Passion and Profits on Six Brownies a Day

A long time ago in a galaxy far, far away. . . .

O.K., so it was only 14 years ago and no farther away than Arizona, that childhood friends Eileen Spitalny and David Kravetz started Fairytale Brownies. The company was named as much for the product as for the elves who baked the brownies for the partners overnight in a kitchen they rented from a local caterer, or so Spitalny likes to claim.

But with “The best brownies in all fairyland” as a tag-line and each employee closing phone calls wishing customers to “have a fairytale day,” it’s easy to miss that Fairytale Brownies sells 2.5 million brownies a year, half of which are ordered in the four to five week period between Thanksgiving and Christmas.

And it’s all through its catalog or its Web site, www.brownies.com.

“We love mail order,” Kravetz enthuses. “We can control the quality and make sure our customers get fresh brownies.”

Fresh brownies are one thing; brownies people want to eat are another. The 50-year-old family recipe Spitalny and Kravetz use has won praises from The Food Network, The Wine Spectator and The New York Times, among others. And a co-promotion with Shrek in 2000 didn’t hurt the company’s visibility.

Over the years, they have added flavors (there are now 12) and sizes. Chocolate has been joined by such flavors as coconut, toffee crunch and peanut butter.

The original size, a three-inch square, is now supplemented by two smaller sizes. The Sprites, half size brownies which were introduced about four years ago, and Magic Morsels, quarter-sized, or bite-sized, brownies which were introduced earlier this year. In 2006, Kravetz said, the company will introduce blondies.

However, the most popular item with their customer base is the Fairytale Dozen ($32), a sampler of one of each flavor in the three-inch square size. Kravetz describes 60% of the customer base as business gift giving, although not just for the holiday season. The typical consumer customer is female, between 35 and 50 years old.

Part of what makes Fairytale Brownies a model of a successful small direct marketer is Spitalny and Kravetz’s interest in ethics and employee self-empowerment. Wherever possible only pure, or “clean,” as Kravetz called it, ingredients are used. It may be a brownie, but it’s a healthy brownie.

And because Spitalny and Kravetz first met as five-year-olds in a playground, they have formed a charitable relationship with KaBoom, an organization that builds playgrounds for children across the country. For every Special Occasion gift box sent, ten cents is donated to KaBoom. Kravetz calculated that the total thus far is more than $10,000. In addition, each KaBoom opening is catered by milk and Fairytale Brownies brownies.

Kravetz also pointed out that Fairytale Brownies provides a good work environment for both the original brownies who helped start the company and the upwards of 75 employees who staff during the busy holiday season.

“Each employee can have up to six free brownies a day to take home,” he said.

He also cited the company’s $100 empowerment policy. Each customer service representative can spend up to $100 to solve any customer problem without having to get approval.

“Incomparable service is as important as the product,” Kravetz added. “We like to under promise and over deliver,” he explained.

Delivery, however, is usually domestic. International overseas orders are expensive and there are some difficulties with brownies arriving fresh.