Gather around while I tell you the story of Kennebec Ice. It’s a story full of valuable business lessons even though it happened a long time ago.
Once upon a time, before the invention of modern refrigeration, people kept food cold using large blocks of ice. That ice was readily available to residents of my state, Maine.
(To my friends in other countries, Maine is the most northeastern state, bordered by New Hampshire, Canada, and the Atlantic Ocean. We have very cold winters, and ice freezes deep on lakes and rivers.)
Now, Maine residents didn’t think much of ice other than for their own use. Ice was just a part of life, it wasn’t a big deal. During the economic depression that followed the Civil War, ship captains in Maine had difficulty finding enough cargo to fill their ships. To make up for the lack of cargo, the ship’s crew substituted large blocks of ice from Maine to act as ballast. The ice was covered with sawdust to help slow the melting process. This need for ballast created a new market for ice.
When ships reached the tropics and subtropics, ice used as ballast was found to be a valuable commodity for the residents of those regions. They were willing to pay for that ice. Cutting and shipping ice to other parts of the world became an industry for Maine. This new market saw ice shipped to China, India, Cuba, and many other places.
Now, somewhere along the way, thanks to clever promotion, ice harvested from the Kennebec River in Maine has become known as “the best ice.” Consumers thought it was higher in purity and health benefits.
There are many rivers and lakes in Maine, all of which produce ice. There really wasn’t much of a difference at the time, all the lakes and rivers were clean enough to drink, but the perception was that Kennebec Ice was the best. People were willing to pay more to get it.
Because Kennebec Ice was the best, ice companies around the world began to refer to their ice as “Kennebec Ice,” even though their ice might have come from Kansas or New York. Kennebec Ice was the gold standard for ice.
And then came modern refrigeration. The ice industry died out and Maine residents, who always have resources, moved to other industries to support their families.
So here are our modern business lessons from the Kennebec Ice story.
1. A product can have many markets and uses, even a product as simple as frozen water.
2. Things we take for granted can be valuable to others.
3. Becoming the gold standard increases business and allows you to charge a higher price.
4. It is important to protect your brand to prevent others from cheapening or compromising it.
5. Watch for trends that tell you it’s time to get out of the ice business and develop new products or services.
Of course, the ice business is still alive and well in the modern world, fueled by a new industry: tourism and recreation. So the next time you fill your cooler, think of the humble ice bucket and the proud role it played in creating business history.