New
Jersey Monthly
Worth
it!
By Joe Mullich
Richard
Worth was about to address the members of the American Marketing
Association and per usual, the president of R.W. Frookies Inc. had
a lot to say.
But even Worth
-- a consummate entrepreneur who launched two successful companies
-- felt "out-volumed" when he saw that the other speakers
at the AMA were the people who'd introduced Gillette's latest razor
and AT&T's revolutionary new calling card. So he stood up and,
in a booming voice that just hinted at his Boston birthplace, said:
"You asked me to answer the question of how the little guy
can compete with the big guy. Well, I just want
to show you," says Worth. "At 3 o'clock today, the Wall
Street Journal will announce the acquisition of the Gillette Corp.
and AT&T by R.W. Frookies."
Worth slowly
pointed at his two fellow speakers whose mouths were so wide by
now that a dentist would have trouble wiring them shut. "And
you guys," he said, "may get to keep your jobs."
In reality,
Worth's upstart Englewood Cliffs-based company, producer of the
first "healthy" cookie sold in supermarkets nationwide,
would be little more than a tasty morsel for Gillette or AT&T.
But like everything
else he does, Worth's wackiness had shock value. The same way he
shocks the food industry by deriding as "piracy" common
practices that he says stack the deck against the little guys --
like his company. The same way he used unusual financing and marketing
tactics to start Frookies with $500,000 -- a fraction of what prevailing
wisdom said he needed.
In 1989, Inc.
magazine wrote an article about Frookies and a panel of experts
chimed in with advice for the start-up: Frookies was a terrible
name. An entrepreneur can't fight the big guys. Quit spinning your
wheels. Change Frookies' slogan -- "the good for you cookie."
At best, plan on letting the company grow to, say, $5 million in
revenues and selling out to someone who can market.
Predictably,
Worth ignored the advice, and R.W. Frookies reached its fifth-year
sales projection of $17 million in its very first year of business.
And now, Worth
will have the opportunity to show what he can do against the big
guys at the checkout line. Massive Nabisco Biscuit Co., which sells
one out of every three cookies in the U.S., is attacking Worth's
niche by introducing a healthy cookie called "My Goodness!"
While even Worth's
admirers wonder just how Frookies will compete against Nabisco's
marketing strength, this unconventional CEO can hardly conceal his
contempt. "The major-league enemy is not Nabisco; they'll screw
themselves up," Worth says. "They're kind of dumb to unfocus
their energy from Oreos. But I'll tell you what: if they want to
trade Oreos for Frookies, I might do a deal with them."
But Nabisco
isn't the only difficulty Frookies is encountering on the health
front. According to a recent report in the Consumer Reports Health
Letter, "the undoubtedly small amount of vitamins and minerals
in the fruit juice that a Frookies cookie contains couldn't possibly
have any nutritional value."
Worth dismisses
the report with the kinds of words that can't be printed in a family
magazine. If they truly believe it, he says, "instead of orange
juice, they should give their kid a sugar solution -- it's cheaper."
Ever on the
offensive, Worth says he is contacting the last 50 companies the
newsletter has written about in hopes of launching a class-action
suit. He's also focused some outrage on a New York television reporter
who picked up the story. "I was prepared to dump sugar and
fruit juice at her door, but all my sane advisors said no."(continued)
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