Oreo Is the Knockoff. The Original Cookie Is Back for Revenge.

Summary

The story of Hydrox cookies traces its origins in the early 20th century as a revolutionary treat created by the Loose brothers, only to be overshadowed by Nabisco's Oreo. Despite facing fierce corporate tactics, Hydrox's legacy endured. In the 2000s, entrepreneur Ellia Kassoff revived the brand, battling shelf space manipulation and corporate monopolies. His story is one of passion, perseverance, and the power of staying true to one's roots. Kassoff’s journey highlights the importance of loving what you do, pushing past obstacles, and fighting for authenticity in a competitive market.

Takeaways

• 😀 Hydrox was created in 1908 by the Loose brothers, predating Oreo by several years, but was overshadowed by Oreo's massive success.
• 😀 Hydrox’s distinctive features, such as the name, ingredients, and design, were key to its originality and initial popularity.
• 😀 Mondelēz, the parent company of Nabisco, allegedly used tactics to suppress Hydrox in stores, including hiding the product to diminish its visibility and sales.
• 😀 Hydrox's initial success was overshadowed by Oreo’s marketing machine, leading to its decline and eventual disappearance from shelves.
• 😀 Ellia Kassoff, an entrepreneur, rediscovered Hydrox and set out to bring it back to the market despite numerous challenges.
• 😀 Kassoff faced fierce opposition from Mondelēz, which allegedly used aggressive retail tactics to keep Hydrox off store shelves and limit its exposure.
• 😀 Despite corporate sabotage, Hydrox made a successful comeback, reappearing on shelves thanks to Kassoff's determination and passion for the product.
• 😀 The story of Hydrox highlights the importance of perseverance, especially when competing against industry giants like Nabisco.
• 😀 Kassoff emphasizes the importance of passion in entrepreneurship, advising others to focus on things they truly love rather than just pursuing profits.
• 😀 The ongoing competition between Hydrox and Oreo is a classic example of corporate rivalry and the fight for market dominance, with Hydrox ultimately continuing to survive in niche markets like Amazon.

Q & A

What is the origin of the Hydrox cookie, and how did it come about?

The Hydrox cookie was created in 1908 by the Loose brothers, Jacob and Joseph, in Pennsylvania. It was designed as a sweet chocolate cookie filled with vanilla cream, meant to compete with other cookies at the time. Hydrox was one of the first chocolate-filled sandwich cookies in the market.

How did Oreo come into the picture, and what role did Nabisco play in its success?

Oreo was introduced by Nabisco (then the National Biscuit Company) in 1912, four years after Hydrox. Nabisco's marketing strategy helped Oreo gain widespread popularity, including the famous 'twist' campaign that capitalized on the emerging trend of consumers separating the cookie halves. Despite being a copy of Hydrox, Oreo's aggressive marketing led to its dominance in the market.

Why did Hydrox lose market share to Oreo?

Hydrox lost market share primarily due to Oreo’s stronger marketing campaigns and retail placement. Nabisco used clever advertising tactics and shelf space control to push Oreo ahead, despite Hydrox being on the market first. The brand recognition and marketing power of Nabisco overshadowed Hydrox's efforts.

What role did Ellia Kassoff play in the revival of Hydrox?

Ellia Kassoff, a tech recruiter, became passionate about reviving Hydrox after seeing the success of childhood brands. He acquired the Hydrox trademark and re-created the original recipe, bringing it back to the market in the 2000s, believing in the quality and legacy of the cookie.

How did the parent company of Oreo, Mondelēz, allegedly interfere with Hydrox’s success?

There were claims that Mondelēz (parent company of Oreo) used underhanded tactics to hinder Hydrox’s success by manipulating shelf space in retail stores. Allegedly, they would hide Hydrox cookies in less visible areas or block them with other products, making it harder for consumers to find them.

What was the outcome of Ellia Kassoff's legal battle over Hydrox’s retail placement?

Ellia Kassoff filed a complaint with the Federal Trade Commission (FTC), seeking damages for the alleged unfair tactics used by Mondelēz. The controversy highlighted how corporate giants can influence shelf placement to disadvantage smaller competitors, though the legal proceedings were ongoing at the time.

What other examples of corporate tactics to suppress competitors were mentioned in the script?

The script references previous incidents in which Nabisco, in its earlier days, engaged in aggressive tactics to secure shelf space. For instance, a retail manager from the 1960s and 70s recounted having to separate Nabisco and Sunshine employees due to disputes over shelf space, indicating that such aggressive practices were longstanding.

What advice did Ellia Kassoff give to entrepreneurs based on his experience?

Ellia advised entrepreneurs to focus on something they are passionate about, rather than just seeking financial gain. He emphasized that when you love what you do, you'll put in 100-110% effort, which will lead to success in the long run, even when facing challenges.

Why did Ellia Kassoff believe in the potential of Hydrox despite the competition from Oreo?

Ellia Kassoff believed in Hydrox because he saw it as a product with a strong legacy and high-quality ingredients. He also believed that there was still consumer interest in alternatives to Oreo, particularly from those who remembered Hydrox from their childhood and preferred its taste or origin story.

What impact did Hydrox have on the cookie industry and consumer preferences?

Hydrox played a significant role in shaping the cookie industry by introducing the first chocolate-filled sandwich cookie. While Oreo eventually overtook it in popularity, Hydrox remains a symbol of how smaller brands can have a lasting influence, even when overshadowed by larger corporations. Its revival sparked renewed interest in both the product and the competitive dynamics of the cookie market.