Kathy Brekken

Gifts & Decorative Accessories: Please define Midwest for us.

Kathy Brekken: Historically, the company is about holiday traditions, and in the forefront of that is Christmas. There have been shifts in what we have done compared to 50 years ago when my dad, Ken Althoff, started the company, but the core is still the holiday tradition.

Gifts & Dec: How was the company founded?

KB: My father was a Lutheran pastor, but he had to give it up when he was diagnosed with multiple sclerosis as it was hard for him to be continually on his feet. He opened a small gift shop, called The Seven Seas, in the basement of our home. He had connections with a church publishing house in Minneapolis, so he renewed books for them. At the same time he imported brass crosses from Germany that he sold to the church, as well as a variety of holiday product.

Gifts & Dec: Wasn't the motto of The Seven Seas, "Please Handle Everything"?

KB: That's right. Dad wanted people to be involved with the product. I still run into folks who shopped in the retail store. They remember the product. But they remember my dad most, because he had a passion for it. That foundation still stays with us: It's a very personal process to get to know the product itself.

Gifts & Dec: When did he begin the wholesale business?

KB: He ran the wholesale part of the business from the beginning, under the name Midwest Importers. Midwest was growing rapidly, and he realized he couldn't run both, so he closed The Seven Seas in 1964.

Gifts & Dec: What year did you come on board?

KB: I spent summers and after school hours working for my dad. I did everything from filling orders to typing up invoices to handling accounts payable and payroll. After college, I was debating whether to go to grad school. It was 1973. Dad asked if I wanted to come on board at a pay rate of $2.65 an hour. I have been here ever since, and was elected president and CEO in 1985.

Gifts & Dec: Are other family members involved?

KB: My brother, Bill Althoff, is vice president international. Dad retired from active involvement in the company in 1999.

Gifts & Dec: What are some company milestones?

KB: When we reached a size of 15 or 20 million dollars in annual sales, we realized that everything about how we ran the business wasn't going to work anymore. We had managed intuitively, as a family group. We knew we had to hire professionals who were specialists in their particular areas. Another milestone was when we shifted from all-European products and started buying merchandise in Asia. Then the next logical step was not just buying ready-made products, but making product of our own designs. We started to hire designers.

Gifts & Dec: What are some of the changes in the industry that you've witnessed?

KB: The importance of big box retailers and what they mean to specialty stores has shifted. Twenty years ago it was a very orderly market, and if you decided to serve the specialty channel, you knew exactly who those players were. Also, if you decided to work with department stores, you did. It was really only those two choices. Now, the boundaries are not nearly as clear for us. There aren't lines of delineation in terms of where does our product belong, and whom should we sell to.

Gifts & Dec: Blyth Inc. acquired Midwest in 2001. What have the benefits been?

KB: We no longer have to deal with banks. Blyth is our treasurer. The fact that they will be able to support our growth initiatives is very important for a company like ours. Blyth is also very marketing-oriented. They believe in brand, they believe in focus, and they have really challenged us in both of those areas, and that is very healthy for our company.

Gifts & Dec: Was there ever any concern that the company's family orientation would be lost?

KB: Of course there was, in the beginning. But Blyth acquired the company because they liked it, and not because they wanted to change who we are.

Gifts & Dec: What do you do when you're not running Midwest?

KB: I love to travel, read, and spend time with my husband and two sons at our log cabin in northern Minnesota. I antique wherever I am, and hit the retail shops, constantly filing things away in the back of my head, and thinking … hmmm, what did I learn here?

Gifts & Dec: And you use the experiences to help you at work?

KB: No question about it. Whether its something concerning our product or just thinking about retailing and what are the issues facing our many retailers. It is a huge help to be in their stores. If you walk through the doors of 100 retailers, you will walk out with more information than you ever expected.

Gifts & Dec: What is Midwest planning for its 50th year?

KB: We will be introducing our new branding program, Seasons of Cannon Falls, with a new brand logo. This will be a big help for retailers in establishing consumer loyalty because of the brand's emotional connection to family traditions. We will also change our corporate name to Midwest, beginning January 1, 2003. The other area of focus is on the community of Cannon Falls. We have been in the same little town for 50 years, and will renovate a local historic house built in 1868. It will showcase the Seasons of Cannon Falls collections to provide decorating inspiration to retailers, consumers, and Midwest employees.