See's Candies

See's Candies operates 240+ stores concentrated in California and the Western United States, generating consistent cash flow for Berkshire Hathaway since Warren Buffett's 1972 acquisition for $25 million. The company raised prices from $2 per pound in 1972 to $25 per pound in 2024—a 5% annual increase sustained across 52 years. This pricing power mirrors plant allelopathy: See's doesn't compete on cost, it secretes chemical signals (brand nostalgia, seasonal gifting rituals) that suppress competitors in its home range.

Buffett calls See's "the prototype of a dream business" despite acknowledging "the brand doesn't travel." Expansion beyond Western states repeatedly failed because See's mutualistic relationship with California culture doesn't transplant to new ecosystems. Like mycorrhizal fungi that pair with specific tree species, See's thrives in its native habitat but withers elsewhere. The company represents less than 0.1% of Berkshire Hathaway's holdings yet appears at every shareholder meeting—a keystone species whose cultural importance exceeds economic mass.

See's 240 stores remain stable rather than growing, demonstrating apical dominance: Buffett's philosophy of "wonderful companies at fair prices" means protecting existing territory rather than forcing expansion that would dilute brand equity. The business requires minimal capital reinvestment while producing reliable cash that Berkshire redeploys into higher-growth opportunities. This metabolic efficiency—converting seasonal demand (Valentine's, Christmas) into predictable cash flow without geographic expansion—validates that dominance within a niche often beats mediocrity across multiple markets.