Q&A with It’Sugar’s Jeff Rubin: The King of Sweets
Photo: Jeff Rubin, Founder, CEO, It’Sugar (Credit: Patrick Gray, Kabik Photo Group)
Jeff Rubin, founder and CEO of It’Sugar, has always had a sweet tooth — and a passion for retail. His father owned a chain of toy stores in the Midwest. After leaving the toy business, he went on to open a chain of bulk candy stores.
Rubin worked on Wall Street for a while before returning home to help run the candy chain. In 1994, he left to got out on his own. He’s been on an upward trajectory since.
Experts credit Rubin with breathing new life into the candy store format. He hit a home run first time at bat, with FAO Scheetz, a whimsical in-store candy shop he created for FAO Schwarz stores. Its success did not go unnoticed and other merchants sought him out, including Toys “R” Us.
In 2001, Rubin, in collaboration with Dylan Lauren (daughter of Ralph), co-founded Dylan’s Candy Bar, in Manhattan. With its candy-themed design, playful atmosphere and extensive selection, the store was a hit from day one, attracting tourists and New Yorkers alike.
[quote-from-article] Rubin left Dylan’s in 2005. On his own again, he opened the first It’Sugar store, in 2006, on the boardwalk in Atlantic City, N.J. Ten years later, It’Sugar is one of the country’s largest and fastest-growing specialty candy retailers, with 92 stores nationwide. It also does a brisk business in novelty items and gifts, and has its own branded line of apparel and accessories.
A DIFFERENT SPIN
It’Sugar is not your average candy shop. The stores are colorful and over the top, and have a cheeky, irreverent edge that appeals to all ages. Along with all the familiar classics and retro faves, the merchandise mix includes a line of mega-sized candy and lots of exclusive private-label sweets, including such PG-naughty best-sellers as Gummy Bear Kegs and Schweddy Balls (part of a line the company developed with "Saturday Night Live").
The company even injects fun into its more serious ventures. The brand is working to boost students’ entrepreneurial skills through a partnership with Carver Middle School, in Delray Beach, Florida, whereby students learn all aspects of the candy-making business, creating a new candy that It’Sugar sells at its stores. A share of the profits go back to the school.
Chain Store Age editor Marianne Wilson spoke with Rubin about It’Sugar and its plans for the future.
FAO Schweetz. Dylan’s Candy Bar. It’Sugar. When did you get interested in candy?
My love of candy began at an early age. I would sell it during recess.
How is the overall candy market trending these days?
The market is moving towards the fantastic and the unique. Candy has become an experiential treat and with that, the more unique the product, packaging and the design, the more people love it.
What made you leave Dylan’s Candy Bar?
It was always my lifelong dream to create a really fun candy store where people could experience candy in a new way. Opening 100 stores in 10 years is something I never imagined could be done, but it's clear that the concept has resonated with people.
How has the IT’SUGAR concept evolved since the first store opened back in 2006?
It’s evolved to become a place where some of the biggest candy brands come to debut innovation. We developed the idea for oversized giant candy boxes with brands like Nerds, Sour Patch Kids, Airheads and even the gummy bear.
The TV show 'Saturday Night Live'came directly to IT’SUGAR to create skit inspired candy for their 40-year anniversary. And Sour Patch Kids chose to launch their single flavor and larger sized kids for the first time ever at IT’SUGAR stores and the list goes on.
How would you describe IT’SUGAR’s positioning?
Our competitive set does not necessarily include other sugar brands or candy stores and retail chains. Instead, it’s t stores that look to give their customers more than just a product, an experience. We are inspired by stores like Pink at Victoria’s Secret, Urban Outfitters, Bath & Bodyworks. Our ambitions and size are as big as they are.
Who is the target audience?
Our target audience is young adults, but we find that people of all ages enjoy our stores and unique products.
What do the stores look like?
Our stores are a feast for the eyes, lively and colorful. We create an experience for our customers. IT’SUGAR is a destination to come and stay awhile, not only are there thousands of candy options to choose from but hilarious novelty gifts.
About how many SKUs does IT’SUGAR carry? And what else do you sell besides candy?
We carry thousands of SKUs that reach beyond candy to include a range of novelty gifts, apparel and accessories. Brands such as Chupa Chupa, Airheads, Sour Patch Kids, among others have come to IT’SUGAR to launch apparel and accessory items.
What is the real estate strategy? Is there an ideal location?
Our store works in many formats from flagships that are 5,000-plus sq. ft. to smaller locations at travel rest stops. But while the concept really works anywhere, we focus on resorts and lifestyle centers.
How many stores in total will be open by the end of 2016?
We will hit 100 stores by the end of the year. All our stores in in the United States are company owned. We have a few international locations that are franchised.
How many stores do you expect to open next year?
We are continuing to expand at a fast rate and expect to open roughly 25 locations next year.
Do you also have a wholesale business?
We are selective with our partners, selling to a variety of businesses from small mom and pop stores to Nordstrom.
How has the growth of online shopping impacted IT’SUGAR? Or is candy immune to the lure of online?
We have a growing ecommerce business, but our in-store sales only continue to get better year over year. People appreciate the environment where they can come in with a few friends and have a laugh over funny packaging or share a treat together.
Our stores tend to be more of an impulse business and our website is more focused on gifting purchases. If you crave a chocolate bar you’re not going to wait for FedEx to bring it to your door.
Your stores carried some unusual items. What are some of the more fun ones?
Our branded box candy, such as “Dinglebearies,” which are chocolate-covered gummy bears, “Camel Balls,” our sour-filled bubble gum balls, and “Flinging Poo,” which are chocolate covered banana chip. And there is so much more.
What’s the single most expensive item at IT’SUGAR?
As we are known for our giants, we offer a 27-pound gummy bear that can be filled with even more gummy bears inside of its belly. The bear is 17” long, 10” wide, and 5.5” thick and retails for $179.99.
You’ve worked in retail your entire career. If you were just starting out, would you still go into retail?
Yes, retail is my passion. It’s still a dynamic industry that allows you to connect with customers. I love seeing the joy our stores bring to people.
Are you involved in the company’s day to day operations? And your wife also works in the business, right?
As the CEO and founder, I lead the day to day operations. My