You can get straight As in marketing and still flunk ordinary life. —Newman to lee Iacocca after Iacocca’s Pinto caught fire
One day the two of them ran into a friend of a friend, late of the restaurant business, now in shoes, who flatly stuck his finger in PL’s chest and said, “We were always filled to the rafters but no profit. I was skimmed to death, skimmed! Waiters in collusion with the cashier! [This is before computers, remember.] They saved up all the cash register chits in ten-cent increments from $2.50 up into the hundreds. Guy gets a check for $49.50, they go into the chit collection, get a chit for $49.50, guy pays the bill, nothing rung up on the cash register, they pocket the $49.50, and—which really frosted my ass—they get the tip as a bonus!”
From the very beginning, we bucked tradition. When the experts said that something was “always done” in a certain way, we’d do it our way, which was sometimes the very opposite.
It was Newman’s insistent desire to market the dressing that kept Hotch in motion. Scarcely a day passed but what Paul was calling from some unlikely place to discuss a newly discovered source for the perfect olive oil, the perfect red wine vinegar, the perfect mustard, and so on, which he constantly sought. He phoned Hotch from racetracks, in between his races, from mobile dressing rooms on location while shooting Absence of Malice and The Verdict, from airports on his way to make speeches on behalf of the nuclear freeze movement, and even, on one occasion, from where he was making a coffee commercial for a Japanese film crew, a background of cacophonous Nipponese chatter making it difficult to hear him.
Paul had always been perverse about complacency. It was his theory that he had to keep things off balance or it’s finito.
But to Andy’s surprise, after testing, his chemists concluded that since Paul’s dressing consisted of oil and vinegar and contained mustard, those elements combined to form a natural gum.
“We don’t think you’ll get anywhere with Crowley. He already turned us down.” “Gentlemen,” Stew said, “I am Andy’s best customer—I sell more Ken’s than all his other customers combined. If your dressing measures up, I assure you he will bottle it.”
“I think I’ll sleep on it,” Paul said. “Maybe I’ll dream something that will put me straight. I’ve had a lot of luck with my dreams.”
We now needed a name for this sauce, and what we came up with—Newman’s Own Industrial Strength All-natural Venetian-style Spaghetti Sauce—horrified our brokers. “Industrial strength! They’ll think it’s for factories—they’ll never buy it to put on spaghetti.” As usual, we disregarded their “expertise”
What I got out of it
Fun, easy read on Newman and how he got started with Newman’s Own, having donated nearly $250m!
An inspiring book about Chuck Feeney, one of the founders of Duty Free Shoppers who gave away his fortune during his lifetime and was able to help millions of people. He lived simply and frugally in his personal life in order to best serve those who most needed help
Feeney gave away his fortune so stealthily that four years after giving it away, Forbes still reported him a billionaire
Born during the Great Depression into a lower middle class family in New Jersey
Entrepreneurial from a young age, very outgoing and social, making everyone feel like they were his best friend
Volunteered for the military and was in Japan for 4 years
Always had big dreams, even if seemed impossible – Cornell school of hotel management. Sold sandwiches and Xmas cards around school for extra cash
Loved to travel and continued his education in Grenoble
Working with Miller, Feeney started selling duty free liquor to navy ships in Europe
Once Americans started visiting Europe more, Feeney realized he could sell to them too. Named company Tourists International
Partnered with a competitor, Duty Free Shoppers, to sell liquor while Duty Free sold many other goods. Tourists International eventually bought out Duty Free
Feeney was always thinking of new ventures and never micromanaged. He was too busy
Soon started selling cars duty free – Cars International
Got first Duty Free shops in Honolulu and Tokyo
Business was booming but with no financial processes in place, they didn’t know if they were really making money. Soon put proper accounting processes in place and cut spending. Their accounting woes got so bad that they didn’t know if they were going to survive.
With more stringent regulations on liquor and cars, they soon adopted Duty Free Shoppers for their company name
Booming Japanese tourism in Hawaii and Hong Kong helped make DFS one of the biggest and most influential retailers in the world. Took a leap of faith from Camus brandy to get them rolling. They can push any brand to customers which will give them higher margins, which is exactly what they did with Camus
Predicted expansion of new markets like Guam and were first movers which helped them achieve dominance
By 1974, cash dividends reached over $30M, with Feeney getting about $12M per year. Quickly determined his distaste for ostentation and cultivated a frugal lifestyle
Didn’t believe charity was just giving money away, but also making sure it was helping the most people possible
Inspired by Carnegie to give away his wealth during his lifetime as “ladders to which the masses can rise”
Only real competitor for some time was Host International but they overbid on a duty free shop location and soon went bankrupt.
Feeney was brilliant in that he convinced the tour managers, bus drivers, and others who influenced what tourist groups did and saw to bring the groups to DFS locations. Tourists often had never seen goods priced so low and the tour guides got a cut of the action
Turned over his wealth completely at age 53 to a trust foundation, General Atlantic group and the Atlantic Foundation. Still could influence what was done with the money but officially no longer his, somewhere between $500m to $1b
Very private about his philanthropy. All would be done anonymously, With no recognition and with the recipient not knowing who the gift was from
Going back to his Irish roots, helped Limerick University with many renovations and improving their academic standing
Incredibly successful investments in everything from real estate and development, oil and energy, software, health clubs
General Atlantic had about $2B in assets from DFS and other assets but Feeney was looking to sell his stake in DFS in order to be more liquid
Feeney played a huge role in helping Northern Ireland and Ireland reach peace agreements
DFS was the first true global retailer and the worlds most successful marketer
LVMH bought 8.5% of DFS and this brought about a lot of tension between the owners. Eventually they sold DFS in 1997 to LVMH
After the sale, Chuck was able to focus exclusively on his philanthropy and eventually out of it himself to the media
Trump is exactly like Feeney if only he lived his entire life completely the opposite
Cornell was Feeney’s single largest benefactor but he helped charities and foundations all over the world. Most notably Irish universities and research (which helped spur the Celtic Tiger a couple years later), hospitals in Vietnam and resorts and sports facilities in Australia
Chuck had a unique way of reaching decisions. He would ask an enormous amount of questions from a huge group of people that would come to conclusions in different ways. It would be hard to know where Feeney stood on an issue until the moment the decision had to be made. However once a decision was made it off and turned out that Chuck was right and he always stuck to his guns
Chuck was very frugal and had no ego whatsoever – often combing through phone bills to make sure he was charged correctly
Atlantic Foundation incredibly successful in their investments too – 29% annual return from 1980-2000! Earning Feeney more than from his sale of DFS
Most they gave away in a single years was $525m
Family agrees that Chuck is the most empathetic person they know
In his later years, a schism between the new leadership at the Atlantic Foundation and Feeney developed. They disagreed as to what projects and charities should receive funding
Feeney gave Cornell a $350m donation to help build a research facility in NY, bringing his total contributions to the school to over $1b
Feeney’s generosity attracted other billionaires such as Gates, Buffett, Soros, Bloomberg and others to sign a pledge to give away at least half their wealth during their lives
Feeney was able to give away more than his idol, Carnegie by giving away around $7.5B
What I got out of it
Live simply and frugally, do great things and make a lot of money in order to be able to give it away