Ingvar Wenehed
Strategic Concepts & Mechanics
Primary Evidence
"Through ingenious solutions, the family, primarily Hans, and its employees, especially Carl Borgström and the administrative head at the headquarters, Ingvar Wenehed, set up a network of companies whose purpose was to keep money outside of Sweden, beyond Swedish taxation, and beyond Swedish currency regulations. In Switzerland, the company Société Outremère (Socomer) was registered, created solely to absorb commission money for all the paper, plastic, paint, and aluminum that Tetra Pak purchased from suppliers. Normally, such purchases go through an agent who receives a commission of 2–5 percent of the invoiced amount. What the agent is paid for is that he formally takes on the credit risk until the goods are paid for by the buyer. If, for example, the buyer goes bankrupt before the payment date, it is the agent who takes the financial hit."
"After the meeting in Rome, a solution to the financing problem was finally found: the small subsidiary Purac, which developed water purification technology. The company had great potential, but had not been managed properly. Gad, who had been appointed CEO, thought it was something he could handle with his left hand, but soon had to realize that it was not that simple. However, he was not the man to solve the problems, but since the company had great development potential, Tetra Pak still managed to sell it for a reasonable price, about 15 million kronor, to American Hercules Powder. That was money that was really needed to be able to continue driving the Tetraproject forward. Ruben and Gad were totally against the sale. Gad because he had planned to keep the company as his own little territory - a way to get revenge for the previous defeats within Tetra Pak. Ruben’s opposition was due to the fact that Purac’s water purification technology, a method that had been discovered by chance when there was a need to purify the water for Östanåbruket, could become a global product if the company was managed correctly. Ruben was against all sales of ideas that could develop into something big. But the sale was pushed through by Hans, Ingvar Wenehed, and Erik Torudd."