While Atlanta was enjoying a history-making turn as host of the 1996 Olympic Games, two residents -- David Duncan and Gretchen Hollingsworth were holed up in a kitchen making a little history of their own. Over a pot of bubbling wax they brewed the foundation of what would come to be known as Paddywax, a multimillion-dollar company that produces high-end candles.
Those were the last days of the dot-com boom when all it took to earn big bucks was a great idea. When Hollingsworth floated her idea for making candles to Duncan, his enthusiasm was sincere.
"I was flirting with her, but when I saw her idea, I said, ‘You're going to make a million dollars,'" he said.
The Decatur-based brand, housed in a 15,000 square feet facility, now sees $5 to $10 million in revenues and has far exceeded Duncan's early forecast -- in part because of a recent decision to sell a majority stake in the company.
"We went from being a lifestyle company to being a growth company," Duncan said.
The change has allowed the duo to focus more on marketing, technology and most important, innovation.
Duncan and Hollingsworth have found themselves working almost as hard as they worked nearly 15 years ago when they were still mixing wax in the kitchen and plotting their attack on the gift industry with their "country crafty" looking candles. Duncan said the expensive pillar candles with angled layers were designed for folks seeking upscale accessories to complement their newly purchased or remodeled homes. After making rounds at craft fairs and home parties, they headed to gift markets including North Carolina's High Point, and saw the product take off.
Working day and night to build the business, they barely had time to get married in September 1998. And with the business on an upswing, they began to hire employees and invest in real estate. The warehouse in Decatur is the company's third headquarters.
A fresh scent greets visitors to the Paddywax outlet located just inside the building entrance where discontinued or damaged items are sold at a discount. In the rear of the building is a room with 14 tanks wrapped in silver water jackets. Here the wax is melted to temperature before adding fragrances and dyes. The candles are cooled before moving to the next room for packaging, sorting and order fulfillment. The company has consistently used eco-friendly materials, Duncan said, and have held to the practice of sourcing fragrances, wax and wicks domestically.
For years, getting the product to that point was fairly simple, Duncan said. "We decided what to make and we would make it and try to sell it," he said. They learned a few hard lessons, like the time they invited someone they met at market to come out for a tour. They walked him through their process only to watch as he ripped off their entire catalog and put his brand name on it. "In our world, it is unavoidable," Duncan said. "It taught us to get beyond it and create something better."
Just over two years ago, another stranger approached them at market with an interest in the company, but this time the outcome was much better. The retired businessman was looking for a new business and the couple was looking for an exit. "We quickly understood the days of 1997 when we could walk in an attorney's office, hand over the keys and get a large check were over," Duncan said.
So they tapped into their early passion and re-committed to developing a product that people wanted. The first two new collections reflected their energized creativity, Duncan said. "Garden Crush" launched last year is a line of flower-inspired scents packaged in bright colorful custom tins and boxes. In spring, they created theLibrary Collection.
"We were sitting at home looking at books and [Hollingsworth] said, ‘I love this paper,'" Duncan said. "The idea for the collection came from the feel of paper and we decided to base it on authors. Jane Austen was the first. So we asked, ‘What would Jane Austen smell like?'"
The newest collections, "Gardenia" a single fragrance collection, also features upgraded packaging, while Eco-Green, which replaces the previous eco-friendly collection, is packaged in recycled wine bottles. Products in the collections are generally priced from $12 -$30.
The sale of the company means much of the production will soon move to a facility in Nashville, Duncan said, but the Decatur facility will remain the manufacturing hub and will gain even more manufacturing space. Duncan said the company has seen an 85 percent growth in revenue over last year and the future outlook is good.
At some point, the couple will move on, but for now they are staying put.
"The brand is an extension of Gretchen and I. We truly believe we are creating an experience with our products," Duncan said. "Touching, feeling and smelling... nice candles are not a fad that is going to go away."
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