Celebrating a Tradition of Quality

Celebrating a Tradition of Quality In 2006, Smead Manufacturing Company reached a milestone— 100 years of outstanding growth and success. Over the co...
Author: Horace Norris
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Celebrating a Tradition of Quality In 2006, Smead Manufacturing Company reached a milestone— 100 years of outstanding growth and success. Over the course of a century, Smead has evolved from a small organization with a single product to a global leader in the office products industry. Today Smead represents the benchmark in adapting and inventing organizational products and solutions to fit changing needs. The remarkable story of Smead’s first century offers a vision of corporate ingenuity, integrity, and excellence. The company’s rich heritage is built on valuing employees as the greatest asset. Join us in following the inspiring journey in celebration of Smead’s centennial.

“Growth of any company is never the result of the efforts of one or even a select few individuals; it is the combined performance of a team… a team of dedicated production, sales, and management personnel working together to produce and put in the marketplace items that meet customers’ needs.” — Mrs. Ebba C. Hoffman, President and CEO of Smead Manufacturing Company speaking in 1971 at McGregor, Texas during the formal opening of the fifth Smead plant

The original Smead product, the Bandless File, is still sold by Smead, along with more than 5,000 other organizational products.

Charles Smead was granted a patent on May 1, 1906 for the Bandless Filing Envelope that used innovative metal clasps to secure important documents for government and legal offices.

A tiny room on the second floor of the Hastings Gazette building housed the fledgling Smead Manufacturing Company.

In 1906 a new century was beginning. Most Americans lived on farms or in small towns. Only two percent had telephones. Cars and sewing machines were new inventions, and it seemed as if each day someone invented something interesting. Charles R. Smead, a traveling salesman who responded to a need for a better way to organize records, was among the inventive thinkers. He was regarded as “one of the best men on the road” by his employer, the large office-supply wholesale house of G. D. Barnard & Company in St. Louis, Missouri. Charles regularly called upon the office of Peter Allen (P. A.) Hoffman, Dakota County Auditor in the small town of Hastings, Minnesota. Long frustrated by the continuing problems of deteriorating rubber bands and loose strings that were used to hold filing envelopes closed, the young auditor asked Smead for help with a solution. The idea of a “bandless” file emerged: a filing envelope on which a metal clasp at each end replaced the need for strings or a rubber band. But who could make the Bandless File? P. A. hoped Charles could solve that challenge as well. Finding no interested manufacturers, Charles applied for a patent and did it himself. He set up operations to make the Bandless File in St. Paul, Minnesota in 1906. Thus

low-rent space in a tiny room above the Hastings Gazette office and Smead Manufacturing Company began operations there in 1908.

The Bandless File solved the problem of loose strings and deteriorating rubber bands that were used at that time to hold files closed.

began the Smead tradition of quality and innovation. A year later, three investors decided that Charles’ venture was worthy. John Heinen, then County Registrar of Deeds, Irving Todd, publisher of the Hastings Gazette, and Otto Ackerman, manager of the Mertz Furniture Store in Hastings, formed a holding company in 1907. The three partners provided

Charles Smead had only five employees in 1908 when production of the Bandless Filing Envelope moved from St. Paul to a tiny room above the newspaper office in Hastings, Minnesota.

In the early days, it was Charles and a printing press, one rack of type, two die-stamping machines, a punch machine, and a round-cornering machine. Also crowded into the tiny, 20 x 40-foot room were desks, filing cabinets, two tables, three pot-bellied stoves, and five employees. Joining Smead in 1911, Frank Mueller brought the staff to six. Anna Stoudt, Clara Meyer, and Josephine Nolan did “table work:” folding, pasting, punching, and fastening clips. Bertha Bowen was “office girl.” Walter Dierken and Frank Mueller did what else had to be done: cutting paper, setting type, printing, packing stock, and cleaning up. That’s what it took to produce the Bandless File—that plus a lot of muscle and good humor. They hauled water upstairs and hoisted heavy equipment through a second story window in the rear of the building. P. A., whose Bandless File solution was now a reality, hired on as part time manager. He came down from his auditor office at the courthouse in the evenings and on weekends. And the company’s namesake, Charles Smead, sold furniture polish on the side. Barely a year after production had begun, Charles died from a fall at the age of 59. Climbing the stairs to his room on the third floor of a hotel, he followed his custom of leaning on the railing at the top of the stairs and looking down. On the evening of December 23, 1909, the railing gave way and Charles tumbled to the first floor. He died four days later, never regaining consciousness and never knowing that the Bandless File would launch an industrial giant.

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1900s 1900

1901

President William McKinley assassinated in Buffalo, New York

1902

The Teddy Bear is introduced

1903

In North Carolina, Orville and Wilbur Wright make the first airplane flight, which lasts 12 seconds

1904

Groundbreaking for Panama Canal New York City Subway opens

1905

Albert Einstein proposes his Theory of Relativity

1906

Charles Smead begins manufacturing the Bandless File in St. Paul, Minnesota

1907

Smead Manufacturing, financed by Hastings businessmen, is incorporated Princess Elizabeth born in Britain

1908

Henry Ford introduces his new Model T, the “Tin Lizzie” ($850) Smead Manufacturing Company begins operations in Hastings, Minnesota

1909

Founder Charles Smead dies. Dakota County Auditor P. A. Hoffman assumes management as a sideline

the

1910s About 10 million Americans are shopping by mail

1910

Frank Mueller joins Smead and brings staff to six

1911

The unsinkable Titanic goes down

1912

National Woman's Party forms

1913

World War I begins in Europe

1914

Transcontinental phone service begins

1915

P. A. Hoffman gains ownership of Smead Manufacturing Company

1916

US enters World War I

1917

World War I ends

1918

White Sox intentionally throw World Series to satisfy gamblers (Black Sox Scandal)

1919

As the 1910s progressed, Americans left farms to work in city factories. During this decade, America joined in World War I – a time of fighter airplanes, poison gas, and machine guns. But this was also a time of more great inventions and of growth for The Smead Manufacturing Company. Charles Smead’s only survivor was a son living in Spokane, Washington. He never had an interest in becoming involved in the business, and the three Hastings investors carried on the manufacture and sale of the Bandless File as a sideline to their regular businesses. In 1916 they gave P. A. ownership in return for organizing a bookkeeping system for investor Irving Todd. P. A. would become the first Hoffman to lead what became by its 100th year a $548 million familyowned enterprise with nearly 3,000 employees and over 5,000 products. For the next twelve years, P. A. led the young Smead Manufacturing Company in a steady, successful rise. The immediately popular Bandless File was the only product manufactured until 1918, when P. A. introduced complementary office products to the line. P. A. worked diligently to establish a reputation for quality office supplies that were promptly shipped. He hired his teenaged sons Harold and Peter to tend the three potbellied stoves before and after school. Young Harold was later “promoted” to making deliveries of finished orders. He and Al Nordstrom, a company salesman, hauled the packages in the back of a Model T coupe.

County Auditor P. A. Hoffman gained ownership of the Smead Manufacturing Company in 1916, starting a tradition of family leadership that continues today.

The Bandless Filing Envelope’s unusual shape is derived from the practice of folding documents before filing them in the narrow filing drawers used at the beginning of the 20th century.

Early catalogs and promotional materials extolled the virtues of the Bandless File.

Available in several sizes, the Bandless File was the only product made by Smead until 1918.

New products were added to the Smead product line to better accommodate the needs of courthouses and law firms.

Smead introduced the idea of color coding for better efficiency by offering the Bandless File in several colors.

The durability and capacity of the new five-piece file pocket made it an instant success. It is still one of the most popular Smead products today. Despite the setback of a fire in the Kohler building in 1922, Smead continued to grow, occupying many of the buildings in downtown Hastings, Minnesota.

The 1920s arrived. WWI was over, the economy was doing well. It was a glorious time of art deco, flappers, Babe Ruth, Mickey Mouse, and Duke Ellington. The Roaring Twenties brought the radio, automobile, “talking” movies, prohibition, and prosperity in a clash of the old and the new. For Smead, the 20s opened with the first plant expansion as the company’s roots began to grow. The entire operation moved from a room over the Hastings Gazette to new and larger quarters next door. This was the Kohler building, where Smead workers had gone for donuts when the building earlier housed a bakery. Even though a fire raged through the remodeled Smead plant in 1922, P. A. Hoffman was undaunted. He added sales territories. Catering to the needs of banks and courthouses, he created record-keeping solutions that resulted in new Smead products. First came a currency mailing box, followed by open-end envelopes, crushed envelopes, and congress-tie envelopes. Always on the lookout to address filing needs, he added flat and expanding file pockets to the line. Five-piece file pockets followed those. Unexpectedly in 1928, the Hoffman leadership legacy was passed to another generation. While out of the state on business, P. A. suffered a stroke that severely limited his activities for the

rest of his life. His son Harold Hoffman took over active management of the company. During the 26 years of his father’s incapacitation, Harold continued building the keystones of Smead success: a tradition of highest quality, inventive filing solutions, loyalty among employees, and dedication to dealers. Within a dozen years, operations grew from a single building on East Second Street to seven buildings in the same block. Known as an innovator, Harold tried many new things. Leather-like pressboard material went into production as Redrope File Pockets, a Smead first.

Harold Hoffman was thrust into management of Smead at a young age when his father P. A. Hoffman suffered a debilitating stroke in 1928.

As “The Roaring Twenties” progressed, powerful new dictators in Europe made the political situation uneasy. While some Americans were

Among the new products introduced during the 1920s was a new line called Vertical File Folders. These folders are still the most widely used filing products sold by Smead. More than 1.63 billion manila file folders were sold in 2005.

earning fortunes, many others were barely getting by. When the 1920s ended, the Great Depression loomed with hard times for many, and Smead entered a new decade under Harold’s imaginative direction.

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1920s 1920

First Smead plant expansion from the room over the Hastings Gazette to new and larger quarters 18th Amendment (prohibition) goes into effect 19th Amendment ratified, women get right to vote

1921

The first radio station in the United States begins broadcasting from Pittsburgh, Pennsylvania

1922

Fire guts the Kohler Building after Smead remodeling was completed

1923

President Harding dies of pneumonia

1924

Clarence Birdseye begins the frozen food industry

1925

Charleston dance craze sweeps the nation

1926

Congress creates the Army Air Corps Irving Berlin’s hit song “Blue Skies” featured in the first talkie, Al Jolson’s The Jazz Singer

1927

Charles A. Lindbergh, Jr., becomes the first pilot to fly alone and nonstop across the Atlantic from New York to Paris

1928

P. A. Hoffman suffers a disabling stroke. His son Harold Hoffman takes over active management of Smead Penicillin discovered

1929

Stock market crashes: Black Thursday and the beginning of the Great Depression

the

1930s Scotch tape invented at 3M World population reaches two billion Discovery of Pluto, the 9th planet in our solar system

1930

“Star Spangled Banner” becomes US national anthem

1931

Worldwide unemployment reached 39 million people Americans form labor unions

1932

President Franklin D. Roosevelt begins first of four terms as President of United States Adolph Hitler elected chancellor of Germany and given absolute power Prohibition ends

1933

Art Pfister joins the company when Smead’s rapidly expanding product line goes into national distribution

1934

Dust storms turn the middle third of the nation into the “Dust Bowl” First successful color motion picture is released

1935

Smead gets first noted “big” order of 500 brief covers

1936

Smead purchases Hastings’ oldest brick building, built in 1866 Amelia Earhart vanishes over Pacific Ocean in her attempted round-the-world-flight

1937

Nylon invented in a DuPont lab

1938

10 million Americans out of work WWII begins in Europe when Germany invades Poland

1939

The 1930s saw people waiting in line to get food from charity groups. Times had never been tougher as dust storms eroded topsoil and destroyed crops, turning the middle third of the nation into the Dust Bowl. By 1939, ten million Americans were out of work. Still, some found opportunity at Smead. Marcella Drilling was hired in August 1933. She planned to work a year and then attend business college. Instead, she served as Smead inventory clerk for sixty years, “learning business on the job.” Marcella recalled those early days. “We didn’t have inventory control then. When shelves were down, we’d make more. When I first started, we made about 1,000 file folders a day. Paper came in bundled sheets. We’d cut the paper to size, score it for the fold, glue it by hand with a brush, and put it under a hand press to dry. Then we could tab it and fold it—all by hand! Today we make 8,000 to 10,000 file folders an hour.” She remembered an order for 1,000 guides, when everyone wondered how they were ever going to do an order that size. “That’s changed, too! Now 1,000 guides is nothing,” she laughed. But Smead quality never changed. “Quality was always number one. Customers always wrote letters saying they appreciated the quality of our products.” Arthur Pfister joined the company in 1934 when Smead was expanding the product line and just getting into national distribution. Up until then, Smead’s main products were for courthouses or financial institutions. But Harold Hoffman expanded as he saw other opportunities to help the business world keep organized. He added high volume products like file folders and brief covers, indexes and wallets to the line. Art recalls it was the middle of the Depression, saying in a 1995 interview: “We weathered it just like anyone else. But, you didn’t need much money in those days. I was traveling and living off two hundred dollars a month, furnishing a car and fuel and hotels. Gas was eleven cents a

gallon. I bought a new car for my first trip to a National Stationers Association Convention in Texas. A few months ago I bought a sport jacket that cost twice as much as that new car.” Back then, Smead shipped eight to ten cartons a day to dealers in Minneapolis, relying on a hired Harold Hoffman hired Art Pfister as a salesman in 1934. Art traveled trucking firm. The throughout the United States developing new accounts and driver on the trucking establishing Smead as a provider of high quality filing products. company’s route didn’t He continued to represent Smead for almost 66 years. reach Hastings to pick As years passed, more and more was up the Minneapolis load until after dark. added to the makeshift device until it The Smead cartons were simply set out evolved into a fully automatic machine on the main street under a streetlight turning out three million brief covers a until he arrived. year. Finally, it could no longer keep up with the number of orders. In 1962 In 1936 Smead received its first large Smead took delivery of a new, order for brief covers. Hand-folding the custom-built $50,000 machine. brief covers seemed an overwhelming (The old machine task. Plant engineer Joe Podner, helped would still be used by Charlie Raetz, set to work devising in tandem with the something that would help. They new one for several developed a folding apparatus built more years.) around a wooden frame of 2 x 4’s.

Some Smead products had unusual names, such as the Kwik Twst paper drill and Spi-Roll labels. The Spi-Roll label name was inspired by the world’s only spiral shaped bridge, a local landmark in Hastings during the early years of the century. An image of the bridge was featured on the Spi-Roll packaging.

Office supply merchants used storefront window displays and handouts to promote Smead products.

Harold Hoffman continued to add new products to serve a wide range of business applications. Wallets , Brief Covers, Desk Files, Pressboard Folders and File Guides were added to Smead’s offerings.

Smead developed a reputation of manufacturing only products of the highest quality construction.

Harold Hoffman introduced many new ideas in the 1940s. Wartime restrictions on steel led to the development of Smead’s first plastic product; guides with plastic tabs. Smead pioneered the straight-line filing concept with the development of the Smead Super-System, a complete filing system using a combination of products that set the standard for drawer filing for years to come.

Harold Hoffman married Ebba Benson in 1944. Although she was not involved with the company at the time, their union set the stage for much of Smead’s success in the years to come.

The Smead catalog grew to include many new products, including a variety of expanding files. Many new dealers began to carry the Smead line, creating attractive window displays to show the growing variety of filing supplies.

The 1940s started with economic depression and a war raging in Europe. The dark days of World War II came to the nation in 1941 when Japanese bombs destroyed Pearl Harbor. It was the end of peace for the next 1,364 days. Men, and some women, went off to war. Many women who stayed home took over men’s jobs. That’s when Janet Fox started at Smead. She folded the files as they came down the conveyor and operated the glue machine. Her wages? “Thirty-four cents an hour,” Janet recalled instantly. “At that time there were probably twenty-some of us here. I thought since I was the last hired, I’d be the first fired.” At the company’s centennial sixty-five years later, Janet, at 85, still ran a glue machine at a state-of-the-art Smead. She remembered back: “We did a lot of government orders at that time. We made big, flat pockets. During the war we also made ration books for the government. They were easy because they were small. We used to do a lot of hand folding and gluing of little pockets too small to go through the machine. I got the idea to use a little paint roller, fanning out the folders and gluing many at one sweep with the roller. It really speeded up production.” This is the kind of dedication that Smead quality and leadership inspired.

of paper shortages,” reported Art upon returning to Smead from military service. As always, Smead loyalty to their dealers remained steadfast. The company allocated what it could to each customer, trying to be fair to everyone.

Janet Fox (third from left) was among many women who came to work for Smead during WWII. She is still at her job 65 years later. Also shown here are Monica Fox, Irene Fox, Dorothy Caneff, Annette Caneff and Margie Maher.

3,000 such items per day. At that rate, completion would have taken nearly two years. The Navy, however, needed the wallets within six months. Plant manager Adolph Denn recalled that production had to be accelerated to more than eight times the former output to fill the order, and 25,000 wallets were turned out daily. It took 3,200 rolls of paper—more than the company formerly used in two years.

During the war While World War II brought years, jobs for great paper shortages and the government heavy demand, staffing wasn’t kept some a challenge. Most of the staff When Art Pfister served as a fighter Smead was female and not affected pilot in WWII, he continued to receive departments by military call-ups. New his salary from Smead. busy around soldier Art Pfister was paid the clock. The biggest single by Harold Hoffman during the four government job was producing two years he was in the service, and Art million five–piece wallets for the Navy. received his sales territory back after Early in 1942 when Smead won the bid, the war. “We could sell twenty times the plant was geared to turn out only more than we could produce because

Necessity is the mother of invention, and wartime restrictions called for plenty of that. All guide tabs had been made from steel, but a substitute had to be developed when the plant was on allocation for steel. Plant engineer Joe Podner devised Smead’s first plastic product, a guide tab. A large group of World War II era employees started at the same time, and many of them still worked for Smead decades later. Janet remembered Smead employees who went off to war. “Their job was always waiting for them when they got back. It was just what Smead would do.” In 1944, the Hoffman family welcomed Harold’s new bride, Ebba Benson of Cannon Falls, Minnesota. Ebba and Harold had courted earlier, but she turned down his first marriage proposal because she felt she was too young. The union was meant to be. When they later rediscovered each other, Ebba had proven herself an astute manager and keen-minded problem solver as a supervisor for Honeywell in Minneapolis. As she traveled to conventions and meetings with Harold in the early years of their marriage, Ebba won the respect and friendship of hundreds of office supply dealers. She didn’t know it then, but their high regard for her and her “farm girl grit” would be of immeasurable help to her in the months and years to come.

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1940s 1940

U.S. begins sending war supplies to Great Britain Armistice Day blizzard drops 27 inches of snow and kills 49 people

1941

Japan attacks Pearl Harbor, Hawaii. U.S. enters World War II US begins secret program to develop an atomic bomb

1942

Smead’s biggest single government job during the war: producing 2 million five-piece wallets for the Navy

1943

Smead enters the plastics field in response to government restrictions on steel

1944

Harold Hoffman weds Ebba Benson

1945

World War II ends and the nuclear age begins Smead plant established in River Falls, Wisconsin

1946

Smead plant established in Stillwater, Minnesota Smead plant established in Logan, Ohio with purchase General Fireproofing; first acquisition of a competitor

1947

Chuck Yeager breaks the sound barrier— the first human to travel faster than the speed of sound

1948

Levittown, the first suburb of mass produced housing, is built on Long Island in New York

1949

Éire leaves the British Commonwealth and becomes the Republic of Ireland

FILING SUPPLIES THE SMEAD MANUFACTURING CO., INC. LOGAN, OHIO - HASTINGS, MINN.

A

T R A D E M A R K

O F

Art Pfister

“He was a magnet for people. Everyone wanted to know Art. Dealers liked him, respected him and wanted to buy from him.” said, “Gradually I started giving up territory In the decades since company founder and we’d hire somebody to take part of it. I Charles Smead died, countless people still went to all the industry-type meetings— came to think of Art Pfister as “Mr. and still do—and I called on major accounts Smead.” In more than 65 years of service, all the time with my salesmen.” When asked he made strangers into customers and about the biggest change he’d seen in his customers into friends. long years with Smead, he was quick to Art’s Smead career started in 1934 when reply: “Oh, it’s the customer base, no doubt. Harold Hoffman asked the young Hastings Where we once had 250 customers in man if he’d like a job selling file folders. Houston, we might now have five. It’s all “Yes!” said Art. “What are they?” consolidating. It’s a different ball game.” But When Art came on board, Smead was through it all, he comments, “Smead is a expanding the product line and entering great family: salesmen, employees, and the national distribution. Art furnished his own boss.” car, paid 11 cents a gallon for gas, and hit the Now a former board member, Art has road, making cold calls on office supply reached his mid-nineties and lives in Aspen, people in southern Minnesota, the Dakotas, Colorado. Although 600 miles away, he’s still and northern Iowa. “They were just trying to very present in the minds and memories of find out if I could read the catalog,” he his Smead community. modestly claims. By 1935, Art took 11 states. Senior Vice President of Sales and He’d finish a sales call at 6 PM and be in Marketing David Fasbender recalls: “Art another town or state the next morning. “I came out of the war as a pilot so he flew his think the volume was $21,000 in all 11 territory—flying from city to city and getting states,” he recalls. “When I quit traveling business for Smead. When I started in 1959, the territory regularly [in about 1980], Art was traveling a territory I was doing $5,000,000 in that consisted of Colorado, Houston. So, we really came Texas, Oklahoma, and New a long way.” Mexico. Can you imagine Art served in World War all the dealers within that II for four years, and Harold territory? Art OWNED that Hoffman continued paying market. He had a charisma; him. Art got his territory he was a magnet for back after the war: “I could people. Everyone wanted to have sold 20 times more know Art. Dealers liked than we could produce him, respected him, and because of paper shortages wanted to buy from him. from the war. We gave customers what we could, Art Pfister (shown here in 2004) used his We’re still the product of demand in the Southwest, and we tried to be fair.” skills as a pilot to fly from city to city Still working when covering a territory that included most of and Art was the one who got it all started.” interviewed in 1995, Art the southern and western United States.

Q U A L I T Y

The forties continued, and the Hoffman family grew. There would be Hoffmans to carry on the Smead tradition. Daughter Sharon Lee was born in 1946. John Peter arrived in 1948. In many ways, the Smead Manufacturing Company was a family affair. The Hoffmans enjoyed personal relationships with many of their employees, often inviting them out to their farm for social events. When their son John Peter was born in 1948, it was Joe Podner, the plant engineer, who became his godfather. A childhood memory of Sharon’s was going to the office with her father and brother. “The company was on Second Street in a block of old buildings. They were a child’s dream— little stairways and lots of dark places where we could play hide-and-seek while my father worked in the office.” The Smead Manufacturing Company grew too, keeping pace with the changing times. In 1945 Smead opened a plant in River Falls, Wisconsin. In 1946 they established a plant in Stillwater, Minnesota. The company continued to expand outside of Hastings into areas where their dealer-customers were. In 1946 Smead established a plant in Logan, Ohio. The manufacturing and warehousing were scattered in several locations throughout the city, but efficiently managed by Harold’s brother, Peter Hoffman. Smead also kept pace with changing technology, inventing new products to help keep people organized. Smead became a major supplier for specialized industries,

businesses, and professions by working with them to solve their specific needs. For example, when a professor wanted something to file colored slides, Smead created it. When an airline requested a file that would stand up against hard usage, Smead responded with a rigid vinyl so tough that it was said writing on it with a ballpoint pen would break the pen before the file. Smead invented X-ray jackets for hospitals. And when dictaphones came into use, Smead created a special dictaphone record holder to keep the recordings filed with their related paper records.

Although a stroke in 1929 left P. A. Hoffman with disabilities, he continued to come to work every day. He frequently would visit the production area, continuing to stress the importance of quality and prompt shipping.

As demand for Smead products grew, the company continued to buy and rent buildings in the downtown Hastings, Minnesota area. At the end of the decade Smead occupied several buildings on the block.

Brothers Peter (left) and Harold Hoffman developed a Smead presence in the eastern United States by establishing a plant in Logan, Ohio in 1946.

New technologies created demand for new filing products. When dictaphones became popular, Smead made special files to organize the recording discs.

Innovation became synonymous with the Smead name. The stylized “Smeads Brain Bilt” icon was a familiar sight on Smead catalogs and literature.

the

1950s President Harry Truman sends forces to Korea

1950

Smead plant established in Toronto, Canada

1951

Immigration and Naturalization Act of 1952 removes racial and ethnic barriers to becoming a US citizen

1952

Smead office and warehouse established in Chicago, Illinois

1953

P. A. Hoffman dies at age 74 Harold Hoffman becomes President of Smead

1954

Harold Hoffman passes away Mrs. Ebba C. Hoffman becomes Smead President

1955

Southdale, the world’s first indoor shopping mall, opens in Edina, Minnesota Smead plant closes in Toronto, Canada; consolidates with Hastings, Minnesota plant

1956

Soviet Union launches Sputnik, first human-made satellite to orbit Earth

1957

Smead workers form union Smead acquires Yale Filing Supplies Co. in Los Angeles, California

1958

Alaska becomes 49th state Ebba Hoffman purchases the 23-acre site from Hastings Country Club for future expansion

1959

The 1950s was a high-spirited decade despite the Korean War. Americans enjoyed new prosperity. What they wanted most was to create a happy, secure future. First came the baby boom, then came the housing boom and suburbs . . . wrapped up in hula-hoops, poodle skirts, Elvis Presley, rock and roll. For Smead, the early fifties brought a company sales office and a warehouse facility in Chicago, Illinois, plus a plant in Toronto, Canada. And 1954 began a chain of events that brought a new Smead era. P. A. Hoffman died at the age of 74. Harold Hoffman became President of Smead. His energetic and imaginative leadership, however, would fuel the company for just 14 months more. In August of 1955, Harold passed away unexpectedly while attending an industry meeting in Buffalo, New York. A stunned Mrs. Hoffman had two options: she could step in and run the debt-burdened Smead, or she could sell the company and find another job to support her young family. Knowing it was her husband’s intent to pass the company on to their children, Ebba Hoffman took her place at the helm. So it was that Mrs. Ebba C. Hoffman became Smead President on November 15, 1955—45 years old, widowed with two young children to raise, two will-less estates to settle, and a struggling company to run. An unlikely leader in 1955, Mrs. Hoffman was one of the few women in the world to head a company the size of Smead. Determined to save the company, she didn’t flinch. She dug right in and got to know her employees, customers and dealers. Everyone who was involved with Smead felt Mrs. Hoffman’s presence.

Although she did not have involvement with Smead operations in the early 1950s, Ebba Hoffman traveled with her husband Harold Hoffman and his father P. A. Hoffman on many business trips. During these trips she met many of Smead’s key dealers, which would prove invaluable after she assumed the presidency following Harold’s sudden death, just 14 months after his father died.

Smead products were proudly displayed at fine office products retailers throughout the United States.

The Smead Tell-I-Vision filing system became a standard for drawer filing. The system was designed to save time filing and retrieving documents. Using file guides, single tab position folders, and colored “miscellaneous” folders, the expandable system introduced many important filing principles.

Smead introduced many new products in the 1950s, ranging from household organizers to proposal covers to complete filing systems for managing large numbers of records at large businesses.

Al Nordstrom (right) was Smead’s first sales manager, starting at the company in the 1910s. He worked closely with Harold Hoffman to develop a national sales force by the 1950s.

Ebba Hoffman made her first acquisition in 1958 with the purchase of Yale Filing Supply Company in Los Angeles.

When Harold Hoffman passed away unexpectedly, the company lost its spirited leader, and an innovator of new ideas for organization.

The sudden death of Harold Hoffman changed the role of his wife Ebba from housewife and mother to President and CEO of Smead. Her leadership and business savvy brought about an era of unprecedented growth for the company.

Smead continued to add products to meet the changing needs of business. Hanging Folders became a popular alternative to standard file folders.

flyswatters & Muzzles To make operations more cost effective, she began consolidation and regrouping. She closed the Toronto plant, combining it with Hastings in 1956. To extend distribution and production facilities, she made her first acquisition as President in 1958. She acquired Yale Filing Supplies Company in Los Angeles, California, adding new products and new territories to Smead operations Ebba Hoffman assumed the role of President and CEO of Smead after her husband’s sudden death in 1955. Her leadership would guide Smead and firmly estabthrough its greatest period of growth for the next 43 years. lishing Smead in The calendar read 1955, but Smead the Western part of the nation. She was headed for the 21st century. Mrs. added new products; to meet the filing Hoffman would direct Smead needs of America’s largest companies, Manufacturing Company to its greatest Smead invented the end tab filing period of growth and success. method, an efficient new way to organize vast numbers of records using color-coded folders on shelves.

Mrs. Hoffman also showed natural marketing ability in her first years of leading the company as she sought bright colors and innovative designs. She retired the traditional brown packaging of the day and chose Smead’s red-and-maroon plaid box design. Smead employees were also active during this time, forming their own union. Because employees respectfully felt that “management would rather talk with the employees themselves than with an outside union,” the Independent Filing Supplies and Specialty Workers’ Union (IFSSWU) was not affiliated with any national union. Formed as a protective measure when a national attempt to organize the plant failed, the union was certified by the National Labor Board. With foresight as a new decade approached, Mrs. Hoffman purchased from the Hastings Country Club the 23-acre tract of land on which, under her guidance, a new plant would eventually be built. By 1960, she had turned the company around. And in her dual role of successful businesswoman and mother, she continued grooming the skills of the third generation of the Hoffman family—Sharon Lee and John Peter.

The company grew, often with some interesting detours and side trips into making other products. The Brownson Company, acquired by Harold Hoffman in 1954 for its production facilities and building, made flyswatters, chicken egg catchers, and horse muzzles. Despite sending out letters that the muzzles were no longer available, Smead kept getting customer requests. The equipment was still present, so Mrs. Hoffman said, “Well, go ahead and try it.” Sales were brisk. When an order came for a thousand gross, an astonished Gus Heinold, Production Manager, said, “A thousand times 144?” The customer explained he muzzled mules for cultivating tobacco on steep Appalachian hillsides to keep them from getting sick on grass sprayed with “good-tasting” weevil pesticides. The first job on the Brownson site was production of Korean War Air Force folders. Gus started with four people, and within 60 days had 120 people working on three shifts. When orders for fly swatters were received, Gus started the fly swatter production equipment again and continued the swatters along with the government folders. The fly swatter operation kept running until a buyer was found.

The ubiquitous red plaid Smead box became a familiar sight in nearly every office in the country.

The opening of a new plant in Hastings was celebrated by the entire community and signaled Ebba Hoffman’s commitment to the growth of Smead and her dedication to its employees and their families.

Young Sharon and John Peter Hoffman joined their mother at the groundbreaking of a new headquarters and manufacturing facility in Hastings, Minnesota in 1961.

Young Sharon and John Peter Hoffman joined their mother at the groundbreaking of a new headquarters and manufacturing facility in Hastings, MN in 1961.

Helpful guides for using Smead products to organize documents were published to educate consumers. Detailed instructions helped office personnel set up and maintain efficient filing systems.

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The 1960s were times of turmoil and change. The most sweeping civil rights legislation in history was signed into law, and the assassinations of President John F. Kennedy, Martin Luther King, Jr., and Senator Robert Kennedy stunned the nation. It was a decade of milestones that included our first steps on the moon. For Smead, too, the decade mingled milestones and turmoil. By now Smead manufactured the most complete paper line of stationery and office supplies in the world. In the coming decade Smead would introduce End Tab filing and color coding along with the patented AlphaZ filing system for alphabetic storage. These products combined to launch a revolution in records management. The sixties began with celebrated innovations and expansions. In January 1961 came the realization of a dream of almost 20 years as Smead’s spacious new corporate headquarters and manufacturing plant were completed in Hastings, Minnesota. The new plant combined under one roof all the manufacturing and warehouse facilities previously housed in 1 1 buildings on East Second Street and adjacent areas, including rented garages around town to help alleviate the acute lack of storage space. The spacious new quarters added 11,000 square feet of office space and 129,000 square feet of factory production area. It was quite a contrast from the tiny, dimly lit room where a single Smead item was first made 55 years earlier. Festivities included tours and open house celebrations for employees and

the next 55 years be “as successful as the past 55.”

John Peter Hoffman helps Ebba Hoffman break ground for a new manufacturing plant in McGregor. The 1960s was a decade of growth and expansion for Smead under Mrs. Hoffman’s visionary leadership.

their families, as well as some 2,000 vendors, dealers, and invited guests from throughout the country. Senator Hubert H. Humphrey sent congratulations, hailing the occasion “an eloquent testimony to faith in the economic future of Hastings.” Minnesota Governor Elmer L. Andersen thanked Mrs. Hoffman and her associates “for the contribution you are making to the well-being of our state.” Hastings Mayor Gerard T. Kranz praised Smead’s contributions as a vital factor in the growth of Hastings, and sent wishes that

Ebba Hoffman was one of the few women in the world to head a company the size of Smead. Shown here with her salesmen in 1961, she was often the only woman at industry events. Her “farm girl grit” and uncanny business savvy transformed Smead into the industry leader in filing systems and supplies.

Still, Smead was not untouched by the turmoil that marked the sixties. In 1962, Mrs. Hoffman faced one of her greatest management challenges when a labor strike slowed manufacturing. In the words of then Plant Manager Gordon Swanson: “The Oil, Chemical, and Atomic Workers (OCAW) Union was strong at 3M, Koch Refinery, and other places in the Hastings area. They exerted a lot of pressure for Smead to become a union shop, where every employee would join the OCAW. Mrs. Hoffman wouldn’t go against the independent union workers who had been so loyal to her. Consequently, we had a 1 6-week strike. People tried to come to work. But when things on the picket line grew unsafe, the plant shut down from August to October. During this time Mrs. Hoffman got many phone calls from people who wanted to work. It was a matter of keeping the place going. We concentrated on the catalog items to keep the dealers in stock. Finally, in December they settled. The first contract said the people who were already on the payroll did not have to join the OCAW. A few years later, a new contract contained the OCAW pension plan. It was an incentive for some of the die-hard independent people to join the union at that time.” Almost every family in Hastings felt some effects of the strike. For months, Smead was a house divided. But the company did not yield to union demands, and ironically some workers who stood on the picket line later moved into management positions. Everyone was relieved when production geared up again and Smead was back to what it did so well: making over 2,000 stock items plus custom orders.

the

1960s 1960

Stillwater, Minnesota plant and operations closes and moves to Hastings, Minnesota

1961

New corporate headquarters completed in Hastings, Minnesota

1962

Strike closes Hastings, Minnesota plant August-October

1963

President John F. Kennedy assassinated Martin Luther King Jr. makes his “I Have a Dream” speech

1964

US Congress enacts the Civil Rights Act Smead Central Distribution Center in Chicago, Illinois expanded Smead introduces AlphaZ color-coded filing system

1965

First minicomputers are sold Third generation Sharon Lee Hoffman joins corporate administration

1966

Indira Gandhi elected Prime Minister of India

1967

Third generation John Peter Hoffman joins corporate administration

1968

Hastings, Minnesota plant expanded by 30 percent Martin Luther King Jr. assassinated, prompting race riots around the nation

1969

Subsidiary Yale Filing Supply Co. renamed with Smead name US Apollo 11 astronaut Neil Armstrong is the first human to walk on the moon: “…one giant leap for mankind”

JOHN CRAWFORD “They treated me right and I tried to treat them right.” In 1957 young John Crawford rented a room in Hudson, Wisconsin, from a lady named Mrs. Pfister. Her son was Smead employee Art Pfister. “One night Art came home and his mom introduced me to him,” recalls John. “Art saw potential in me and said go over to Smead and tell them there was a job there for me.” John came to work and saw right away that “Smead didn’t resent paying their salesmen a fair commission. That moved a lot of guys to work very hard back then.” David Fasbender, Senior Vice President of Sales and Marketing, credits John for Smead’s role as a pioneer in systems filing. Knowing that misfiling of patient records in hospitals was a problem that needed a solution, John called on hospitals in his Indiana and Illinois territories. His goal was to develop a solution for their misfiles, but his approach was unusual. David recalls accompanying John on a hospital call in Indianapolis. “John wore a trench coat and dark glasses, saying, ‘We have to slip in through the back door.’ I was trying to understand why. It’s because we had to get past the purchasing agent — whose job was to control costs — to reach the user, who was back in the file room trying to solve a filing problem! We were pioneers in color coding as a result of John’s willingness to bull his way into customers, snoop around, and get the information we needed to develop the solution: colored bands on folders.” John retired in 1998 after forty years with Smead. Today he comments, “I have seen a lot of different company operations in this industry and no one has treated their employees like the Hoffmans have. Mrs. Hoffman took interest in the people that worked for her and took interest in their families too. Sharon Hoffman Avent has always been the same way. They treated me right and I tried to treat them right. When I was at Smead, I don’t think there was a salesman that ever looked for another job.”

In 1964, Mrs. Hoffman marked the 68th Anniversary of the company by announcing the construction of a new 50,000-square-foot factory in Logan, Ohio. Patterned after the highly efficient Hastings plant, this new Logan plant would at last consolidate under one roof all manufacturing and warehousing of Logan’s raw materials and finished products. In the span of less than ten years, however, the new Logan plant would be increased to 104,000 square feet to keep pace with the demand for Smead products in the eastern and southeastern states and some of the foreign markets. Mrs. Hoffman also implemented changes in Chicago, Illinois, where Smead product warehousing had existed since early in the company’s history to provide faster service to dealer-customers. In 1964, Mrs. Hoffman greatly expanded this function by establishing a Central Distribution Center at a new location in the city. Doubling the Chicago warehouse and sales facility better served dealers in the Illinois, Indiana, Michigan, and Kentucky markets. Smead products were shipped to the Chicago Distribution Center from Logan and from Hastings. A Purchasing Department was established, with Walter Snelling serving as first official purchasing agent. He was assisted by veteran employee Gus Heinold, who became the purchasing agent upon Walter’s retirement in 1967. And still the growth continued. With sales volume, production, and inventory increasing, Smead expanded the Hastings plant by 30 percent in 1968—only six years after its original construction.

FACTORIES WAREHOUSES FACTORY SALESMEN

The 1960s was a decade of great expansion for Smead. New manufacturing plants, warehouses and sales territories spread throughout the US. Smead products became commonplace in offices nationwide.

Throughout the growth and change, the youngest generation of Hoffmans paid attention. Occasionally, Mrs. Hoffman brought her children to district sales meetings. Gus remembers a time when he went to pick up young Sharon Hoffman and John Peter Hoffman at school to surprise Mrs. Hoffman with their presence when she received the Jaycee’s Businessperson of the Year Award in 1960. Indeed, Sharon and John Peter got their business apprenticeships early. They began by hanging around the office until they were old enough to

work weekends and summers. Sharon’s first project involved putting together a sales catalog. She often filled in where needed, including as secretary or receptionist. In 1965, after two years at Hamline University, Sharon began working full-time in the credit department. In 1969 she became Assistant to the President. John Peter joined the company in operations in 1967, preferring the production side of the business. Showing much of the innovative business savvy of his father, John Peter worked his way up to Vice President and a place on the Board.

The costliest feature of the new Hastings, Minnesota plant was this $30,000 specially-built high frequency room. Without the copper “isolation” provided by the room, the high frequency welders would cause interference with radio and TV reception within a 50 mile radius of Hastings.

The efficient and modern Hastings, Minnesota factory streamlined operations and became the model for several other manufacturing facilities built throughout the United States.

A bitter labor strike closed the Hastings, Minnesota plant for several months in 1962. Ebba Hoffman refused to turn against her loyal employees who were being pressured to abandon their independent union and join a national union.

Within ten years of their opening, the Hastings, Minnesota plant’s capacity was increased by 30 percent and the Logan, Ohio plant doubled in size.

Smead’s reputation for quality and innovation spread as new and better fling solutions were introduced. The Smead brand was synonymous with durability and integrity.

Smead opened its sixth manufacturing plant in Locust Grove, Georgia in 1978. The 103,000 square foot facility established efficient distribution of products in the southeastern United States.

Presentation binders and proposal covers added an important new category of products to the Smead line.

The Smead AlphaZ color coding system assigned colors to the letters of the alphabet to speed filing and retrieval of folders. The system became extremely popular in medical and dental offices, and is still widely used today.

As demand for Smead filing supplies grew, so did the fleet of 18-wheelers that distributed products to office products dealers. By the mid-1970s, Smead trucks were covering more than 650,000 miles per year.

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The 1970s celebrated the nation’s 200th birthday, saw its first resignation of a US President, and changed the voting age for Americans from 21 to 18. Anti-war and social movements swept college campuses. Smiley faces, mood rings, lava lamps, Rubik’s cube, and pet rocks captured our imaginations. The times were changing at Smead, too. Inspired by her father Harold Hoffman’s tradition of giving a gold watch on an employee’s 25th anniversary, Sharon Hoffman, Assistant to the President, initiated the Smead Merit Award Program in 1970. The program would recognize employees at all company plants for their years of service. “Our service is the best of any in the industry,” she said firmly. “Your employees are your company, and we wouldn’t be here without them.” Many Smead employees proudly wear gold watches, rings, tie clasps, necklaces, or other cherished items as tributes to their years of dedicated service. Expansion of the Hastings, Minnesotabased company steadily proceeded under Mrs. Hoffman’s leadership. Customer demand for Smead quality products in the southwestern states resulted in the 1971 opening of Smead’s fifth manufacturing plant. The 75,000 square-foot facility in McGregor, Texas,

November of 1978, but the story goes back to John Peter’s search for suitable land on which to build the new facility.

Ebba Hoffman’s caring commitment to Smead led the company to steady growth during the 1970s and earned the loyalty of employees, suppliers, and customers.

was built under direct supervision of John Peter Hoffman. Six years later, Smead opened a plant in Locust Grove, Georgia to meet demand in southeastern states. The company began shipping filing products from the new 103,000 square-foot plant in

According to Leo Hart, a 40-year Smead salesman now retired, “Ebba Hoffman considered the Smead Manufacturing Company an extension of her own family.” Jim Holmes, retired interplant coordinator who was with Smead for 32 years, concurs. “At Smead there was no ‘me.’ Everything we did was ‘we.’” The Hoffman’s steadfast dedication to its employees and their families is returned with long tenures and loyal service. Many stay with the company their entire careers. Like Jim and Leo, it is not uncommon for employees from factory workers through top management to stay with Smead thirty or forty years. Others include Jay Sommers with nearly 50 years, Gus Heinold with 43, Adolph Denn with 41, Joe Podner with 38, Jim Holmes with 32, and Art Pfister, who retired with 65 years. Sharing her family’s gratitude and respect for employees’ loyalty and their contributions to the company, Sharon Hoffman initiated the Smead Merit Award Program in 1970.

John Peter turned to Atlanta salesman Leo Hart to help him “reconnoiter" the area. They drove down Interstate 75 and stopped to walk the open land near Locust Grove—so rural that, according to Leo, it was just a wide spot in the road and "the zip code must be e-i-e-i-o." Happy to find land that was fairly low with access to railroad siding and a state highway, the two decided to investigate further. Leo recounts the events, saying “We went into town and we found the only bank. The banker’s back was toward us as we entered and walked into his office.” “All of a sudden he jumped up; we think he was snoozing and we woke him up. We asked how we could find out more about the land. ‘You go to the hardware store (the only 2-story building in town) and talk to Howard Gardner,’ came

Employee loyalty is a tradition at Smead. John Peter, Sharon and Ebba Hoffman honor Marcella Drilling (third from left) for forty years of service in 1973. Marcella was honored again in 1993 for sixty years with Smead.

the

1970s 1970

Merit Award Program initiated by Sharon Hoffman to recognize employees’ years of service Environmental Protection Agency established

1971

Smead’s fifth plant opens in McGregor, Texas

1972

Outstanding athletes at the 1972 Olympic Games in Munich included Russian gymnast Olga Korbut and American swimmer Mark Spitz

1973

US President Richard Nixon resigns First ATM appears in a New York bank Pepsi-Cola becomes the first American product licensed for sale in the Soviet Union

1974

Smead named Wholesale Stationers Association Manufacturer of the Year

1975

The US evacuates its troops, civilians, and many of its Vietnamese allies from South Vietnam First commercially successful VCRs introduced

1976

The US celebrates its 200th birthday on July 4

1977

Ebba Hoffman is the first woman inducted into the Minnesota Business Hall of Fame

1978

Smead opens manufacturing plant in Locust Grove, Georgia Riding a horse named Affirmed, 18-yearold Steve Cauthen wins thoroughbred racing’s Triple Crown

1979

The worst nuclear power accident in US history occurs on March 28 at Three Mile Island nuclear power plant near Harrisburg, Pennsylvania

The prestigious award for her induction into the Minnesota Business Hall of Fame was a prized possession that sat prominently on Ebba Hoffman’s desk. She was the first woman to ever receive the award.

Joe Podner

“Joe was most proud of how the company grew and the direct influence he had over that growth.” to him because of his accent.” Joe also had a From the time he was hired back in 1935, conviction that he was always right. “Most of plant engineer Joe Podner was a strong and the time it was true,” laughs Jack, “but we steady presence in the company as well as had plenty of ‘interesting discussions’ where for the Hoffman family. It’s well known that I knew I was right. Usually it would frustrate Joe built much of Smead’s early equipment, Joe, but he would take the new ideas and go and he built it to last forever. along with them.” Jack Calkins, hired by Joe Podner 38 Jack and everyone else knew that Joe years ago, is the current manager of was a real asset to Mrs. Hoffman. “She used the engineering department. Sharing to come out and seek his advice on things. recollections at the company’s centennial, He was a mainstay of the company at that Jack explains that Joe was born in Austria time.” The esteem went both ways, and Joe in 1898 and arrived in the United States was John Peter Hoffman's godfather. Jack is after WWI. He began working at Smead clear about Joe’s contributions. “He passed in July of 1935, and much of the early on a lot of good work ethics. equipment was built by Joe He would be in here before with wood as the main 5 AM and after 5 PM. He’d construction material. come in on Saturdays and Those machines have Sundays. I think Joe was all been modified or most proud of how the replaced in the last 30 company grew and the years, says Jack, but they direct influence he had over served the company well. that growth. He was proud “Joe taught me a lot,” of what he did.” states Jack, but he also Joe retired in September recalls that “Joe had a of 1973 when his health real German brogue and began to fail. He died on sometimes it was hard August 13, 1975. His legacy to understand him. That is firm, and so is his place in frustrated him, although it Joe Podner, shown here in 1961, was a the hearts and memories of made for good stories mechanical genius who built many new his Smead family. about things that happened machines used in manufacturing.

the reply. We learned that two individuals owned the land we wanted, and within five minutes we were rumbling through the area in Howard’s pickup truck. A couple weeks later John Peter came back, eager to close a deal. We negotiated over the phone, first with one owner and then the other. To our astonishment, we ended up with 38 acres of land—much more than needed. John Peter, who fondly referred to Mrs. Hoffman as “Ma,” was worried about what she would say. I told him, ‘When you go home and tell Ma you got 38 acres of land, more than an abundance, she will still be your mother. But, what about me? I may be out of a job!” Well, Mrs. Hoffman thought that was just fine, recalls Leo, and 38 acres for a facility that maybe used 4-6 acres turned out to be a good investment. This was the peak era in the long and loyal Smead-Dealer relationship, a time when regional Smead sales representatives made personal contacts with the nation’s thousands of office supply retailers and wholesalers, through whom all Smead products are sold. (No direct selling to consumers is done with any of Smead’s items, a policy of dealer loyalty to which Smead has been dedicated since its beginning.) Annual gatherings at the industry’s trade shows were highlights everyone anticipated with pleasure. Respectful esteem went both ways, and the Wholesale Stationers Association (WSA) was one of many organizations that honored Smead for innovation and quality through the years. In 1974, Smead received their first WSA Manufacturer of the Year award in recognition of “outstanding performance.” They received the award again in 1989 and 1990. In 1977 Mrs. Hoffman was the first woman to be

The board of directors in 1979, clockwise from left, Millett O’Connell, John Peter Hoffman, Art Pfister, Ebba Hoffman, and Sharon Hoffman.

inducted into the Minnesota Business Hall of Fame. First to break into that sort of recognition, she kept that award on her desk for the rest of her career. The late 1970s brought an industry-wide paper shortage and Smead again showed its character. Like other manufacturers, Smead couldn’t get enough raw stock from mills to satisfy customer needs. Given human nature and laws of supply and demand, it might have seemed a chance to get higher prices. But Mrs. Hoffman firmly declared, “We’re not going to do that. We’re going to allocate our resources based on what our customers gave us in the past.” Total purchases in all categories for the past year were calculated for each customer, and these determined the customer’s allocation during the shortage. In the meantime, Smead was able to buy additional paper from a nontraditional mill for a premium. Called Krivila, this paper was slightly different. Smead made it available to dealers, saying here’s what it costs, and you can get it—but making sure they got their allocation of regular product too. “We didn’t show favorites or lose any customers,” recalled David Fasbender. “We stayed with the ones who brought us to the dance; it was the fair thing to do.”

Colored products grew in popularity during the 1970s. Using color to categorize materials helped make it easy to locate different types of documents.

Bold and colorful graphics on catalogs and advertising materials reflected the spirit of the 1970s.

The Smead Sampler was used by dealers to showcase a wide variety of Smead products.

“Smead Week” was celebrated in Hastings, Minnesota in May of 1982. In honor of the city’s largest employer, the street in front of the Hastings plant was renamed Smead Boulevard.

Smead earned widespread recognition as the leading provider of color-coded shelf filing systems. Most large institutions adopted end tab filing as the most efficient way to manage their records.

The familiar red pattern of Smead packaging appeared in virtually every office products store in the United States.

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The 1980s arrived, bringing a roller coaster of change. Satellites and fiber optics, cable TV, and faxes wrapped us in a crazy quilt of information. Binge buying and credit became a way of life, and so did video games, aerobics, minivans, camcorders, and talk shows. Prosperity and double-digit inflation began the spendthrift eighties, and names like Donald Trump, Leona Helmsley, and Ivan Boesky iconed the meteoric rise and fall of the rich and famous. At the close of the decade the Berlin Wall came down, portending great changes for the decade to come. The 20th century raced on, and Smead reached new milestones.

wanted Mrs. Hoffman to stay and keep the company. The family management team was now mother and daughter. Together they would build Smead into an enterprise ranked 44th on the list of the top 500 women-owned businesses by 1998, when Mrs. Hoffman passed away. In the same year as the death of John Peter, the company reached its 80th year of growth and success as a result of quality products and innovations that keep us organized in the Information Age.

In recognition of the company’s 75th anniversary, Hastings, Minnesota saluted their homegrown company with Smead Week. A new street sign for “Smead Boulevard” went up, renaming the street on which the corporate headquarters is located.

Third generation Hoffmans, Sharon and John Peter joined their mother to guide Smead in continued growth through the 1980s.

In a sudden and tragic loss, Mrs. Hoffman and Sharon Hoffman Avent laid John Peter Hoffman to rest in 1986. Like his father before him, John Peter died unexpectedly and prematurely while out of state. His genius and

personality would be sorely missed. What followed for Mrs. Hoffman was a long period of grieving, illness, and recuperation. The Smead family of employees, also mourning the loss, showed great loyalty and support during this difficult time. Clearly they

What makes Smead such a success? It is not unusual for a Smead employee to stay with the company for many years. Nearly one of seven employees had 20 years of service or more at Smead’s 90th anniversary. Only stepping down from the board in the early 2000s when he was in his 90s, Art Pfister had been an employee of 65 years. Still working in 2006 were Janet Fox (65 years),

John Peter Hoffman worked closely with plant personnel to improve product quality and develop efficient operations. Shown here with longtime Hastings employee Edna “Coney” Hankes and plant manager Gordon Swanson, John Peter was keenly interested in making sure that equipment was up-to-date.

the

1980s 1980

Post-It Notes invented by 3M chemist Arthur Fry Mount St. Helens, a usually quiet volcano in Washington, erupts

1981

Smead celebrates 75th anniversary US President Ronald Reagan and Pope John Paul II are injured by assassins AIDS first identified

1982

Barney Clark, 61, becomes the first person ever to receive an artificial heart and survives for 122 days The City of Hastings, Minnesota celebrates Smead Week

1983

TV series M*A*S*H ends after 10.5 years

1984

To fight acid rain, New York becomes the first state to require factories to lower the amounts of sulfur dioxide they pump into the air

1985

Nintendo launches its home entertainment system British scientists in Antarctica announce a hole in the ozone layer over the South Pole

1986

John Peter Hoffman dies unexpectedly Space Shuttle Challenger explodes

1987

The stock market had boomed throughout the eighties, but Wall Street had its worst day ever on October 19 when the market fell 508 points

1988

Michael Jordan is the NBA Scoring Leader for the second year Heat waves and drought roasted much of the United States during the summer in one of the century’s worst droughts

1989

Cold War ends as communist governments in Eastern Europe collapse; Soviet Union begins to break apart Berlin Wall comes down

By 1985, Smead had factories and distribution centers in Minnesota, Wisconsin, Ohio, California, Georgia, Texas, and Illinois.

Gold watches, given to employees at 25 years of service, are a symbol of the company’s gratitude to its workers. Smead has a remarkable number of employees with tenures of more than 25 years.

Colored products and color coding were promoted in advertising in the late 1980s. Longtime employees, friends, family members, and key employees gathered November 15, 1985 to honor Ebba Hoffman for 30 years as President and CEO of Smead.

Ebba Hoffman generously donated a beautiful Holtkamp pipe organ to Our Savior’s Lutheran Church of Hastings in memory of John Peter Hoffman.

business decisions.” He noted that Mrs. Hoffman’s decision to expand the company outside of Hastings was essential for Smead to be competitive with other office supply manufacturers by making the products more accessible to their customers.

Ebba Hoffman established a tradition of purchasing the winning entry from the Sister Kenny Institute Art Show, a competition for handicapped artists. The paintings are reproduced on the annual Smead Christmas card.

Al Trapp (49 years), Nancy Dack (47 years), David Fasbender (46 years), and Patricia Carl (45 years). Their pictures are among those of dozens of workers on the company board who have been part of “the Smead family” for decades. The length of time employees stay with Smead is an indication of the way the company is run. Interviews with employees on Smead’s 80th anniversary sum up the reason they stay. The late Gordon Swanson, then Plant Manager, credited Mrs. Hoffman: “The growth of the company has happened under Mrs. Hoffman’s leadership. She has made a lot of good

Senior Vice President of Sales and Marketing David Fasbender joined the company in 1959. He attributes Smead’s success to quality products at fair prices and says that Smead has “always been recognized as the best service company within the industry— always.” David adds: “Our owners have always had a willingness to provide us with the most effective, up-to-date equipment necessary to be competitive and grow the business. It is that shared vision of success and growth that has kept the many dedicated employees here for a lifetime.” He also credits the family atmosphere that was created by Mrs. Hoffman and nurtured by her daughter Sharon. “People feel a part of a family and when we hire a new individual from outside, they find it so unique.” Smead currently ships more product in one day than they shipped and manufactured in the entire first year that David was with the company!

Smead was a prominent exhibitor at the National Office Products Association (NOPA) annual trade show. Dealers looked forward to meeting with Smead personnel, often forming long-lasting relationships.

LEO HART

“Leo had quite a personality, putting him above most salesmen at a time when building relationships was the way to gain a customer’s business.” Veteran Smead salesman Leo Hart joined the company in 1958 at the recommendation of John Crawford, who recalls, “Leo and I were friends in Indianapolis, where he was attending law school. His romance was deteriorating and I told him he had to come to work for Smead.” When a territory became available, John told General Manager Orvin Moen that he had just the man for him. John enthused about Leo having “quite a personality,” which made him hands and shoulders above most salesmen in a time when building personal relationships was the way to gain a customer’s business. Sure enough, in the long career that followed, Leo won affection and respect for focusing on his dealers’ businesses, on their customers, and their successes. People seldom heard Leo say the word “I.” Leo’s huge sales territory originally included South Carolina, Georgia, Alabama, and Florida. But the closest manufacturing location was in Logan, Ohio, explains David Fasbender. “Concerned about the high freight costs from Logan to his customers, Leo devised a creative plan. He

drove from dealer to dealer, taking inventories, writing orders, and convincing the competitive dealers that waiting until their combined orders filled a truckload would benefit them all. The pooled shipping saved dealers money and earned Leo their business.” As Leo’s success increased, his territory was slowly decreased to enable him to keep servicing dealers the way they requested and deserved. David comments, “Every time Leo’s territory was cut, he immediately went to work to increase business and bring his earnings back up to where they’d been.” But Leo could draw the line. David once approached Leo about a yet another territory reduction. He asked, “Leo, why don’t you take the Florida territory? It’s so much bigger.” Leo was quick to reply: “I don’t like bugs.” Leo is still beloved for his fine character, and those who know him best say he’s also still adding to his reputation for being a character. Leo retired in 2004 after more than 40 years of service. He remains a member of the Smead family and is a popular fishing buddy.

the

1990s Smead converts all paper products to include post-consumer recycled content

1990

Soviet Union breaks up; end of the Cold War The six-week Persian Gulf War, led by the US and mandated by United Nations, results from Iraq's invasion of Kuwait

1991

Mall of America, the largest shopping mall in the USA opens in Bloomington, Minnesota World Wide Web begins at a Swiss-based scientific organization

1992

Smead launches Treveall® bar-code tracking software

1993

The North American Free Trade Agreement (NAFTA), signed into law The Chunnel (English Channel tunnel) allows travel between England and France

1994

Smeadlink Integrated Document Management Software launched Digital video discs (DVDs) are invented eBay founded

1995

The 1996 Summer Olympics open in Atlanta, Georgia as Muhammad Ali lights the Olympic Torch

1996

Smead introduces Viewables® Labeling System

1997

Sharon Hoffman Avent named Smead President and CEO Smead acquires Atlanta-Hoogezand B.V. in the Netherlands

1998

Ebba Hoffman dies on February 5 at age 87 Smead acquires Document Control Solutions in Fullerton, California

1999

The calendar turned to the 1990s, truly the electronic age. Macintosh computers and then PCs were desktop fixtures. The World Wide Web cast its net through cyberspace, changing the way we communicate (e-mail), spend our money (online shopping), and do business (e-commerce). The 90s have been called the Merger Decade. The stock market reached an all-time high as people learned to buy and trade via the Internet. Minimum wage was increased to $5.15 an hour, the economy was healthy, and Americans “consumed” as never before. By the end of the decade, everyone had a cell phone and phrases like “the server’s down” were part of our vocabulary. In 1990 the 20th anniversary of Earth Day started a new era in public concern for the environment. Many of Smead’s competitors created separate product lines of filing supplies with recycled content at higher prices. But this confused customers and caused duplicate inventory problems for many struggling dealers. A firm believer that today’s decisions affect tomorrow’s America, Mrs. Hoffman decided that recycling was simply the right thing to do. By 1991 all Smead paper products contained recycled fibers diverted from America’s landfills. Despite extra cost for recycled paper, Smead kept prices the same.

file? How to file? Which to keep and which to destroy? How to find it when you need it? More focus on electronic records management and a convergence between paper and electronic material was needed. Smead now applied its inherent understanding of the critical nature of records to electronic systems. As Sharon Avent declared, “Smead is in the solutions business, not just the products business.” To meet a demand for recycled products, Ebba Hoffman converted all Smead paper products to include post-consumer recycled paper. Despite the extra cost, she did not raise prices.

By the early 90s, the Information Age was fully upon us. With it came a paper blizzard from computers, copiers, and fax machines. Computers were common on everyone’s desk and we downloaded and printed, dramatically increasing the amount of paper use. Then came a hail of e-mails and documents created digitally on top of the paper-based documents that are scanned and stored digitally. Where to

While paper records still accounted for ninety percent of all documents stored, the gradual migration from paper-based to electronic document management had begun. We slowly realized things stored in our computers need not be printed out. Records management systems for all forms of business records were the challenge of the 90s, and Smead saw it coming. The company responded and began carving a niche in the new frontier of electronic document management. In 1993 Smead introduced Treveall®, bar code tracking software that used computers to help manage paper records.

Ebba Hoffman and Sharon Avent pose with the sales force and key corporate employees at the 1992 national sales meeting. At a time when many competitors were being bought by international conglomerates and manufacturing abroad, Smead proudly emphasized that it was a family-owned company manufacturing its products in the USA.

In 1991, Smead changed all of its paper products to include postconsumer recycled content.

Smead’s Super Tuff Pocket® is a favorite at law firms where overstuffed files are the norm.

Smead entered the software market in 1993 with the introduction of Treveall®, a DOS application that used bar code technology to track the usage and locations of paper records.

As large office products retailers became common, Smead began to change its packaging from the familiar red plaid to include product images and descriptions of features and benefits.

A new line of premium quality expanding files made with textured materials and new features appealed to image-conscious office workers.

The introduction of Viewables® Labeling Software and its unique tab design for hanging folders was an instant hit with consumers.

A complete line of poly filing products offered innovative colors and designs combined with rugged durability.

The Smeadlink® suite of software modules was the first document management system that could manage both electronic and paper documents in a single application.

Smead’s early recognition of new technologies and the need for electronic document management led to the development of the Smeadlink® Integrated Document Management System. Paper records, electronic files, imaged documents, fax or e-mail transmissions, microfilm or fiche, and mainframe data or hard copy—all could now be indexed, tracked and retrieved through a single application called “Smeadlink Librarian.” Smead Software Solutions became the operating division leading the way in combining innovative new technologies with nearly a century of experience solving real-world document management challenges.

True to an earlier vow, Mrs. Hoffman did not retire. She was frequently at the office, working closely with Sharon to ensure a seamless transition. As new CEO, Sharon firmly stated, “We are committed to the future success of Smead Manufacturing and to bringing innovation to organize today’s office. We believe producing quality products while maintaining loyal relationships with our customers and employees are what make Smead a leader in the filing products industry.”

Thus Smead became an industry leader in the frontier of electronic information storage and retrieval. Sharon believes the company has done a good job of preparing for the electronic age: “Early on, we embraced computerization throughout our own system—not only for Human Resources and Finance, but also on the manufacturing floor, computerizing much of our workflow. We carved a niche by building programs around the needs of users.”

In the Smead tradition of creating solutions in response to need, Smead introduced a new line of filing products made from heavy-duty polypropylene named InnDura. Innovative and durable, these attractive products combined bright colors with rugged toughness. In addition to being tear proof and water resistant, InnDura products introduced many new features that were not available in paper-based filing supplies. Their stylish appearance and functional practicality made them favorites with a wide variety of users, from students to construction workers.

On Smead’s 90th anniversary in 1996, a beloved Mrs. Hoffman—well past retirement age—still actively oversaw the company as President and CEO. She teamed with Sharon, now Senior Executive Vice President and member of the Board of Directors. On July 1, 1998, Mrs. Hoffman turned Smead leadership over to her daughter, naming Sharon her President and CEO. In announcing the appointment Mrs. Hoffman said, “Sharon has forged strong relationships with our employees, suppliers, and customers. It seems fitting that I turn the leadership of our company over to her now, while we can continue to work together.”

Since globalization and consolidation were clear trends in the office products industry, Smead recognized the need to expand. “Our major US customers are going global, and they’re expecting us to do the same,” said David Fasbender. In 1998, Smead found the perfect match: Atlanta-Hoogezand B.V., a privately held office products manufacturer located in Hoogezand, the Netherlands. The Dutch company’s office organization products, computer supplies and accessories fit right in with Smead expansion plans. In addition, the Atlanta Group had three manufacturing plants in the Netherlands, locally managed

DAVID FASBENDER “The company is in very good hands with David.” For 46 years, the foresight and business acumen of David Fasbender has kept Smead on a continuum of growth, innovation, and change. It brings a smile when today’s Senior Vice President of Sales and Marketing recalls his first acquaintance with the company that’s now an international player: “I had lived here all my life and didn’t even know Smead existed; the offices were in an old building downtown on the second floor. The whole place wasn’t much bigger than my office today.” David was hired in 1959. Now-retired Smead salesman John Crawford tells how David started out as most people did, learning the business from the correspondence and sales end. “About that time Smead was developing color coding,” explains John, “and I happened to sell a few jobs of it. Orvin Moen, then Smead’s general manager, wanted Dave to learn something about color coding so Dave came down and traveled with me for a week. We had a Saturday morning presentation in Lexington, Kentucky. But I didn’t take into account that it was the day of a big horse race. Not a single hotel room was available. We had to stay at the YMCA! It was a good introduction to a traveling salesman’s life.” But David wanted to work inside the company. Orvin quickly saw David’s potential and brought him aboard as his assistant, recalls John. “Mrs. Hoffman had a lot of faith in David,” he adds, “and she made David a Vice President in charge of sales.” David can be credited with much of the company’s rich history of product innovation and specialization. Former Advertising Manager Ken Linde spent a lot of time on the road with David for meetings and sales calls. “Customers would make requests or demands and we’d go back and proactively rethink or restructure things to meet their needs and expectations,”

recalls Ken. “If David had not been such a forward-thinking and progressive person, open to new ideas, we wouldn’t have been timely or responsive to our customer’s needs.” David is clearly a visionary who sees what’s coming and gets Smead on course. John comments, “Dave was instrumental in the color coding that catapulted Smead into the limelight. He could see that dealers wanted to buy it and he promoted and advanced color coding in a way that made Smead stand out.” John continues, “When US dealers organized together to form buying groups, David saw that their next move would be to sign up dealers around the world. He saw their potential at a time when most manufacturers wanted nothing to do with them, and got us involved with these big buying groups. Soon they dominated all the manufacturers in the US. Now the superstores are in that role.” John believes Smead has survived with the superstores in large part due to the efforts of David and Sharon Avent in building relationships with them. David’s skill in identifying opportunity also led to Smead’s timely entry into the frontier of electronic document management and the company’s overseas expansion and producing global products. He has also developed a sales force with unrivaled knowledge of the filing and document-management marketplace, saying “We make sure that we understand the dealer as well as the consumer side of the business. With David at the helm of Sales and Marketing, Smead starts their second century of doing business in a changing world. David continues to ask: Where is the future? How can we continue to grow our business? “The company is in very good hands with David,” declares John, and no one would disagree!

distribution subsidiaries in seven other European countries, and good distributor relationships in Eastern Europe. In Atlanta-Hoogezand B.V., Smead found a company that was both global and local. A big draw was that each subsidiary of the Atlanta Group offered products unique to their respective European countries. Atlanta made products geared toward helping people organize their lives, and also excelled in producing injection-molded and metal-bending products. Atlanta was pleased with Smead’s thorough knowledge of the US markets and placement with global players. Beyond that, both companies were over 90 years old. Both had family-oriented, family-owned origins, a long history of quality products and services, and a focus on the customer. Both understood what makes a universal product, and neither sold direct to an end-user. Each saw opportunities to capitalize on the strengths of both companies. The 1998 acquisition of the Atlanta Group established Smead’s foothold in Europe’s office products industry and expanded Smead’s global presence through Atlanta’s worldwide agents and distributors. It gained for Smead two valuable new technologies: injection-molding and metal fabricating. It also meant Smead was speaking the international language of document management—and becoming a world team. One of Ebba Hoffman’s last public outings was the groundbreaking for a new wing at Regina Hospital in Hastings. Her gift echoed the generosity of herself and Harold Hoffman that made the hospital a reality in the early 1950s.

On February 5, 1999, Ebba C. Hoffman died at age 87 after a brief illness. Under her leadership, the 100 percent women-owned company grew from sales of $4 million and 350 employees to $315 million and nearly 2,500 employees. “While woman

Smead sales personnel were called upon by office products dealers to analyze their customers’ document management requirements and develop the systems that would provide the solution that was most efficient and cost effective.

ownership has become more common over the past decades, it was unusual to say the least in the 1950s,” recalls David. “On the first day of my employment with Smead I saw, but did not meet, Mrs. Hoffman. I remember my shock at seeing this beautiful young woman sitting in the front office and being told she was President. It didn’t take long to learn that she also was a very savvy businesswoman and ran the operation with a firm and practical, yet caring, hand. It is Smead’s great fortune that these qualities were passed along to her daughter Sharon, herself a 33year employee of the company when named President and CEO in 1998.”

their critical information, the company’s increasing focus in electronic products was natural. It was boosted by an acquisition that added product expertise in the relatively new field of document management software. In June 1999, Smead acquired Document Control Solutions (DCS), a technology company based in Fullerton, California. Smead gained DCS’s significant product development and support resources as well as exciting products. Among them: ColorBar® Gold, recognized as the industry’s best color coding and bar code label printing software; and the popular ImageTrax®, a bar code tracking product.

Guided by the competent hand of Sharon Avent, Smead entered a new period of significant growth and innovation.

As the year 2000 approached, people were filled with high spirits in anticipation of the new millennium. At the same time, they were apprehensive of the effects of the Y2K “bug” on computer-operated equipment and systems. Billions of dollars and years of frantically rewriting software were spent to keep systems from shutting down. Everyone wondered: When the clock struck midnight on New Year’s Eve, would the world come to a standstill?

The twentieth century was in the final stretch. People were still coming to grips with the fact that electronic documents are just as important as paper documents; an electronic file is just another document stored in a different format. Since Smead has always helped people better handle

Accepting the traditional wooden shoes of the Dutch, Sharon Avent steps into the international market with the acquisition of Atlanta Group in the Netherlands.

In addition to the Smeadlink suite of document management applications, the acquisition of Document Control Solutions added ColorBar® and ImageTrax® to Smead Software’s digital solutions.

In addition to traditional filing supplies, the Atlanta Group brought a number of new products to Smead’s offerings, including plastic desktop storage compartments, rolling files, and desk accessories.

With efficient systems to handle both paper and electronic documents, Smead became the only provider who could provide complete solutions to manage all forms of records.

Smead ClickStrip® and Smartstrip® software enables easy printing of file labels with color codes, text and bar codes on a single strip.

The acquisition of S&W Manufacturing in 2001 greatly increased Smead’s ability to produce custom filing supplies for a variety of businesses.

The launch of Smead’s website gave consumers an easy way to find products and helpful information to help them stay organized.

Small offices and home offices use Smead Arrange® software on their PCs to manage paper and electronic documents as well as e-mail messages and favorite websites.

New privacy legislation and several high-profile legal cases raised the importance of having good document management. Smead responded with new products that helped businesses better control their records.

Large businesses save valuable floor space with Smead high-density mobile shelf files.

The year 2000 was a momentous turning point worldwide. Y2K fears failed to materialize. People hailed the millennium and the dawn of the Internet boom. Everyone was excited and hopeful about living in a new century. But high spirits were soon dashed. The “dot com” bubble burst in the first quarter of 2000. Tech stocks fell hard and much of the rest of the economy went down too. The attacks of September 1 1, 2001 shook the world and underscored our interconnectedness. But aftershock slowly turned to hope and recovery. People showed a remarkable resilience and capacity for optimism, and making sure technology improves our lives and decreases our vulnerability became central to progress in the new millennium. It was a commitment Smead had already made. In 2001 Smead increased their custom product manufacturing capabilities with the purchase of S & W Manufacturing in Florence, South Carolina. Another generation of family participation continued with Casey Avent, Sharon Avent’s son, who joined Smead in marketing at the home office in 1996. He moved to sales in Dallas, Texas before becoming Sales Manager at S & W in 2001. It was a new millennium and the time was right for updating Smead’s corporate identity. The Smead plaid had been one of the industry’s most recognized symbols of quality for decades, but Sharon recognized the need to solidify the

A new logo design gave Smead a strong global identity while retaining its familiar plaid pattern on much of its product packaging.

how to use them—an important connection that all but vanished with office products now sold primarily through giant superstores. The online catalog meant consumers could find the right filing and organizing solutions and ask for Smead items by name.

Smead image both nationally and internationally. “Our research has shown that many consumers instantly recognize our plaid packaging as the Smead brand,” said Sharon. “So as part of our 95th celebration, we unveiled a new, updated logo and chose to keep the plaid design.” The updated red-andmaroon plaid remains as ubiquitous as ever, but creates a more contemporary appeal using the new Smead identity. Taking advantage of the World Wide Web like everyone else, Smead went online in 2001. The new website www.smead.com gave consumers a direct way to find out about Smead products and

The launch of Smead Organizing University in 2004 further enhanced the online connection with consumers. This one-stop training site invites business professionals and home office workers to “get their degree through Smead University.” A click on the Web browser opens a world of free online courses to help anyone get organized and learn valuable skills. In 2002 Smead began serving the Canadian market with Sirius Agency to represent its products in Canada. The next year, Smead’s global expansion took a giant leap forward with acquisition of several subsidiaries of Norway-based Lindegaard, a market leader in Scandinavia. Formerly a family-owned company, it enjoyed a leading position as a manufacturer of filing and organization products, desk accessories, and stationery products. Lindegaard had over 700 employees, with sales activities in the Nordic and the Benelux countries, Estonia, France, Latvia, and the UK. The acquisition positioned Smead for broader European exposure, gained the benefits of cost-efficient manufacturing, and increased Smead’s range of products in the international marketplace.

the

2000s 2000

“Dot com” stocks plunge Researchers map the Human Genome, the master blueprint of the human body

2001

September 11 terrorist attack on the US Smead unveils new corporate brand logo Smead.com website established Smead acquires S & W Manufacturing, Inc. of Florence, South Carolina

2002

Winter Olympics held in Salt Lake City, Utah

2003

Acquisition of Norway-based Lindegaard ASA Group Smead introduces the Smeadlink® Express software Viewables® Color Labeling System receives the Organizer’s Choice award from NAPO Acquisition of Flexistand, European producer of mobile computer furniture Smead Cedar City, Utah plant wins MEP Manufacturer of the Year Award Sharon Avent receives Spirit of Life Award from City of Hope

2004

Smead launches Retrospect® scrapbooking and paper crafting organizational line Smead Organizing University launched online Sharon Avent honored with the Office Depot Corporate Visionary Award

2005

Smead launches M.O., Inc.®, a collection of high-style, customizable office tools

2006

Smead reaches 100 year anniversary Sharon Avent named Minnesota’s Woman Business Owner of the Year by The National Association of Women Business Owners Sharon Avent accepts Torch of Liberty Award from the Anti-Defamation League Sharon Avent receives Career Achievement Award from Minneapolis-St. Paul Business Journal

The office products industry honored Sharon Avent in 2003, naming her as the first woman in the national office products industry to receive the Spirit of Life Award from City of Hope, a national research center for cancer and other chronic illnesses.

In another move to reinforce Smead’s identity internationally, the names of European subsidiaries of Smead’s Atlanta Group were changed in 2002. Each took the name of Smead followed by the country name. “The name change to Smead-Europe reflects Smead’s unified, global presence,” said Sharon. “Since Smead acquired Atlanta Group in 1998, our customers throughout the world have had access to one resource to fulfill all their office product needs worldwide as well as a broader range of products to keep them organized. And now the name reinforces that one resource.” Developing new products that have global application is a company goal. Smead’s Viewables® line of indexing software and labels is an example of a product that has become universally accepted. The National Association of Professional Organizers chose Viewables Color Labeling System as Best Business Product in 2003. The Viewables Color Labeling System incorporates easy-to-use PC software that allows users to create customized, color-coded labels for both file folders and hanging folders. The flexibility and versatility of the software system sets it apart from other pre-colored labeling kits. Users can import data from other software systems, choose from 14 available colors, and print anywhere from one to 16 labels on a sheet.

Smead celebrated 50 years of woman leadership in 2005. The company is active in promoting the advancement of women in business and supports many women’s groups. Smead has been a certified Women’s Business Enterprise since 1991 .

Smead also introduced a new line of antimicrobial filing supplies, made with a unique stock formulated to fight the growth of harmful microorganisms that can damage or destroy documents. Besides creating products with global

All of Smead’s acquired European companies changed their names to Smead, followed by the name of their country. Shown here is the headquarters of Smead-Europe B.V. located in The Netherlands.

application, David Fasbender summed up another challenge: “The opportunity for Smead to grow becomes limited by what the mega stores will stock. Consolidators shorten the line to get the product range that accommodates what most people need. It requires molding yourself to what the market presents to you. Our new ideas aren’t going to be embraced by mega stores, so what we did was grow the company by looking for other markets to enter with a variety of new products that are still focused on organizing.” That’s just what Smead is doing. Continuing the Smead tradition of pioneering in the service of changing needs Smead’s line of Retrospect® organizational products brought the company’s expertise to scrapbookers and paper crafters. Unveiled at the Hobby Industry Association (HIA) Trade Show in

Dallas, Texas in February 2004, Retrospect resulted from research and development to target the unique needs of this customer base. The home and small office market, another new base of customers, was served when Smead partnered with a team of women designers to introduce M.O., Inc.®, a high-function, high-style line of office products customizable to an individual’s workspace and unique needs. The M.O. line has become very popular at college bookstores and upscale stationery boutiques.

To strengthen its worldwide identity, Smead exhibited its wide range of organizational products at the PaperWorld show in Germany in 2005.

In addition to traditional filing supplies, Smead-Europe produces a wide variety of products ranging from desktop organizers and schedule planners to mobile furniture.

Smead introduced the Retrospect® line in 2004 to accommodate the special organizing needs of scrapbookers. Smead continues to develop software products that enhance paper filing systems as well as keep electronic documents organized.

The M.O., Inc.® line of filing products combine stylish design with classic functionality to serve the small office/home office market of image-conscious professionals.

For 100 years, Smead has successfully anticipated future trends through continuous consumer insight and the understanding of trends in the workplace. That will not change. Total filing solutions will continue to be developed by Smead researchers as they coordinate efforts to produce the products, systems, and methods to guide their clients in the new millennium.

ever-changing market as we continue as a total provider of records management solutions.

What’s next for Smead? David Fasbender describes the landscape at the company’s centennial: “We see the continuing emergence of women as key decision-makers in the workplace and at home. With the changing workforce, we have witnessed the development of the small office/home office market along with an increased number of people working out of their homes. And as a company, we continue to seek out new and fresh ways to embrace the opportunities that our changing world presents.” “Smead has always been focused on the future beginning when my mother assumed the leadership role back in 1955,” Sharon Avent comments. She also acknowledges, “I do not have a crystal ball to see into the future. Our leadership focus for the entire 100 years has remained on filing products and the office products

Although Smead is a global leader in the office products industry with modern factories around the world, the company maintains the wholesome family spirit that P. A. Hoffman established in the early 1900s. Third generation CEO Sharon Avent fosters that same spirit, valuing employees as the company’s greatest asset. Her pride in them is returned by their loyalty and dedication to producing the finest organizational products in the world.

industry. But we live in a rapidly changing world. I still believe there will be paper or electronic records to file, and of course, histories to be kept. We will strive to remain flexible in an

“Will this company remain privately held? That is something I would hope for. I do know that the Smead name has stood the test of time for 100 years. Our customers, vendors, and consumers use words like honesty, integrity, service, and quality when the Smead name or products are mentioned. Our small-town family values have nurtured a company culture of genuine friendliness, mutual support, and stellar service. All these attributes are intrinsic to our company. They have resulted in employee longevity and industry-wide renown of which we can all feel proud. I believe these are achievements of the feminine side in 50 years of women ownership, and I believe that no matter what we produce or sell—as long as we stay true to these qualities and carry on that culture— Smead will survive for many years to come.”

Smead Board of Directors

Smead Executive Team

(from left) Richard Fox Sharon Avent James Wicker Sandra Martin, Esquire

(from left) Dale Olson, Vice President, Finance Dean Schwanke, Vice President, Human Resources Sharon Avent, President and Chief Executive Officer Walter Glashan, Senior Vice President, Operations David Fasbender, Senior Vice President, Sales & Marketing Thomas Sullivan, Vice President, Sales Robert Karrick, Executive Vice President and Chief Operating Officer Joseph Vossen, Vice President, Information Services

www.smead.com Form No. HB-06