The chips first appeared in 13 Carrs stores in Anchorage and have since expanded to Carrs outlets in other Southcentral communities and Fairbanks. They will be in eight Fred Meyer stores in Southcental Alaska beginning Jan. 19, and soon on Elemendorf Air Force Base.

The company's Alaska chips have met a good market reception and sales are close to projections, according to Ralph and Darcy Carney, who own and operate the company. The Carneys are making between 2,000 and 2,500 5-ounce bags of chips weekly, Ralph said. After expanding into Fred Meyer stores, weekly production will increase about 30 percent, he said.

As when any small business starts up, important lessons are being learned, he said.

There was a splash of publicity when the company started last July and demand was unexpectedly strong in the early fall, mainly through "word-of-mouth" advertising. It required the Carneys and a handful of employees to scramble to keep up.

Ralph and Darcy came in one Friday evening and cooked fries past midnight to meet a Saturday order, they recalled. That happened only once, however.

Demand has since settled down and remains steady, but there are seasonal spikes and dips that the Carneys are still learning about. Snack food sales tend to slow around Christmas but are strong at New Year's, for example. In January there's usually a dip in chip sales as people begin post-holiday dieting.

"We're new to the snack food industry, so it's been a learning curve for us," Ralph Carney said.

"What really surprised me was the spike in sales we got after we started," he said. Owning a small company, the Carneys didn't have money for a big advertising blitz, but the word got around.

"It really shows us that Alaskans really do buy into the 'made in Alaska' idea. It seems like a part of the social contract," he said.

Distribution and marketing have also been learning experiences. Ralph said he has to pay close attention to retail displays in grocery stores to make sure they are well-stocked, and to develop good relations with the store managers and employees.

"The stores are our customers and we have to remember that," Ralph said.

Carefully managing the distribution of the two flavors of chips is also important. So far the lightly salted "Matanuska Thunder Chip" outsells the barbecue chip about two to one, but sometimes sales of the barbecue ships are strong, too. There are plans, and even a bag design and color, for a spicy "Katmai Volcano" jalapeno chip, and other flavors as well.

Darcy said the couple have had to watch costs closely, and having employees who are willing to be flexible has given the company an important advantage.

"We hired part-time people so when we got peaks in demand we asked them to work more hours, which they happily did," she said. This gave the company a way to meet demand peaks without carrying a heavy overhead.

There is now one full-time employee, a fry cook, but others are still part-time. Alaska Chip now has five employees. Darcy's mother is still on hand regularly to help out.

If it succeeds, the company will serve as an example for entrepreneurs looking to start their own businesses.

"They put themselves in the right position. They invested a good deal of their own funds, started small, developed a good market plan and a way to develop immediate earnings," said Steve Street, vice president for commercial loans at Northrim Bank, who works with the Carneys. "Plus, it's a heck of a nice product."

J. Webb, Alaska sales manager for Carrs Quality Centers, said the Carneys have met all of the expectations the Alaska retail grocery chain had for the new chip. "We're very pleased with their service and the product they've supplied us. We're looking forward to their offer of new flavors, too," Webb said.

Carrs helped the Carneys get their product established by making space available in the company's grocery chain.

Ralph and Darcy were born and raised in Alaska, she in Anchorage and he in the Matanuska Valley. Both became certified public accountants but wanted to own and run their own small business.

They liked the taste and admired the marketing acumen of successful regional gourmet chips like Maui Chips in Hawaii and Tim's Chips in Washington state. Both are sold in Alaska.

After a lot of experimenting, Ralph developed an Alaska chip that has no cholesterol and low salt. It is a natural product cooked in peanut oil, which adds to the taste.

What is critical is having the support of Matanuska farmer Ben Vanderweele, who grows the Pike potatoes the Carneys use for chips, and helps with storage and year-round deliveries.

The Carneys have also been able to manage the startup without getting "burned out," a potential hazard in small business startups.

Darcy continues to work full time as chief financial officer for Alaska Growth Capital, a financial institution. Since Ralph is not taking any pay from the business yet, Darcy's paycheck is important.

At the beginning Darcy was handling the firm's books as well as commercial negotiations and marketing after she finished her regular work day, leaving Ralph to handle production and deliveries. As the business has settled down and employees have been trained, Ralph has been able to take over more of the business side.

The couple has two small children, and there's been time for family life and even a short vacation in early December.

"We're still enjoying it," Darcy said. "We're still able to lead a balanced life, and it's still fun, too."