The Founders Series – The Story behind Sumol
Luis Marques
Head of Export Markets | Export & Franchising Operations || SUMOL+COMPAL | Food & Beverages || CITP? | FIBP?
When you work in the Food and Drink Industry you need to find your reference points. They can be brands like: Nestlé, Heinz or Hershey, or the people behind their success – The founders.
For me, my reference points are the big brand builders like Henri Nestlé, Henry Heinz, or Milton Hershey but also the founder of the company I work in – António Jo?o Eusebio.
In this newsletter, I’m going to tell you António Jo?o Eusebio story and how he built the brand SUMOL.
The Context
During the 50s, Portugal was taking the first steps in its industrialization process. There was a middle class that was emerging in Lisbon which was craving for new quality products to consume either in the out-of-home outlets or buy at the neighbourhood grocery. ?
In those times there were more than 400 small producers of soda lemonades based on artificial colourings and preservatives of doubtful quality. One of that companies was Refrigor, a small factory located in Algés near Lisbon, which was on the brink of bankruptcy. When in 1950, António Jo?o Eusébio bought a stake in the business, he realized that he had to do something different to turn the situation over.
The company was making only ice and sodas. And, after study it, he developed a different product concept to launch into the market in which quality came first always considering the consumer needs. A product made from fruit, pasteurized, without artificial colourings and preservatives, at a much higher price.
The Big Idea
He came to the conclusion that, in order to survive, the company had to create different products to stand out from his competitors.
The idea for a new product, was simple: A drink made from juice and orange pulp. To the fruit concept, he added three other differentiation concepts at the time: firstly, he would not use any artificial colouring or preservatives (using the pasteurization process to stop the fermentation of the drink). Secondly, he would apply a lower level of carbonation than the competition. And, finally, he would use green bottles, to protect the vitamins in the fruit juice from solar rays.?
In the summer of 1954, a totally new soft drink surged into the market! After conceiving the product, he created a brand name that was very suggestive for his target audience: SUMOL = Sumo (juice) + Sol (sun), and easy to memorize.
Difficult moments bring about innovative solutions
In the 60s, The Inspection Service of the Lisbon Industrial Area came to visit his factory and found a flaw that could lead to its closing. The interior height of the room of the stainless-steel deposits was 5 cm below what was described in a recently approved law.
António Jo?o Eusébio, was capable to find solutions where no one else saw them. After the Inspectors left the factory the panic set among all the people except him, who was applying his time to find a solution.
To solve the problem, he called the all fleet of distribution trucks back to the factory and ask them to remove their hydraulic jacks. Then he set the jacks in the room where the problem was detected and place an iron tube up to the ceiling. Then they cut it all connections of the ceiling stab to the walls on which it rested. After that, in a synchronized move, all jacks were activated until they had raised the ceiling by 5 cm. Finally, he ordered that the connections be put back again, replacing the ones that had been cut.
Three days later, when the inspectors came back, they couldn’t believe in their own new measurement – they even asked for another measuring tape to be sure there was no mistake!
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The Implementation of the Franchising Model and the development overseas
To get around the lack of financial capacity of his company, António Jo?o Eusébio, introduce for the first time in Portugal the franchising system. It was the means that he found to meet the needs of increasing production and growth. He decided to create other industrial companies in different parts of the country, in which his company would always be a partner, to ensure the presence of SUMOL all over the territory. This is also the reason why the company, came to negotiate the franchising of 7up, in 1972, and later with Pepsi in1987.
To optimize transport costs and diminish duty costs, Sumol has its franchising system in place today for the international markets, such as in Angola and Gabon.
As from the 60s, Refrigor had begun exporting to the Portuguese speaking countries in Africa and by the end of the 70s it began exporting to the Portuguese Communities abroad. Today SUMOL sells in more than 35 countries around the world.
The Founder’s background
Antonio Joao Eusebio was born on the 10th of January of 1915, in Moncarapacho, a rural village in the Algarve.
Coming from a simple and rural origins which he never rejected and proudly honoured, he chose a path fraught with difficulties, that he had to overcome step by step with his family′s support.
He started his professional career as a teacher of technical education and as civil servant. And then, at the age of 35, he decided to switch from a predictable career, which in those days was safe and comfortable, to an entrepreneurial adventure. In 2000, he passed away at the age of 85 years old.
The success of SUMOL was the base for creating an entrepreneurial group, leader in the market for non-alcoholic beverages in Portugal and with a growing international presence.
Today, the brand SUMOL is part of Sumol+Compal Marcas and it’s still owned by his family. Besides the brand SUMOL, there are other owned brands in the portfolio such as: Compal, Um Bongo, B!, Frize and Serra da Estrela besides representing the international brands such as: Pepsi, 7up, Gatorade and Estrela Damm in Portugal and Guaraná Antartica for all European Countries.
Take Aways
There are people for whom there are no obstacles, who take pleasure and devote time to find solutions for problems! Those people, usually create masterpieces. António Jo?o Eusébio was a man ahead of his time!
What can we learn about the personality of António Jo?o Eusébio?
Don’t forget that the Global Brands of today, once they were small and local like your Brand! And SUMOL its paving the way to become one!
Source: “António Jo?o Eusébio – A man ahead of his time” book, 2016