It all started with pencils.

Faber-Castell was founded 250 years ago in Germany as a pencil manufacturer. Today, the company produces professional art supplies sold around the world. Cleveland is home to Faber-Castell USA, which in 1999 acquired Creativity for Kids, a Cleveland company that makes activity kits for children.

In spite of an onslaught of electronic gadgets and high-tech toys, Faber-Castell USA and Creativity for Kids have remained lucrative and kept an 80-person staff. "We have had two record-setting years in 2009 and 2010," says Jamie Gallagher, CEO of Faber-Castell USA.

How does the company stay sharp? "We have a nice portfolio of product lines that enable us to be diversified during challenging times," Gallagher says.

Creativity for Kids helps Faber-Castell build brand awareness in the United States, according to Gallagher. Often, this is accomplished by combining products from the two lines into a single kit. For example, Creativity for Kids' Do Art Drawing Power, which teaches children sketching and drawing techniques, includes Faber-Castell Color Grip EcoPencils.

Gallagher says the goal of Faber-Castell USA is to deliver "opportunities for creativity and self-expression while highlighting the importance of quality. Despite difficult times, we haven't compromised that or tried to reinvent our brands."

That doesn't mean Faber-Castell USA isn't interested in growing. The company recently launched a line to expand interest in papercrafting for adults. "The product line, Design Memory Craft, features products that make designing with color simple to do," Gallagher says.

SOURCE: Jamie Gallagher
WRITER: Diane DiPiero