In today’s health-obsessed society, how does a company almost entirely dependent on smoking end up increasing its sales?
George Duke has the answer. He is the affable 58-year-old owner of Zippo Manufacturing and the grandson to the company’s founder, George Blaisdell. Speaking with him over the phone in mid-October, he tells me that sales are up not only in the U.S., but that they’ve jumped 50 percent in China in the last 12 months and similarly in India and Germany.
“In the U.S., we’ve been particularly focusing on social media and having a presence at rock concerts and outdoor events,” says Duke. “The 25-to 35-year old crowd is our biggest growth sector.”
China, India and Germany simply have more smokers per capital than here at home, but Duke says it is also Zippo’s creative sales strategy that has helped the company succeed. The company specializes in imprinting lighters with corporate logos, sports team emblems and the like. Each lighter has a lifetime guarantee. Duke says many consumers are also into collecting lighters these days, which helps boost sales.
The Smoking Inquisition
Yes, sales are great, but in the interest of playing devil’s advocate, I press him on how he feels about adding to the world’s smoking problem.
“We don’t encourage smoking; it occurs in the marketplace,” says Duke, a lifelong smoker. “If you haven’t started smoking I strongly suggest you don’t start, but if you are going to smoke and are going to buy a lighter, we hope it will be a Zippo.”
It is this transparency that has endeared the company to customers since 1932, when it was first founded. And according to Duke, his grandfather was adamant about not encouraging consumers to smoke by forbidding advertisements showing lighters igniting cigarettes. The same mandate still stands today.
Building an Iconic Brand
This history of Zippo is an American Dream realized. The Blaisdell’s, originally from England, immigrated to Maine in the 1600s. A few hundred years later, they moved to the tiny town of Bradford, Pa., about 80 miles south of Buffalo, N.Y. In the early 20th century, young George Blaisdell started an import business, bringing lighters to the U.S. from Austria.
Blaisdell was annoyed by the fact that his lighters require the use of both hands when igniting. He added a hinge and a top to the product that ensures ignition when opening, therefore making it a single-hand operation. He came up with the idea in 1932 and went to market right away, but business was slow.
“I think my grandfather almost quit about 15 times,” says Duke. “It sounds bad, but World War II saved our company.”
This comment makes me stop mid-transcription. Talking on the phone with him, I think our connection must have shorted. Did he really just say that? Yep. Turns out, back in the early days of WWII, the U.S. government was Blaisdell’s biggest customer and boxes of Zippo lighters were shipped to G.I.s overseas as part of care packages. The troops appreciated the gifts and were loyal customers upon returning home.
The brand grew exponentially after the war. Blaisdell gave the company to his two daughters and grandchildren. Family buyouts followed and by the early 2000s, Duke was the sole owner.
Speaking with cheer in his voice, he says that he has no plans to retire. “I’m just having too much fun,” he says. But, now getting more serious, he shares one of his biggest challenges and concerns moving forward.
“My sons are 20 and 22 years old and they aren’t that interested in taking over the business,” he says. “They are more interested in tech stuff and our lighters are pretty low tech.”
His voice is suddendly low and tired, revealing sleepless nights over the topic. He tells me that he’s tried to convince his sons and that maybe they could even make the lighters high tech in the future.
“I say, ‘Lets take care of the golden goose’ and they kind of understand,” he says. “I just think that there is a great deal of opportunity with the strength and recognition of the brand.”
Looking Ahead
In the meantime, Duke is busy expanding his company. Next spring, Zippo will come out with a lifestyle line of products for outdoor enthusiasts including small grills and camping stoves. Products will be available at places where camping and tailgate gear is sold.
Zippo is still in Bradford, population 8,700. Does he ever plan to move the company?
“Nope,” he says. “We love this community and most of our employees are from here.”
The company is still private. Would he ever take it public?
“We’ve had a lot of acquisition offers and have turned them all down,” he says. “And when you are a public company, you have to deal with regulations. We plan to stay the way we are and control our own destiny.”
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Photo credit Zippo Manufacturing
