Richard Krause became CEO of Greenville-based Confluence Outdoor in mid-February, replacing Sue Rechner, who ran the homegrown firm for nearly a decade. Confluence employs about 400 people making eight brands of kayak, canoe, surf and stand-up paddleboards, and paddlesports accessories. It distributes the product through about 900 dealers in the United States and Canada, from independent retailers such as Sunrift Adventures in Travelers Rest to big chains such as REI and Dick’s Sporting Goods. and also has an overseas business. It does not have an online business.
UBJ interviewed Krause at the company’s 480,000 square-foot factory along Mauldin Road.
Did you know about Greenville before you took the job?
I did, but my wife and I came down here to visit right before I took the job and both fell in love with the town. We actually moved this weekend.
You’ve run some other companies before?
I’ve been a general manager since I was in my early 30s. Worked for Newell Brands for 13, 14 years. Worked at Fiskars brands as the global chief marketing officer and as the EVP of the international operations. Ran a big piece of business for ConAgra Foods. … I led a management team that built the world’s largest platform in bowhunting and archery accessories. It’s called FeraDyne Outdoors, and we sold that business.
Didn’t I also see something about you running a confectionary company?
Yes. I ran the New England Confectionary Company. Necco candy. It was a massive turnaround. Necco wafers. Clark bars. Mary Janes. Really iconic brands. That was in Boston. So I did that for several years. … It was having difficulties. We got it into position where it was doing very well.
What is Confluence’s market position as we speak?
We are the No. 1 branded manufacturer and marketer of premium kayaks, canoes, and stand-up paddleboards. So we’re a global player. We have business in Europe and Asia. We obviously have a significant amount of business in the States. But we are No. 1 in the category.
What are your biggest challenges in running Confluence, and your biggest opportunities?
The biggest opportunity is that the business can become, I believe, a lot bigger than it is. There’s a lot of white space potential that we’re going to begin to go after. … These brands are very powerful brands to consumers, and we think we can make them even more powerful. The biggest challenges we have is we’re in a very dynamic manufacturing environment in Greenville. … Getting the right people in the plant has been — not difficult, but it’s challenging. There’s a lot of options down here for different manufacturing companies, different types of positions. So we have to provide a good environment. We have to be on top of our game to retain good people.
You mention that you want to grow the company. How does that happen?
It happens in a couple of ways. No. 1, it’s innovation, new product development. We’ve always been really good at that. We’re taking that up to the next level. The other area is to expand our distribution around the country, which we’re working on. … We do a lot of work with the big chain stores. We do work with REI, Dick’s Sporting Goods, those types of accounts. And to make sure that we’re doing everything we can to sell as much product through them, help them with merchandising and displays, inspire consumers at the store. So it’s really kind of a multi-prong attack, how we’re going to do this.
How much of Confluence’s annual production occurs in Greenville?
About 80 percent. We are a U.S.-based company. We’re very proud of that. Greenville is in one of the big paddling sport areas of the country. We like being here. We like doing it here. We like controlling our quality. So it’s about 80, 90 percent occurs here.
Will you be able to continue that? Are there pressures on the company to go overseas with production?
You know what, I’ve run a lot of manufacturing businesses. And if you do it right, you can manufacture in the U.S. If we took the premium kayaks overseas, we wouldn’t have the control over the quality, the innovation, what we want to do with the product. So we will make sure that we’re running this business in a way that allows us to continue to manufacture and grow jobs here and grow the business right here.
How long does J.H. Whitney & Co., the private equity firm that owns Confluence, typically hold a company in its portfolio? Are they anywhere close to looking at an exit?
No. … I’ve done private equity for the last 12 years, and unlike many other firms, they don’t have a set hold date. … They’re very positive in running their businesses. So what they want to do is grow the business and optimize it. They have businesses that they haven’t exited because they’re doing so well they hang on to them. So there’s no plan except to do the best we can with the company. … The job that they want done from the executive team is for us to optimize value and create value for our employees, our consumers, our customers, and our shareholders. And that’s our mission here. That’s a great environment to operate under instead of “I’ve got to get this thing ready to go to market in three years.” So they’re a good firm.
Richard Krause
Age: 54
Hometown: Northbrook, Ill.
Education: Bachelor’s degree in industrial technology, Illinois State University, 1983
Family: Wife, Kathleen Guetschoff. Together they have seven children.
Last two CEO jobs:
FeraDyne Outdoors, a manufacturer and marketer of archery and bowhunting accessories based in Superior, Wisc., 2011-2016.
New England Confectionary Co., maker of NECCO wafers, Sweethearts, Clark Bars, and other candies, based in Revere, Mass., 2008-2011.
Best advice ever received: “It takes a lot of hard work and dedication to make businesses run.”
Outdoor activities: Cycling, hunting, archery, and tennis. Just took his first lesson in whitewater kayaking at the U.S. National Whitewater Center in Charlotte.
Favorite outdoor place: His farm in northern Wisconsin.
