Tom wanted to win, as we all do when we compete in something. In 1862, 14-year-old Tom persuaded his parents to allow him to travel to New York as a passenger on a sailing ship. Tom’s parents were poor, but the cost of the passage was cheaper than feeding Tom. They reluctantly agreed. Tom was entranced by the sailing ship. He was amazed that simple wind power could move such a large vessel.
While in New York, Tom worked in a grocery store. He took a keen interest in the process of purchasing goods from wholesalers and selling products to customers for a profit. He learned that having good products to offer was not enough. Advertising was good but clever advertising was better. Tom saved a large portion of his pay. He had a plan. When he thought he had saved enough money, he would return to Scotland and open his own shop. Five years later, Tom returned to Scotland and fulfilled his plan. Tom began by importing goods from America, items which were unavailable at other grocery stores. Tom’s shop flourished. Within a few years, Tom owned a chain of grocery stores. Tom traveled the world, mostly on sailing ships, in search of new and unique items to sell in his shops. On the opening day of one of his shops, Tom’s shop had an estimated 60,000 customers and sold 50 cases of butter in rolls, 1 ½ tons of lump butter, 1 ton of bacon, 1 ½ tons of hams, ½ ton of cheese, and 16,000 eggs. From the late 1870s to the mid-1880s, sales doubled from £40 million to £80 million. By this time, Tom owned more than 200 shops in multiple countries. By 1914, the chain grew to over 500 stores.
Tom was known for his advertising campaigns. In 1882, in one of his most notable advertising schemes, Tom bought three of the world’s largest cheeses. They arrived onboard a steamship called the Bolivia, but there was a problem. They didn’t have a crane large enough to unload the heavy cheeses. The heaviest weighed 2400 pounds. The other two weighed 2100 pounds each. They measured five feet in diameter, were 2 feet 2 inches deep, and had a circumference of 16 feet. It took New York farmers six days to milk the 800 cows to get enough milk for the cheese. Once unloaded, Tom displayed the cheeses in his markets in Glasgow, Edinburgh, and Leeds. On Christmas eve, the mammoth cheeses were cut up and sold to the delighted customers.
Tom needed a new, grander advertising scheme. In 1898, Tom had a yacht built specifically to enter the international sailing competition known as America’s Cup. Tom’s yacht was called the Shamrock. Rather than being a single race, America’s Cup consisted of five races. The winner of three or more of the races won the trophy known as the Auld Mug. In 1899, Tom pitted his Shamrock against the reigning champion, Columbia. The Columbia won the first three races and retained the Auld Mug. Tom lost the America’s Cup but the press the race garnered was sensational for his business. Tom tried four more times to win America’s Cup but failed. Due to the worldwide press coverage, Tom’s business soared to new heights. Tom became a folk hero whom the press dubbed the “lovable loser.” After his fifth and final attempt, America’s Cup officials awarded Tom a specially designed cup for his being “the best of losers.” Tom was Sir Thomas Lipton, the first person to sell tea in teabags.
Sources:
1. Rossingh, Danielle, “America’s Cup: New York Turns Back Time,” CNN.com, May 6, 2016, accessed May 26, 2024, https://www.cnn.com/2016/05/
2. Lothian Courier, June 3, 1876, p.4.
3. The Courier and Argus (Dundee, Scotland), December 13, 1882, p.3.
4. “History of Lipton Tea from the 1800s through to Today,” www.lipton.com, accessed May 26, 2024, https://www.lipton.com/us/en/
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