Shocking Secret Revealed: How a Rebel Dropout's Obsession with Electronics Sparked a $4 Billion Dynasty
And how a $25 dollar paper mistake almost lost his company's trademark image
It’s a street that runs north-south in Manhattan in New York City, New York. Basically it carries northbound one-way traffic and runs from Madison Square to meet the southbound Harlem River Drive.
It also happens to run by one of New York’s more beautiful gardens - Madison Square Park, which is located in the heart of Manhattan.
The street I’m talking about is Madison Avenue and while its name is associated with James Madison the fourth President of the United States, it is most famous for being the “birthplace of advertising.”
The area's convenient location, proximity to Grand Central Station, and affluent Upper East Side location attracted many agencies even as far back as the 1800’s.
For instance, according to "The Emergence of Advertising in America", by the year 1861, there were 20 distinct advertising agencies in New York City. Just a few years later in 1864, William James Carlton founded what would later become the J. Walter Thompson Company, one of the most enduring agencies in existence.
By 1900, the advertising industry had become a major economic force, with agencies handling campaigns for national brands like Coca-Cola and Procter & Gamble. Over the years Madison Avenue became home to big name agencies including BBDO, DDB, Young & Rubicam, and Ogilvy & Mather.
Of the many firms located here, one in particular stands out for the iconic ads they created — Dancer, Fitzgerald and Sample (DFS).
For instance, the agency was the brainchild behind McGruff the Crime Dog created in 1979 for the National Crime Prevention Council. To refresh your memory, McGruff was a trench coat-wearing canine mascot with the slogan “Take a Bite Out of Crime.”
They also created the famous Wendy’s ad “Where’s the Beef?” in 1984. The campaign featured three elderly women, led by Clara Peller, examining a competitor’s burger and asking, “Where’s the beef?”
Another campaign the agency made was in 1981 for the doll Strawberry Shortcake, which turned the character into a household name and generated roughly $300 million in sales.
But there’s one campaign in particular made in 1973, which was centered around “Kawaii culture,” that many experts called a breakthrough in advertising. In fact it became world famous. (By the way “Kawaii culture” refers to the Japanese aesthetic of cuteness or being adorable.)
I’ll tell you more in just a minute but first let me explain why we’re talking about it in the first place. The reason is simple: That advertising campaign leads us directly to the man who not only revolutionized battery technology but also the industry itself.
A Little Help From Your Friends
Ever since Guglielmo Marconi invented the ham radio back in 1890, they’ve become a popular form of communication.
In fact in the U.S. there are over 700,000 licensed amateur operators and globally the number rises to 3 million. Depending on what model you chose, you could spend as little as $35 or if you prefer something more sophisticated, you could pay as much as $2,000.
Or you could just build one yourself. That’s what Samuel Rubin did in his spare time. In fact it’s with ham radios that Samuel got into electronics in the first place.
Samuel Ruben was born on 14 July 1900 in Harrison, New Jersey. As a young child and teenager, Ruben had a keen interest in electronics. So it’s not really a surprise that he applied to and was accepted into the Polytechnic Institute of Brooklyn, the second-oldest private engineering school in the United States.
However what is rather surprising is that only after a few years of attending, he dropped out of the Institute. Whether it was the schoolwork load or the environment or both, attending Polytechnic was just too stressful for Samuel. He began battling with some health issues.
But some things are not meant to come to an end and in 1921, Samuel happened to meet Professor Bergen Davis of Columbia University. At the time professor Bergen was a prominent physicist at Columbia with at least 50 scientific papers published under his name.
Turns out the professor took a liking to Samuel and began tutoring the young man, even allowing him to sit in on some of his classes at the university. Professor Bergen became Samuel’s mentor and provided him with access to academic resources.
All of that attention, guidance and mentoring paid off because Samuel Ruben became extremely knowledgeable in the field of electronics and electrochemistry.
Heck, Professor Bergen even convinced investor Malcolm Clephane to finance a private lab for Samuel so he could do his electrochemistry experiments. Clephane agreed and Samuel set up his new lab in New Rochell, which is located at the southeastern point of the state of New York.
Here in the lab, Samuel pursued experiments in electrochemistry and solid-state technology. It’s actually in this lab that Samuel had a major breakthrough - creating the "dry" electrolytic capacitor.
Not to get all geeky on you Dear Reader but the standard at the time was a wet capacitor, which used a liquid electrolyte. As often happened, leakage occurred when the capacitor's seals fail, causing the electrolyte to escape and potentially damaging surrounding components.
His dry capacitor invention transformed future electronic devices, particularly radio receivers, because it offered enhanced durability, longer shelf life, and extended operating lifetimes.
A Partnership We Must Be
When you’re constantly inventing new things, you need parts and other tools in stock or else you wind up doing not much of anything. So one day during the later part of 1923, Samuel paid a visit to the P.R. Mallory Company, which was owned by Phillip Roger Mallory - a manufacturer of tungsten filament wire.
Samuel was looking for new equipment for his lab and the P.R. Mallory Company had a lot of things in stock he needed. Now I can’t tell you exactly what happened when the two met, but shortly afterward they struck up quite a friendship. In fact Samuel and Phillip decided to form a partnership.
The two men figured it would be a fantastic idea to combine Ruben's inventive genius with Mallory’s manufacturing abilities. They didn’t know it back then, but that would become a pivotal moment in both of their careers.
In truth their partnership laid the groundwork for more modern portable power solutions that would be used world-wide.
Actually one of the greatest achievements to come from their partnership happened in 1942 when they solved the Army Signal Corps nagging problems - using zinc-carbon batteries.
You see zinc-carbon batteries carry low energy density, meaning they stored less energy per unit of weight or volume. This made them bulky and less efficient for powering devices requiring sustained high energy output.
They also suffered from self-discharge - that is losing charge even when not in use due to internal chemical reactions. Their electrolyte, typically ammonium chloride, was prone to slow leakage, reducing shelf life to just a few months.
And lastly, they performed poorly at low temperatures or under high current demands. Their internal chemical reactions slowed in cold environments, and the battery’s internal resistance limited its ability to deliver power efficiently.
All of these issues made them unreliable for military applications, particularly using field radios.
But Ruben had a solution for this problem. He got to work creating a new kind of battery altogether… one that used mercury oxide and zinc electrodes in an alkaline electrolyte, which produced a consistent voltage of about 1.35 volts.
Plus this new battery was durable enough for the harsh climates of North Africa and the South Pacific places where ordinary zinc carbon batteries used in torches, mine detectors, and walkie-talkies struggled.
The Mallory Company started mass producing these batteries for the military. And by mass produce I mean at one point, the company was manufacturing 300,000 per day. Of course the military was super pleased because they now had consistently reliable batteries that worked in almost any environment.
But here’s the thing. Creating one battery just wasn’t enough for this dynamic duo. So the next natural step for Samuel was to begin research on the different types of batteries available for commercial use.
And then find ways to improve them.
To help Samuel do that, Phillip created the Mallory Battery Company, which provided Samuel with the perfect number of resources needed to execute a variety of battery experiments.
One of those experiments involved making improvements to alkaline batteries.
Make It Last But Make It Small
Although alkaline batteries had been around since the late 1800’s and early 1900’s, with Thomas Edison being credited with making the first one here in the U.S. there wasn’t much demand for the battery.
In the 1950s, Lewis Urry, a Canadian engineer working for Union Carbide took alkaline batteries a step further. Using battery research previously done by Samuel Ruben, Lewis developed a more practical, long-lasting alkaline battery with zinc-manganese dioxide, which significantly improved performance especially compared to zinc-carbon batteries.
He even created small sized alkaline batteries, including AA and AAA. Yet even with this newer form of the alkaline battery, demand was still non-existent.
However in 1957 everything changed for these long forgotten alkaline batteries. That’s when the Eastman Kodak Company introduced the Brownie Starflash camera with the first ever built-in flash. The camera was extremely popular with the public because now they could take pictures in any kind of lighting … from dark of night to dimly lit rooms inside their homes.
Yet there was one thing the little hand-held cameras needed more than anything — small sized alkaline/manganese batteries.
If there’s a battery problem to be solved, leave it to Samuel Ruben. And so he developed long lasting yet smaller sized alkaline manganese batteries that the P.R. Mallory Company would manufacture and then sell directly to Kodak.
They had no time to waste because the Starflash camera was selling fast. Like how fast you ask? The Brownie Starflash sold 10 million units in the first five years of it being introduced to consumers.
Samuel’s batteries were so durable that in 1964 Phillip renamed the P.R. Mallory Company to something that immediately reflected the battery’s long shelf life. And what better name than the Duracell Company.
Fly Me to The Moon
It wasn’t long after the switch in names, that company sales exploded. The Duracell Company had gained a reputation for making batteries with superior longevity and reliability compared to their competitors including Eveready, Energizer and Ray-O-Vac, which by the way were still using zinc-carbon batteries.
The Duracell line of alkaline batteries were now being used in all types of portable consumer electronics that burst onto the market such as cameras, tape recorders, walkie-talkies, clocks and flashlights.
Heck, the batteries were even used in medical devices like hearing aids and early portable medical equipment (e.g., blood pressure monitors).
Even more amazing, their batteries were part of the Apollo 11 mission to the moon, which launched in 1969. Specifically, they powered the timer on the Seismic Experimental Package (SEP) that Neil Armstrong and Buzz Aldrin deployed on the lunar surface at Tranquility Base.
The SEP was a device that allowed scientist to map the Moon’s lunar structure, including the core, mantle, and crust, by detecting and analyzing moonquakes. And it sent that data back to earth for several weeks.
Samuel and Phillip were having so much success with their Duracell battery that in 1970 the weirdest thing happened - they had to start rationing them. That’s because there was such great demand for their battery, that manufacturing couldn’t keep up.
Eventually the situation “righted” itself and by 1973 the company was back on track even though that was a year of economic turbulence, including the oil embargo and a stock market crash.
While other companies were struggling in the doom and gloom of the financial downturn, Duracell was doing the opposite. They weren’t just doing well; they were doing extremely well. In fact by 1973 sales were in the range of $200 - $300 million.
The Magic of A Bunny
Now this Dear Reader is where we pick up on the story of the advertising firm I mentioned at the beginning of this article - Dancer, Fitzgerald and Sample (DFS).
Duracell hired the agency to create an ad that would showcase the long lasting durability and reliability of their battery. And the reason they did this was because their competitors were coming on strong. Duracell needed a way to make their brand of black, and copper colored batteries be the first one that popped into a consumers head and then purchase.
To accomplish this, the DFS ad agency leaned into “Kawaii culture,” which refers to the Japanese aesthetic of cuteness or being adorable. DFS realized that using a cute character would create a strong emotional response in consumers.
And what’s more adorable than a soft, cuddle-able bunny. Let’s face it - rabbits are universally likable, cute, and also associated with energy and persistence. As for plush toys, bunnies rank fourth most liked behind dogs, cats and teddy bears.
So let me ask you this: If you used a toy bunny to showcase the Duracell name, wouldn’t that really stick in someone’s mind. Better yet, what if that bunny was pink?
In 1973 The DFS agency developed a television commercial that featured a bunch of animated pink toy bunnies playing the drum. Each was powered by a battery but only one used Duracell. (If you want to watch the commercial, just click the video below).
The bunnies continued drumming until they lost power. Yet one bunny - the one powered by the Duracell battery just kept drumming. The 1973 “Drumming Bunny” ad was a hit in North America, the perfect visual way of communicating Duracell’s claim of longer-lasting batteries.
The ad’s simplicity and the endearing pink bunny resonated with audiences, helping Duracell gain market share in the growing consumer electronics market.
In fact by 1977, Fortune magazine ranked Duracell as the 507th largest company, with $323 million in sales (which put it in the 170th position).
After the bunny’s North American debut, it became a global mascot. Ads evolved from drumming to competitive scenarios like football, races, or other activities, showcasing the bunny’s versatility all the while still being powered by Duracell batteries.
For instance, a 1979 ad featured bunnies drumming with the tagline, “No regular battery looks like it...or lasts like it,” reinforcing Duracell’s brand.
Everything was going well for Duracell - well except for a little paper mistake that happened 1988.
Whoopsie - My Bad
The Duracell Bunny’s popularity faced a setback - one that allowed for another competitor to showcase an almost identical bunny. You could call it the start of the bunny wars, which began with a paperwork error.
You see t’s not unusual for companies to use trademarks to protect their brand’s against infringement by other companies. Trademarks can be used for logos, slogans, mascots, and brand names.
They can also be used in advertising too and act as a deterrent for copycats to make the same kind of ads.
Trademarking involves filing a trademark application with the United States Patent and Trademark Office (USPTO). The application must include the trademark, the owner's information (name, address), a description of the goods or services the trademark is used for, and whether the trademark is already in use or intended for future use.
Of course there is a filing fee as well, which at the time was $25. Today that fee is now roughly $350.
Once you get a trademark its good for 10 years. However between the fifth and sixth year after registration, a Section 8 declaration must be filed, demonstrating the trademark's continued use in commerce.
Now I can’t tell you who, but someone in the Duracell Company forgot to renew the Pink Bunny as the company’s trademark mascot. And that “whoops” moment had a huge and lasting impact.
Because when your competitors are watching your every step, trying to outdo you and win more market share, they notice little details such as trademarks not being renewed on time.
And one of Duracell’s biggest competitors, the Energizer Company saw the lapse in the trademark renewal. The bunny was now free for any one to use.
So they created an ad spoofing the lovable Duracell bunny – with oversized flip-flops, sunglasses and a beating drum that kept going…and going…and going…
The ad first aired in October 1988 and was an instant hit. Immediately after its ad debut, Energizer filed a trademark on a pink battery bunny. Duracell quickly tried to follow, but it was too late – Energizer blocked the action and now held the U.S. trademark.
Energizer then created additional versions of the ad showing the new bunny leaving the "Drumming Bunny" ad studio and wandering into sets of several realistic-looking commercials for fictional products, interrupting them.
Now Duracell had one of two choices to make: (1) stay pissed off that Energizer took away their bunny or (2) work out a deal. According to Andy Gilicinski who worked for Duracell, the two sides eventually met in what he describes as a secret “Bunny Summit” and in 1992 reached what says was a confidential Bunny Agreement.
The agreement gave Energizer exclusive U.S. and Canada trademark rights to the bunny, while Duracell retained rights elsewhere, limiting the bunny’s North American presence but maintaining its global popularity.
Outside the U.S. and Canada, the Duracell Bunny remained a household name. Ads like the 2009 “Bunny Fusion” campaign in France, featuring bunnies morphing into a cotton candy tornado, sumo wrestler, and elephant, were visually captivating while leveraging viral marketing potential.
As for the Energizer bunny, well it became a cultural phenomenon in the late 1980s and early 1990s and remains one through today. The bunny appeared in over 115 commercials by the early 2000s, featuring high-profile parodies (e.g., interrupting a Star Wars-style ad or a Dracula spoof). It was voted the top advertising icon in 2004 by Advertising Week, surpassing the Geico Gecko and Ronald McDonald.
A Long Lasting Legacy
Through a number of corporate mergers and acquisitions, Duracell came to be owned by the consumer products conglomerate Procter & Gamble (P&G).
In November 2016, P&G reached an agreement to sell the company to the international conglomeration Berkshire Hathaway through a transfer of shares and a cash value of $4.7 billion.
While the company now offers various battery types, including alkaline, rechargeable, and specialty batteries they hold the #1 position in the battery market and are the leading manufacturer and marketer of alkaline batteries. (Their mercury based batteries were eventually phased out and then banned in most countries.)
Their sales kept going and going … with annual revenues around $2.4 billion.
Over his lifetime, Samuel Ruben held over 300 patents. Samuel Ruben passed away in 1988 at the age of 88. His legacy endures through Duracell’s alkaline batteries and their global impact.
Phillip Roger Mallory eventually stepped back from active management and took on more of leadership role. Phillip died in 1975 at the age of 90, shortly after the peak of Duracell’s early success.
Their collaboration produced the mercury battery, advanced alkaline technology, and launched Duracell, revolutionizing portable power and creating a lasting brand symbolized by a little pink bunny.
Ruben and Mallory’s story is a testament to the power of dreaming big and working together. Their innovations didn’t just light up devices; they illuminated lives, proving that a spark of creativity can keep the world moving forward.
Amazing Quotes by Amazing People
“Endurance is not just the ability to bear a hard thing, but to turn it into glory.” - William Barclay, Scottish author, theologian, and professor of divinity at the University of Glasgow.
I loved how you teased the article in the podcast. That was brilliant.
Great story. At one point I had visions of the movie Back to the Future running through my head.
I once made a similar mistake with forgetting to renew a really clever domain name I created. I had had it for many years and as soon as I messed up someone snatched it. I empathize with the pain.