The interview is hosted by Jason Boudreau and published in Iconic Concierge, Summer 2024
Karen Flavelle
CEO & Chair, Purdys Chocolatier
Welcome to the Summer 2024 edition of Creating Impact. I hope this finds you and yours doing well and excited for the sun and fun ahead! For this edition, I had the absolute pleasure of spending time in conversation with Karen Flavelle, CEO and Chair, Purdys Chocolatier. From the moment we sat down, it was clear to me that Karen’s visionary leadership and unwavering commitment to quality and the customer experience, have been instrumental in driving Purdys’ growth and continued success in the competitive confectionery industry. In addition to her business acumen, Karen, along with her family, is deeply focused on supporting causes that are close to her heart and philanthropy is no-doubt in her blood, having grown up in a household with a dedicated, long-time Rotarian in her late father, Charles.
Karen’s story is one of determination, perseverance, and a passion for business that was ignited from a young age. Growing up, she watched her father build a successful business from a small business he and a partner bought in 1963, that had originally been started in 1907. This created an interest in her for business. However, her father had reservations about family joining the company: “I remember having family dinners and listening to how my father’s day had been and being really intrigued by his work. But one thing that was made clear was his messaging around not wanting to parachute his children over long-term valuable employees. He had a very high regard for his employees and wanted us to understand that running a business isn’t easy and it’s something that requires constant nurturing. Karen (and her siblings) received this message loud and clear, and each of them pursued their own careers and ventures. However, her passion for business continued and her entrepreneurial spirit grew.
Her journey began when she decided to pursue a career in marketing at General Mills, soon after earning her Commerce and Marketing Degree at . Karen worked at General Mills in Toronto for over 5 years and was able to gain valuable insights into business operations and marketing procedures. Although she felt grateful for this robust background as it kickstarted her career in the right direction, she decided she wanted to move from packaged goods marketing to retail marketing as she enjoyed the experiential nature of retail and wanted to be deeply engaged in understanding and crafting the customer experience.
While in Toronto, Karen was intrigued by the idea of joining her father Charles’ business and reached out to inquire about the possibility of moving to Vancouver and working in marketing at Purdys. Her father refused her request, and affirming that the marketing department was full.
It was around this same time, that Karen met her husband, Jamie, and she moved to London, England where he was living, and found a role in a boutique Product Development consultancy. The key lesson Karen learned there was to trust her instincts, valuable for the future. Their stay in London was cut short however, as the market crash of 1987 pivoted their lives completely. Jamie was working at Citibank, who then decided a Canadian dollar Eurobond department was no longer needed. Karen and Jamie decided that it would be best for their careers to move back to Canada.
Upon her return to Toronto, Karen took on a role at Swiss Chalet, spearheading the marketing division for over five years. This experience was crucial as it allowed her to fully engage in the logistical, operational, and marketing efforts of a large retail environment with over 140 restaurants. Despite her success in her role, her heart was set on joining the family business at Purdys. She re-engaged the dialogue with Charles and found him open to the idea of her succeeding him in Purdys’ leadership. This change of heart was due to Purdys’ first employee asking when the family was going to come into the business and due to the death of Charles’ youngest son, causing Charles to realize his own mortality. Karen’s husband Jamie wanted to spend 5 years in Toronto near his family before moving to Vancouver – which gave Karen and Charles five years to negotiate a deal that worked for both of them.
The story of Purdys itself is one of ambition and risk-taking. At just 35 years old, Charles took on the challenge of buying Purdys in 1963 with his friend and soon-to-be business partner, Eric Wilson. Despite facing initial rejection from the bank, Charles and Eric were unrelenting in the face of challenges, and the duo secured the necessary funding with Karen’s grandfather’s support. This started the journey that would shape their lives and the future of Purdys forever. They started with just four stores and a 3,500-square-foot factory, and gradually expanded the business to 44 stores and a 57,000-square-foot factory, all while building a reputation for quality chocolates and a positive and equitable working culture.
After Karen joined Purdys in 1994, she played a significant role in the growth of the business, implementing crucial changes that would shape the company’s future. Sales had stagnated for four years prior to her arrival and Karen knew she needed to make a substantial difference to steer Purdys in the right direction. She spent 4 months travelling to every store, identifying retail challenges and fully immersing herself in the customer buying experience. During these trips, Karen found room for improvement in several avenues including finding ways to package products more effectively, redesigning stores in a way that enticed customers and identifying strategic solutions to provide customers with what they wanted most, whilst simultaneously prioritizing product freshness and keeping pricing accessible to everyone.
Her keen insight into branding, pricing and visual merchandising revitalized the business. By identifying the customers’ needs and preferences, Karen orchestrated a major branding enhancement and made the colour purple dominant, a colour that stood out in mall storefronts and packaging, making Purdys instantly recognizable to customers. To this day, when Canadians think of brands with purple as their colour, Purdys is always the one that comes to mind. In tandem with her efforts to revitalize the brand through marketing and customer experience, shifts in the pricing model and manufacturing, led to a substantial increase in sales and spurred a new trajectory of growth for Purdys.
The Purdys Chocolatier empire grew from 44 stores in 1994 to 84 stores in 2018, nearly doubling since Karen joined the company. New sales channels were added: Ecomm and Chocolate Bar Fundraising. And the manufacturing facilities are now approx 157,000sf.
The COVID-19 pandemic posed challenges for businesses worldwide, and Purdy’s was no exception. However, with Karen’s tenacity and her never taking for granted quality, freshness, and the customer experience, Purdys shone through as customers noticed when stores opened back up, how they had maintained the standard of their products despite global supply chain challenges. This commitment to quality not only retained customer loyalty, it strengthened it, emphasizing the enduring values of the Purdy’s brand.
Alongside Karen’s personal philanthropic endeavours, Purdys operates on values of sustainability and has been at the forefront of supporting cocoa-growing communities. In 2007, they took their first step by becoming involved with the World Cocoa Foundation. Over time, they transitioned to sourcing 100% sustainable cocoa, demonstrating a firm commitment to ethical and responsible practices. Complimenting Purdys’ core values and best practices, the company’s philanthropic pillars align closely with Karen’s vision, emphasizing support for BIPOC, women’s empowerment, children and youth facing vulnerabilities, and LGBTQ+ communities.
Additionally, the Karen and her family have extended their philanthropic reach through various initiatives. They support the Take a Hike Foundation, a program designed to engage at-risk youth through dynamic, adventure-based learning experiences. They also have contributed to Dress for Success, an organization dedicated to empowering women to achieve economic independence, as well as extending support to BC Children’s Hospital, reinforcing their commitment to the well-being of children and families in need.
As has become customary in closing out these candid conversations, I asked Karen to share about approaching philanthropy and giving back, as if she was guiding mentoring young people in this area. She shared, “To whom much is given, much is expected. If one is fortunate enough to have, it is equally important to give back in equal measure”. This ethos is not only ingrained in her philanthropic efforts but is also being instilled in her children, ensuring that the legacy of giving continues for generations to come. Karen’s proactive and strategic approach serves as an example for others, demonstrating that thoughtful, targeted giving has the power to effect meaningful change in the lives of those who need it most.
Looking to the future, Karen envisions a continuation of the family legacy through Purdys. She established clear criteria for the Next generation to join the business, with an emphasis on a university degree, and work experience that provides transferable skills to Purdys such as insight into business operations, marketing, finance. Her youngest son, Scott, has already made a valuable contribution to the company, both during and following the COVID-19 pandemic, highlighting the potential for future generations to continue the legacy of Purdys.
As Karen steers Purdys towards the future, she is resolved to maintain the company’s identity and uphold its commitment to quality. A comprehensive governance document ensures the preservation of the brand’s integrity, while also addressing the challenges of expansion and logistics. Ultimately, Karen envisions a continued role for Purdys in the family, with Scott poised to take on a leadership role in realizing this vision.
Karen Flavelle’s journey is a testament to the power of unwavering determination, a commitment to excellence, and a belief in the enduring values of family and tradition. As she paves the way for the future of Purdys, her story serves as an inspiration to aspiring entrepreneurs and business owners and a reminder of the timeless values that underpin true business success.
