Gather together while I tell you the story of Kennebec Ice. It is 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 available to residents of my state, Maine.
(For my friends in other countries, Maine is the northeastern state, bordered by New Hampshire, Canada, and the Atlantic Ocean. We have very cold winters and the ice freezes deep into lakes and rivers.)
Now Maine residents didn’t think much of the ice for anything other than 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 struggled to find enough cargo to fill their ships. To make up for the lack of cargo, the ship’s crew replaced large blocks of Maine ice 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, the 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 the shipment of ice 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 of higher 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 could 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 history of Kennebec Ice.
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 avoid being degraded and endangered by others.
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 about the humble ice bucket and the proud role it played in creating corporate history.