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Erie’s World-Class Food Industry

• Smith’sServingUpErie’sFavorites

• ErieBrewingCo.EarningNationalReputation

• Erie’sChocolatiersBlendTradition andInnovation

The Right Ingredients!

Exclusive Q&A with Wegmans’ Vice Chairman and Former Chairman and Senior Councilor, Board of Directors - U.S. Chamber of Commerce

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1

contents[ [

Erie Regional Chamber and Growth Partnership Mission StatementLeadership to attract, retain and expand business.

Board of DirectorsGregory S. Baldwin Jr.Peter BalmertJohn J. Barber John C. BloomstineC. Angela BontempoDr. Jack D. Burke Kurt F. BuseckCarl M. CarlottiTerrence W. CavanaughRosanne CheesemanGary L. Clark Joel DeutermanHarvey E. Downey Mary L. EckertDr. Antoine M. Garibaldi Thomas C. HoffmanThomas KennedyChuck KnightLeonard Kosar President/CEO Jim Dible

Vice President, Chamber Claudia Thornburg

Vice President, Economic Development Jacob A. Rouch

Vice President, Growth Partnership Mary Bula

Editor Matthew Cummings

Contributing Writers Diane Chido Erika Howland Susan Weiner

Cover Photo Art Becker

Design Tungsten Creative Group

For Advertising Information Julie Graff, Sales Executive 814.454.7191; jgraff@eriepa.com

Staff Matthew Cummings, Director of Marketing & Communications Sara Galbreath, Sales Executive Julie B. Graff, Sales Executive Melanie A. Johnson, Business Retention & Expansion Program Manager Doug M. Massey, Workforce Development Coordinator-Training Dr. Judith Miller, REthink Erie Project Coordinator TBD, Workforce Development Coordinator-Recruitment Cathy Noble, Events Coordinator Michael Pistone, Research Coordinator Linda Robbins, Accountant Susan M. Ronto, Membership Coordinator Doreen E. Sanfratello, Receptionist

814.454.7191 • fax: 814.459.0241 • www.EriePA.com 208 East Bayfront Parkway, Suite 100 • Erie, PA 16507

John P. Leemhuis Jr.John T. Malone James E. Martin James W. MartinMichael P. MartinMarlene D. MoscoJames R. NapierDavid PoorJames Rutkowski Jr.Matthew Schultz Nick Scott Jr. Ronald A. SteeleNoreen A. Stegkamper David M. TullioRussell S. WarnerMichael WeberThomas J. Wedzik Matt Wiertel

On cover: While Smith’s is certainly most famous for its hot dogs, selling more than 18 million each year, deli meats—including original bologna—have become popular additions to the company’s product line.

Inside: The Erie Regional Chamber and Growth Partner-ship held its 2009 Annual Meeting in November before a standing-room-only audi-ence of investors. In addition to electing a new slate of Directors, Board Chairman Russ Warner (above) and the Chamber staff introduced a number of new initiatives for 2010 including Tap Into Manufacturing and the new OnDemand Energy pro-gram. Information on both of these programs can be found in this issue of ERIE Magazine.

President’s Perspective ...................... 2

Welcome New Investors ................3-4

Smith Provision: A Family Business Serving Up Erie’s Favorites ...................................6-8

All the Right Ingredients: Erie Brewing Co. Earning National Reputation ....................10-12

Erie’s Chocolatiers Blend Tradition and Innovation ...........14-17

Leadership Insights: An Interview with Paul S. Speranza Jr. Wegmans’ Vice Chairman and Former Chairman and Senior Councilor, Board of Directors - U.S. Chamber of Commerce ......21-22

Way to Grow! ERCGP Ribbon Cuttings ......... 22-23

Erie Regional Chamber and Growth Partnership Magazine www.EriePA .com February/ March 2010

perspectivepresident’s[ [

2

Those who know me know I love to eat, and that I also enjoy a good beer on occasion.

So this could be one of my all-time favorite editions of ERIE Magazine.

It’s focused on several local manufacturers of food and drink who have experienced growth and success in recent years, and who are proud of and working hard to maintain their local roots.

In addition, our regular Q&A offers multiple wisdom nuggets from Paul S. Speranza, Jr., vice chairman, general counsel and secretary of Wegman’s Food Markets, Inc. He’s also senior councilor, Board of Directors, of the U.S. Chamber of Commerce, and a past chairman of that organization.

As you read the stories about Smith Provision, Erie Brewing Co., and chocolatiers Pulakos, Romolo and Stefanelli’s, pay attention to what those being interviewed have to say about the importance of Erie to the success of their businesses.

Any story that begins with “melt in your mouth lusciousness” gets my attention in a hurry. But the philosophies of our local chocolatiers are as delicious to me as their products. Some quotes:

“We’re not sure yet how we’re going to place ourselves in what Erie is becoming, but we’re not going to sit back and wait. We’ll expand our business, adding to growth in Erie. We’re respecting the past and looking toward the future.”

“When you go to Disney, you know you’re going to be treated well, no matter how much or how little you spend. There’s an excellence in customer service and presentation. The employees feel part of something. That’s what I try to do here. We do everything we can to create a relationship rather than just a sale.”

“The best compliment I can get is that nothing has changed. The taste and texture of our candies are still the same. That’s what made this company great, so I want to keep it that way.”

Mike Weber, president of Smith Provision, talking about his company’s roots and philosophy: “We are not competitive with low-cost producers, but we believe we are in a different market, offering safer, more flavorful, and nutritious products. Turnover is a big problem for small

businesses, and we have resolved this issue to a great extent by providing intensive training, good wages, outstanding benefits, and a sense of pride for all of our employees, as well as placing committed family members in key positions.”

Pennsylvania’s first and only independently owned microbrewery, Erie Brewing Co. has Railbender Ale as its best seller, but has so much more to offer today than when it began in 1994.

But with expansion and awards abounding, the company’s goal continues to be to be seen as a strong local company. Jim Hicks of the brewery notes that “Sixty percent of our beer is sold in western Pennsylvania. And for that reason we like to keep our labor local. We like to meet the people who help get our products on the market. We want them to come in and see what we can do. It’s about those local relationships.”

The points above are all reinforced in the Q&A with Wegmans’ Paul Speranza Jr. When asked about the top initiative for a community to grow its economy, he responded with one word: Collaboration.

“And by collaboration I mean bringing diverse groups together and finding some common ground, building trust, and creating and executing on a vision together.”

Don’t miss reading about Wegman’s wonderful history and keys to success. He’s also a strong supporter of community colleges. “We’re with you 100 percent and hope that Erie can realize the benefits of a community college soon.”

And now if you’ll excuse, me, I’m going to go have an Erie Brewing beer and a Smith’s hot dog, followed with a piece of chocolate each from Pulakos, Romolo and Stefanelli’s.

February 25, 2010 Erie Promotions & Expos, Inc.

1 Sassafras Pier, Erie 5 - 7 p.m.

welcomenewinvestors[ [We look forward to seeing you at these networking events for Chamber investors.

Please RSVP to the Chamber at (814) 454-7191 or cnoble@eriepa.com.

Reservationsrequired nametagswillbeprovided.

If you know a company or organization that wants to invest in Erie and in their business, please contact Sara Galbreath, sales executive, at (814) 454-7191 or sgalbreath@eriepa.com.

April 8, 2010 Grant Industrial Controls 4800 Pittsburgh Avenue, Erie 5 - 7 p.m.

(continued next page)

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B r o n z e I n v e s t o r s

Constellation NewEnergyConstellation NewEnergy (CNE) is a leading U.S. competitive energy supplier and serves business customers from Main Street to the Fortune 100. Operating in all competitive energy markets throughout the United States, CNE is a wholly-owned subsidiary of Constellation Energy (NYSE: CEG), headquartered in Baltimore.Ms. Kelsey Maher 100 Constellation Way Baltimore, MD 21202 (410) 470-2042

Eat’n ParkCorporate office for both Erie restaurants on Peach and 12th streets.Ms. Kristin Strauser 285 East Waterfont Drive Homestead, PA 15120 (440) 477-3477

March 18, 2010 Wingate by Wyndham 8060 Old Oliver Road, Erie 5 - 7 p.m.

(Held at Bayfront Convention Center as part of Erie Home and Garden Expo)

I n v e s t o r s

Arnold E. Thompson, Jr. Insurance AgencyBusiness, auto, home, life, health and annuities.Mr. Arnie Thompson, Jr. 1600 Peninsula Drive Suite E Erie, PA 16505 (814) 838-7555, ext. 26

Paneless Window CleaningPaneless Window Cleaning provides residential and commercial window cleaning using environmentally friendly techniques and cleaning solutions. We offer quality work with integrity and value and can customize a cleaning schedule to fit your residential or commercial window cleaning needs.Mr. Brian Baldwin 931 Aurora Avenue Girard, PA 16417 (814) 774-4444

Apex Wind Energy, Inc.Apex Wind Energy is a developer of utility-scale wind energy facilities throughout North America that deliver clean, renewable electricity throughout North America. It is a subsidiary of Greenlight Energy Resources, based in Charlottesville, Va., and also has offices in Erie; Patterson, N.Y. and Kingston, Ont.Mr. Timothy M. Ryan 130 West 8th Street Erie, PA 16501 (814) 459-6221

Roche Management GroupA business advisory and management consulting group specializing in turnaround management, strategic planning, strategic expertise, executive coaching, interim management, advisor to board of directors, and development and fundraising.Mr. P.C. Roche 1 Plastic Road, Box 4 Corry, PA 16407 (814) 580-060

Core CreativeFounded in 1983, Core Creative is a full-service advertising agency. We provide complete advertising, marketing, strategic planning, public relations and new-media services for industrial, business-to-business and consumer clients.Mr. Larry Simmons 319 West 10th Street Erie, PA 16501 (814) 455-7866

Allegiant Cameras LLCSell, install and service security camera systems for surveillance and risk management purposes. We design new systems and upgrade existing systems. Experienced in IP and March certified. We can help you safeguard your assets.Mr. Jeff Yochim 7 West State Street Sharon, PA 16146 (814) 602-4715

4

welcomenewinvestorscontinued[ [

If you know a company or organization that wants to invest in Erie and in their business, please contact Sara Galbreath, sales executive, at (814) 454-7191 or sgalbreath@eriepa.com.

Scalise Enterprises Inc.SEI is an experiential marketing firm, founded in 1997. Comprehensive services include exhibit design, management and logistics for B2B trade shows, domestic and international. Custom display construction and modular/portable systems. We work directly with OEMs or with ad agencies for all trade show marketing needs.Mr. Jay A. Scalise 1234 Irwin Drive Erie, PA 16505 (814) 454-6368

Stefanelli’s CandiesErie’s finest confectioner and purveyor of premium quality chocolates, candies, and novelties. For us, making chocolate is a labor of love; we work by hand, in small batches and are artisans in Italian confections. Our specialty, sponge candy, reflects the Italian making tradition. Their irregular shape is, for us, a proud statement of their origin, each batch being hand poured.Mr. Frank DeDionisio 2054 West 8th Street Erie, PA 16505-4797 (814) 459-2451

Erie Pennzoil 10-Minute Oil ChangeOffers a full-service oil change with a 14-point checklist, fluid exchanges for transmissions and radiators, and fluid changes for differentials and transfer cases. A full range of preventative maintenance services are offered with no appointments necessary.Mr. Joe Lehosky 1501 West 26th Street Erie, PA 16508-1301 (814) 455-8410

State Farm InsuranceChristopher Wertz Agency State Farm Insurance offers coverage for auto, life, home, health, and more. State Farm also offers mutual funds, banking, loans, and credit cards.Mr. Christopher Wertz 113 West 9th Street Erie, PA 16501 (814) 452-4609

Issac BakerRetail sales of men’s casual and dress clothing.Mr. David B. Sherman 1001 State Street Suite 110 Erie, PA 16501 (814) 454-7144

Business students enrolled in masters and doctoral programs at Gannon University have the unique opportunity to benefit from Gannon’s partnership with the Small Business Development Center and the Erie Technology Incubator, both of which are housed within Gannon’s vibrant downtown campus.

These partnerships give students the opportunity to:• Take their ideas and skills to the next level through research and

consulting opportunities with innovative technology companies

• Develop a business plan for one of the over 850 local small businesses served by the SBDC annually

• Utilize these extraordinary resources and networking opportunities to grow their own ideas

Find out more about these, and other opportunities Gannon offers masters and doctoral students by contacting the Office of Graduate Admissions at 814.871.7474 or graduate@gannon.edu.

814.871.7474 | gannon.edu/graduate

GANNON UNIVERSITYWhERE ENTREpRENEURShIp ANd INNOVATION COmE TO LIfE

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ECGP_TIM_ChamberAd.indd 1 1/4/10 11:55:40 AM5

6

SmithProvision: AFamilyBusinessServingUpErie’sFavoritesBy Diane Chido

WhenTonyWebergotmarried, he asked his boss ataNewYorkCitybutcherfor a raise to help support hisgrowingfamily.Thiswasariskymoveforanimmigrant laborer in the 1930s, but when his boss halvedhispayinstead,theexpert sausage maker from Germany did not take it lyingdown.Hequitandstarted his own company, a good lesson for many of us suffering under the current economic climate, filled with pay cuts and layoffs.

In 1947, despite the popularity of his New York store, when Tony heard that Smith’s butcher shop in Erie was for sale, he decided to make the move and bring his son Max, a Swiss-trained chef, over from Germany to work with him. Max and his wife Gertraud, already expecting their first son, Michael, made the grueling trip, arriving in Erie with their new baby. Tony and Max decided to change Smith’s from a retail outlet to a manufacturing plant, although there was already solid competition in the region. Erie is so grateful they persevered and brought their culinary skills, German recipes, and dedication to quality products to our market. What would our summer picnics and baseball games be without Smith’s hot dogs? Would holiday dinners be the same without Smith’s hams?

Visit the Smith’s Web site for

frequently asked questions

such as, “What is a hot dog ‘really’ made of?”

Many of the answers may

pleasantly surprise you.

www.smithhotdogs.com

ArtBeckerPhoto|artbeckerphoto.com

7

SmithProvision: AFamilyBusinessServingUpErie’sFavoritesQuality FirstSmith’s, a Silver Investor in the Erie Region Chamber and Growth Partnership, is so committed to quality, that they strictly follow federal regulations for food safety, which includes a daily inspection of their local meat processing plant. They are considered a model of sanitation and regulation compliance and are in the process of obtaining their Safe Quality Foods (SFQ) designation, which is similar to the ISO certifications common to manufacturing. This would make Smith’s one of the first small-to medium-sized meat plants to ever obtain this certification.

“The food business, especially meats, has a low profit margin, but we believe in the value of the higher expenses we incur by keeping up very high standards for our raw materials, building specifications, equipment, cleaning processes, and especially our people,” President Mike Weber insists. “We are not competitive with low-cost producers, but we believe we are in a different market, offering safer, more flavorful, and nutritious products. Turnover is a big problem for small businesses and we have resolved this issue to a great extent by providing intensive training, good wages, outstanding benefits, and a sense of pride for all of our employees, as well as placing committed family members in key positions.”

“Some may think we are far larger than we are, but we are still a family business and we are grateful for the brand loyalty we have found in this community,” says Weber. “My brother, John, and I started out here cleaning floors and working our way through all aspects of the business during

summer vacations. We went to college, but once we got out into the wider world, we discovered that the realities out there were not so attractive and we both decided to come home.”

Weber notes that four additional family members are currently involved in key positions in sales, quality control, operations, and purchasing.

Local Resources for Strategic Thinking and Succession PlanningOne of the other key issues for family businesses that is often neglected is succession planning. Weber notes that, “We try to put a positive spin on the business for the younger generation, give them some responsibilities and let them experience all sides of the business to help us determine where they might best fit. It is important to keep ‘at home’ discussions of the business focused on the positive aspects of operating a family business, rather than dwelling on the negative—and the same rules apply to living in the Erie community.”

Smith’s has benefited greatly from the regional economic development system and all the resources it offers to local employers.

“At the Regional Chamber and Growth Partnership, Jake Rouch has been great in pointing us toward the Economic Development Corporation of Erie County for an upcoming multi-million dollar expansion plan with site selection and funding options. The Chamber has nothing to sell you and no agenda but to help local employers. They give you good, unbiased advice

and act as the first point of contact to navigate all the agencies and other resources available.”

Weber says that the Northwest Industrial Resource Council (NWIRC) is another agency that has enabled his management team to think strategically and work on succession planning.

“We were so busy running our day-to-day operations, we would probably not have even worried about these issues, had the NWIRC not made us realize the importance of thinking ahead, provided us funding assistance, and introduced us to Decision Associates. We are working closely with them to make tough choices and they have been worth every minute and every penny invested.”

Growth and StabilityWeber notes that it can be difficult for a small business to retain its vision in changing times. Smith’s is a traditional meat processor that does not want to “be all things to all people.” While they

ArtBeckerPhoto|artbeckerphoto.com

8

retain their core products, such as natural casing hot dogs and no water added hams, they have introduced pre-sliced ham steaks, and a new ox roast.

While Smith’s is planning to expand, Weber stresses that they do not want to “grow too much,” stating the importance of managed growth to ensure that all business processes keep pace with the changes and that you do not lose your vision along the way.

Local “Flavor”Although we all love Smith’s products for their excellent quality, we take pride in knowing that they are also produced locally and are one of those “Erie things,” that constitute our local culture. Weber notes that Smith’s has been around for a long time and is a “real Erie company.” They are grateful to the community for the level of customer loyalty they have found. However, the company has just signed a significant contract with University of Pittsburgh to become the official hot dog of Pitt athletics. Weber says that this deal was put together by yet another family member and that it will introduce the Smith brand to a far larger audience with all the alumni and other consumers of Pitt concessions. Weber notes that “local” is a flexible

concept today and projects that the company’s current Pittsburgh area annual sales of nearly $1 million will at least double in the near future.

Despite the company’s many successes over the decades, one area Weber admits Smith’s has improved over the past few years is in community involvement. Although they have always been a Chamber member, Weber says they began to participate more when he joined the Board about three years ago. As a result, he has learned so much about what is going on in the region and enjoys all the social and networking events.

“We are a large and tightly-knit family and by nature, we focused on that and the business for so long, we realized it was a mistake not to have become more involved in community organizations. We make food that people like, which is a real positive for us and helped us get more involved,” he says.

Smith’s supports local non-profits by making some monetary donations, but more often discounts hot dogs and other supplies to help them raise their own funds, which has worked out very well.

One of the major community activities in which Smith’s participates is “Family Night” at Second Harvest Food Bank. This is a regularly occurring evening event at the Food Bank, where entire families, from age six on up, come in to assemble food baskets for those in need. Smith’s sponsors the meal provided to the volunteers and Weber says, “We are also proud that we are staffing one of the evenings with our family and associates’ families. It is kind of a neat deal that qualifies participants for the Disney program; each time you give a volunteer day, you get a ticket to one of the Disney theme parks. And of course, a Smith’s hot dog or ox roast sandwich!”

ArtBeckerPhoto|artbeckerphoto.com

9

The One To Watch

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Chamber Ad (1-10).indd 1 1/13/10 7:45:38 PM

Whether you want to “Ride off the Rails” or “Sail Unchartered Waters” for the taste of something different and unique, one company is brewing up plenty of opportunity right in our own backyard.

Since 1994, Erie Brewing Co., the state’s first and only independently owned microbrewery, has been concocting special brews to tempt your thirst. And while many businesses are struggling to stay afloat or finding difficulty in growth in today’s economy, Erie Brewing Co. just keeps getting bigger.

After six years of brewing at Hopper’s in Union Station, founders of Erie Brewing Co. realized the demand for their

beer was outgrowing the facility. In 2000 the company relocated to 1213 Veshecco Drive in Erie. More space allowed for more beer, more employees, and most importantly, the potential to take the microbrewery regional. With fewer than 10 microbreweries on this side of the state, founders knew there was a niche for quality, hand-crafted beer. “We had been creating brands based on

what people in Erie preferred for a long time and it was working,” says Jim Hicks, connector of the dots, at Erie Brewing Co. “As we decided to move forward, we began

10

By Erika Howland

All the Right Ingredients:

Erie Brewing Co. Earning National

Reputation

changing gears and have actually been quite successful in the regional microbrew landscape.”

Today, Erie Brewing Co., an Investor in the Erie Regional Chamber and Growth Partnership, brews 10 different styles of beer. While seasonal specialties make up the majority of the business, four signature beers, including Railbender Ale, Mad Anthony’s APA, Presque Isle Pilsner and Misery Bay IPA have helped build the company’s foundation. In 2008 Erie Brewing put their products to the test and was awarded a bronze medal at the Great American Beer Festival, the largest judged beer festival in the United States. But in 2009, Railbender Ale took home the gold.

“Railbender is by far our best-selling beer,” according to Hicks. “And because we’ve kept it around so long, it’s allowed us to tweak it, and make improvements over the years and make it the best beer we can, and obviously that was proven at the festival.”

Erie was an important railroad hub in the mid–nineteenth century where three sets of track gauges met. Railbender Ale, Erie Brewing Co.’s flagship ale, is named after the laborers who laid the railroad tracks.

ArtBeckerPhoto|artbeckerphoto.com

11

(Continued on next page)

people get a taste of what we offer, more and more establishments will pick us up.”

The expanded territory has also lead to an increase in sales up nearly 40 percent over last year with projections to expand into three more states in 2010.

“Each market is different,” explains Hicks. “And each brings its own challenges. But the one thing they all have in common is that people everywhere like a good quality beer at a reasonable price and so for now, we seem to be doing well.”

With such high expectations for sales and expansion in the coming year, Erie Brewing Co. is also expecting those projections to help the local economic picture as well. With a staff of just seven full-time and two part-time employees, the company will look to hire more help if they want to produce more than 100,000 cases of beer in 2010. In addition to staffing needs, more products also means more business for local vendors.

But proving it to local, even national customers continues to provide huge challenges. Nearly 70 percent of beer crafted at Erie Brewing Co. is sold through beer distributors or six pack shops. Brew masters would like to see more of their blends offered at local establishments, but it’s been a slow process.

“Knowledge of the product is an obstacle,” explains Hicks. “There are people who still don’t know what a full-flavored handcrafted beer tastes like. And more importantly they don’t know they actually can get it at a reasonable price.”

Beers from Erie Brewing Co. are sold at a slightly higher price point because of the manner in which they are crafted. That’s why the company has taken to every method possible to market their creation and educate beer enthusiasts.

And their tactics seem to be working. From beer tasting festivals, to sponsoring events, even dropping off samples, Erie Brewing Co. has expanded their territory from 10 states to 13 states in 2009. Now those looking for a unique microbrew in New York City can also get a little taste of Erie.

“It is exciting to know our beer is in New York City right now,” says Hicks. “But we still want more. We want it available in more places and we think once

“Railbender is by far our best-selling beer and because we’ve kept it around so long, it’s allowed us to

tweak it, and make improvements over the years.” — Jim Hicks, connector of the dots, at Erie Brewing Co.

Erie Brewing Co.’s stainless-steel tanks or what the staff affectionately refers to as

“the ‘bling’ of an American craft brewery.”

ArtBeckerPhoto|artbeckerphoto.com

12

(Continued from page 11)

FINDart

www.artbeckerphoto.com

“As we get bigger, those relationships get stronger,” explains Hicks. “If we are going to sell an extra 30,000 cases of beer this year, we need 30,000 more boxes, we need more labels, we need more marketing and we get almost all of that from right here in Erie.”

To reach those goals, Erie Brewing Co. is hoping for some help with the addition of two new brews to be released in 2010. Although few details are available now, Hicks says each of the brew masters will be able to put their own creative twist on a Belgium style beer which includes a higher alcohol content, and stronger flavor. The limited quantity signature beers will then be released in 22 ounce bottles. The last new brew was created as a seasonal blend in 2009.

“We have to start small and see what happens,” says Hicks. “There is a huge investment in creating a new brew from packaging, and labeling and production. New beer costs quite a bit of money even before it hits the shelf.”

Hicks says no matter how many states Erie Brewing Co. eventually reaches, or how many brews they are able to put on the shelves, the goal is still be to seen as a strong local company. “Sixty percent of our beer is sold in Western Pennsylvania. And for that reason we like to keep our labor local. We like to meet the people who help get our products on the market. We want them to come in and see what we can do. It’s about those local relationships.”

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13

EQUAL HOUSINGLENDER

“This venture took off in the 1980s after Pulakos was an exhibitor at the Philadelphia Candy Show,” said business and development manager John Zack.

In addition to operating three retail stores (which offer a gift and loyalty card program), Pulakos does a wide range of fundraising sales and markets products in select small independent stores. In 2000, Pulakos brought the ice cream and soda fountain side of the business back after 36 years, with homemade ice cream and hot fudge and chocolate sauces made from the original recipes used at 926 State Street.

14

Erie’s Chocolatiers Blend Tradition and InnovationBy Susan M. Weiner

Pulakos 926 Chocolates got its start in Erie when founder George P. Pulakos brought his candy business here in 1903.

“We’re known for being on the cutting edge. We bring new candy ideas to Erie,” said fourth-generation candymaker George A. Pulakos. “We introduced chocolate-covered strawberries to Erie. My dad brought a German-made chocolate enrobing machine here in 1968 to begin automating the dipping process, and introduced it to other medium-sized

candymakers. And Pulakos is the site of a renowned candymaking school held in conjunction with Gannon University since 1960.”

With its reputation among other chocolatiers, Pulakos maintains a “substantial” wholesale business of its confections—especially marshmallow—to other candymakers throughout the United States and Canada.

Chocolate and confections. Who doesn’t enjoy the melt-in-your-mouth lusciousness of

these products? Erie’s three main chocolatiers—Pulakos, Romolo and Stefanelli’s—are all

Erie Regional Chamber and Growth Partnership investors and significant investors in the Erie

region. Their businesses bring interest, visitors and dollars into the region. Right now, they’re

gearing up for Easter, the busiest holiday of the year for chocolatiers. How is business going

for these candymakers in this rugged economy? You can sum it up in one word: sweet.

ArtBeckerPhoto|artbeckerphoto.com

Photos Courtesy of Pulakos

Pulakos chocolate covered strawberries are made fresh daily.

15(Continued on next page)

Erie’s Chocolatiers Blend Tradition and Innovation

When George A. sold the business in Sept. 2009, he stayed on as manager of plant operations and new product development, continuing his family’s legacy.

“My name is still out front, so I want to be sure the quality is still the same,” he said. “As long as I’m here, the product will have the same care, the same quality and the same standards.”

New owner Joseph Hilbert agrees. “We’re not going to spare quality to save a dime,” he said. Hilbert, who came from his family-owned manufacturing business, Reddog Industries Inc., said “it’s business as usual” at Pulakos, with 28 employees, many having more than 15, or even 25, years at the company.

Hilbert is getting his feet wet through his first year of the peaks and valleys of the chocolate business.

“We’re not sure yet how we’re going to place ourselves in what Erie is becoming, but we’re not going to sit back and wait. We’ll expand our business, adding to growth in Erie,” Hilbert said. “We’re respecting the past and looking toward the future.”

Tony Stefanelli started Romolo Chocolates in 1993 with a mission statement: “to produce the highest quality chocolate, to give the highest quality service and to create an environment that results in an unparalleled sensory experience.”

The grandson of candymaker Romolo Stefanelli and trained in his family’s business, Tony said he strives to create a destination through his store’s Old World-inspired building, café drinks and chocolate.

“To me, everything is about chocolate. Everything served in the café goes with chocolate. The ceramic items in the gift shop can be filled with chocolate. And the gift shop is a buffer between the café’s

coffee aroma and the chocolate shop,” said Stefanelli, who holds Master Chocolatier and Master Confectioner designations from Retail Confectioners International.

“Romolo Chocolates embodies the best of what my grandfather brought to candymaking,” said Stefanelli, whose two sons, Roman and Anthony, also create Romolo chocolate and confections.

Art Becker Photo | artbeckerphoto.com

C H O C O L A T E S1525 WEST 8 STREET ERIE, PA 16505 • 814-452-1933 • ROMOLOCHOCOLATES.COM

Art Becker Photo | artbeckerphoto.com

Tony Stefanelli, owner and master confectioner at Romolo Chocolates, continues to make cremes, caramels and other confections in the traditional methods his grandfather began after years of working with candy makers in New York City and Chicago.

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(Continued from page 15)

Romolo attracts customers for the summer, when the chocolate business is traditionally slow.

“It’s very family-oriented, with a park across the street. Parents bring their children to the patio at 9:00 at night for Romolo’s ice cream,” Stefanelli said. Each summer approximately 40 bus tours visit the store, conveniently located near I-79. Tourists continue their business with online orders.

In addition to the retail store and placement of chocolate in several supermarkets in the Erie area, Romolo does private label business, making candy for other companies outside the region. Romolo also sells chocolate for fundraisers and generates interest and sales through a newsletter (with a mailing list in the thousands) and a candy-of-the-month club—both of which involve special

offers. Stefanelli is also planning to revamp the

Romolo Web site to make it easier to order online.

“And we’re contemplating introducing a room for kids

for special events like birthdays and Christmas,” he said. Stefanelli said he strives to create the fun and orientation to the customer that he identifies with Disney.

“When you go to Disney, you know you’re going to be treated well, no matter how much or how little you spend,” he said. “There’s an excellence in customer service and presentation. The employees feel part of something. That’s what I try to do here. We do everything we can to create a relationship rather than just a sale. We want people to come back again and again.”

ArtBeckerPhoto|artbeckerphoto.comRomolo creates handmade

chocolates, truffles, cremes, caramels, nougats, choco-

late-covered nuts and cherries at its location in Erie

on West 8th Street.

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P E R F E C T I O N I N

Since 1929

®

Stefanelli’s® Candies started in Erie in the 1920s and continued to grow through the Great Depression. After being created and developed by two generations of the Stefanelli family, the business was sold by Art Stefanelli to

Frank and Marilyn DeDionisio in 1993.

“Art was an excellent teacher. The best compliment I can get is that nothing has changed. The taste and texture

of our candies are still the same. That’s what made this company great, so I want to keep it that way,” Frank DeDionisio said.

A novice to candymaking when he took over the business, DeDionisio made the chocolate and centers himself for five years, with his notebook from lessons with Art within reach. He gradually started to teach and cross train employees in production. Now 23 of the 29 employees are involved in making the candy.

“My employees are great. They work well together and care about the product and the customers,” he said.

The former accountant and grocery store owner markets Stefanelli’s Candies in more than 100 independent grocery stores as far east as Springville, New York; south to Titusville; and west to Girard. His business rewards loyal customers with savings at the four Stefanelli shops

through a Chocolate Lover’s Club card. He also takes a chance on new products. One example from 2008 was the salted chocolate-covered caramel, a favorite of then presidential hopeful Barack Obama.

Why did DeDionisio choose to take on the challenges of a specialty candy business? “In my grocery business, I made pepperoni balls and bread. I enjoyed making something and selling it rather than just selling products I had ordered. I wanted to continue that practice; and besides, it’s in me that I need to be challenged,” he said.

“We make candy and chocolates in small batches using old techniques. Our sponge candy is cut in irregular shapes to show they’re handmade. We use traditional copper kettles over open flames. I like quaintness rather than bigness. We make the kind of chocolate that large candy companies wouldn’t dare deal with because of the fragility,” DeDionisio said. “People’s taste will dictate what they want to spend their money on. When they see a Snickers® bar and our chocolate —if they know our candy, they’ll buy ours.”

Pulakos 926 Chocolates, Romolo Chocolates and Stefanelli’s Candies are all Investors in the Erie Region Chamber and Growth Partnership.

PhotosCourtesyofStefanelli’s

It’s called Honeycomb, Sea Foam, or Sponge Toffee, but in Erie we call it Sponge Candy and it’s one one of Stefanelli’s most popular items.

Stefanelli’s has four retail locations in the Erie area: West 8th Street, Sterrettania Road, Buffalo Road and in Summit Towne Center on Peach Street.

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ins ightsleadership[ [

An interview withPaul S. Speranza Jr.Former Chairman and Senior Councilor, Board of Directors - U.S. Chamber of Commerce

Vice Chairman, General Counsel, and Secretary - Wegmans Food Markets, Inc.

ERIE: Wegmans opened its first store outside of New York State in Erie in June of 1993. What attracted Wegmans to this market then and how does Erie fit into Wegmans growth strategy for the future?

“Obviously, distribution channels are very important to us. So even though Erie is in a separate state, it’s very close to our distribution, transportation, and manufacturing facilities in Rochester. The ability to move our product efficiently on Interstate 90 was attractive as we looked at expansion markets.

“Beyond distribution and transportation, the special nature of our community was also attractive to Wegmans. Like Rochester, you’re also on the south end of a great lake and we found a lot of similarities between Erie and our town. The people of Erie are wonderful and we find that it has similar values that are important for our workforce and also make our products attractive.

“Erie continues to be an important part of our strategy. We want to continue providing customers in Erie with the best quality products and services we can and we also want to continue employing hundreds of people in the region. Between our products and the workforce there, it’s really a wonderful combination.”

ERIE: Wegmans has been ranked at or near the top of FORTUNE’s “Best Companies to Work For” list for 12 consecutive years. What makes it so great?

“The Wegman philosophy is simple. If you truly take care of your employees and treat them well, they will take care of the customers. And if the customers are well taken care of, the bottom line will take care of itself.

“What is so neat about Wegmans is that it gives so many people a chance. Our workforce—38,000 strong—would go through a brick wall for the company

because we don’t want to let the family down and appreciate the opportunity that Wegmans has given to us.

“Quite simply, employees always come first, and we mean it.”

ERIE: Wegmans is recognized as an industry leader and innovator. On a front-page feature article, The Wall Street Journal recently quoted an industry expert who called Wegmans “the best food retailer in the country, maybe in the world.” In 2007, the Food Network, in its first-ever awards show, gave Wegmans the award for the “grocery chain that has changed the way we shop,” and BusinessWeek magazine recently named Wegmans number five on its customer service champions list.

Paul, what can our Chamber investors learn from Wegmans’ success to help them grow their business?

“Again, I think it all comes back to your employees. Treat them well and motivate them. Help them see your vision and how they are part of that vision. You don’t have to have 38,000 employees, a business of any size can do this. I believe you can be the best in class at whatever it is you do if your employees are motivated and see how they are part of your vision. They’ll take care of the customers who will take care of your bottomline.

“I also think corporate social responsibility is extremely important. Not only is it the right thing to do, but it’s good for your business in so many ways. We strive to make a difference in every community we serve and the returns to our business on those investments have been remarkable.

“Finally, at Wegmans we’ve learned to focus and finish. You pick a project, whatever, wherever it is, you focus and finish, and hopefully you celebrate. That’s one of the things Danny (Wegman) often talks about. We need to be able to focus, finish and celebrate to create value.”

ERIE: You’ve served as U.S. Chamber of Commerce chairman, vice chairman, regional vice chairman and also chair the U.S. Chamber’s Taxation and Employee Benefits committees. What were your goals as chairman and what would you tell someone considering an investment in a local Chamber about the benefits to their region and to their business?

“As U.S. Chamber chairman, I had three goals: first, improve education and workforce development; second, improve health care affordability, quality, and access; and third, strengthen and focus the U.S. Chamber’s initiatives to better align them with those of state and local chambers. The thing we must remind ourselves of is that free enterprise, American style, is the most successful job-creating economic engine known to mankind. Chambers of commerce around the country, and yours in Erie, have helped make that such a success.

“The benefits of membership in a chamber are many. Recognition comes to mind first because being a member of a local chamber provides recognition for your business and sets you apart as someone committed to the success of the local community.

“Quite simply, chambers help local businesses succeed. They provide learning and networking opportunities, best practices sharing, and critical knowledge and information to be successful.

“The direct link between the Erie Chamber, the Pennsylvania Chamber and the U.S. Chamber cannot be underestimated. Creating a synergy on common issues generates the power to be able to move forward a pro-growth—for jobs and the economy—agenda. Being a member of the Chamber is really a win-win for everyone.”

ERIE: You may be surprised to learn that the Erie area is one of the few in Pennsylvania that does not have a

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talking pointsBorn: Rochester, N.Y.

Family: Wife and “chief adviser” Cheryl; Daughters: Sarah, 35, and Martha, 33.

Education: Bachelor of Science, Syracuse University – 1969; J.D., University of San Francisco School of Law – 1971; LL.M. in Taxation, New York University School of Law – 1972.

Favorite Book: The Bible (any version). Whether you’re religious or not, it’s a great view of philosophy and human nature. What holds true in the past still holds true today.

Current Book: Who Killed Health Care? America’s $2 Trillion Medical Problem by Regina Herzlinger

Hobbies: Spending time with my family—Cheryl and I walk three miles a day; food, travel and movies.

Favorite Travel Spot: Venice, Italy

Favorite Sports Team(s): Syracuse Basketball

Favorite Quote: “To whom much is given, much is expected.” - Luke 12:48

community college system. Over the past two years, the Chamber has been involved in an effort to identify the need for and viability of a community college here in northwestern Pennsylvania. What is your view on the value of education to individuals and communities?

“I believe passionately in freedom, democracy, free enterprise, opportunity, and hope for all. We all have a responsibility to give America’s children the same opportunities that others have given us. Quality education can vastly improve people’s lives, as was the case for both me and my family, and I believe that all people, especially the economically disadvantaged, should have access to quality education.

“I understand that it’s a challenge getting communities to embrace change or new ideas, but community colleges are of critical importance to the success of any community. Without a vibrant community college system, individuals who have made it through high school hit a brick wall. They can’t afford a private college or even a state university.

“Community colleges create a vibrant environment in local communities and they are the gateway to the future and a beacon of hope for all students—particularly the economically disadvantaged.

“We’re with you 100 percent and hope that Erie can realize the benefits of a community college soon. It would open a tremendous number of doors for your workforce and your employers.”

ERIE: Based on your experience with Wegmans and the U.S. Chamber, if a community can focus on only one initiative to grow its economy, what would you recommend?

“Collaboration. And by collaboration I mean bringing diverse groups together and finding some common ground, building trust, and creating and executing on a vision together. Each group must understand that for the common good each will also have to give. Producing lasting change requires collaboration. Collaborative communities can improve education, develop the workforce and make health care more affordable.

“As Chairman of the board of the U.S. Chamber of Commerce, when I visited successful communities around America, I see organizations and companies that aspire to become agents of change, as Wegmans has. Community collaboration is very hard work which must be done everyday.

“You have to recognize that all people are resistant to change. We like things the way they are today: that’s what we know. But if we’re patient and persistent, and we try not to have dramatic change, but we just nudge on a daily basis, we can get there.”

ERIE: What skills does a business leader need today to be effective?

“Obviously you have to be an ethical role model and work extraordinarily hard.

“You have to get accurate information from every source available, create a vision for your business and, once it’s created, build a workforce that buys in because it’s logical and doable.

“Get information, synthesize, communicate, motivate and execute on that vision.”

ERIE: If you could select three business leaders to have dinner with, who would it be and why?

“First of all, the late Bob Wegman, who passed away four years ago. He was my friend, mentor, and boss for more than 30 years and he was a major force in making Wegmans what it is today. Born in the days when people bought fruits and vegetables from pushcart peddlers, he became one of the nation’s most influential and admired leaders

in the supermarket industry. He built a successful chain of supermarkets based on the simple idea that it was essential to treat employees and customers well. I’d love to ask him what he thinks about the world today and for his advice, as I did for more than 30 years.

“Second would be the late George Eastman, founder the Eastman Kodak Company and inventor of roll film, helping to bring photography to the mainstream. He was brilliant man of an early generation that not only built a very successful company that was backbone of Rochester, he also put this community on his back—during his lifetime, he donated $100 million, mostly to the University of Rochester and the Massachusetts Institute of Technology. He also endowed the Eastman School of Music and worked on healthcare programs for the people here and abroad, including world-class dental clinics for the poor. He created the culture of community collaboration we discussed earlier. It would be wonderful to talk to him about how he put it all together and what he felt was necessary to not only have a successful business, but also a successful community.

“Finally, Bill Gates, who obviously created a successful business through God-given talent and brilliance, but just as importantly he was able to do it in such a short time. His philanthropy, focused on education and control of disease, has set the standard extraordinarily high. He recognized that he had a responsibility to give back. I would love to learn from Bill Gates how he combined all of that. How he will go forward and how he plans to continue to do it.”

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The Erie Regional Chamber and Growth Partnership recently helped cut ribbons at a number of new or expanding investors. We are excited for your success and appreciate the opportunity to help you mark these momentous occasions!

Way to Grow!

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