49 The Eighteenth Amendment to the U.S. Constitution—Prohibition (1920–1933)—gave a big push to the soda pop market. Once hard liquor was no longer legally available, consumers who desired a flavorful drink increasingly chose carbonated beverages. In addition, the advent of the six-pack, sodas grouped in six-bottle packages, helped the drink find its way into the home, as opposed to only being consumed at the local pharmacy or restaurant. It’s interesting to note: This six-pack holder was originally invented by the Glazers—unfortunately, it was not patented. Then, the industry was dealt a double blow: Prohibition ended while the Depression was in full swing. While many smaller companies went out of business, the Glazers didn’t have to worry about that one bit. Max Glazer had been developing a plan—and now was the time to launch it. Liquid Sunshine
The Drys Take Over Up until the nineteenth century, it was a universal belief in the western world that alcohol was a necessity for man. But shortly before the turn of the nineteenth century, the belief that alcohol was good for man came under suspicion; and thus began the so-called temperance movement that swept both England and America. Eventually the drys, as they came to be known, attributed virtually every real or imagined social ill to alcohol. The drinking public was, of course, in an uproar. One historian wrote that the quarrel over Prohibition was the bitterest since the Civil War pitted North against South. The Noble Experience – Prohibition vs. Freedom 50 Liquid Sunshine
52 Prohibition Prohibition became the law of the land on January 17, 1920, one year after the adoption of the Eighteenth Amendment. Now, we fully understand the calamity of Prohibition measures. But then, the triumphant prohibitionists proclaimed a new era of clear thinking and clean living. From the beginning, national Prohibition proved unworkable. It was socially and administratively impossible to enforce. For a few years, the hypocrisy was tolerated. As the famous humorist Will Rogers put it, “The Drys have their laws and the Wets have their liquor.” Prohibition did not prohibit. Instead, it took the alcohol industry out of the hands of legally licensed businessmen and unwittingly put it under the control of criminal gangs. Far from solving social problems, the law brought with it intolerable social evils. The criminal elements were quick to discover in the 1920s that tens of millions of American people found nothing morally wrong with consuming alcoholic beverages, if they could find a source of supply. So, the bootlegger came into being, along with the gangster, the hoodlum, and the racketeer, to cash in on the huge profits to be made from the illicit liquor, wine, and beer trade. It led to unbridled lawlessness and immoderation on the part of the public itself. Millions of Americans consumed illegal spirits and patronized illegal speakeasies. Drunkenness increased. The gangsters and racketeers were not the only social evils produced by that era. Prohibition made it “smart” to break the law. Disrespect for the Prohibition law tended to breed disrespect for other laws and produced what many felt was an alarming weakening of the nation’s moral fiber. Then it happened: The market crash of 1929 threw 12 million Americans out of work, and the long-simmering dissatisfaction with Prohibition grew into a public outrage. Family lore has it that Joe Glazer took advantage of his customers’ thirsty inclinations toward alcoholic libations. During Prohibition, ever the person to help those in need, Joe began bootlegging. He was steadfast in his belief that the government was infringing on the freedoms of Americans. He decided to take a stand, and to help his customers. Undoubtedly, Max, Fritz and Nolan were watching closely, understanding their customers’ demand and consumption patterns, adding more data points and customers to a growing list of those who would be their first legal customers. They waited patiently. Time was on their side. Liquid Sunshine
54 Foreshadowing Repeal It seemed that most Americans had no great objection to Prohibition—as long as it failed to prohibit. But the damage brought on by the unenforceable law became too great to ignore. In 1931, the Congressionally-appointed Wickersham Commission described in detail what they called “the cultural disorganization rampant in American society.” The momentum continued to shift to those favoring repeal. After the election of 1932, a lame-duck Congress submitted the Twenty-First Amendment to the Constitution—the repeal amendment. Due to overwhelming support for Repeal, many began preparing for the day the alcoholic beverage industry would again become legal. On March 22, 1933 the Cullen-Harrison Act became law as a stop-gap measure to legalize 3.2 beer in anticipation of Repeal. Beer was back! So was the next transformation of the Glazer family enterprise. Beer was back! So was the next transformation of the Glazer family enterprise. Liquid Sunshine
Chapter 4 The Brothers’ Grand Plan
Max, Fritz, and Nolan Glazer began studying the Prohibition movement with great curiosity; they firmly believed that eventually Prohibition would be repealed. They theorized that when the repeal happened, there would be opportunities for those companies with an existing base of beverage customers— from package stores to saloons—to distribute alcohol. They were certain that with the Glazers’ geographically located facilities and their go-go-go sales effectiveness they could easily become a successful alcohol distribution company. They went to work formulating a grand plan. Studying the pros and cons of the liquor distribution business, they began discussing its potential with customers and suppliers. The findings further buoyed their confidence. One question still needed to be answered: Would the Fort Worth Glazers—Joe and Ida’s sons—be in agreement? It didn’t take much convincing for their cousins to come aboard. Now they were ready to execute the plan upon Prohibition’s inevitable repeal. They began getting ready … to place a big bet. When the repeal of Prohibition eventually occurred, it generated enormous returns for the Glazers—and, as they say, the rest is history. Here is that history. VISION: To be the adult beverage distributor of choice in marketplaces throughout the world. MISSION: To provide superior service and develop positive relationships with diverse suppliers and customers in order to build a world class company that will enable Glazer’s to invest in our people, brands, technology, facilities and communities.
58 The Co-Founders Max Glazer “Do a little more for the brand-holders we represent and the retailers who have done such a wonderful job of selling for us through the years.” —Max Glazer “The measure of worth of a wholesaler is the service he renders to his suppliers and retailers. We are proud to have been chosen by the outstanding distilleries in the country to serve the retailers in our areas.” —Max Glazer The Brothers’ Grand Plan
59 Fritz Glazer Nolan Glazer “Our goals are not going to change in the next generation. We want to continue to grow, but we want to be the best. If we can do what we’re doing better, growth is inevitable.” —Nolan Glazer The Brothers’ Grand Plan
Chapter 5 Glazer’s Wholesale Drug Company 60
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62 Repeal – The Twenty-First Constitutional Amendment A few months later, on December 6, 1933, national prohibition was formally repealed. President Franklin Roosevelt effectively ended the 15-year period during which the production and sale of all beverage alcohol in the United States had been illegal. Recently elected, President Franklin D. Roosevelt proclaimed in a national address: “I ask the wholehearted cooperation of all our citizens to the end that this return of individual freedom shall not be accompanied by the repugnant conditions that prevailed prior to the adoption of the Eighteenth Amendment.” Now, as America discarded the burdens of Prohibition, comprehensive controls sensitive to the local community were being put in place across the nation. The new Twenty-first Amendment gave to each state the full power to regulate and control the distribution of beverage alcohol within the state. Each state could choose to be wet or dry, and if wet, it could determine for itself how beverage alcohol could be sold, where, and by whom. So came to an end the Noble Experiment, with its crime, racketeering, and social discords, and the rebirth of the alcohol industry. It was the beginning of a remarkable era for the adult beverage industry. So too, it was the era of remarkable evolution and growth for Glazer’s. Twenty-First Constitutional Amendment Glazer’s Wholesale Drug Company
63 Alcohol – Historical Context Many scholars believe that our relationship with alcohol predates recorded history. Since fermentation is a naturally occurring process, our earliest ancestors probably first encountered alcohol in the form of a crude winelike substance that developed from fallen fruit. Beer is the first alcohol beverage of which we have any historical record. Archeologists have found that Babylonians were familiar with beer as early as 5000 B.C. The history of Egyptians, Greeks, Romans, and other early Eastern and Western peoples is also rich with references to beer and wine. Several passages of the Bible mention alcohol, reflecting on both the good and bad aspects of drinking. The distilling process used in the manufacturing of spirits (liquor) wasn’t developed until the eighth century. Reportedly, an Arabian alchemist chanced upon the technique as he searched for a short-cut to the production of gold. As trade and travel between nations developed through the centuries, so did the variety and almost universal acceptance of beer, wine, and liquor. Beverage alcohol quickly became an integral part of a wide variety of cultures, each people or state establishing its own habits or customs pertaining to the proper use of alcohol. Glazer’s Wholesale Drug Company
64 Growing Glazer’s The first major beer line that Glazer’s carried was Schlitz, dubbed The Beer That Made Milwaukee Famous. Glazer’s began distributing Schlitz beer on September 15, 1933, using a team of three salesmen—Max, Fritz, and Nolan—to cover the Dallas market, which was exploding with newly licensed clubs and liquor stores cropping up. In the late 1930s, Glazer’s began acquiring distribution rights from a variety of suppliers. With more products to market, the company augmented their sales personnel and warehousing space, added trucks, and sold unceasingly. The company’s market share grew steadily through dramatic sales growth. With the Real Juice Company in Dallas, and Uncle Jo Bottling Company in Fort Worth going strong, the family continued operating their soft drink bottling interests, maintaining both companies as separate entities from Glazer’s Wholesale Drug Company. The Dallas brothers—Max, Fritz, and Nolan—controlled Real Juice, with each brother owning 33.33 percent of its shares. The Fort Worth business passed on to Jo and Ida’s three sons—Willard, Marvin and Yale—and they continued operating it out of the very same house in which they were brought up, with the bottling line and warehouse facilities next door. Over the years, however, the Glazer’s soft drink One of the original company ledgers Glazer’s Wholesale Drug Company
business began to decline due to the aggressive expansion of Coca Cola and Pepsi nationally, and of Dr Pepper regionally, which impacted the Glazers’ soda pop business. With the liquor trade providing growth and profits that the soft drink business could not, eventually most of the family shifted their focus, and employment, to the spirits business. The Fort Worth Glazers were equally committed to the new beer distribution venture. Led by Yale Glazer, their old warehouse became known as the Beer House. It was located at 706 Vickery next to a railroad that delivered barrels and cases of beer. If Schlitz or Pabst Blue Ribbon were unavailable, Yale would order unrecognizable beer brands and buy them by the railroad car to deliver to their customers. The Glazers of Fort Worth soon picked up other beer lines, many of which were private label beers, and named this beer Export Beer, for which they designed a label that resembled the Budweiser Beer label. Yale Glazer would travel to Kansas City, and other cities, to negotiate supply to quench the ever-growing thirsty customer base. The Beer House was later incorporated as the Yale Distribution Company. Over time, Schlitz wasn’t selling in sufficient volume to warrant continuance. It may have been popular in Milwaukee, but the name Schlitz didn’t resonate with the Texas culture; many viewed it as derogatory, not to mention confusing. Due to their inability to sell Schlitz in volume, the Glazers of Fort Worth resigned the Schlitz franchise. (The Compton family of Fort Worth secured the franchise in 1945.) When liquor and wine became legal in December of 1935, the company added new suppliers, further enlarging their portfolio of products available. Times were good, and business thrived. But Max, Fritz and Nolan Glazer weren’t satisfied. More was better—more growth and more customers. So they set their sights on developing a plan for much more. Their vision and ability to execute took Glazer’s to the next level. Company Names, Headquarters and Leadership Over the Years Jumbo Bottling Company – Dallas, Texas Real Juice Bottling Works – Dallas, Texas (formerly Jumbo Bottling Company) Uncle Jo Bottling Company – Fort Worth, Texas Glazer’s Wholesale Drug Company of Dallas Glazer’s Wholesale Drug Company Incorporated Glazer’s Distributors Glazer’s Family of Companies (the holding company for all Glazer’s enterprises) The Glazer leadership decided to uncomplicate the “Wholesale Drug” mark when customers and suppliers began shortening this to Glazer’s. Also, the word Drug was confusing to many, as well as being inappropriate for the modern description of the business. As Bennett Glazer, Chairman, remarks, “We had to drop the name ‘Drug’ off our buildings and trucks, because people were breaking in thinking we had drugs. So we changed our ‘doing business as’ moniker to ‘Glazer’s Distributors’ in the 1950s.”
66 Company Structure Glazer’s, Inc., is the holding company under which Glazer’s Distributors operates. All subsidiaries of Glazer’s Distributors are involved in the distribution of spirits, wine and beer, with one subsidiary serving each state. As a holding company, Glazer’s, Inc. provides services to all its subsidiaries such as national sales support, operations, human resources, finance, accounting, and legal services. The employees of Glazer’s General Office (G.O.), located in Dallas, Texas, provide these services. Glazer’s Family of Companies Glazer’s operations: The operating arm of the company consisting of Glazer’s operations in each state. Glazer Investments, Park Avenue and Colby Properties: Contains various real estate, company equipment, leasing entities, and stock investments. General Offices, Dallas, Texas (G.O.) 1946 Second location – Young and Ervay, where Dallas City Hall now stands. 1959 Third location – 508 Park Avenue 1991 Fourth location – 14860 Landmark Blvd 2004 Fifth location – 14911 Quorum Drive (current General Office location) Office Staff Left to right: Cindy Sides and Elizabeth Cross, Executive Assistants to the Glazer family Glazer’s Wholesale Drug Company
Glazer’s General Office (G.O.), Dallas, Texas
68 Previous Leaders and Family Members Max Glazer December 15, 1897 – December 28, 1962 President and CEO of Glazer’s Incorporated: 1933 to 1962 Nolan Glazer July 15, 1913 – March 14, 1991 CEO and President: 1962 to 1991 Irving D. Glazer October 7, 1923 – July 24, 1972 Jerome (Jerry) Leibs May 26, 1915 – January 30, 2001 Robert S. Glazer January 12, 1927 – July 7, 2004 CEO and President: 1991 to 1996 R.L. Glazer August 16, 1938 – February 25, 2009 Bennett Glazer August 1996 to present Current CEO and President Glazer’s Inc. Left to Right: R.L. Glazer, Barbara Glazer Rosenblatt, Bennett Glazer, Nolan Glazer, Michael Glazer, Robert S. Glazer Back row standing: Phil Meacham, Thomas Greenlee, Mike McLaughlin, Alan Greenspan. Middle row seated: Rob Swartz, Shelly Stein. In front seated: Bennett Glazer Glazer’s Wholesale Drug Company
69 Current Glazer’s Leadership Bennett Glazer: Chairman, President and CEO Glazer’s, Inc. Shelly Stein President and CEO Glazer’s Distributors Rob Swartz Chief Operating Officer, Glazer’s Distributors Thomas Greenlee Chief Financial Officer Glazer’s Distributors Current Glazer’s Board Members Bennett Glazer Michael Glazer Barkley Stuart Betty Glazer Silverman Left to right: Michael Glazer, Bennett Glazer, Betty Glazer Silverman, Barkley Stuart Glazer’s Wholesale Drug Company
70 Expanding Throughout Texas The brothers continued driving the company on all fronts—building relationships with suppliers and customers, directing sales, operations, truck drivers, and office personnel. They drove themselves as hard as they drove their teams. With unfettered determination and a sense of urgency, but always with compassion and encouragement to all, success and prosperity followed. From its inception in 1933, the company grew rapidly and became quite profitable with only two locations— Dallas and Fort Worth. In 1938, the company realized that to grow in larger increments they must expand beyond Dallas and Fort Worth. Greater reach would enlarge their customer base. Increased volume would provide leverage with suppliers for deeper product discounts and position them to secure higher-end brands. Having developed internal and external processes and infrastructure, their model could easily be replicated to advance their footprint and profits. Texas, their home market, would be a logical first step, but the contiguous states of Louisiana and Arkansas were considered expansion markets too. Max and Nolan began putting together the next big plan—one that would become the most impactful in the history of the company. They left nothing to chance and constantly reviewed all potential pitfalls. A sign in Max’s office cast light on his business philosophy: Nothing will ever be attempted if all possible objections are not first overcome. Such an expansion would be an expensive proposition, one that would require a significant investment to be executed rapidly and efficiently. Staff had to be hired, offices and warehouses opened, inventory purchased, and new trucks sourced. All this added up to a lot of money. With the company’s coffers not being formidable enough to self-fund this strategic growth initiative, Max sought funding from his bank. Their expansion plan called for a capital investment of $50,000. The bankers, however, didn’t share their vision and declined this request—unless the brothers were willing to guarantee the loan note. They were not. Undaunted, they began searching for a willing investor to guarantee the loan. And one soon surfaced. The Glazers had been purchasing carbon dioxide for their soft drink bottling process from Greenspun Oil and Gas. Mr. Greenspun was a wealthy oilman from Fort Worth, and Max approached him about this partnership. The oilman agreed to guarantee the loan but only if equity in the Glazer’s company was involved. Through an elongated drawn out negotiating process, it was agreed that Greenspun would take 50 percent equity in Glazer’s to guarantee the funds required for this expansion. The arrangement was that Greenspun would be a passive partner—without voting stock or a board seat. Greenspun’s only financial gain would be generated from future dividends. However, because of the brothers’ dedication to their business, no dividends were ever extended because all profits were reinvested back into the company. At the time Glazer’s Wholesale Drug Company of Dallas equity was shared by Max (40 percent), Fritz (30 percent), and Nolan (30 percent). With Greenspun securing 50 percent of the company, the brothers’ equity was readjusted and reduced to: Max (20 percent), Fritz (15 percent), and Nolan (15 percent). They swallowed this difficult pill because they were betting on the fact that a statewide footprint was their winning strategy. On September 1, 1938, the brothers formally entered into an agreement with Greenspun. Two years later, on February 15, 1940, the brothers officialy registered and incorporated their company as Glazer’s Wholesale Drug Incorporated. Glazer’s Wholesale Drug Company
71 It wasn’t long before dissention arose. Fritz Glazer felt that the family business was becoming fragmented, and that Greenspun’s added involvement further diluted the family interests and ability to control their destiny. He decided to have Max and Nolan buyout his interest. Although younger brother Nolan begged Fritz to remain part of the family business, Fritz was resolute. After many long and difficult discussions between the brothers, it was finally agreed that Fritz would sell his equity to Max and Nolan. With this, the company voting shares were realigned to: Greenspun (50 percent), Max (30 percent), and Nolan (20 percent). Years later, in February 1960 when Greenspun died, his widow wanted to sell her equity holding back to the Glazers. The brothers eagerly purchased her shares. With Nolan now playing a very significant role in running the company, Max thought it would be fair to equalize their holdings. Upon this reformulation of the company shares, Nolan purchased 30 percent shares and Max the remaining 20 percent of Greenspun’s share, thus making the brothers partners 50-50. The company was now back securely in the hands of the Glazer family. Glazer’s Wholesale Drug Company
72 Now, with funds secured, Max and Nolan began an expansion plan beyond their North Texas base. In 1940, the first new cities were opened—Houston, San Antonio, and El Paso. They continued their aggressive Texas expansion throughout the early 1940s. When World War II broke out, spirits were in very high demand, which drove higher prices and much-improved margins. The company profits skyrocketed. With the company’s coffers plentiful, the Glazers had the necessary investment capital to self-invest in additional expansion opportunities beyond Texas. This approach to conserving cash became a Glazer business axiom—No debt!—allowing them to expand their company when propitious for many years to come, without outsiders’ involvement. It became sacrosanct, their de facto business philosophy, imbued in future family leaders. No banks, no investors required. This became the hallmark of the company for many years, allowing expansion on their terms, unencumbered. With cash in hand, they began expanding outside their Texas footprint. In 1943, Glazer’s extended operations to Louisiana, and in 1946 Arkansas was added. Houston Facility This was just the beginning of the Glazer juggernaut. As they had been doing since the early 1940s, the Glazers were able to convince suppliers that, with their newly opened markets and increased volume, they deserved to distribute higher-end brands. The company historically represented small suppliers, and built these brands from scratch. The company carved its niche in spirits category after category by building outstanding customer relationships and providing unparalleled service, not to mention honing an operation that delivered products efficiently and timely. They were becoming a proficient volume distributor. Suppliers took notice. Eventually, suppliers began opening up their higher-end brands, along with their higher profit margins, for Glazers to market. Though suppliers were slow to fully allow distribution rights for their entire brand portfolios, it was a start. Growing the Businesses The post–World War II economic expansion, also known as the Golden Age of Capitalism, was a period of economic prosperity in the mid-twentieth century. Young adults saw a remarkable rise in their spending power. Jobs were plentiful, wages were higher, and because of the lack of consumer goods during the war, Americans were eager to spend. Consumer spending no longer meant just satisfying an indulgent material desire. In fact, the American consumer was praised as a patriotic citizen in the 1950s, contributing to the ultimate success of the American way of life. This produced a dynamic mass-consumption economy. Consumption of beer, wine, and spirits escalated. Booze flowed, and so did the business of Glazer’s. Glazer’s Wholesale Drug Company
74 Whole new generations of consumers were developing a taste for distilled spirits, wine, and beer; and manufacturers and distributors scrambled to meet their needs—as did Glazer’s. Just as one new facility was opened, plans for another branch were made. The brothers wisely invested their profits in new facilities, larger warehouses, trucks, and necessary infrastructure to improve processes and efficiency. As always, the key ingredient to the success of Glazer’s was providing exceptional service to customers by hiring and training their employees. Max and Nolan were fortunate to be able to attract aggressive salesmen to augment each branch with distinguished office and warehousing support. Their assertive, hardcharging and capable sales people pressed the flesh, offered unequaled products and support, and ensured that deliveries were on time and with no shorts—customer deliveries that were incorrect. Winning more business was part of the Glazer’s DNA, and they all became part of that bloodline. As the business continued to grow, and more family members entered the management ranks, other key executives augmented staffing needs. In 1936, a key employee entered the Glazer growth crusade—Jerry Leibs. First, as an entry-level salesman, his relationship-building and organizational skills, along with his calm demeanor, were soon recognized. Glazer’s Wholesale Drug Company
75 He quickly rose within the organization, and by 1946, Leibs began overseeing operations in all markets as General Sales Manager. He became a trusted ally to the Glazer brothers. Other family members joined the ranks as well. Max’s son Irving joined the business in 1943. Six years later, Max’s other son Robert S. came aboard. It was time for the next generation of Glazers to begin learning the family business. The Glazers—Max, Nolan, Irving and Robert S.—along with Jerry Leibs oversaw the continued expansion with the opening of new branches throughout Texas, Louisiana, and Arkansas. By 1948, in just fifteen years, the company had grown from an initial sales force of three to a manpower count of 315. Warehouses within their three states now numbered fifteen. The second Dallas general office, referred to as the GO, which oversaw sales operations, was relocated in 1946 to Young and Ervay, where Dallas City Hall now stands. It took years for many of these newly opened markets to return a profit. The family had the fortitude and perseverance to place long-term bets, unconcerned by short-term results. They understood that large investments took years to pay off, and that when they did, sizable investments returned sizable profits. The Glazers’ mantra was to invest wisely and for the future. Their wisdom resulted in outstanding consequences. Some family members didn’t fully comprehend Max’s long-term investment philosophy, desiring quicker profits. Glazer’s Wholesale Drug Company
76 Glazer’s Wholesale Drug Company
77 In 1949, when Max Glazer’s son Robert S. joined his family members to assist in running the company, he had little mentoring in the family business. With his MBA degree from the Wharton School of Finance, young Robert viewed business from a strictly financial lens. With his misaligned youthful exuberance, he misunderstood the powerful purpose of making strategic investments—ones that took time to bear fruit. Shortly after joining the company, he pointed out to his father, Max, that Arkansas was losing money and a financial drain on the company. Max complimented his son for his accurate assessment of the situation. Then Max sagely explained that, although the company was losing money in Arkansas at the time, there would be an opportunity to make money in the future—but only if Glazer’s was still there. Glazer’s Wholesale Drug Company
80 Glazer’s Wholesale Drug Company
81 Berrycup Displays Glazer’s Wholesale Drug Company
82 Pepsi Cola Bottling Company Since the inception of Glazer’s Wholesale Drug Company, the soft drink businesses—both Uncle Jo (Fort Worth) and Real Juice (Dallas)—had always been kept as separate entities. Though they were not the primary revenue source for Glazer’s, they both did well, expanded product offerings, and were profitable. During the feel-good times of the post-war era, people wanted to consume flavored, refreshing drinks like never before. Helping this demand were two major drivers: Many homes now had refrigerators and the national brands—Coke, Pepsi, 7-Up and Dr Pepper—had begun aggressively advertising their brands. The soft drink industry took off, and so too did the Glazer’s soda pop business. In addition to bottling a successful trademarked line of beverages, the Glazer’s line of soft drink brands included many other brands. The company manufactured some brands, while others were obtained through licensing agreements, and still other original flavored extracts were licensed to franchisees in Texas, Arkansas, Louisiana, and Oklahoma. A significant footprint had evolved with a dedicated following of thirsty consumers. Glazer’s Wholesale Drug Company
83 With such reach and loyal followers creating consistent customer demand, their business was formidable and enviable, especially to the big boys in the business— Coke and Pepsi. Initially, they took umbrage to Glazer’s, viewing them as a rival that needed to be squashed, or at least to reduce Glazer’s impressive presence in their competing markets. The Coca-Cola Company approached Joe Glazer in Fort Worth and wanted his bottling plant to become the Coca-Cola franchise in North Texas. He eventually declined because of terms: Coca-Cola wanted Joe to discontinue manufacturing Glazer’s own soft drinks. This was a nonstarter. Coca-Cola then stepped up their game to put the Glazer’s popular soft drink business on the ropes. Coca-Cola put on the gloves, entered the legal ring, and came out swinging. The Glazers took off their gloves, and took no prisoners. It would be a battle royal. However the Glazers’ winning punch ended this fight almost before it started. Glazer’s Wholesale Drug Company
84 Coca-Cola’s attorney sent a letter to Uncle Jo requesting they discontinue bottling their products because the Glazer bottle was too similar to the Coca-Cola bottle, or else a lawsuit would be filed. The ace up Glazer’s sleeve was a simple mark that many never even noticed: The Star of David embossed on the bottom of many of their bottles. Glazer’s first volley ended the fight. They simply asked Coca-Cola, “Does your bottle have a six-pointed star on the bottom of the bottle?” Coca-Cola knew they didn’t have the ammo to continue. The threat of a lawsuit was thwarted. Fortunately, no hard feelings persisted. In fact, the Fort Worth Glazer’s became very interested in another soda pop rival. Soon they came calling on Pepsi. This time, it was not to fight, but rather to discuss a very significant partnership that lofted the Glazer’s soft drink business. In the late 1940s, the Pepsi Cola franchise bottler in Fort Worth went bankrupt, and the bankruptcy lawyer happened to be a close personal friend of Joe’s sons, Yale, Willard, and Marvin. The brothers determined that Pepsi Cola would be a better seller than Red Rock Cola and quickly picked up the bottling franchise. The Dallas brothers wanted in as well. In 1948, the Real Juice Company acquired the Pepsi-Cola franchise for Dallas and twenty other counties. It was a huge deal. Now the Glazer’s soft drink business had a nationally recognized brand to market. It became a significant boom to their bottling and marketing efforts and thrived, driving a lot of revenue over the next eighteen years. Glazer’s Wholesale Drug Company The Star of David
87 The Cuban Connection As the soft drink business continued to expand in the late 1940s, a second bottling line was added in Fort Worth. Now, with Pepsi bottling volume and increasing demand, more ingredients needed to be sourced. However, in the early 1950s, sugar—the primary ingredient to formulate the syrup for soft drinks—was in short supply. To ensure a consistent delivery, the Glazers had no choice but to source in inventive ways. Their constant scrounging for sugar took them to unusual places—such as Cuba. Yale and Nolan got a tip that they could buy sugar in Cuba. So they flew to Cuba and made plans to buy sugar the next day. After they checked into their hotel room, and got comfortable, they congratulated themselves on being so resourceful. They told everybody that they were there to relax and kept it a secret that they were buying sugar. Their patting each other on the back was short-lived. Someone knew their secret, and they soon found out this was a bad idea. That evening there was a loud knock on their hotel room door. Four big policemen came into the room with guns and asked, “Which one of you is Mister Glazer?” Yale, quick to answer, pointed to Nolan and said, “He is!” Nolan, taken aback in shock replied to Yale under his breath, “When did you change your name you S.O.B.?” Fortunately, not having obtained any illicit goods yet, the police simply told them, “Leave this country and don’t come back!” Ten minutes later they were headed to the airport— they were without any sugar, but they weren’t in jail either. Glazer’s Wholesale Drug Company A Cuban sugar plantation
88 Staff holiday gathering of staff, 1947 In 1961, Frito Lay merged with Pepsi. Their new chairman, Herman Lay, wanted the largest Pepsi franchises to be company owned. At the time, the largest Pepsi bottling franchise not owned by Pepsi was the Glazer’s franchise. Lay was based in Dallas as well, and he wanted his home market under Pepsi control. He would stop at nothing to get it. He paid dearly. In 1964, Pepsi approached Nolan Glazer regarding this matter, but Nolan rebutted his offer. Lay wasn’t one to give up easily, so discussions continued. Still, Nolan didn’t cave in. The stakes were very high, and if the Glazers played their cards right, the stakes would continue to rise. Time was on their side, and the money pot kept getting bigger. Finally, after two frustrating years of being refused, Lay finally asked in 1966, “What will you take?” Now the cards were being dealt in the Glazers favor; they held the aces. They could ask any exorbitant amount. And that’s just what they did. The Glazers submitted a figure “that no one would ever consider,” Nolan Glazer remembers. But Pepsi accepted. The deal that was structured included a twenty-year payout, along with Pepsi agreeing to vacate the Glazer bottling plant in downtown Dallas, and to build a new plant in Mesquite, Texas. This new bottling facility would be owned by Glazer’s and leased back to Pepsi. Glazer’s had them coming and going. Glazer’s Wholesale Drug Company
The original Real Juice Company bottling plant sat idle until the mid-1980s, when real estate prices in Dallas were at an all-time high. This would be an excellent time to sell. When the Federal Reserve of Dallas selected the Glazers’ unoccupied site for their new regional headquarters over two other locations, their patience paid off. The Federal Reserve paid at the peak of the market. Nolan’s comment was “The Federal Reserve was the only company I’d sell to … they were the only ones good for their money!” The Fort Worth Glazers were not left out of Pepsi’s continued acquisition thrust. In 1979, the Pepsi-Cola Bottling Group formally acquired the Glazer’s Fort Worth Pepsi franchise, merged it with the existing Dallas group, and unveiled their latest addition—Pepsi Bottling Company / Dallas–Fort Worth. Pepsi had their own line of flavored drinks and they wanted to concentrate on selling these, so soon Woosie was no longer advertised on local grocery shelves. It was the end of an historic era in the Glazers’ family history, and one that put them on the map. Now they could concentrate all their family efforts on adult beverages and enlarge their ever-vigilant, growth-oriented business. Christmas 1946 Company Brochure Season’s Greetings We wish to take this opportunity to thank everyone in the industry for their splendid cooperation and patience in helping us overcome the wartime burdens of rationing, shortages and transportation. To our many friends, we extend our warmest thanks and appreciation this holiday season.
Chapter 6 Max Glazer
91 As the original founder of Glazer’s Wholesale Drug Company, Max Glazer set the Glazer’s high standards of integrity, honesty, kindness, and moral courage. His best qualities were his vision, his ability to inspire people to perform, his unyielding work ethic, and his generosity. These character qualities set the foundation for the culture and citizenry of Glazer’s. Max Glazer as a young boy Max Glazer
92 Max the visionary Inspirational Leader Secondly, Max inspired everyone to excel; he was passionate about performing to the highest standards. Max believed in being number one in people’s minds and hearts, but he was also a realist. He believed in hard work and going the extra mile to earn that respect. He believed in having the personal strength to aim high, to follow through on your promises, and to deliver a quality product and memorable service. He believed that success would come by making others successful; the pie was big enough for everyone to enjoy their slice. By demanding high standards of everyone in the Glazer enterprise and rewarding them for their achievements, he created a beverage empire second to none. And no one exemplified the Glazer philosophy more than he did. Max believed in mentoring others; he believed that a superior teacher demonstrates, but a great teacher inspires. His actions motivated others to dream more, learn more, do more, and become more. Work Ethic Brought up by parents who believed in hard work and not luck, his work ethic and passion set the Glazer’s mentality for generations that followed. As an early riser, his daily routine began at 5:30 a.m. Then he would visit the Baker Hotel to get a shave and have his face wrapped with hot towels—and being wrapped in hot towels never prevented him from doing business. If an opportunity presented itself, no matter what he was thinking—or had on his face—he handled it. Visionary Max was indeed a visionary. He was able to see the adult beverage industry as it was in 1933; at the same time, he was able to hold on to his vision of what Glazer’s Drug could be. He forged an enterprise from an idea; he created a family empire that has lasted now for four generations. Max Glazer
93 Once in Chicago for a meeting, while the hot towels were on his face, he overheard a conversation from another patron who mentioned having barrels of whiskey—this was during World War II when supply was extremely limited. Max seized the moment and negotiated the purchase of those barrels while his face was covered. He was so busy that he often left little things behind. He was notorious for leaving his always-adorned hats all over town. Some matters that he left behind, however, were much more significant. Once, when he returned to Dallas from Chicago, he got very upset with his wife because she had forgotten to pick him up at the airport. Only then did he realize that it would have been impossible for her to do that … because he had left her in Chicago! Max the inspirer at Glazerama Max Glazer
94 Max had a fiery personality, matched only by his brother Nolan’s similar temperament; the two often argued in blazing disagreements. They were off the rails, a blazing train wreck; their tête-à-têtes were boisterous, and their tempers flared. So close were the brothers, though, that when these encounters ended they were forgotten immediately. And right there to help smooth things out was the ever-calm Jerry Leibs, the referee of many of their battles. Generosity Max was very generous to both the common man and to many charities. A big tipper, he often left a $10 tip on a $10 haircut, telling his barber, “Buy something for your children.” He had a simple explanation for his generosity. “If the Lord gives it to me, I should be willing to give some of it back.” He explained his philanthropic philosophy very simply: People are hungry? You feed them. People are old? You help them. People are sick? You cure them. Max gave more than his share for the usual charities. He also made it a point to help those who had been forgotten, the unusual or numerically small cases not covered by organized fund-raising work. Max with hat he didn’t lose Max Glazer
95 Max in Hawaii on supplier trip All welfare and charitable causes—even those of the fundamental churches that preached against liquor—knew him for being a soft touch. Even if they were against his industry, he felt they had a right to receive help for their beliefs. Among his favorite charities was Golden Acres, the Jewish home for the aged. Not only did he give them money—he gave the residents himself. He visited with them every Sunday. He was so regular that if occasionally he appeared on another day, that day automatically became Sunday for the elderly residents. Even a partial list of his giving is impressive: He was active in the Jewish Welfare Federation and for thirty years served as a board member; he raised over $2 million for Golden Acres’ funding campaigns; he was a leader in a million-dollar emergency campaign to rescue victims of Nazism and move them from displaced persons camps in Europe to Palestine; he was a board member of the Community Chest; and he was active in the Red Cross, Texas Children’s Hospital, and the Seeing Eye Dog Foundation. Visionary, inspirer, passionate businessman, philanthropist— that’s the legacy of Max Glazer. Max Glazer
96 Max in later years Max believed in hard work and going the extra mile, To aim high and follow through on your promises, To constantly deliver a quality product and memorable service, and his actions motivated others to Dream more, Learn more, Do more, and Become more. Max Glazer
97 December 1962 In Loving Memory of Max Glazer Beloved friend & Benefactor of the residents of Golden Acres Max Glazer
Chapter 7 1950’s - Giving That Extra Effort