Skip to main content
Currently being edited in London

Daily inbox intelligence from Monocle

Sharpen up

By listening to its customers, pencil-maker Viarco has secured global fans and healthy profits.

Writer
Photographers

One of the advantages of using a pencil rather than a pen is that graphite allows for experimentation (and mistakes to be erased); for sketching ideas before making them permanent. It’s this same notion of trial and error that José Vieira has used to breathe new life into Viarco, the Portuguese pencil-maker. “We can kick-start projects quickly,” says the CEO. “We don’t have to change an entire operation, rent a new space and create a whole marketing campaign around a new product. We can just try things out, spending almost no money.”

Three wooden calligraphy tools with metal nibs arranged on white surface with black ink strokes below

Viarco’s playful design product

Close-up of a hand using a plane tool to smooth ridged wooden pencil slats in a workshop

Marking the graphite

Golden pencil held in industrial machinery awaiting hot-stamp printing process

Pencil awaiting hot-stamp printing

That nimbleness is possible because of Viarco’s modest size. The company has been around since 1907 but production remains artisanal. The factory in São João da Madeira, a tiny municipality south of Porto with a rich industrial heritage, is a low-tech operation of clattering machinery and about 20 staff working on detailed processes, often by hand. “It’s a nightmare of a factory in terms of efficiency,” says Vieira above the din. Despite all of this, Viarco’s pencils and graphite-based art products have become coveted by artists and stocked by premium retailers around the world and last year the company had earnings of €950,000.

So how has this small, traditional firm not only stayed relevant for more than a century but also found new fans? It hasn’t been simple. The business was founded as Faria, Cacheux & Co by Conselheiro Figueiredo Faria and Jules Cacheux in the town of Vila do Conde but it struggled during the Great Depression. In 1931 it was sold to Manoel Vieira Araújo – José Vieira’s great-grandfather – who had previously been a milliner. Araújo registered the business as Viarco in 1936 before moving it to São João da Madeira – and the factory that it occupies today – in 1941. In the years that followed, Viarco established a near-monopoly on the sale of pencils in Portugal, especially during the latter years of the Salazar dictatorship when every child used Viarco pencils and the regime’s censors struck out anything that they deemed offensive using an Olímpico 291. Today 50 per cent of all sales are in the country (20 per cent are in the US, another 20 per cent in the rest of Europe, the rest in Asia and South America).

Hundreds of bright orange colored pencil cores arranged in neat rows on a wooden surface

Coloured pencil cores

“Then came the revolution, followed by Portugal’s entry into the European Union,” says Vieira.“From one day to the next we lost space in the market. There were factories in Asia that could suddenly sell the finished product for cheaper than we could buy the wood we needed.” The new millennium would bring even more challenges and so, when Vieira and his wife, Ana, took control of the business in 2011, many thought that they would shutter the operation. “But then it hit me,” says Vieira. “We are the only pencil-makers in Portugal, the only ones that have this knowledge – and if we close, that’s it.”

This realisation made Vieira look at the business afresh. The factory might seem like an industrial relic but this also made it a symbol of Portuguese heritage and, matched with voguish vintage branding, could be a powerful marketing tool. “But we’re not a museum so we needed new products to sustain all of this,” says Vieira, who turned to one of the key constituencies who use his products: artists.

Factory employees glue pencil cores to wood slats in industrial workshop setting

Factory employees glue pencil cores to the wood slats

Since 2008 the factory has hosted artist residencies and it struck Vieira that the space that these visitors used could become a kind of r&d lab. “We’re neither carpenters, nor calligraphers, nor illustrators,” he says of his team. “We make pencils. But these artists who were coming here were using our products and so, if I had any technical doubts, I could go to them and get instant feedback.” This constant dialogue with the end users has propelled numerous innovations that have, says Vieira, rescued the business. “It’s not a very formal residency,” he adds. “We aren’t asking the artists who come here to create something specific or hold an exhibition, we just give them the space and tools to play with.”

Viarco’s new creations include leather satchels for organising your pencils and a clever drawing desk that rolls out fresh paper with the spin of a hand-crank. “It helps that we’re in an industrial area and we can run next door to prototype almost anything,” says Vieira. Other innovations have already become bestsellers, such as the ArtGraf range of speciality products, which includes a soft graphite putty that allows users to shape their own drawing tool and a soluble graphite that can be applied like watercolour paint.

Three colorful glass bowls containing blue, red, and yellow materials next to multicolored pencil rods on wooden surface

Raw materials on display at Viarco’s factory in São João da Madeira

José Vieira, co-owner of Viarco, wearing green work coat in factory office

José Vieira, co-owner of Viarco

Wooden drawing contraption with compass-like arms and weighted mechanism being tested on white paper

Morphe tools are put to the test

Hands positioning wooden slats with woven cane material on a workbench during pencil manufacturing

Preparing to shape pencils

Factory employee Esmeralda Barbosa at the hot-stamp machine

Factory employee Esmeralda Barbosa at the hot-stamp machine

In February, Vieira attended Frankfurt’s Creativeworld trade fair where he gauged market interest for Viarco’s new pencils and scribers especially made for use with ceramics and silkscreen printing. “Every one of these products either came from a collaboration with an artist or was inspired by a residency,” he says, taking a chunky piece of raw graphite in his palm. The idea for this, the ArtGraf XL, came from a sculptor who, during his stay at the factory, expressed a desire for a heftier drawing tool. “If there’s something fundamental that I’ve learnt from these dialogues it’s that, while every physical thing that’s produced today has decades of studies and technique behind them, they’re no longer innovative. And if an industry stops innovating, that’s when people turn to the digital world with its heaps of novelty every day.”

Viarco has become involved in exploring new ways of drawing too. Noticing that several resident artists were creating contraptions to attach pencils to their fingers, Vieira decided to bring this idea to the factory floor. The experiment not only led to the creation of Ponta, a new spring-based fingertip drawing utensil, but also to a whole new way of thinking. “When we started experimenting with it, we began to consider the needs of people who don’t have fingers or properly functioning hands,” he says. “And suddenly we are researching tools for the elderly or people with special needs. A pencil is such a valuable tool. Think about everything it enables, from learning to creativity.”

Blue hexagonal pastel pencil cores arranged in wooden compartmentalized trays

Pastel pencils ready for a wax bath

Hands in white gloves polishing a dark rectangular graphite block on white fabric

Polishing an ArtGraf Tailor Shape

Wooden shelving unit filled with bundles of colored pencils and art supplies organized in compartments

Shelving at the Viarco factory


Drawing attention
Viarco products to discover

Half of Viarco’s sales consist of professional and branded pencils for businesses. The other half is split between its premium ArtGraf line, design products and reissues of its much-loved vintage lines, which come in boxes featuring classic mid-century designs.

Orange cylindrical ArtGraf XL graphite stick with black cord and gray cap against white background

ArtGraf XL graphite stick

Red and white Viarco professional carpenter pencil package with saw illustration and model number 1019

Professional carpenter pencils

Three square colored blocks in red, yellow, and blue set in a cork holder against a white background

ArtGraf ‘Tailor Shape’ primary colour set

Bundle of red Viarco graphite pencils tied together with yellow paper band showing brand logo

Graphite pencils

Red vintage Viarco pencil box with yellow ribbon design and Portuguese text

Vintage copying pencils

Monocle Cart

You currently have no items in your cart.
  • Subtotal:
  • Discount:
  • Shipping:
  • Total:
Checkout

Shipping will be calculated at checkout.

For orders shipping to the United States, please refer to our FAQs for information on import duties and regulations

All orders placed outside of the EU that exceed €1,000 in value require customs documentation. Please allow up to two additional business days for these orders to be dispatched.

Not ready to checkout? Continue Shopping