Picknicking in High Style.

BROTHER-SISTER TEAM EVOLVES PRODUCT OFFERINGS FROM SIMPLE WICKER BASKETS TO INSULATED COOLERS ON WHEELS AND BACKPACKS

IN 1992, Jill Brown noticed that visitors to the Hollywood Bowl who like to arrive early and spread out a blanket while waiting for the show were often missing one important thing -- a classy picnic basket.

So Brown bought a bunch of ordinary wicker baskets and, working out of her Santa Monica apartment, added frills like lining and plastic wine glasses before selling them to area stores.

The market seemed huge back then, but Brown soon discovered there was only so much room on store shelves and only so many shops that wanted to carry them.

"I thought I was big-time," Brown said. "I didn't realize I hit all the (stores) that could take it."

It wasn't long before Brown brought her brother Paul Whitlock over from England to help the young enterprise. His background in sales and marketing, coupled with a core group of devoted employees, have guided the concept through several changes, including a new line of picnic backpacks and other products, and a widened customer base.

The effort has paid off in the past several years. Their company, Picnic at Ascot Inc., generated $5.9 million in revenue in 1999 and is expected to hit $10 million this year on the strength of customized products targeted to corporations for gifts to clients and employees.

Jeff Berman, a buyer for Pioneer & Lucerne Hardware in Beverly Hills, sells high-end housewares and finds that window displays of the Picnic at Ascot line are a good way to grab the attention of passersby.

"People really like the backpacks," said Berman, who first saw the products at a trade show last year and ordered some from a catalog. "We sell a lot of this for the Hollywood Bowl."

Thus far, the company's progress has been marked by trial-and-error. In the early days, as demand grew, the brother and sister started importing baskets from East Asia, with workers in the firm's El Segundo warehouse adding design elements like patterned lining.

Distribution channels were added by participating in trade shows and developing contacts with distributors who got the baskets into stores such as Fred Segal and Trader Joe's. But they also heard distributors criticize the baskets and suggest improvements.

Brown and Whitlock soon began to experiment with various prices and accessories, and in 1997 Picnic at Ascot branched into a line of products that abandoned wicker entirely. They now focus almost entirely on sharp-looking insulated coolers and soft-covered backpacks.

The products come with a full kit of picnic utensils and accessories along with a pocket for freezer packs. They've been designed to look good in the back of SUVs, go well with Eddie Bauer brand hiking clothes, and sit pretty on benches at the Hollywood Bowl.

Corporate clientele

The firm has also started selling its own line of accessories like corkscrews, cheese cutters and wine-bottle holders.

The new line has proven very popular and profitable because shoppers are willing to pay more for coolers than baskets. (The suggested retail price for a deluxe four-person cooler on wheels is $144.95.)

Also in 1997, the brother and sister identified a new kind of client that has helped fuel their growth: corporations.

That year they made baskets -- compete with golf-ball designs on the lining -- that were handed out to the golfers at the Frank Sinatra Celebrity Golf Tournament. It was their first foray into corporate gifts, and with some specialty engraving and silk-screening, there seemed to be plenty of room for growth in the corporate realm already blanketed with logo-covered pens and T-shirts.

In the past three years, Picnic at Ascot has gotten lots of business from entertainment firms, banks, cosmetics and telecommunications clients that have used its products as tokens of appreciation for customers as well as employee incentives, gifts and prizes.

A cellular phone company bought 80,000 cheese cutters for its best customers, and a car dealer offered picnic backpacks to anyone who test-drove an SUV.

Touch of class

Through it all, Brown and Whitlock insist that their baskets, coolers and other products have a classy touch that makes them stand out.

"We have more design in them, and we're extremely focused," Whitlock said. "Now we can look at a product with a certain degree of certainty and say that will sell. We know this little niche very well."

The company does get some stiff competition from companies large and small that see high-end items by Picnic at Ascot selling well and try to grab a piece of the market.

Whitlock realizes that if her firm doesn't keep developing new products and new markets, it will see those all-important spaces on store shelves filled with other offerings.

That's why in 1998, Picnic at Ascot began to operate in England. Products assembled there and distributed throughout Europe are expected to generate $1.75 million in revenue this year.

Whitlock said it made a lot of sense to expand into England. "Picnicking almost started there," she said.

Spotlight

Picnic at Ascot Inc.

Year Founded: 1992

Core business: Creation and wholesale distribution of high-end picnic items

Revenue in 1998: $3.25 million

Revenue in 1999: $5.9 million

Revenue in 2000: $10 million (projected)

Employees in 1998: 13

Employees in 2000: 23

Goal: To be the leader in the medium-to-upscale market for picnic products

Driving Force: Consumer demand for high-end picnic items