Twenty-Year Technical Lead as Moat

“Overall, the problem-solving of the first generation – technically, market-wise, and legally – had given subsequent employees a 20-30 year lead. Many of Tetra Pak’s later generations of employees have lived under the illusion that the company’s products have always sold themselves. This was certainly not the case in the 1940s, 50s, and 60s.”

“It turned out quite quickly that Åke Gustafson was right. The problems were solved and the “torpedo” Palm had managed to get the technicians in order at the factories. Once it was working, Tetra had an aseptic packaging that was both easy to pack at the dairies and consumer-friendly. At the same time, the packaging was inexpensive compared to what the competitors could offer. The main competitor, Pure Pak, did not have an aseptic packaging and was thus excluded from many markets. The system gave Tetra Pak nearly twenty years of lead.”