[T]he founders of Danforth Pewter are in the process of selling their shares in the company as the retail pewter firm continues to expand out of state.
Fred and Judi Danforth have sold about half of their stock to shareholders and plan to sell the remaining half within the next five years or so.
“We’re stepping back,” said Fred Danforth. “We came up with a plan that makes that possible.”
While Fred Danforth declined to give details of the plan, Danforth CEO Bram Kleppner said the company is currently owned by 24 shareholders.
Kleppner said Danforth Pewter is also considering employee-owned stock options or other opportunities in the future.
“We’re eyes and ears open for some other buyer,” Kleppner said.
Meanwhile, Danforth Pewter is expanding and the Vermont-based company is stepping away from Vermont.
Danforth dropped Vermont from its tagline for the first time last year, changing the slogan from “Handcrafted in Vermont” to “We work metal by hand.”
“We’ve been able to grow the brand in a new direction,” said Kleppner.
Danforth opened two locations outside Vermont last year — one in Portland, Maine, in July and another at National Harbor, Maryland, just outside Washington in October.
At the same time, Danforth changed some of its products, stepping away from “Vermont made” products to “Maine made,” for example, in its Portland location.
“I think it’s super important to connect with those individual areas you’re in,” said Matthew Parker, Danforth’s director of retail. “I think if we went into it thinking ‘Vermont made’ would sell itself, that would be a miss.”
Parker, who was previously general manager of the Orvis Co., joined Danforth about two months ago.
“Retail expansion is on my priority list,” said Parker.
Parker said Danforth plans to open one new store a year, focusing on the New England states initially.
“The future of our brand is us communicating that we are super authentic,” he said.
The future of Danforth’s presence in Vermont is unclear.
Fred and Judi Danforth founded the handmade pewter business from their barn in Woodstock about 45 years ago. They opened a shop in Middlebury in 1989 and now have five stores in the state, including a workshop.
“The objective is to keep staff in Middlebury as long as possible,” said Fred.
Kleppner said shareholders may have some somewhat different goals for the company, but share some in common.
“They all want to make money. All of them like the town of Middlebury,” he said.
This isn’t Kleppner’s first time working for a company where the founders were selling the business.
He worked at Ben & Jerry’s for more than 10 years, before and after Unilever purchased the ice cream company in 2000. Under new ownership, founders were barred from some meetings and a number of longtime employees were laid off.
“Founder transitions are tricky,” Kleppner said. “We put a lot of thought into our founder transition (at Danforth). It has has made us grow up as an organization.”
Kleppner became vice president of sales of Danforth in 2007 and CEO in 2011.
Danforth acquired Shirley Pewter in Williamsburg, Virginia, in 2009 and WTWilson Co. in Providence, Rhode Island, in 2012 under Kleppner’s leadership. Last January, Danforth also acquired Vilmain Pewter in Providence.
Fred and Judi Danforth sold about 30 percent of their company to shareholders for the first time in 2006 to raise money for manufacturing expansions. They sold an additional 20 percent last year. They will continue to sell pieces of the company every year.
“We hope that they will continue to maintain our standards of quality (and) support of employees and the environment,” said Fred Danforth.
Meanwhile, the company is ‘“testing the ability of the brand to travel,” said Danforth director Tim Volk.
The company has gone from about $2.9 million in annual revenue in 2008 to about $6 million.
“The goal is, over time, to make this a $10 million business,” said Volk.
Danforth employs about 68 people in Vermont and another 20 out of state.
Middlebury Town Manager Kathleen Ramsay said the company is an established part of the community.
“They have always been a contributor to local charities and nonprofit groups,” she said.
Middlebury Selectboard member Laura Asermily said she hoped the changes at Danforth would benefit the town and the business.
“They’re the type of business that you want to see flourish,” Asermily said.
