Root Glass
Chapman J. Root moved to Terre Haute,
Indiana in 1900 and opened the Root Glass Works a year later. The glass company
not only supplied bottles to the United States, but also to Europe and Central
and South America. Root Glass proved to
be so great a success, Mr. Root, a savvy
businessman, decided upon a form of backward vertical integration. For the non-business
majors, a company exhibits backward vertical integration when it controls
subsidiaries that produce some of the inputs used in the production of its
products. In this case he opened a soda bottling plant. He already made the
bottles.
He decided to begin bottling his favorite non-alcoholic
beverage. You know it had to be Root Beer.
People are
so intuitive.
Sorry to
take the fizz out of your pop, but it was Coca Cola.
Later Root again adopted the same
integration technique when he purchased 160
acres of land in the Fern Cliffs area of
Putnum County, Indiana where he built a
processing plant at the foot of the sandstone cliffs. He mined his own sand to produce the glass
his factory needed to make the bottles for his bottling plant. A nearby
railroad spur serviced the plant and carried the processed sand to Terre Haute
to be melted and formed into bottles. Root Glass quarried some 20,000 tons of sandstone a year
from the site. At a time when Coca Cola was looking for ways to differentiate
itself in the marketplace, the copper and minerals in the Fern Cliffs sand gave
Root’s bottles the distinctive Coca Cola green color.
But that wasn’t enough, the cola
giant wanted a distinctive bottle design as well. The company sponsored a
contest soliciting bottle designs from its bottlers. Root gathered a few employees and went to work. Using AI and the Internet they
found several designs promising.
Obviously not. They went “old
school” to the library and got out an 11th
edition of the Encyclopedia Britannica and other books and the Cocoa Pod
was ultimately chosen as a design model
because of its distinctive ridges. The group finalized the company’s entry into the design competition and won. The Root’s new
bottle was patented on November 16, 1915, although it was a little too
“fat” for the bottling machinery, so he slimmed it down a bit to resemble the iconic
bottle we know today.
Chapman Root's 1916 contract with
Coca-Cola outlined that he was to receive 5 cents for every 144 bottles made.
He died in 1945 as one of Indiana's richest men. In 1982, when the Root family
sold its 57.5 percent stock interest in the Associated Coca-Cola Bottling
Company its value was over 417 million dollars.
The Root family quietly used that
money to support an array of arts, education, and youth programs over a span of
40+ years.
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