Jack is in the “cool” business

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The best decision Jack Daniel’s ever made was: do nothing.

It’s funny how often that’s the case in business.

Let me explain.

In 1956, Brown-Forman bought Jack Daniel’s from the founder’s family for $18 million.

The family didn’t take the highest bid. They sold to the people they trusted would take care of the brand.

The problem is, “keeping the business the same” almost never happens. Even if the buyer has the best intentions, they end up tinkering. (Not even talking about private equity here.)

But for over 50 years, Brown-Forman was hands off. Same water. Same process. Same packaging.

Frank Sinatra was buried with a bottle. Keith Richards, Slash, Motley Crue — all these rock stars turned into free brand ambassadors.

Then, in 2011, they launch a sweetened version called Tennessee Honey.

Now, don’t get me wrong. It was a hit.

So they launched Jack Daniel’s Blackberry.

And Jack Daniel’s Apple.

And Jack Daniel’s Fire. And Jack Daniel’s Winter Jack. And Jack Daniel’s Honey Lemonade. And Jack Daniel’s Downhome Punch Country Cocktails. And Jack Daniel’s Coke, Coke Zero, Diet Coke, Coke Cherry, and Ginger Ale.

Every one of them diluted the brand (literally and figuratively - dad joke).

Sinatra’s drink started looking like a sorority party mixer.

Business theory calls this getting stuck in the middle. Not as cool as the small batch bourbons, not as cheap as the value brands.

Plenty of other factors hurt them too: people drinking less, tariffs, oversupply.

But the real problem started earlier, when they forgot the job Jack actually did. To me, they haven’t actually been in the whiskey business for a long time.

They’ve been in the cool business.

Which doesn’t jibe with asking for a “Jack Daniel’s Southern Peach Country Cocktail.”

If you’ve been at it a while, it’s easy to lose track of what business you’re actually in.

Sometimes it can even change.

So next time a customer tells you why they came to you, don't stop at the first answer.

The first answer is usually the product. "We needed a bookkeeper."

Then ask, "What was happening that made you need one?" Then, "And what did that cost you?"

Keep going until you find the pain. "I was doing invoices at 11pm instead of putting my kids to bed."

That's what you're actually selling. Free evenings.

Great book on this: The Mom Test by Rob Fitzpatrick. A must-read on talking to customers, and how to actually get to the truth. (It’s usually not what they tell you first.)

Thanks for reading!

Michael