.”
The company generates $15 million to $20 million in yearly sales making chocolates embossed with graphics for weddings, parties, hotels and companies such as Haagen-Dazs, part of Minneapolis-based General Mills Inc., and Gloria Jean’s Inc. of Irvine.
Chocolate Graphics calls itself the only company with the ability to emboss chocolate with chocolate, unlike rivals such as New York’s Chocolate Printing Co. and others that use sugar or food coloring to decorate chocolates.
So far, the company has patented the technique in 28 countries and expects to receive a U.S. patent next year, according to Taylor.
Nerve Center
Like other companies such as Australia’s Billabong International Ltd. and Japan’s Toshiba Corp., Chocolate Graphics is making OC the hub for its U.S. business, said Dave Davis, vice president.
“This office will be the nerve center for all of our U.S. operations,” he said.
Chocolate Graphics plans to open franchises, production centers and stores throughout the states in the next five years, Taylor said.
“We’re on a brand awareness kick,” he said. “The goal is to double the company’s yearly sales and size.”
Chocolate Graphics has about 30 independently owned franchisees in 29 countries, including Australia, China, Japan and Russia.
The company runs plants in Alabama and Tennessee, where kosher chocolate is melted and molded into shapes and printed with chocolate graphics and then packaged and shipped via contract carriers.
There currently are six full-time workers at Chocolate Graphics’ OC office. They oversee three U.S. franchises.
The company plans to add more workers if it reaches its goal of signing on 75 U.S. franchises in the next two to three years, Taylor said.
“We’ve already generated a lot of interest so far,” he said. “Americans really have an appreciation for chocolate.”
The next step will be to build production centers near franchises, Taylor said. The company is looking to build 15, but that number could be lower or higher depending on how many franchises it signs up, he said.
Opening Stores
Stores also are in the works, Taylor said.
Chocolate Graphics stores would carry ready-made chocolates molded in various shapes or decorated with phrases such as “I love you” or “I’m sorry,” Taylor said.
Unlike the company’s franchises that cater to businesses and individuals ordering larger quantities of chocolates, a Chocolate Graphics store would allow customers to order smaller quantities of personalized goods, he said.
“Consumers want that personalized touch. They could find that at one of our stores,” Taylor said.
Chocolate Graphics’ first U.S. store could be opened in OC or Las Vegas, Taylor said. The company is already working on opening a store in Greece next year.
“We’re looking at areas that are densely populated and visited often,” he said.
While Chocolate Graphics organizes its U.S. expansion, the company plans to add space to its American headquarters.
The company is looking to build a training center for its franchisees and expand its production center in Tustin, Taylor said.
High real estate prices and the rising cost of materials, energy, insurance and employment are some of the hurdles the company will have to overcome as it expands here, Taylor said.
“Orange County certainly isn’t a cheap place to do business but the trade off is worth it,” he said. “People know that this is the place to be if you want to own a business.”
Taylor, a former business developer and consultant in the consumer products industry, fell in love with OC when he visited Newport Beach in the 1980s.
He started Chocolate Graphics in 1999 after he bought the early stages of its signature embossing technology from an inventor.
Taylor spent two years researching and developing the technology and a business plan.
He set up a production center in Australia and started selling the chocolates through the Internet and catalogs. He’s been expanding the business through franchises ever since.
“It took a lot of hard work and it took a lot of passion,” Taylor said.
Taylor plans to travel back and forth from Australia to OC every month. He plans to keep his home in Queensland but has also found a home in Newport Beach.
This month, Davis moved to OC to oversee the U.S. headquarters’ daily operations.
“I miss home but I could definitely get used to living out here,” Davis said.
