Chunky Money. New York Super Fudge Chunk. Half Baked. Cherry Garcia. Is your mouth watering yet? Mine is. These delicious creations are, of course, from the minds of Ben Cohen and Jerry Greenfield – better known as Ben & Jerry of the ice cream empire. At any given point, at least 40 flavors of ice cream are available. There are also more than 550 Ben & Jerry's ice cream shops across the globe. But when Cohen and Greenfield were contemplating entering the ice cream industry in the late 1970s, neither had any experience in ice cream or running a business.
Cohen and Greenfield's journey to becoming ice cream moguls happened quite by accident. In the late 1970s, Cohen was pursuing a career as an artist, specifically as a potter. Meanwhile, Greenfield was attempting to get into medical school to fulfill his dream of becoming a doctor. However, Greenfield did not get accepted to medical school, and Cohen's pottery endeavor was not financially viable. This led the childhood friends to the decision to start their own business together.
To improve their business acumen, they enrolled in a $5 correspondence course on ice cream production from Penn State. The course, which included a textbook mailed to them and open-book tests, was first offered in 1892. Tuition was free, with the $5 covering incidentals and lab fees. Since then, it has attracted participants from well-known companies like Baskin-Robbins and Good Humor, and it continues to be offered today.
Key Takeaways
- Ben Cohen and Jerry Greenfield started their ice cream business without prior experience.
- They invested in a $5 ice cream production course to gain knowledge.
- Their first shop opened in a rundown gas station in Burlington, Vermont, with a total investment of $12,000.
- Despite low expectations, Ben & Jerry's quickly became successful, with a valuation of $30 million just a few years after launching.
| Personal Details | Information |
|---|---|
| Name | Ben Cohen |
| Name | Jerry Greenfield |
| Founded | 1978 |
| First Shop Location | Burlington, Vermont |
| Net Worth | $150 million each |
The duo's choice to embark on the ice cream path was largely influenced by cost considerations. They initially explored various snack options, including fondue and bagels, but realized that the cost of used bagel-making equipment was beyond their budget. Ultimately, they discovered that ice cream was relatively inexpensive to produce, leading them to focus on that area. They pooled their resources, contributing $4,000 each, along with $2,000 from Cohen's father and $4,000 from the bank to open their first Ben & Jerry's shop.
Interestingly, Cohen's decision to work in the food industry was quite unusual given that he suffers from severe anosmia, a condition that prevents him from smelling or tasting. This unique challenge forced him to rely on texture and mouthfeel, which ultimately inspired the signature chunks and swirls that define Ben & Jerry's ice cream.
Initially, neither Cohen nor Greenfield anticipated their venture would lead to success. They simply hoped to keep the business afloat for at least a year. Their original plan involved running the ice cream shop for a few years before selling it and using the profits to purchase a tractor-trailer for cross-country trucking.
However, their ice cream shop took off almost immediately! Within a few years, Ben & Jerry's became a household name. By 1984, the company went public, and just three years later, after opening their first shop in that rundown gas station, the company was valued at $30 million, equivalent to about $68 million today when adjusted for inflation. By 1987, their ice cream was sold in 35 states. This rapid success also brought its share of legal challenges, particularly with Haagen-Dazs and its parent company, Pillsbury, during the 1980s.
In 2000, Cohen and Greenfield sold Ben & Jerry's to Unilever for a staggering $326 million but remained involved in the company, albeit in a reduced capacity. From a humble $5 ice cream course and a $12,000 investment, they built a beloved brand. Today, both Ben Cohen and Jerry Greenfield boast a net worth of $150 million each, a testament to their unexpected journey from potter and medical school reject to ice cream moguls!
