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The Hydrox Lesson

The Hydrox Lesson

Johnny Meatballs DeCarlo (March 12, 2012)

A Must-Read For Food Entrepreneurs

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Being that I am Johnny Meatballs, The Meatball King of New Jersey, owner of Johnny's Meatballs In Sunday Gravy and Johnny Meatballs On A Roll - The World's First Mobile Meatball Cart, I thought I'd speak today about something I've done lots of research on and have learned through a lot of trial and error: entrepreneurship. I will admit, I am not where I want to be just yet, however, I'm going to give some tips and some ideas that can be used by my fellow food people, and business owners in general—regardless of the product or service you are offering. These philosophies and conclusions were all sparked a few years ago (when I first started working for myself) from several articles I read about cookies.

 

Last week, I grew compelled to start looking online for those old articles when I noticed an abundance of facebook posts celebrating what was the 100th anniversary of Nabisco's Oreo—the universally known standard for the chocolate sandwich cookie with a white creme center. I'm sure you've twisted and dunked plenty of Oreos in your life but did you ever taste a "Hydrox," the ORIGINAL Oreo? Older folks or serious foodies most likely have, but my kids never will be able to enjoy one since they are no longer made. Call me weird, but when I was growing up in the '80s, I was always fascinated by generics vs. "known" brands and comparing different types of food products on the store shelves that appeared to be similar (or identical, blatant rip-offs) but had different marketing strategies...

 

I remember once begging my mother to purchase a box each of the popular sugar-coated puffed wheat cereals; Kellogg's Honey Smacks (est. 1953) and Post Golden Crisp (est. 1949) so we could compare the two. Both of those cereals are equally enjoyable in the taste department and both brands equally enjoyed massive success from the start. And even though both were released around the same time, both are still produced and thriving. Why? Because both had cartoon mascots, catchy jingles and colorful packaging.

 

So why is Oreo still "America's favorite cookie" and Hydrox is discontinued? Because Oreo has a catchy name, slogan, massive marketing and partnerships with various other food and non-food businesses and are not just a cookie juggernaut but a cultural icon. Although Oreo was originally known as an imitation to the Hydrox when it was introduced in 1912, and although Hydrox did stay on store shelves for 100 years since it first came out in 1908, the Hydrox could never compete.

 

A little bakery called Sunshine Biscuit Company first created Hydrox and then big bad Nabisco swooped in and basically re-created it (or "perfected" it as they'd claim). The other American business story I love is that of Hostess vs. Drake's (there was an intriguing documentary on it) and perhaps the smartest move a company can make—which is what Drake's did—was sell their name and product line to Hostess so they'd stop making replicas under their name (ie: Ding Dong vs. Ring Ding). Now you have "Drake's Ring Dings by Hostess." It's quite ironic though how Hostess now is supposedly going bankrupt. No matter, Drake's got their money even if it was a somewhat hostile takeover/merger and no one will ever forget their name. See those two companies dueled for years releasing similar products, but each had a very loyal following. Hydrox had a following but it was more of a cult following, and that simply cannot sustain crossover mass appeal.

 

This is a lot like the little brother always trying to compete with big brother but he just can't get there. It's like how the New York Mets will never, ever be the New York Yankees. Many resent the Yankees and call them "the evil empire" for spending so much money and for being a BRAND, not just a baseball team. But they play by the rules. You can spend all the money in the world but if you invest it wrong, you will not be successful. The Yankees had some struggles when this happened, but those were short-lived and overall, in their 100 plus years of existence, they have been the pinnacle and standard of success—not just in sports but in countless other business partnerships.

 

There is nothing wrong with competition in the marketplace. I feel we should all aspire to be the Yankees. To be Oreo. As an entrepreneur, I look up to those in my field who have reached a higher level of success and aspire to reach those heights. I don't want to turn this political, but the "occupiers" of this country who protest capitalism are doing themselves a disservice by wasting their time resenting rather than striving. I am all for the little guy making it big, that's why I am writing this in the first place, to showcase Sunshine's Hydrox as a brand that tried but ultimately failed. Entrepreneurs need to be aware of this story as it is a story that should serve as a valuable lesson on many fronts. On what to do and what not to do as a company, regardless of the company's size or resources.

 

There's frankly no excuse for giving a cookie a name that sounds more like a household cleaner than a dessert treat. That was their first mistake and that has nothing to do with money. By contrast, Sunshine did claim a big leg up in the cracker department. Their Cheez-It's (still around today) always outsold Nabisco's similar Nips. Hmmm...

 

Even so, Nabisco was a giant in the baking industry—with major distribution channels, advertising budget and a level of expertise and connections in the industry that Sunshine could only dream of. The problem was, they spent too much time dreaming and not enough time doing. See in business, especially with food products, if you don't have the capital and connections to launch your product—to make it into a BRAND—you will never get to the top. So you have to find those things and in the meantime, be creative and make a statement that you are great. Look, you can still operate, you can still make a profit even if you aren't number one, but if you are a true American business owner, you have EGO. You want to be THE BEST.

 

Of course the product itself has to be high quality but you can't rely on hope and luck for people to find out about you. Word of mouth can only go so far when your competitor debuts a multi-million dollar ad campaign. No one will be able to taste your food and compare them alongside the counterparts unless they know about them. You have to go toe-to-toe with those counterparts. That means selling the SIZZLE even more than the steak.

 

According to a 1998 Fortune Magazine article on this very topic, the public sales numbers of that period tell the tale. $374 million in Oreo profits compared to $16 million for Hydrox. Keebler ended up buying out Sunshine and tried to revive Hydrox as "Droxies," with new packaging and marketing. But it was too little too late, and they disappeared forever shortly after their brief face-lift. Incidentally, Keebler is now owned by Kellogg's.

 

I never plan on disappearing. My criticizers have said that the whole image of my Johnny Meatballs persona is a stereotypical character. And that my slogans and songs are silly. At least they are noticing and that's what the trick is. Johnny Meatballs IS a character, and everything I do with it is supposed to be fun! Meatballs are a fun food! And you know what, I can say with confidence that they are the best around and everyone who tastes them agrees. And maybe "Johnny Meatballs On A Roll - The World's First Mobile Meatball Cart" was the gimmick that brought people out to taste them. So what?

 

Hey, I took my 15 minutes of fame on a goofy Vh1 reality show about lavish Jersey Italian weddings—and made almost every one of my scenes into a chance to showcase my creation, which has led to so many opportunities for me. Without that little taste of show-biz I probably would not be as far as I am today, but I am sure I would have figured out a way to sell my idea somehow. The whole world has always been a stage for me and it always will be. If you do enough crazy things you will get noticed and eventually connect with the right people. Constant networking, shameless self-promotion and over-the-top ideas make you stand out.

 

Uniqueness, positivity, a display of passion for your product, a love for life and pride (even when you may be self-deprecating) are all essentials. Do events and get yourself as much exposure as you can with every media outlet there is—whether it's TV, radio, newspaper or social media. Tweet, blog, do youtube, do what you have to do, 24/7. At the bottom of my business cards it says: "Google Johnny Meatballs for more info." Make sure lots of stuff come up when you Google yourself! Travel and associate with the right people. You are just as good as anyone. Capital and investors always speed up the growth process but opportunities are always right around the corner and you always have to be on point and ready.

 

If I was only satisfied with selling my meatballs at local feasts, I would not be a success. If I was only satisfied with regional distribution, I would not be a success. If I was only satisfied with national distribution, I would not be a success. I know in my heart that Johnny's Meatballs will be on every dinner table worldwide someday. You have to have lofty goals and expectations and try to be an undisputed champion in your industry. Those in your field (whether they are above you or just coming up) should motivate your desires even more. You gotta do whatever it takes. Make your business YOU. That's why I am Johnny Meatballs. I eat, sleep and breathe it.

 

So my advice is to do the same thing. Just don't call yourself Hydrox.

 

Longevity is great, but years of mediocrity should never be accepted. Don't just "hang on." You have to stay in the public eye and stay relevant. Please don't misunderstand my message here, you can do all of the above that I talked about but if there is no substance behind what you are selling, you will eventually be exposed. There's plenty of folks out there who make it their mission to be those doing the exposing. Every "celebrity chef" out there now can endorse a product and slap their name on it. Yes, it will sell, but you don't wanna be a sell-out or a "flash in the pan." If you are just starting out, fake it until you make it. And throughout a rough patch, remain focused and never show weakness. I "got balls" and you should too.

 

Serve with a smile and work hard and you will be rewarded in the long run. I'll repeat, sell the SIZZLE just as much as the steak. Otherwise, your steak will never be tasted and people will never realize how great you truly are. Same with meatballs or gelato or cookies or whatever.

 

And for the record, I always thought Hydrox tasted better. It's a shame the next generation will never be able to compare it with big "O" and see for themselves.




 

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