Rogan Donelly Principal, Tervis Tumbler AN AMERICAN ORIGINAL How Tervis Tumbler Grew from State Secret to National Treasure TERVIS TUMBLER QUENCHES ITS FLORIDA BUSINESS ADVANTAGES 2 # INFRASTRUCTURE IN THE UNITED STATES 321,000 MANUFACTURING WORKFORCE 2 # BEST STATE FOR BUSINESS THIRST FOR SUCCESS FROM FLORIDA I T WAS CRE ATED IN THE SAME YE AR AS THE BIKINI, TUPPERWARE CONTAINERS AND THE MICROWAVE OVEN. Yes, we’re talking about Tervis tumblers. Invented in Detroit in 1946 by Frank Cotter and G. Howlett Davis, Tervis tumblers are as American as the two-piece and leftovers. Ask the average person when these iconic insulated tumblers hit the market, however, and you’ll probably hear a year much closer to the one we’re in now. So, what happened? 5.5% CORPORATE TAX RATE & NO PERSONAL INCOME TAX Third-generation owner, Rogan Donelly, says it best: “Our products have not changed throughout the years. Our rise in popularity? Awareness.” In the last 20 years, Tervis tumblers have transitioned from local specialty item to largescale phenomenon, mainly due to the variety of specialized decals displayed between the two tumbler walls. In addition to the tumbler’s no-sweat technology, customization remains the differentiator. company’s “Many largest companies require high minimums for custom products,” said Donelly. “We have the capacity to create as little as one.” The scale borders on microscopic, but it’s a business risk that has paid off, expanding the Tervis customer base to effectively include anyone. But choosing the right manufacturing TERVIS TUMBLERS: A Refreshing Florida Success In 2011, Tervis doubled its production capacity and continues to see exponential year-over-year increases location was crucial. Without the right mix echelon of consumer goods. “In 1995, we of pro-business attitudes, cost-effective gained our first license with college athletics infrastructure and workforce talent, it would CLC,” said Donelly, which remains the have defied the laws of profitability to offer company’s largest licensing deal to date. the deep level of customization that sets In 2008, a partnership with Bed Bath and Tervis apart from the competition. Luckily for Beyond added another level of exposure, Tervis, one state fit the bill: Florida. which was quickly followed by a slew of other licensing deals. Leveraging Florida’s in both sales and workforce. TERVIS LICENSED SALES COLLEGIATE LICENSE NFL LICENSE DISNEY LICENSE • OTHER MAJOR LICENSING AGREEMENTS: COCA-COLA •MARVEL • ALL BRANCHES OF U.S. MILITARY TERVIS WORKFORCE “As far as the workforce talent here in Florida, we have very loyal and dedicated employees, some who have been part of the company for as long as 25 years.” - Rogan Donelly Principal, Tervis Tumbler 99 448 231 778 Employees in Florida Office & Production Support Production Direct Labor institutions like Disney, the NFL, Marvel, Warner Brothers and more, catapulting the brand into the national spotlight. A WORKFORCE THAT HOLDS WATER As demand grew, so did Tervis. In 2005, the company repurposed its original manufacturing facility into a retail store and opened a new 55,000-square-foot manufacturing plant in nearby Venice, Florida. The state-of-the-art manufacturing facility is—of course—highly automated, using ultrasonic sound waves to trap a pillow of insulating Florida air between the two walls. But Tervis’ dedication to providing each customer with highly detail-oriented and dedicated to the THE HISTORY OF AN ICON brand as well. Each emblem must be placed Tervis tumblers may have been born in by hand between the tumbler’s two plastic in Florida. Donelly’s grandfather, John sell emblems, not cups,’ alluding to the fact Detroit, but their formative years were walls. “My grandfather used to say, ‘We C. Winslow, purchased the product rights that whether you’re a fisher or a botanist, from Cotter and Davis in the 1960s. Shortly we have a design that will fit your interest,” thereafter, manufacturing operations and said Donelly. Tervis corporate headquarters were whisked away to Osprey, Florida, joining the ranks Winslow had already started. “All of his 154 Employees in Other States businesses shared the same attributes— high-quality, functional, American-made products,” Donelly reflected. For the next several decades, production and sales STATES Tervis established partnerships with major that isn’t just manufacturing savvy, but of several other manufacturing businesses Retail 17 its high-concentration of sports teams, a unique experience requires a workforce 154 RETAIL LOCATIONS connection to the tourism industry and remained steady, until a major licensing 38 STORES deal propelled Tervis tumblers into a new When spikes in demand require an increase in workforce, Tervis has no shortage of available talent, tapping into Florida’s manufacturing workforce of 321,000 to fill critical positions. Lately, that’s been often. In 2011, Tervis doubled its production capacity and continues to see exponential year-overyear increases in both sales and workforce. In 2010, there were less than 300 on payroll year-round; as of 2015, Tervis has 932 employees with plans to surpass 1,000 workers in 2016. “As far as the workforce talent here in Florida, we have very loyal and dedicated employees, some who have been a part of the company for as long as 25 years,” Donelly reflected. “Tervis is an attractive, fast-growing and innovative brand that gives our employees room for creativity and growth.” FLORIDA’S NO-SWE AT INFR ASTRUCTURE With only one manufacturing facility and custom orders making up a substantial part of Tervis’ business, a well-connected infrastructure and the ensuing ability to keep shipping and material costs low is another critical benefit of the company’s Photo courtesy Tervis Tumbler With only one manufacturing facility and custom orders making up a substantial part of Tervis’ business, a well-connected infrastructure and the ensuing ability to keep shipping and material costs low is another critical benefit of the company’s Florida location. Florida location. Although the Tervis equipment give Tervis the breathing room With several successful social media to grow, reinvesting funds into new areas of campaigns under its belt and ongoing regional market is still its most robust. business. “We want Florida to be the most growth numbers that would make any competitive state in the nation for great business jealous, the Tervis business companies like Tervis to succeed,” said model is working—phenomenally. brand is gaining national traction, its “Currently, our strongest consumer fan-base and retailers are in the south, so manufacturing and shipping out of Florida works well for us.” Florida’s extensive multimodal infrastructure, ranked second in the nation by the National Chamber Foundation, keeps Tervis well-connected to both its suppliers and its growing customer base. With 19 commercial airports, 15 deepwater seaports and thousands of miles of interconnected Florida Governor Rick Scott. “By creating a low tax, business-friendly climate, Florida is well on the way to becoming first for job creation. We will continue to support Enterprise Florida so job creators like Tervis can continue to diversify Florida’s SOAKING THE COMPE TITION It’s a classic American business story—one ingenuity, a where savvy dedication to technical marketing quality and come economy and create jobs for our families.” together to build one powerhouse For instance, Tervis recently opened the story and we’re so proud to call them a Innovation Florida company,” said Florida Secretary Center, located adjacent to its Venice of Commerce and Enterprise Florida plant, in 2014. “With the large amount President & CEO Bill Johnson. “They of growth we have seen over the years, have found all of the resources they we have also started a gradual shift need for success in our state, from a In addition, Florida’s pro-business from being a manufacturing company skilled workforce that manufactures their helps to a consumer goods company with a products to a pro-business climate that Tervis sustain its ongoing growth. strong emphasis on our brand,” said makes it easy to operate, to an expansive Recognized as the #2 best state for Donelly. Housing the company’s web infrastructure that allows them to move business by Chief Executive magazine, team, product development, marketing, their industry-leading products around the creative and licensing departments, the world. We look forward to watching their new Innovation Center is solely focused continued growth and thank them for their on commitment to Florida.” road and rail, Florida is a natural trade hub for both domestic and international enterprises. A REFRESHING COST OF BUSINESS economic environment Florida’s low 5.5-percent corporate tax rate, no personal income tax and sales and use tax exemptions on manufacturing 24,000-square-foot inspiring Tervis brand. “Tervis is an American success creativity and fostering collaboration to propel brand growth. To learn more about how Florida can help your business thrive, contact Enterprise Florida, the state’s principal economic development organization, at 877-YES-FLORIDA or visit PerfectBusinessClimate.com.
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