Shane Vail was in sales and Josh Kutzler in operations when their employer, a Chaska-based importer of Scandinavian gift items, turned down the chance to distribute a product made by a British company.
But London-based Excel Consumer Products still gained a Minnesota distributor.
The product was a candle with a rechargeable battery–operated LED “flame.” “It flickers and gives off a real-life emulation of a candle,” Kutzler says. “When it’s in a holder, you can’t tell it apart from a real candle unless you look right at it.”
Intrigued by Excel’s candle, longtime friends Vail and Kutzler determined that the idea behind the Smart Candle product line had the potential to be something much larger.
After getting in touch with Excel, the pair learned that the U.K. company had few business relationships in the U.S. Seizing the opportunity, they put together a full marketing proposal that included logos, packaging, Web site URL, and the U.S. rights to the Smart Candle trademark and the tagline, “Flicker Without the Flame.”
Soon after, in September 2004, Vail and Kutzler flew to London to meet with Excel leadership. Two days later, they flew back with an agreement in hand—but not before waking up a friend, Jeff Miller, at 3 a.m. Minnesota time, to offer him a sales job.
Excel Consumer Products had granted Smart Candle exclusive distribution rights to all of the Americas. Vail and Miller hit the road, attending trade shows across the country to establish sales relationships and distribution channels with retailers, wholesalers, and dealers in the foodservice, hospitality, and other industries.
Smart Candle appeals to different industries for different reasons. “On the commercial side, the cost savings are substantial versus burning regular candles, oil, or liquid paraffin,” says Vail, the company’s president (Kutzler is its CEO and CFO). “A hotel or restaurant will save 60 to 80 percent on lighting costs because our product is guaranteed to last for two years and they can use it over and over again.”
Smart Candle is now an $8 million company offering 50 core LED products to the hospitality, wholesale, and retail markets. The commercial side, which accounts for the bulk of sales, includes clients like Hyatt Hotels and the Wynn Hotel and Casino. Wholesale customers include Walgreen’s, Target, and Crate & Barrel. Customers can also purchase items directly from the company on line. “That’s been one of the big aspects to our success,” Kutzler notes. “We don’t have all our eggs in one basket.”
Smart Candle sells various versions of the Smart Candle (including tea lights, tapers, pillars, and votives) that range in size and finish. It also sells a variety of holders to complement the candles and can customize both the candles and the holders. Its latest products are LED-flame light bulbs for chandeliers.
Vail and Kutzler’s vision for Smart Candle includes partnering with companies across the globe to design, develop, and distribute new LED-based lighting products for every possible marketplace niche. They’re already heavily involved in the development and manufacturing of their products in China.
“We see great opportunity in home décor, party goods, promotional products, and also the air freshener sector of the industry,” Kutzler says. “The advantage we have is a Smart Candle can be used with any material, thereby rapidly expanding the options available when it comes to marketing of the product. Regular candles cannot be used with plastic, paper, or fabric. Whereas a Smart Candle can be used with all of those materials to develop an entirely new market of lighting holders that can be marketed for both commercial design and home décor.”
