Small-Biz Winners.

• Author: KRONEMYER, BOB
• Position: In Indiana

The U.S. Small Business Administration presents nine awards to Indiana entrepreneurs and supporters.

Does intoxication from the fragrance of chocolate constitute an occupational hazard? For some workers, perhaps, but certainly not for Mark Tamer, founder of The South Bend Chocolate Co. in South Bend. "I don't even smell the chocolate anymore," confesses Tamer who grew up working in his father's chocolate company, also once located in South Bend.

The U.S. Small Business Administration has named Tamer, and company vice president Sue Harwood, Indiana's Small Business Persons of the Year for 2000. Although Tamer declines to provide specific sales figures, he says the company has enjoyed 30 to 60 percent annual growth each year since 1994.

Tarner attended Eastern Illinois University in Charleston "on a basketball scholarship, being the good Hoosier that I am," where he received undergraduate and graduate degrees in history. Harwood's connection with the chocolate company came through her husband Jay, a high school basketball rival of Tamer's in the 1970s. "Jay came home and told me that he bought into a business that produces my favorite thing," says Harwood. "I looked at him and smiled -- a chocolate company?" Sue joined the firm as vice president that same year, in 1993.

The South Bend Chocolate Co.'s production facility consists of about 17,000 square feet in an old toy plant. "We produce both enrobed and panned chocolate," Tamer says. Enrobed chocolates are coated around other edibles, such as nuts and caramels. In total, the company makes about 200 items, including some molded chocolates. "We produce about 4,000 pounds of chocolate a day," Tamer says. And during peak season, the company's payroll can increase to 100 employees.

The South Bend Chocolate Co. was founded in 1991 and incorporated in 1993. It currently has 16 retail outlets, most of them in Indiana. The company also has a large wholesale division, which distributes to 27 states. Relying on top-grade ingredients, solid packaging and creative marketing have all contributed to the bottom line. Selling product slightly below the price of comparable competitors is also a plus. "I love the challenge of growth," Tamer says. "It's nice to be recognized for working hard."

Employee selection is also crucial. When hiring, "we look for enthusiastic, self-motivated individuals -- people who enjoy what they're doing," Harwood notes. Furthermore "by working side-by-side with our employees, we are able to take an interest in them both as a person and an employee. They are not just a number." The company is also good about promoting from within, which boosts morale and longevity.

Leading by example starts from the top. Harwood spends much of her day visiting the retail outlets, where she reinforces superior customer service, such as acknowledging customers that are third or fourth in...