The Company That Made Your Toilet Also Makes Super Fancy Chocolates
To reach the upper echelons of success, business owners must think outside of the box. That's why so many businesses expand to different areas, which is a strategy known as diversification (per Chron.) On the plus side, diversifying a business can greatly increase sales by allowing a company to tap into other markets. However, it can also spread a once-great business too thin and decrease quality across the board.
Because there are benefits and risks associated with diversification, businesses must tread carefully. The Washington Business Journal describes the case of the National Semiconductor Corporation, which launched a failed attempt at creating consumer electronics in the 70s. While this is one example of failed diversification, lots of companies do get it right. Take Kohler, for instance, a brand synonymous with high-quality kitchen and bathroom appliances. Despite its success in plumbing manufacturing, the brand has also branched out into some surprising areas.
Unbridled luxury courtesy of the heartland
As explained by Forbes, the Kohler company got its start in 1873, during which time it was responsible for the manufacture of cast iron components used in furniture making and agriculture. The company soon branched out into the manufacture of plumbing fixtures, beginning with founder John Michael Kohler's innovative design for an enameled cast iron tub (per the website).
The success of the business over the years eventually led to the creation of Destination Kohler, a resort and spa with a focus on luxury. The Kohler, Wisconsin-based resort also features golf courses that have hosted many prestigious championships, including the Ryder Cup. The American Club is another key feature of the resort, one that does not skimp on hospitality. As a "five-star, five-diamond" hotel, guests are treated to a range of unique amenities, including the Kohler Waters Spa and a wilderness preserve spanning 500 acres. The American Club also played a vital role in Kohler's most interesting expansion into the world of gourmet chocolate.
The search for the perfect chocolate turtle
Much of the recent success of the Kohler brand can be attributed to one man with a vision that extended beyond the practical. According to CNN Business, Herb Kohler, Jr. was integral in boosting revenue during his 43-year run as CEO and chairman. His "Bold Look of Kohler" advertising campaign featured brilliantly colored plumbing fixtures to liven up any 70s household (per The Man in the Gray Flannel Suit). Kohler was also responsible for bringing the Destination Kohler concept to life, as stated by the website.
No matter what he was involved in, Kohler was well-known for being hands-on. CNN states the CEO would routinely test plumbing appliances for quality and play on his various golf courses to ensure they offered the best experience. His deep level of involvement was also essential to the origination of Kohler Original Recipe Chocolates, as illustrated by Cision PR Newswire. As Kohler searched for a chocolate company to invest in, he was routinely disappointed. He was particularly beset by the quality of chocolate turtles, a candy treat consisting of caramel, pecans, and chocolate, according to Nestlé. His solution was to engineer his own perfect turtle with the help of world-class chefs employed by The American Club. The result was the Terrapin, a delectable candy consisting of salted pecans, smoked caramel, and decadent chocolate. Kohler sadly passed away this year, but his legacy lives on through the many great innovations he spearheaded.