Ruben

"Ruben was a man of paradoxes. In his personality, grandeur was united with pettiness, genius with pretentiousness and self-overestimation with awareness of his limitations."

"After Ruben’s death, several dramatic events occurred. The first was the purchase of Alfa Laval. The deal was linked to liquidity problems for the Wallenberg sphere. In the late 1980s and early 1990s, the group was heavily pressured by attacks from “raiders” such as Sven-Olof Johansson. It was clear to the strategists within the sphere that the construction of shareholdings divided between two separate holding companies, Investor and Providentia, was insufficient protection against attacks. Throughout history, the Wallenberg group had protected itself against hostile takeovers through differential voting shares. However, this was no longer enough. An investor who could mobilize large amounts of capital could theoretically wrest control from the Wallenberg family. The case with Sven-Olof Johansson had been worrying, a newcomer, with the help of borrowed capital, had managed to acquire a “corner position” in Saab-Scania, pushed the stock value sharply upward, and challenged the family’s control."

"The dairies did not buy the machines, but rented them for a relatively low cost. Tetra Pak made money instead by charging production royalties and by requiring customers to commit to only buying Tetra Pak’s specially treated paper. When the contracts were drawn up, Erik Torudd wanted a clause that would force customers to pay triple royalty if they used someone else’s paper. However, Holger considered it unnecessary, as Tetra Pak could always sell its paper as cheaply as any competitors. Torudd protested, fearing that paper mills would soon gain access to Dupont’s coating method and start producing equivalent paper on their own. He argued that it wasn’t certain that Tetra Pak would be able to withstand the competition and since the paper was the company’s major source of revenue, it would ultimately threaten the operation. But Holger had Ruben on his side. “Yes, yes, that’s enough for us to take back the machine if there’s any cheating,” Ruben commented. “Are you really willing to take back the machine if it means a whole city then has no milk distribution possibilities?” asked Erik Torudd, who did not believe Ruben was serious. “Of course,” Ruben replied. It turned out as Ruben had said. What Tetra Pak committed to in return for the stringent contract terms was a reliable service organization. It was a factor whose importance could not be underestimated. For a dairy, it would be a minor disaster if the machines came to a stop and the milk spoiled. Tetra Pak promised to quickly fix any faults or immediately supply replacement machines. This unique service would later become one of the company’s most important selling points, if not the most important. Once Tetra Pak had gotten the machines into the dairies, the retailers were the key group, as a retailer convinced that the tetra was much easier to handle would soon stop buying bulk milk for their stores. But Tetra Pak also had to try to overcome consumers’ resistance to buying, since enough protests from consumers could potentially push the dairies to revert to delivering only bulk milk or glass bottles."

"Åke Gustafson and his colleagues had completed their prototype machine for manufacturing square packages. The new package, which Gustafson and his colleagues had been working on day and night, had now been named Tetra Brik. Åke Gustafson was satisfied and proud of what they had accomplished. They had solved a task that many within the company considered completely impossible. Soon, the Brik machine would be demonstrated for the technical director, also vice president, of Dairy Central, Ragnar Benedictsson. Ruben and Holger, who were strongly pressured to get the new machine on the market, gave Gustafson detailed instructions on what should and should not be said. “If he asks when the machine can be ready for dairy operation, you must say ‘in two years’,” Holger informed him. Gustafson kindly replied that he could not do that, as it was impossible to have it ready in such a short time. “Benedictsson and I have had a very good relationship with each other. It has been based on honesty and I do not intend to change that now.” “You do not understand this. It’s about business. You have to say that you can be ready in two years,” Holger replied in a stern tone. Ruben agreed by nodding. Gustafson bent, but did it under sharp protest. “I will do it, but at the same time, I will ask to resign. Not with immediate effect, but as soon as I consider the Brik system functional, I will leave,” he clarified for them. It did not seem as though either Holger or Ruben took it seriously."

"The situation was not entirely easy for Hans and Gad. Both were young, insecure, and inexperienced, and were perceived by the seasoned businessmen that Ruben had previously brought in as “daddy’s boys”. Moreover, they were very strictly held – and dominated – by Ruben. Other employees had first had to prove their competence before they were promoted to leading positions. No one had gotten a job on the basis of their name. And many of them had warned Ruben against placing the boys in leadership positions. These warnings had not primarily come because people wanted to protect their own careers, but rather out of concern for Gad and Hans. It was clear that they would not be taken seriously unless they had first earned their spurs elsewhere. But the stubborn Ruben didn’t want to listen to the advice. For him, it was most important that the boys were quickly schooled so that they later could take over his role. It was also important for him that they got leading positions since the only chance he had to socialize with them was through work. Thus, they constantly talked about various problems and solutions within the business. This would not be possible if the boys were given subordinate positions. Then, other employees would immediately react and probably loudly oppose the fact that their subordinates – Hans and Gad – had greater influence than they did as managers. Therefore, there was only one solution for Ruben: to make the sons CEO and Vice CEO respectively."

"Ruben apparently did not understand that what he had done was wrong. He was deeply involved in all of the company’s problems, big and small. When the problems had been discussed back and forth for a long time, and someone finally came up with an idea, it often took a while before Ruben realized that it could lead to a possible solution. But by then, he had pondered the idea so much that he ultimately really believed it was his own. For people with a very strong imagination and who think intensely about a potential solution, the phenomenon should not be entirely uncommon. And Ruben was indeed equipped with both a rich imagination and a mind that was constantly running at high speed. Additionally, he was driven by vanity. Not in the sense that he cared about fine clothes or an elegant exterior. Rather, he liked to claim credit for successes."

"The last time war clouds had gathered over the continent, in 1939, Ruben had completely ignored the risks. But since then, he had resolved never to make such a severe mistake again. Therefore, he and the other corporate executives had planned for the possibility of another major war in Europe. Among other things, all drawings and patent letters had been deposited in safe deposit boxes at Brown Brothers Harriman in New York. The Åkerlund & Rausing group had also formed special companies – so-called emergency companies – in North America and the West Indies. The plan was that with the help of the deposited patent letters and drawings, they could take over operations in the event of a major war or a Soviet occupation of Sweden. Ruben could feel satisfied that if things were to develop into a major conflict, the operations could still be saved."

"”Vi måste försöka komma ifrån det traditionella sättet att konstruera en förpackning. Jag tror att framtidens förpackningskonstruktion kommer att utgå ifrån hur man bygger öppningen, inte som det är nu, tvärtom”, sade Torudd och började förklara sina tankegångar. Torudd menade att företaget skulle satsa på en fyrkantig förpackning utan kontinuerlig fyllning. Istället för att lägga all vikt vid den kontinuerliga fyllningen skulle man bygga en förpackning med konsumentvänlig hällanordning. Det var hans bestämda uppfattning att tiden var mogen för det. Ruben blev entusiastisk och ville omedelbart kalla in [Harry Järund](private://read/01jgv3rewabvpzfbhb06r0km4d/#indx-215x) och patentingenjören [Tage Norberg](private://read/01jgv3rewabvpzfbhb06r0km4d/#indx-271x). Harry Järund spelade golf, men Norberg kom. Tillsammans funderade de vidare. De kom till sist fram till att man skulle ha en lös plastpåse som klistrades fast i toppen på kartongen. Där skulle man också ha ett utstansat hål där en plastpip som fungerade som hällanordning skulle stickas in. Rubens entusiasm ökade än mer och han ville att patent skulle sökas fortast möjligt. När Harry Järund kom tillbaka från golfen fick han besked om att han skulle försöka konstruera förpackningen efter anvisningarna."

"The year was 1953 and it had been seven years since Erik Wallenberg invented the tetrahedron. Only now was there a cream machine that worked. Ruben had waited long enough for the money to start flowing into the company. He was of the firm opinion that Tetra Pak could quickly sell 500 cream machines in Sweden alone. He based this view on the fact that there were about 600 dairies in the country and that at least 500 of them would easily agree to rent a machine from Tetra Pak. But in his great optimism, he forgot that most of Sweden’s dairies only produced cheese and butter. Their need for cream packaging was, to say the least, non-existent. And among those who produced cream, only a few were large enough to afford to rent a separate packaging machine. Ruben also ignored the fact that the paper was still unreliable and that little Tetra Pak did not have the capacity to produce 500 machines. A realistic assessment of the sales opportunities indicated that the likely market encompassed about 60 machines. But Ruben refused to listen to what the marketing people said. In the end, they agreed to manufacture 100 machines. But even that was too much, the salespeople said."

"Ruben triumphed. More and more cream machines were placed around the country and even one in France. However, they still had no machine that worked for milk. Harry Järund was starting to face problems. Contradictory messages, counter orders, and constantly new decisions complicated his work. Sometimes he was supposed to ensure the construction of a machine that could manufacture half-liter packages. When he had made some progress, the decisions changed to entail deciliter packages for cream. Harry Järund needed peace and quiet, but unfortunately, that was the only thing he did not get. When he finally could begin building a machine, he couldn’t find any suitable paper to use. Since a milk package is larger than a cream package, it creates greater downward pressure in the package. This, in turn, places entirely different demands on the paper."

"Åkerlund backed down when faced with a done deal. However, the issue was not resolved with this. Åkerlund definitely wanted to get rid of his bond commitments totaling 700,000 kronor. And Ruben wanted to get rid of Erik Åkerlund’s option to avoid future problems. Therefore, a series of negotiations began that were only resolved in 1937 when the bank director Richard Julin, who was responsible for Åkerlund & Rausing’s credits at Enskilda Banken, stepped in as a mediator. The settlement consisted of the bank approving Åkerlund & Rausing’s loans of 700,000 kronor to remain, against publishing mortgages in the company. At the same time, the bank took over loans from Åkerlund to the company totaling 500,000 kronor on the condition that Ruben, Holger Crafoord, and Börje Svenby provided guarantees for the money. In addition, Ruben had a personal debt to Erik Åkerlund of 400,000 kronor for his share of the shares. This debt was also resolved through loans in the bank. Shares in the company were given as security. Against a commission of 50,000 kronor, Enskilda Banken had saved Ruben’s business."

"When development had progressed this far, Ruben decided that the milk packaging business should be placed in a separate company. He was well-prepared: as early as 1946, he had applied for the registration of Aktiebolaget Alicante to have on hand in case the tetrahedron became something. Now was the time, and in 1950, on Erik Torudd’s suggestion, the small 10,000-krona company Alicante changed its name to Tetra Pak. It was also decided that the company should be registered in 57 different countries—big plans were being made within the walls of Åkerlund & Rausing’s headquarters. But for now, there was no actual business in Tetra Pak. The development work was still being conducted within the framework of Åkerlund & Rausing. The shares that Ruben had so far been the sole owner of, were transferred after a couple of years to Ruben’s three sons, Gad, Hans, and Sven. They each received 25 percent. The remaining 25 percent went to the partner Holger Crafoord. The sons also took over Ruben’s share in Åkerlund & Rausing. The Rausing share was controlled through AB Vapor."

"“I can still see Lisa as she arrived, tall, straight, and slender. I remember her sun-tanned face, beautifully rounded and framed by dark hair. She was beautiful and spirited, both spirit and matter. The impression was overwhelming, and I soon realized that she was the woman in my life.” This is how Ruben himself described his meeting with the postmaster’s daughter, Elisabeth Varenius. The family was of Halland origin and belonged to an old clerical family that had moved to Råå."

"When the problem of constructing a machine that could manufacture tetrahedrons came up, Harry Järund, now the work study manager at Åkerlund & Rausing, believed he had the solution. On January 3, 1945, he made a sketch that showed how the machine could work. Through a system of chain-driven clamping jaws, tetrahedrons could be continuously produced from a paper tube. Ruben liked the idea and assigned a group of technicians under the direction of the exiled engineer Dieter Kunckel from Germany to further develop it, despite many within the company questioning Kunckel’s competence for the task. He was a highly qualified engineer but not a mechanical engineer. His expertise was in a completely different area: before his exile, he had designed submarines for the German navy. But Ruben, who was incredibly stubborn once he had made up his mind, did not want to listen to the criticism of Kunckel. Instead, a location was rented at old Väster in Lund. Here, Kunckel and his men would develop Harry Järund’s basic idea."

"Once the courses began, both Swedish guest students were surprised to note that the interaction between students and teachers was much less formal than in Sweden, where teaching was characterized by German academic tradition. An example was that students were allowed to interrupt the lecturers with questions without hesitation. Törnqvist and Ruben found the system very positive, provided that the questions presented were intelligent and of general interest."

"Common to the three was that they were all above average height. Ruben, who was very tall himself, preferred not to hire short people. Torsten Jeppsson, who would be hired in 1944, was among those who during the job interview suddenly had to stand up so that Ruben could approve his height. “Good, I never hire short-statured people,” Ruben told the surprised Jeppsson."

"After Alfa Laval’s dismissive attitude, Ruben seemed somewhat dejected, but he soon thought of a new financier: Axel Wenner-Gren. The immensely wealthy founder of Electrolux was a rather un-Swedish person. He did not hesitate to show off his wealth in all sorts of contexts. To have a comfortable residence, he had Häringe Castle built outside Stockholm. The cost of things did not matter; architects and builders were instructed to only use the best and finest available on the market. When he went out with his luxury yacht, he made sure to always have a retinue of politicians, celebrities, and film stars – both Swedes and more internationally known people were seen on his boat. Actually, his last name was Wennergren, but he changed it to the more imposing Wenner-Gren."

"One of the company’s largest expenses was paper purchases. Ruben decided that no invoice from the paper mills would be paid within the stipulated 30 days. Instead, the supplier credit would be extended as far as possible. But there were no negotiations with the paper mills, especially involving Billerud and Uddeholm, but entirely a unilateral decision on Ruben’s part. After he had decided how the financing would be managed, he drove the line to absurdum. Payment times would, entirely in accordance with Ruben’s tactics, sometimes amount to eleven months. Holger, who was a much more sensitive person than Ruben, found the situation uncomfortable and wanted Ruben to change his mind. Invoices should be paid on time, was Holger’s firm belief. But he gained no listening at all from Ruben. “It’s only natural that they contribute to the payment, since we’re increasing their market. They haven’t been very good at that themselves,” claimed Ruben. Ruben’s reasoning was correct to the extent that the conservative Swedish paper companies were terrible at creating new markets themselves. It was also entirely correct that Tetra Pak gave the paper mills a huge sales boost. But despite everything, it is customary to negotiate supplier credits. That’s what the paper mills believed, too. However, Ruben was not at all ashamed that Tetra Pak did not pay a single invoice on time. Instead, he only said the same thing to them as he said to Holger. “You are obliged to help with our financing since we are expanding your markets.” When the paper mills’ managers found no understanding from Ruben, they instead turned to Holger who suffered and was ashamed. “You must understand that I can’t do anything. Ruben has decided that this is how it should be, and I can’t influence him,” Holger was forced to say. The paper mills were caught in a catch-22. Even though they wanted to get their money, they knew they couldn’t push Tetra into bankruptcy. Then there would be no money at all, as the company had virtually no assets. Another important creditor was the construction company ABV, which voluntarily gave very long credits to Tetra Pak’s new factory facilities. The rapidly growing business required almost constant construction of new premises. Without ABV’s willingness to extend credit, it probably wouldn’t have been possible for Tetra Pak to expand as quickly as it did. But it wasn’t just loans and credits that financed the development of Brik. Since the aseptic package hit the market, fantastic sales successes were noted. Mainly, the system was sold in developing countries – exactly as planned. In a short period, the company brought in – for that time – enormous sums. But the expansion also cost."

"On September 5th that year, the first tetra machine was test-driven. Harry Järund had succeeded in his task. His wooden and bicycle chain model would eventually be set up as a monument in the foyer of the Tetra Pak main office. Ruben later explained in various contexts that it was he himself who had the model built, as he was dissatisfied with what the technicians had achieved. In his unpublished memoirs, written much later, Ruben wrote: “The little wooden model that I had made to demonstrate the idea as such is still set up at Tetra Pak.” In other words, Ruben felt like the true inventor of the tetra machine."

"The system worked better than expected, largely due to the enthusiasm of the employees for being pioneers in a project that they all were convinced would revolutionize the distribution of liquid foods. As long as there was job satisfaction, Hans’s non-leadership worked well. The only major mishap during the first years was the debacle with Gads’ paper department. But there, Hans was hampered by Ruben’s dynasty thoughts and by his absolute unwillingness to openly oppose his older brother."

"But when negotiations for new loans began, he was still cold. He argued that Ruben and Holger themselves were to blame for the hopeless situation they had put themselves in. They had started the companies without any capital of their own. Now, Marcus Wallenberg argued that there were only two possible ways out for them: either to list the group on the stock exchange or to sell off a part of it."

"When Ruben died, he had finally experienced what he had always strived for; the conglomerate was making fantastic profits and suddenly had its own money that could be reinvested in the business, allowing it to expand further. At his death, the total value of the Liechtenstein family foundations amounted to approximately ten billion Swiss francs. Every day, millions flowed into them, money that came from commissions on materials, company profits, and returns from various investments."

"Alongside his visions, Ruben had a very clear analytical ability in socio-economic issues in some respects. He was an active writer and took a prominent place in public debate. He expressed his opinions on a variety of issues such as the emergence of the EEC/EU, tax policy, planned economy versus market economy, and communication issues. But, which was typical of his disposition, he also debated issues that should preferably have been avoided."

"Hans Rausing eventually developed into a very skilled business leader, but it took time. In later years, many of his former critics within Tetra Pak claimed that he became one of Sweden’s most skilled business leaders of all time. As a person, he is described as very solution-focused and at the same time uninterested in status, power, and power games. He had inherited Ruben’s clear and unsentimental view of people and his rock-hard stubbornness, which was proven among other things when he pushed through the Tetra Brik program. Hans was also endowed with an intuitively acclaimed ability to see what was worth investing in, and he quickly comprehended complex economic contexts."

"He often blurted out the most astonishing statements to his colleagues: “within five years, the paper industry will be completely knocked out by new Japanese plasterboards,” “within a year, Rigello will be the only beer packaging in Sweden,” “I will win the Nobel Prize in Medicine,” etc. Older colleagues could never figure out if he really meant these obviously absurd announcements seriously. But since they all knew that Ruben, despite his lack of impulse control, was an intelligent man, they advised the younger colleagues to never agree with him, but to contradict Ruben when he came up with his sometimes surprising claims. They suspected, although no one ever had proof, that this was Ruben’s way of testing what people were really made of."

"While Ruben showed great satisfaction in finally having removed Holger from the circle of owners, he was also relieved that he wanted to stay on the board. He knew Holger’s good name meant a lot for the opportunities to take up new loans at Tetra Pak. He therefore quickly wrote to Marcus Wallenberg to inform him about the stock takeover, but also to emphasize that Holger would remain on the board. “A limited cooperation will therefore continue, which I am pleased to see,” he wrote in the letter. With the purchase of Holger’s shares, only one step remained for Ruben before the plan for a family-run empire, with his sons as the sole owners, could be realized: he had to remove the remaining six small owners. Therefore, he soon made deals with Torsten Jeppsson and Erik Wallenberg. They sold their shares at nine times par. Harry Järund, Gunnar Brime, and Erik Torudd, however, resisted the Rausing buyout proposals. None of them wanted to sell at the price Ruben had proposed. Erik Torudd did not want to sell at all. Not at any price."

"Engineer Harry Järund was hired at Åkerlund & Rausing in 1942. Ruben had spotted the talented young man during his work in the industrial commission. At that time, Harry Järund had converted the carpentry department at Jonsereds Fabriker to instead produce 7.5-centimeter shells. The production shift was so successful that Jonsered could, after a short time, sell the cheapest shells to the defense. Ruben, who was always on the lookout for competent men, was quick to notice the achievement. In the summer of 1942, he asked Harry Järund to come to Stockholm for lunch. After the lunch, Järund was employed at Åkerlund & Rausing."

"Ruben’s great effort during the deflation that followed the depression was that, with Carl Ramström’s good memory, he insisted that none of SLT’s companies were allowed to buy more paper and cardboard. Instead, they should report to him what they had in stock. When a company then needed more paper or cardboard, they had to turn to Ruben who could then inform them about where in the conglomerate the material was available. In this way, Ruben essentially emptied SLT’s various stocks without anyone being allowed to replenish as long as the deflation curve did not flatten out. This action saved the conglomerate a lot of money: when the crisis was over, paper prices had dropped by half. Through the successful procurement policy, Ruben began to gradually strengthen his influence within the conglomerate. But not only that; he was also about to marry his fiancée of several years."

"In 1977, he gave up – it was only in India that something resembling the Rausing plan had succeeded, but on a local level. Ruben decided to leave Rome and instead settle in Switzerland. However, the decision was easier to make than to implement in practice. The Swiss authorities considered him too old and would be a burden to the country if he were granted a residence permit. Ruben felt wronged by the Swiss opposition, as he believed they should understand how much money he had. After a tough fight, he managed to obtain his residence permit and moved to Lausanne where Tetra Pak’s and the family’s financial managers worked under the economist Lennart Ohlsson. Although Ruben still longed to return to Sweden, he found it easier to live in Lausanne than in Italy. In Lausanne, he could socialize with the Swedes stationed there and take an active part in managing the family fortune which had grown significantly after they started seriously selling the aseptic Briken. Money, both commissions from Cordotex and profits from the various Tetra companies, literally poured into the foundations."

"The situation was not entirely easy for Hans and Gad. Both were young, insecure, and inexperienced, and were perceived by the seasoned businessmen that Ruben had previously brought in as “daddy’s boys”. Moreover, they were very strictly held – and dominated – by Ruben. Other employees had first had to prove their competence before they were promoted to leading positions. No one had gotten a job on the basis of their name. And many of them had warned Ruben against placing the boys in leadership positions. These warnings had not primarily come because people wanted to protect their own careers, but rather out of concern for Gad and Hans. It was clear that they would not be taken seriously unless they had first earned their spurs elsewhere. But the stubborn Ruben didn’t want to listen to the advice. For him, it was most important that the boys were quickly schooled so that they later could take over his role. It was also important for him that they got leading positions since the only chance he had to socialize with them was through work. Thus, they constantly talked about various problems and solutions within the business. This would not be possible if the boys were given subordinate positions. Then, other employees would immediately react and probably loudly oppose the fact that their subordinates – Hans and Gad – had greater influence than they did as managers. Therefore, there was only one solution for Ruben: to make the sons CEO and Vice CEO respectively."

"However, a stock market listing was the last thing Ruben wanted to see. He saw the stock market only as a way for people to make money off other people’s initiatives and work. Moreover, a stock market listing would ruin his plans to build a new industrial dynasty. The company must be kept entirely within family control. He made this clear in no uncertain terms to Wallenberg, who was not satisfied with the answer. He argued that he still had not received an answer to the crucial point: how the operation would be financed without either loans or own capital. But Ruben had an answer to that too. With a significant increase in machine sales abroad, the demand for paper would increase. Furthermore, if they placed the paper production outside the country, the large revenues it generated could be kept out of reach for the Swedish tax authorities and currency regulations. This way, a large fortune could be built up in a short time, enough to finance further manufacturing and development. Additionally, there would be enough money to increase the own capital by a substantial amount. This strategy was what Ruben was working after – the explanation for many of his desperate ideas and plans."

"At the beginning of 1923, the small family moved to Gothenburg, where Ruben immediately immersed himself in his new work tasks. The managers of SLT’s Gothenburg company, Melin, Gothenburg Lithographic and Hugo Brusewitz AB, felt threatened and did what they could to oppose and ostracize the energetic young manager from Stockholm. Moreover, they found it quite humiliating to take orders from someone who was a couple of decades younger than themselves. But Ruben took their resistance calmly. He knew that he had Carl Ramström’s support, and he was aware that his ideas about Scientific Management were something for the future. He had decided to implement the necessary measures to bring order to the business at any cost."

"Rubens and Törnqvist’s thesis impressed the head of the Taylor Society, Professor Person, so much that he offered Ruben to continue as a PhD student with him. He would get 18 months of fully paid studies at the institute. Ruben took the offer and quickly decided to go home, sort out his business, and resign from SLT."

"A very important reason for the intense international marketing was Ruben’s very thoughtful strategy of solving the underfunding problems through rapid expansion in foreign markets. By living on long credits from domestic suppliers and simultaneously giving short credits to its customers abroad while keeping most of the money overseas, they were able to build up capital for further international expansion. The strategy was not at all foolish, although it went against previous experiences and textbooks in international marketing. However, it is also true that it was far from problem-free; expansion is costly – technology development and marketing are expensive. In the end, however, it proved to be a successful path to take, even though the stakes were incredibly high in Ruben’s game."

"The question was miraculously solved through a personal visit to the district chief judge Marcus Wallenberg senior, who approved the loans. The peculiar thing was that although Ruben had left Enskilda Banken in a manner that went against the bank’s traditions – one leaves “neatly” within Wallenberg companies – he maintained very good relations with the Wallenberg family itself. The explanation may have been that Ruben had been written up in the black book that the bank’s credit manager, Richard Julin, kept on promising young corporate leaders."

"Arfwedson was very upset. During the conversation with him, Ruben was informed that firstly, one did not simply leave Enskilda Banken, as it was a privilege to start there. Secondly, it was not in the bank’s interest for young men “who mostly just got in the way” to leave before they had contributed anything useful. “I understand all that, but I was actually not thinking primarily of the bank’s interests but of my own,” Ruben confidently replied and resigned with immediate effect."

"Ruben’s employment contract with Erik Åkerlund was very advantageous. But not only that: in addition to salary and other benefits, Ruben also managed to secure the astonishing agreement that he would get to buy half of Erik Åkerlund’s shares in Lito & Kartong, but without having to pay a single krona in cash. Åkerlund loaned Ruben the 400,000 kronor he needed to take over half of the stock at a five percent interest rate – such a loan was no problem for a person with Ruben’s annual salary. Erik Åkerlund really wanted young Rausing as a partner."

"What really interested the young student was industrial organization and economics. He was impressed by Eli Heckscher, who was known for being a very skilled theorist but also a distinguished pedagogue. It is not very surprising that these subjects attracted Ruben. From an early age, he was a person who, with unshakable self-confidence, preferred to devote himself to visions and to drawing the big lines instead of dealing with the everyday – and both economics, which at this time was largely reasoning and reflective, and the theory of organization were subjects that left a lot of room for this. On the other hand, pure business economics left no room at all for extensive speculation during Ruben’s time."

"The statement was completely made up. In fact, Tetra Pak was utterly unsellable since it did not have a developed method to show. Holger couldn’t believe his ears when he heard what Ruben said. Ruben had made a big blunder. Marcus Wallenberg fully understood that as the company was, Ruben and Holger would never get a penny for it. The argument backfired on Ruben himself, as Marcus Wallenberg thought it was ridiculous and only showed that Ruben was desperate for more money for operations. And if there’s anything that triggers alarm bells for an experienced banker, it’s when someone reveals their desperation."

"Ruben, who was now in a hurry to get a machine done, was hooked. It was urgent if they were to get ahead of any competitors with similar plans. Harry Järund was made to sign an agreement committing to deliver a working machine within four months. The company quickly rented a space for him in the worn-down old factory site opposite Lund Central Station."

"In other words, very polished arguments were required to get customers to buy. The sales arguments were largely devised by Ruben, who himself was a poor salesperson but considerably more skilled as a marketing strategist. One such argument could be to claim that the bags were a “hygienic and doctor-controlled packaging”. To cover this, Ruben had prominent doctors check the hygiene at the factory. The claim itself was a way to suggest that the competitors’ packaging was not hygienic – without stating it openly."

"Erik Torudd was hired in 1934 and, like most of the other young, outgoing marketers that Ruben hired, was a business school-educated economist and recommended by Gerhard Törnqvist. Torudd also had a scholarship year in the USA, but unlike many others Ruben hired, he was not particularly tall. However, he had another important qualification: in the USA, he had specifically studied supermarket chains. The phenomenon of supermarkets was still unknown in Sweden, but Gerhard Törnqvist convinced Ruben that it would also take off here."

"For Ruben and his company, the hygiene campaigns of the thirties offered a golden opportunity. As the population became more aware of hygiene, it also became easier for companies to sell pre-packaged goods. This meant that Åkerlund & Rausing’s market—the consumer goods industry—increasingly demanded packaging for their products."

"Thoughts of a dynasty began to take shape. One of the few people Ruben admired and looked up to was Marcus Wallenberg, and when he saw how the Wallenberg family operated, he wanted his own family to be the same. A dynasty where one generation took over from the next. And the family was held together by a superior common interest."

"Meanwhile, Hans had to deal with his father, who was the working chairman of the board for both Tetra Pak and Åkerlund & Rausing. He had great respect for both him and Holger, but most of all for his very determined father. Hans did nothing without first getting his father’s approval. In fact, both he and Gad were much more dominated by Ruben than any outsider could guess. Neither of them made any decisions without first consulting Ruben’s opinion."

"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."

"Ruben was relieved when he left the Grand. He had gotten Torudd to promise support for Hans. Perhaps it meant that Hans was saved. Inside, he was sure that Hans was the right person as CEO. Only if he matured before Holger decided to definitively remove him. It was crucial that he got a chance to show his qualities."

"The promise to Ruben practically meant that Erik Torudd took on the role of mentoring Hans in business. It also meant that Torudd’s power position within the company was strengthened, as he acted on Ruben’s mandate."

"“Finally, others are beginning to see the pattern that I see myself. Now, I have finally managed to get over the threshold,” was the conclusion that Ruben reached while he followed Marcus Wallenberg out through the headquarters."

"Hans and Gad were very different from each other as individuals – although they resembled Ruben in many ways. Forcing Gad into the company was not a successful move. In the interview we conducted before the TV documentary “Dynastin Rausing,” Gad dismissed the question of whether he had been forced into the company by his father with the comment: “The slave trade was abolished in Sweden by Erik Magnusson sometime in the 14th century.”"

"People who accomplished great deeds by building Åkerlund & Rausing and Tetra Pak at a time when these visions seemed like science fiction to others. Ruben also attracted inventive and imaginative people, as they knew that if they succeeded in getting his ear, they would also have the chance to test their ideas in practice."

"In the work with this book, we have not found any signs that Tetra Pak previously used bribes. Rather, the group, as in the case with the launch in India and the Gandhi family, has actively chosen the path of not paying bribes. An exception was, however, during Ruben’s frustration over Lund Dairy’s resistance to adopting the first half-liter tetra pack for milk in 1954. In his desperation, Ruben suggested that they should bribe the managing director Hilding Borstam to adopt the system, but both Hans Rausing and Erik Torudd dissuaded Ruben and made him reconsider."

"There is no doubt that Ruben was a visionary. A fundamental vision that followed Ruben through life was to rationalize distribution."

"Åkerlund contacted Olsson who was eager to sell. Both Åkerlund and Olsson were in a hurry, which is why this deal was also quickly completed. Moreover, it was further expedited by Gustav Olsson using business methods during the negotiations that resembled Åkerlund’s own: he claimed that SLT also wanted to buy the company. The usually cool negotiator Erik Åkerlund, who immediately suspected that it could be Ruben behind it, was stressed by the information and decided to strike immediately. For 800,000 kronor, he now entered the sought-after packaging industry. As soon as the contract was signed, he sought out Ruben and concluded with satisfaction that he had beaten him to it. Ruben did not understand at all what he was referring to."

"At the same time, Ruben realized that the group would have problems acquiring the necessary capital to finance further development. In his quest for money, he got the idea to let the Wallenberg family buy into Tetra Pak. The same year the company was named Tetra Pak, he thus offered the Wallenberg family to buy half of the shares for one million kronor. Jakob and Marcus Wallenberg thought that Alfa Laval could be a natural collaborative partner and had its CEO, Harry Faulkner, and the board take a closer look at the matter. But when they were done reviewing Tetra Pak, Faulkner informed Ruben that they considered the deal too risky and therefore declined the purchase."

"Although Harry Järund’s machine was not perfect, it was still a prototype. Ruben seemed relieved. But still, enormous problems remained. There was no material available to coat the paper to make it leak-proof. Wax, which was the usual sealing agent, could not be used as it would break in the folds. It also could not withstand heat sealing; it would melt. Overall, there was no known coating material that would withstand heat sealing without altering the taste of the milk. And if they did succeed in finding an alternative that could be used, how would it be applied to the paper and were there coating machines available? Before the war, Imperial Chemical Industries (ICI) in the UK had developed a low molecular weight polyethylene plastic. It was not suitable for coating a tetrahedron, but Stig Sunner believed that a high molecular weight polyethylene would work well for tetra packaging. Erik Torudd, who was in charge of the commercial part of the material issue, contacted ICI to inquire if they could possibly develop such a plastic. If the trials were successful, ICI would become the sole supplier of polyethylene for milk packaging. This was a very tempting bait. Torudd received an affirmative answer, but with the reservation that it would take time."

"Ruben and the Rausing sons believed in Althin’s litanies about the incompetent Harry Järund. Hadn’t the machine program constantly encountered inexplicable delays? And mustn’t it then be Harry Järund’s responsibility? These were some of the questions they asked themselves. But they forgot that they themselves were ultimately responsible for many of the delays on the machine side. Järund often received unclear and conflicting directives from them. Suddenly, he might be ordered to halt the development of machines for a certain package size in favor of prioritizing another size. A few weeks later, complete counter-orders could come. Järund and his technicians were simply not allowed to work in peace. The Rausing family couldn’t keep their fingers out of it, since they all thought that technology was among the most enjoyable things, even though none of them had any competence in the field. Among the technicians in Harry Järund’s department, it was increasingly said about the Rausing family: “It’s progressing, in spite of them.”"

"The setup allowed for the financing of further development and expansion of the companies, while at the same time, the Rausing family could start building their private fortune. Once the money had entered the foundations, they could not, on Ruben’s explicit orders, be used for investments in Tetra Pak. Ruben’s plan from the fifties was beginning to be realized."

"The silence and closed nature appear to be the family’s wish. They have built a corporate culture where everyone has kept quiet externally, and the group has been structured to limit transparency. In this way, the family has managed to remain very private for a long time. The desire to remain unknown may have been influenced by a couple of events. Firstly, the death threat against Ruben in the 1960s. If he did not pay 50,000 kronor by a certain date – the money was to be sent away with carrier pigeons – he would be murdered. Secondly, in around 1985, the Danish police exposed the terrorist organization Blekingegade Gang’s plans to kidnap Jörn Rausing while he was studying in Lund and demand 25 million dollars in ransom."

"Ruben, greatly impressed, later described that for the first time he saw a practical example of how poverty could be eradicated. At Ford’s factories, rationality in production was not just about the production itself, but it was a comprehensive concept that also included healthcare, education, housing for the workers. The purpose of it all was to produce as many vehicles as possible for a rapidly expanding market. After the successful visit, they headed back to New York, via Buffalo and Albany."

"Ruben’s plans were shattered. Now, he would not be able to grow old with his wife in peace and quiet at Simontorp. All those years he had worked instead of spending time with his family left him with a guilty conscience. Now, he at least did not want to repeat the same mistake with his boys. He would have time to spend with them. Therefore, it became even more important that they got involved in the company. In Ruben’s eyes, this was the only way to ensure that they all had time with each other. At the same time, it would create an overarching common interest that could keep the family together for all time. Ruben finally decided: The Rausings would become an industrial dynasty."

"Ruben thus decided to give the two young men the option to buy into the company. They would be allowed to do so as soon as he had gotten rid of the troublesome Erik Åkerlund. Now was the time. Holger was appointed deputy CEO and deputy chairman of the board and got to buy 20 percent and Börje Svenby ten percent of the shares in the company. Six years later, when Svenby switched to PLM in Malmö, Holger and Ruben divided his shares. Eventually, Holger owned 25 percent in Åkerlund & Rausing."

"Hjalmar Nilsson had the utmost admiration for Ruben “who in his activities had proven capable of accomplishing things that to others seemed fantastic, yet he managed to realize them”. And from the Ministry of Foreign Affairs, it was announced after much contemplation that the project could legally be implemented. However, although the project was technically and legally feasible – apart from the fact that the seabed likely could not be used as farmland – and although Ruben was supported by some influential people, he had missed an important aspect: a society does not always let cold rationality prevail over emotions. Ruben himself had no feelings for the sea since many of the seafaring relatives on his mother’s side had never returned from their voyages and fishing trips; the sea had taken them. But for many others, the sea holds great symbolic value of almost mythical character. Countless are the Nordic songs that in one way or another are about the sea; “while we sail on the still lovely night-dark blue of the Oresund,” goes the refrain in one of the traditional songs of the Student Association in Copenhagen. The sea is what separates man from the safe and familiar. On the other side, there are always the adventures and the unknown that one dreams about. Ruben objected to such sentimentality by pointing out that diking had already been done in the Netherlands and that the only thing that really happened was that a new kind of beauty was simply created. But he missed that the Dutch dikes only meant moving the boundary against the sea, while his own proposal meant that he would take away the sea from the people of the Oresund entirely. And the people of the Oresund did not want Ruben’s new beauty; they wanted to see the waves roll in and be able to dream into the rhythm of the sea. The proposal was simply not politically feasible."

"After returning to Sweden, Erik Torudd continued to advocate for the use of the S-50 and to apply HP Smith’s method to it. Now, it seemed that the winds were changing within the company. The board of Tetra Pak now included Ruben, Gad, Hans, Holger Crafoord, Erik Torudd, and the company’s skilled lawyer, Carl Borgström. When the dark-suited gentlemen gathered for a board meeting on the morning of February 4, 1952, they decided to build a copy of HP Smith’s machine. Erik Torudd and Harry Järund, who was co-opted onto the board, fought hard against the decision. Both thought it was better to either buy a finished machine or drawings. Otherwise, they risked several years being lost to development. Moreover, they thought it was immoral to copy someone else’s work. But they spoke to deaf ears. Tetra would copy the HP Smith machine. Responsible for the project were the technical genius Nils Andersson and Gad. The decision was bold, but entirely legal. Carr Sherman had voluntarily shown them a design that was not yet patented."

"When Hilding Borstam realized that Tetra Pak was also negotiating with the Stockholm Milk Central, he contacted its CEO, Gösta Winberg, and arranged a meeting. At the meeting, they decided to pursue a joint negotiation line against Tetra Pak, which demanded a paper price of 32 kronor per 1,000 half-liter packages. Gösta Winberg was positively inclined towards Tetra Pak, but he could not accept such a price. Shortly after World War II, Winberg had been in the USA and seen the American paper packaging and became enthusiastic. However, since he had never clarified the size of Milk Central to the American packaging manufacturers, they largely ignored him. He didn’t even receive replies to his quote requests. So when Tetra Pak appeared on the scene, he realized that the opportunity he had been waiting for had finally come. He was willing to pay 25 kronor – no more. Hilding Borstam agreed with him. For nearly half a year, the companies negotiated without taking any decisive step. In May, Ruben got tired and wanted to travel to Stockholm himself to handle the negotiations. He was convinced that he could push through a price of 29 kronor. But the day before departure, he started to get nervous, although he did not admit it."

"On Tuesday, March 24, 1953, an article manuscript landed on the desk at Dagens Nyheter. The author was Ruben and the essence of the article was that the infected debate about an Öresund Bridge was actually outdated. Instead, why not take an Alexandrian solution to unravel the Gordian knot, he wondered. The day after, the DN’s front page was completely dominated by the sensational headline ÖRESUND DRY FOR A BILLION. “Not a bridge, not a tunnel, no, land shall connect Sweden with Denmark, a rolling plain with flourishing gardens and fertile farmland. And that land is the seabed under the waters of Öresund! For 800 million, maybe a billion, the two countries get this perfect connection with each other: it is not more expensive than a bridge or tunnel and unlike those solutions, it pays back the investment and more,” read the front-page lead."

"With age, Ruben became increasingly suspicious of other people. He was convinced that the majority of the world’s population consisted of swindlers and deceivers. And if they weren’t already, they would most likely become so. “If someone is given the opportunity for dishonesty, he will surely take advantage of it sooner or later,” was one of his common sayings. The examples with Carr Sherman’s hot-melt machine, Eagan’s Dupont machine, and Ruben’s own patent stories seemed to confirm that he was right."

"Ruben was not only dominant towards his sons but also towards his grandchildren. It was only after his death that they were free to study or work with whatever they wanted. Until then, even that was within Ruben’s control – hardly surprising considering the importance he placed on the idea of a dynasty. To create a dynasty, heirs must meet certain criteria to be able to contribute to the family business. Thus, the room for individual wills is greatly limited, which both children and grandchildren got to experience. In an innovative company like Tetra Pak, heirs are required to either possess specialized expertise or, like Hans and Gad, be trained in the business over a long time. However, the most important thing of all was that the following generations engaged in the role of owners. Among Hans and Gad’s children, there has been a great variation in the willingness to take on an owner role within the group."

"It was anything but how he had envisioned his career when he chose to stay home instead of returning to the USA. The career that had previously been straightforward was now slowly going downhill. Becoming more and more despondent, he was forced to realise that knowledge and competence alone are not enough to build a career, but that it also requires the ability to handle the power play within a company. Ruben had spent nearly ten years at SLT, years that now felt wasted. He had no doubts that with the help of his network he could secure another top job, but his career had still been braked in an unpleasant way. In an interview at the end of the 1970s, Ruben described the period as “the toughest in my life.” The major bright spot was that the couple had another son, Sven, who was born in 1928. But the joy of Sven was short-lived; after a few years, it turned out that Sven was intellectually disabled. Ruben suffered a brief, yet serious, setback."

"⁠The longer he reflected, the more convinced he became that he and Tetra Pak had a solution that could mean a great deal for public health in developing countries. Ruben looked much further than most and didn’t just focus on the problem of temporarily feeding hungry mouths. For him, it was a question of the developing countries’ possibility of development comparable to that of the rich Western countries. He was completely clear about the importance of proteins and certain amino acids for brain development, from the fetal stage up to six to eight years of age. Ruben argued that the developing world’s lack of protein-rich foods meant that children did not get the chance to develop their full intellectual capacity. This affected the people’s ability to think, plan, and act for their own best interests. From his point of view, the developing countries would inevitably fall behind as long as they couldn’t meet their citizens’ protein needs. The vision he saw before him made him “feel a calling like I perhaps never felt before in my life,” as he himself wrote at a later time. He was sure that he and Tetra Pak, which could package sterile milk in aseptic packaging, would be able to make an important contribution. At just over seventy years old, Ruben tackled one of the world’s most complicated problems.⁠"

"Ruben was also forced to realize the realities: that there were still no funds available for new projects. Many problems remained to be solved before the tetra was established in the market. The first was to convince the dairies of the excellence of the tetra system and the second was to win over the retailers to Tetra Pak’s side. And in the last step, to defeat consumer resistance. The first step was actually the easiest. The Tetra method was called by many “a dairy director’s dream”. The reasons were many. Unlike the noisy handling of glass, it was quiet and gave the dairies, for the first time in their history, a closed system, which drastically reduced waste and loss. The method was also easy to teach to the dairy workers, who at this time were notably poorly educated. Finally, the tetra system saved space, both in the dairies’ storage facilities and in their delivery vehicles."

"The summer went by without any action taken. No one engaged to try to sway public opinion. No one tried to get Eskilstuna-Kuriren to adopt a more impartial line. And eventually, Sven Wedén’s campaign became an increasingly greater threat to Tetra Pak. He managed to drive Mjölkcentralen’s Sven Lundberg to agree to conduct a market survey on the situation among consumers. Ruben, on his part, tried to get Prime Minister Tage Erlander to ban the bulk sale of milk. The Prime Minister was well aware that bulk milk was one of the main sources of contamination behind the paratyphoid epidemics that were spreading across the country. Poor hygiene meant that store and dairy personnel often contaminated the milk, and the disease then spread to consumers. But banning bulk milk was the absolute last thing Erlander wanted. To legislate that milk could only be sold in packaging would mean an indirect price increase for consumers, since they would have to bear the cost of the packaging. And in Sweden, household milk was, and is, sacred. Contributing to an increase in the price of milk during an election year would be committing political suicide. However, Ruben lacked an understanding of the nuances of realpolitik and became quite irritated over Tage Erlander’s stubborn refusal to agree to a ban. And Erlander, in turn, became irritated over Ruben’s constant proposals."

"“It’s damn like talking to a fish,” Torudd thought. Although Torudd did not know it, the harsh words took effect. Hans realized that this time it was serious. He contacted Ruben and Holger. In the evening, the three gathered for a dramatic meeting. They agreed that Gad was not up to the role as head of paper production. Ruben, with his dynastic ambitions, was shaken by how serious the situation was. That one of his sons, born with such good prospects, would fail so spectacularly was something he could never have imagined. But there was only one possible decision if they wanted to save Tetra Pak – even Ruben realized this: Gad could no longer be involved with production. Formally, he remained on the board and retained the title of vice CEO."

"They also did not want to list any of their other companies on the stock market, since Tetra Pak’s poor finances had also dragged down their value. Thus, they would not be able to raise enough money from an IPO of them either. Eventually, they concluded that the only thing they could do was to sell Åkerlund & Rausing and thereby save Tetra Pak, at least for a while. For Ruben, deciding to sell Åkerlund & Rausing was relatively easy. On one hand, he was most interested in working on new projects, on the other hand, Holger had closed the company’s cashbox for Tetra Pak. Ruben simply could not withdraw more money from Åkerlund & Rausing to finance the further development of Tetra Pak. Another major contributing reason for deciding to sell Åkerlund & Rausing was that they had noticed that the company’s revenue curve had begun to flatten out. The company had been first in the market with disposable paper packaging and had thrived in the rapidly growing market. But now there were several competitors, and the market was largely cornered. Holger and Ruben had no choice. Enskilda Banken was pressing them through CEO Marc Wallenberg, Marcus Wallenberg’s eldest son. He refused to lend more money to Ruben’s and Holger’s company. Instead, he demanded that they find money elsewhere."

"Strengthened by successive salary increases and increasingly interesting tasks, Ruben remained in SLT. During the depression of 1920–1921, Ruben understood that in Carl Ramström he had a kin in terms of the effects of inflation on businesses. When inflation was at its worst during World War I - at times the inflation rate was up to 40 percent - Ramström decided that no goods in stock should be accounted for at higher values than they had when the war broke out. In this way, he had built up a fund “behind the inventory” that was not visible in the accounting. Carl Ramström made sure that the board never found out how the inventory values were reported. If the partners found out that there were assets that were not visible, they would demand the corresponding amount in dividends, he feared. Instead, he dampened the board’s dividend appetite by giving each member a brand new Cadillac as soon as the economic situation had stabilized. If Ramström’s measures had not succeeded, there would not have been any buffer when the depression struck in 1920. Ramström’s action probably saved SLT. When demand fell during the depression, the group could ride out the crisis thanks to the fund."

"According to Ruben’s unpublished memoirs, there was only one man within the FAO whom he “would dare entrust with a significant and complicated matter: a Polish communist named H A Jasiorowski who was a professor of genetics. He was a man of the same caliber as Kurien and the only one within the FAO who understood what execution meant. Within the organization, there were many talented people, but their talent and experience were not in the field of execution but in formulating. They could write. After a meeting, one often got exquisite minutes, really skillfully written, but then nothing more.” That it was not their task to execute anything never occurred to Ruben."

"But a very important person had not been present at the meeting: Ruben. The recent developments, with both sons away from the real power, had taken too much of a toll on him. He couldn’t bear to also hear Holger identify the Rausing family as one of the scapegoats, but he understood that he had no choice in the current situation. He had to let Holger continue, at least for now. It required someone with more experience and significantly firmer grip than Hans to straighten out the company. But this did not mean that he had to witness the family being publicly disavowed."

"Shortly after the subsidiary directors’ meeting, which ended in a general slashing of Brik, Hans called Åke Gustafson, who was now working on entirely different projects, and asked him to come back and help Tetra Pak. Although he would never have admitted it openly, Hans was desperate; the losses for Brik and the development costs for Rex and Rigello began to devour the capital that had been borrowed and the money that had been freed up with the sale of Åkerlund & Rausing. And the money that could have been used – the commission money that went into the foundations – the company was not allowed to touch by Ruben. If the situation was as bad as the subsidiary directors described, there were only two possibilities to solve the situation. One was to borrow more money to resolve the liquidity crisis that had arisen, but that would, on the other hand, be only artificial respiration. The other possibility was to once and for all get Brik in order so as to avoid this large black hole that just sucked capital."

"It would be wrong to claim that Ruben spent any large amounts of money on himself. In fact, he was a man of rather simple habits. A capitalist of the peculiar kind that perhaps exists mostly in the Nordic countries. In the Nordics, it has been considered ugly to show that one has money: “you shall not boast”, “pride goes before a fall” etc, at the same time as people admire someone who has made it on their own. This slightly split attitude has given rise to the phenomenon of “the ascetic capitalist”, a personality type of which Ruben was a worthy representative."

"Ruben was born at a time when Sweden was still relatively undeveloped as an industrial nation. He belonged to the first generation that could benefit from the development by climbing the social ladder."

"Ruben now began to realize his visions. This was facilitated by the fact that Erik Åkerlund did not take an active part in the daily management of the company. It was not just Lito & Kartong that he had bought after the sale of the publishing house, but also the Stockholms-Tidningen. There he had then started working as the CEO, a role he embraced with vigor and enthusiasm."

"When 1955 was over, Tetra Pak’s balance sheet total – the sum of debts and equity – amounted to 6,038,382 kronor, of which 6,027,611 kronor were debts. The turnover was at 6,336,633. In the heavily manicured annual report, an operating profit of 48,579 kronor was recorded. In reality, it was about a loss of one million kronor. But the loss was dribbled away by allocating certain expenses to Åkerlund & Rausing’s annual report. The costs for machine development were borne by Östanå, a paper mill that Ruben and Holger had bought during the Second World War. It was only in the closed rooms of Tetra Pak and Åkerlund & Rausing that the real figures could be discussed. This way, they avoided having anxious creditors running in the corridors. And anxious they would have become if they realized the company’s escalating costs."

"In hindsight, Ruben has occasionally claimed that he had decided in secondary school that he would become a wealthy man and that he was already clear about attending the School of Business, Economics and Law. In response to a teacher’s question about his future, he is said to have answered, “I’m going to be rich. I’m going to be a banker.” Unfortunately, these claims do not deserve much credibility, but are instead to be regarded as tales. Ruben liked to paint a picture of himself as a man who has always followed a straight path – a man who has marked out a path and then consistently followed it."

"In 1932, the company’s history was eventful in other ways as well. That year something occurred that would be very significant for the strategic direction Ruben chose a decade later. On May 2, 1932, Holger Crafoord embarked on his delayed scholarship trip to the USA. Like the other scholars, he was instructed to be attentive to new packaging opportunities. During the summer, he sent a letter stating that he had found a conical milk packaging in paraffin-impregnated paper. Sealcone, as it was called, was manufactured, filled, and sealed entirely by machine. Ruben, who was fully aware that milk was one of the most important daily goods, became enthusiastic and telegraphed back for Holger to bring home all available information about the packaging. It was the first time Ruben came into contact with a disposable packaging for milk."

"At Tetra Pak, they had not yet taken the public opinion seriously. The only reaction was essentially that Ruben walked around annoyed that consumers did not understand the grandeur of his packaging system. But now that Wedén started driving his campaign, the situation changed – developments could become really dangerous if things went badly. If Wedén’s campaign spread across the country, it would be very difficult to convince more dairies to adopt the tetra system. And then the success with the local dairies and the Dairy Centre would be worthless."

"The reason Hans wanted to sell simply came from a harsh assessment that the best thing for the future of the Tetra Group was for someone other than the Rausing dynasty to take over the ownership role. At the same time, he considered his age and had long been worried about his health. Both Hans and Gad had a trait – inherited from Ruben – to exaggerate the risks of disease. Even mundane illnesses became for them a reminder of death, which meant that diseases could not be discussed in their presence at all. Employees within Tetra Pak who fell sick and stayed home might very well find themselves reassigned to less important positions when they returned. This was because Gad and Hans considered them too frail to hold important positions. The risk was that they could die. The same applied to themselves; when either of them fell ill, he would hand over important powers, so that everything would be secured if he died. But as soon as it turned out that the illness was not serious, they immediately took back their position."

"Holger explained to Ruben that he would gladly keep his shares in Tetra Pak if he gained control over the company’s cost development, was freed from his guarantor liability, and was not forced to invest more money. This would be written down in a new agreement between the families. In a letter, he also suggested that the period for redeeming the shares should be temporarily extended to December 16 that same year unless a new collaboration agreement was reached beforehand. However, Ruben preferred not to see a new agreement and therefore ignored the letter. He had made up his mind: there would not be a new agreement that limited his freedom of action. The only thing he was interested in was delaying the development until the Rausing family had received the money from the sale. Then Holger would be thrown out of Tetra Pak."

"Which was exactly what he was. He had never been in such an environment before and had never associated with people who had fine names like Gyllenstierna, de Fine Licht and Oxehufvud, as some of his schoolmates were called. They were children of the upper class in Helsingborg. Unlike the parents of the artisan and farmer children from the villages around the city, their fathers worked as shipowners, officers, lawyers, and doctors. Ruben’s social ascent had – probably without him really understanding the extent of it at the time – begun."

"A week later, Ruben was visited by the always heavily cigar-smelling star lawyer Emil Henriques. Initially, Henriques introduced himself as Erik Åkerlund’s representative. Then he placed a check for 100,000 kronor in front of Ruben. It was to be considered as a transition sum if Ruben left SLT, Henriques explained to the astonished Ruben. Then, he produced a contract. In it, Ruben was named as the CEO of AB Lito & Kartong with the staggering annual salary of 60,000 kronor. In addition to this, he would also receive a 15 percent commission on the net profit."

"The burning interest in economics would pay off. Of all the students that Eli Heckscher examined during his professorial years, only five received the highest grades in economics. Ruben was one of them. The others were Jacob Wallenberg (1912), Bertil Ohlin (1919), Alf Johansson (1922), and Göte Engfors (1924)."

"But Åkerlund did not give up. He had become really interested in the packaging industry, but he was smart enough to realize that he needed someone with Ruben’s expertise and visions if the idea was to succeed. Moreover, he was impressed by his general sharpness."

"Parallel to trying to increase bag sales, Ruben wanted to initiate a technical development equivalent to that of other industrial nations, where they had already begun selling all kinds of goods in ready-made packages. He wanted, he wrote to Enskilda Banken, to interest manufacturers of large product groups in suitable packaging. This would be done by demonstrating the economic advantages that modern packaging technology and distribution could offer. In other words, the bags were just the first step in a plan."

"It is quite telling that the Benzon case was not unique in any way. Just a week after Ruben had registered himself as the inventor of the handle, the next story came along. Lennart Liljeblad, who was also an engineer at Harry Järund, had designed a special type of knife that was to be used to cut off the top of the tetra. It was a problem that Ruben himself had tried to solve during a vacation in Sicily. But since he had quite limited technical knowledge, his constructions were accordingly. When Harry Järund then announced that the problem had been solved by Lennart Liljeblad, Ruben did not want to listen. However, just a week later, he applied for a patent on Liljeblad’s knife, naming himself as the inventor."

"When Ruben and his mother asked her for help, she immediately agreed. She had no children of her own and felt she might as well help her nieces and nephews. It was a fortunate day for Ruben. Aunt Johanna’s loan of five hundred kronor ensured his studies at the School of Business, Economics and Law were secured. He resigned from Sydsvenska Kreditaktiebolaget. It was a big step for a young man who had also only recently started his job."

"what Åkerlund & Rausing needed were new packaging systems, which could usually be found abroad. Therefore, Ruben’s strategy was to employ newly graduated economists who had received travel scholarships. When they went on their scholarship trips, they were tasked with keeping an eye out for new packaging,"

"Stockholm-Tidningen had previously been the largest in the country, but when Åkerlund became head, it had been surpassed by Dagens Nyheter. Erik Åkerlund engaged Ruben so that together they could set up a sales campaign. The purpose was to regain the position as Sweden’s number one daily newspaper. It turned into a campaign that the Swedes had never seen before. The newspaper lowered the single issue price from fifteen to ten cents and organized a competition where readers could win a car every week by guessing the next week’s circulation numbers. The results were reported weekly on a light sign at Kungsträdgården. The campaign was a hit and the circulation increased by 40 percent in a quarter."

"In the USA, Ruben had seen that more and more goods were being pre-packaged and that both commerce and industry could save a lot of money in this way. Both realized that this also meant there was a lot of money to be made for those who quickly introduced similar packaging systems back in Sweden. The country was still virgin territory for the packaging industry."

"While Hans planned for the move, Ruben stayed in Rome and eagerly tried to get the FAO to continue driving the Rausing plan. Ruben hoped to go down in history, not only as a great industrialist, but also as the man who once and for all solved the hunger problems of the developing world. However, the grand project led to deep disappointment for him."

"Ruben’s patriarchal disposition meant that it was not until the mid-seventies that his son Hans could take over as the real power holder in Tetra Pak and start running the company almost entirely independently. But Ruben still dominated him to some extent – no major decisions were made without consulting Ruben. Until his death, it was Ruben who ultimately decided what applied. His last action within Tetra Pak was to approve the financial statements – this happened the day before he died."

"Ruben had drawn the entirely correct conclusion that the really big markets for Tetra Pak were outside Europe. But the time was not ripe and he therefore underestimated the difficulties of selling the system, not least difficulties in the form of contacts with authorities. Everything to do with food production was, and is, surrounded by walls. There was not a government in the world that did not primarily protect its own food industry and its own farmers. Therefore, the salespeople often faced various more or less ingeniously constructed trade barriers. They were forced into long and hard negotiations with the authorities to get laws and regulations changed and to obtain the necessary permits. It was a complicated job that took time."

"When Ruben showed them what he and his energetic employees were working on, all three became enthusiastic and encouraged him to further develop the idea. It became a very important spur for Ruben. He had already been convinced that they were on the right track. But now, when he also received confirmation from people who did not work within the company, he became completely sure of his case. At the same time, he realized, in a moment of humility, that he could not do it without Holger, Torudd, Järund, and Erik Wallenberg. What he himself would take care of was the financing, his strong side. He was aware that he was about to take on a heavy, but completely necessary task. If it were to work, he had to build a tightly-knit team, where all members truly believed in the task. He decided to test the commitment and distribute the responsibilities at the next company dinner."

"The pattern within Åkerlund & Rausing was clear: young talented men were hired and sent at someone else’s expense to the USA to follow the developments in the grocery and packaging industries. The results of the “espionage” were to be sent home to Ruben immediately. Afterward, if Ruben decided it was something to invest in, the assignment was passed on to Nils Andersson, who was tasked with constructing a suitable machine. The salesmen were well aware of this: that the company’s product range was predominantly based on American inventions. Ruben, on the other hand, liked to talk about them as Åkerlund & Rausing’s own achievements."

"In the first half of the 1930s, Ruben was increasingly worried that he would lose the skilled Holger Crafoord as a colleague. Ruben himself, with his imagination and creativity, was not particularly well-suited to handle daily affairs and management in a company. His talent was more on the strategic level. But Holger had just the talent that he himself lacked. During the company’s first years, despite his youth, he had gradually taken over more of the company’s ongoing operations. Ruben had simply become dependent on him."

"During long and numerous discussions, he became increasingly interested in Ruben’s arguments about the packaging industry as the real industry of the future. As he recovered from his depression and his belief in having a heart disease subsided, he realized more and more that what Ruben had to say about the future was correct."

"When Ruben’s skepticism towards Erik Wallenberg’s tetrahedron finally eased and he began to be intrigued by its different shape – it stimulated his imagination – he chose to commit fully to it. Erik Torudd did the same, even though many in his surroundings told him he was completely crazy to waste time on that silly little paper pyramid. But what set Erik Torudd and Ruben apart from the detractors was that they really could see the potential in what was different. They were not as guided by conventions as most others. Both became completely convinced that the little tetrahedron would become a world product. But how big? Well, they didn’t even dare to speculate."

"Erik Torudd actually didn’t want to start working with Ruben at all. He planned to start Sweden’s first supermarket chain himself, after realizing how much money could be made from it. But when Törnqvist reminded him that there was an establishment ban on new grocery stores, he realized that the plan was not easy to implement. Instead, he let himself be persuaded to invest in Ruben’s packaging company – at least for the time being."

"The difficulties were never known outside a very narrow circle, but an outsider who was concerned about the conglomerate’s condition was Marcus Wallenberg. In his eyes, Tetra Pak began to constitute a source of worry, as the company was consuming an increasingly large part of Åkerlund & Rausing’s resources. The overall picture made him wonder about Enskilda Bank’s lending to the Rausing/Crafoord corporate group. Marcus Wallenberg was extremely well-informed about the group’s condition, partly through Göte Engfors who sat on the Åkerlund & Rausing board, and partly because over the years he had become friends with Ruben."

"The new organization would start when Tetra Pak moved into its own premises. This was planned to happen in a few years. For Ruben, it was time to realize his dynasty plans. Even if it meant that two completely inexperienced sons would get top positions in the company. Gad was 30 and had a degree in chemistry and archaeology. Little brother Hans, who would become CEO, was 26 and had studied economics, business administration, and languages at university. Although forming the dynasty was primary for Ruben, there was one thing he was terrified of: that Erik Torudd would see the organizational plan as a provocation and decide to leave the company as the inexperienced Hans became his superior."

"Ruben seemed remarkably elated as he got into the car after the corporate dinner to go home to Simontorp. The management had been unanimous in its assessment of the tetra project. The enthusiasm on their faces was unmistakable. Now he could begin to forge big plans. The tetrahedron would conquer the world and, being as superior as it was, it would happen quickly. Selling the tetrahedron system could not be a problem, he assessed. But along with the joy of finally having a somewhat concrete plan for the development of the tetrahedron, he felt sad at the thought that Lisa would not experience the major step the company was now facing. Their life together had been all too short, and he was not quite sure how he could justify that he had not taken enough time to spend more time with her."

"The new organization would start when Tetra Pak moved into its own premises. This was planned to happen in a few years. For Ruben, it was time to realize his dynasty plans. Even if it meant that two completely inexperienced sons would get top positions in the company. Gad was 30 and had a degree in chemistry and archaeology. Little brother Hans, who would become CEO, was 26 and had studied economics, business administration, and languages at university. Although forming the dynasty was primary for Ruben, there was one thing he was terrified of: that Erik Torudd would see the organizational plan as a provocation and decide to leave the company as the inexperienced Hans became his superior."

"The two dairies that Tetra Pak tried to convince to package milk in tetra, Mjölkcentralen and Lundaorten, demanded that the company lower the price, otherwise they were not prepared to sign any contract. The price was so low that the entire profit margin disappeared. Negotiations soon reached a deadlock, which could be devastating for Tetra Pak. The company’s weak finances meant that it was necessary to get the milk machines on the market. When Hilding Borstam began to argue that the tetra packaging would result in decreased revenues for the dairy, Ruben became irritated. He did not present his most important argument, that the dairies could save significant amounts just by utilizing the trucks’ space to 87 percent with tetra packaging instead of just 42 percent with glass bottles. It seemed so obvious to him that he believed Borstam would understand it himself. Therefore, no one informed Hilding Borstam that the lost revenue on glass bottles would be replaced by extensive rationalizations that would ultimately give the dairies a much larger surplus. Instead, Ruben gave him a pompous lecture about the sweep of history."

"It was not until further into the new year that Ruben’s worries were alleviated. After much reflection over the Christmas and New Year holidays, Torudd explained to him that he accepted the new organization, although he had some objections. Among other things, he believed that Hans should have more sales experience before being made CEO. Ruben agreed and added relieved: “I hope that the cooperation between you two really becomes intimate.” “I hope so too. And I also believe it can be – provided that each one is clear about their tasks,” Erik Torudd replied, thereby clarifying that he would not accept Hans interfering in his work."

"At a meeting between Ruben, Erik Torudd, and the company’s lawyer, Carl Borgström, Ruben initially refused to acknowledge that Benzon was the true inventor. However, after some persuasion, he was forced to recognize the accomplished fact: that Boye Benzon could sue both Ruben and the company. But even then, he did not want to admit that Benzon was the true inventor. He had a very different perception of who is an inventor and who is not. “We constantly come back to the same question: Who really is an inventor, the person who orders a solution to a problem or the one who comes up with the solution?” he argued against the more conventional definition of inventor that Torudd and Borgström advocated."

"Ruben had notably poor hearing. And since he did not mention this to people, they did not raise their voices when speaking to him. Consequently, Ruben’s responses and statements during the negotiations were sometimes nonsensical, which gave the American conversation partners a very strange impression. Holger often shook his head sadly during the stay in the USA. “This is a disaster. Ruben should never have gone on this trip,” he said grimly on a couple of occasions."

"At the beginning of August, when Holger gradually took over major parts of the executive power, Ruben began to realize that his dynasty building was seriously cracking at the seams. If Hans disappeared from the CEO position, it also meant that it was the end of Ruben’s real power in Tetra Pak. It was a situation that he could never, not even in his wildest dreams, have imagined. What would remain was the influence in the board, which could be quite important, but would mean that he could no longer interfere in the operational activities. Since Ruben wanted to approve all decisions, big and small, such a development was a pure nightmare for him."

"To maintain real control over a company, simply owning it is not enough. One must also have executive power in their hands – without it, the influence is limited to what is decided in the boardroom and at shareholders’ meetings. If the Rausing family did not have someone in the CEO position, they would no longer have total control over the operations. Especially since Holger had a controlling stake in the company and could thus block decision-making. But Ruben had no choice: if Holger did not take over the actual management of Tetra Pak, it was not only the dynasty building that would crumble, but the entire life’s work: Åkerlund & Rausing, Östanå, and Tetra Pak."

"However, even though Ruben managed to calm Marcus Wallenberg, Holger and others in the corporate management began to worry even more. Costs were escalating significantly and the organization was functioning worse and worse. It didn’t seem like Ruben saw what was happening. With his extravagant nature, he had neither the interest nor the patience to engage in more mundane tasks such as controlling the economy or monitoring cost and revenue development."

"When Ruben received the invitation, he immediately understood what it was about. Wallenberg definitely did not make it a habit to invite people just for pleasant social gatherings – there was always a practical reason. Ruben also understood why Marcus Wallenberg was worried. Since the beginning in the early thirties, Ruben’s company had been underfunded because he had never had his own money to invest in them. But now he would explain to Wallenberg how to build up the company’s own capital. He was filled with confidence as he packed his bag on a beautiful September day to head to Vidbynäs."

"They found the solution in 1962 in the United Kingdom. Through their contacts, Ruben and Holger managed to get the British insurance company Royal Insurance to lend 15 million kronor for twenty years. But to secure the loan, they were forced to ask their plastic supplier ICI to provide a guarantee. Against the guarantee, ICI received exclusive rights to polyethylene deliveries to Tetra Pak. Of the 15 million, formally, eleven went to Åkerlund & Rausing and four to Tetra Pak. In reality, most of the money went directly or indirectly to Tetra Pak."

"When Van Meter received Ruben’s letter, he became furious. Here was a completely unknown Swede in the USA informing him, more or less in plain text, that he did not understand the American market. Moreover, he once again brought up the demand to meet Clay. Van Meter could only perceive the letter as a complete vote of no confidence against him."

"They found the solution in 1962 in the United Kingdom. Through their contacts, Ruben and Holger managed to get the British insurance company Royal Insurance to lend 15 million kronor for twenty years. But to secure the loan, they were forced to ask their plastic supplier ICI to provide a guarantee. Against the guarantee, ICI received exclusive rights to polyethylene deliveries to Tetra Pak. Of the 15 million, formally, eleven went to Åkerlund & Rausing and four to Tetra Pak. In reality, most of the money went directly or indirectly to Tetra Pak."

"“Yes, yes. That’s probably the price one has to pay for having and having had a competent CEO,” Ruben said resignedly after the negotiations. However, Ruben recovered relatively quickly from his depression. After just a few months, he began to realize that he didn’t have the money it would cost to buy Holger out of the companies. He thought it was just as well that the agreement looked the way it did. If everything developed as he planned, Tetra Pak would soon start to yield substantial profits and then he would be able to earn enough money to buy Holger’s share. In his very special world of thought, he began to see the agreement as an ideal settlement. He was sure that Holger would voluntarily divest the shares after five years. This would finally allow Hans and Gad to take over the conglomerate completely."

"Gustafson was not satisfied with just solving the leakage problems but wanted to design his own milk packaging. Åke Gustafson became irritated by seeing things that were not perfect. And the tetrahedron was definitely not perfect: it was consumer-unfriendly, and the one-liter package was difficult both to pour from and so large that it was difficult to fit into a refrigerator. Moreover, he realized what Ruben had not: the tetrahedron was not the ultimate, rational packaging. The shape made it so that the packages could not be optimally stowed, forcing a considerable amount of air to be left in trucks and storage spaces. Åke Gustafson wanted to move forward. He wanted to design the optimal milk packaging, the square package. He conducted the development work alongside his regular duties."

"Ruben’s third very important trait was a combination of incredible stubbornness and courage. Once he had made up his mind about something, it had to go his way. No obstacles were too big to stop him. And no ideas were to be discarded until they had been truly tested. Many of his closest colleagues have also testified how they were constantly tasked with doing “the impossible”. He had the courage to bet on the unusual. His stubbornness was combined in turn with an immense persuasive ability – a talent that enabled him to repeatedly secure new funding for projects that must have seemed utterly impossible to others. At the same time, he was a pronounced gambler who often bet everything on a single card. The stakes were often incredibly high and had he lost in those situations, everything would have been lost."

"A major problem that Ruben himself never realized, which his colleagues did, was that his highly idealized image of himself entailed an almost unreal omnipotence and hubris. He refused to settle for being “just” a great industrialist. Instead, he saw himself as, for example, a great inventor, distinguished economist, talented in both natural and social sciences, medical researcher, miracle worker in agriculture, fantastic road and water builder, and political oracle. It is undoubtedly this omnipotence that led to him, although he was definitely a great man in the field of industry, unfortunately acquiring a ridiculous aspect in some contexts – just as is the case with so many other people and entrepreneurs who do not know their own limits but are completely convinced of their qualities as world improvers."

"When one of his closest associates protested against the historical narrative on one occasion, Ruben simply replied with “You don’t know what you’re talking about” – a comment that became increasingly common over the years. The very strong self-esteem that Ruben had in his youth increasingly turned into overestimation."

"Gustafson succeeded in what few within the company believed he would manage: to produce an aseptic Tetra Brik machine that worked flawlessly. By the spring of 1972, the new, improved design was ready and many within the company management were amazed. Hans, who had led the Brik project, but who had started to doubt it over the last two years, could not believe his eyes. Erik Torudd, who had never believed in Brik, wanted to wait and see until the machine was tested out in the field. Ruben was relieved, although in the long run, he expected Rigello to outdo Brik as the company’s most important product."

"Both Hans and Gad have been involved in a kind of competition with Ruben throughout their adult lives. Since both, like their father, were obsessed with technology and the idea that a company’s success is driven by its technical development, they also wanted to show that they were as great inventors as he was, according to family mythology."

"Ruben’s hubris was not only about himself but also his sons and grandchildren, which in itself was entirely logical. Since he himself was superior to most, his offspring must also be, he reasoned."

"With this omnipotence also comes a trait of over-optimism regarding one’s own projects. For Ruben, all his own projects were “the best in the world” or far superior to anything else. This applied to everything from familial to the various operational areas of his companies."

"Ruben always maintained that the most important thing for a corporate leader was to have “disciplined imagination.” By this, he meant that imagination should be used in a purposeful way."

"During the directors’ customary afternoon tea in the chairman’s room, many voices were heard expressing outrage at the audacity that Ruben had demonstrated."

"Boye Benzon, one of the designers at Åkerlund & Rausing, invented a handle that was clamped onto the long side of the tetra where the seal was located. As a result, the tetra could function like a regular jug, only made of paper. Harry Järund believed that the handle was so good that it did not require any further development work. However, when he presented the idea to Ruben, he received no response at all. Ruben could not see anything good about the handle. But a month later, after he had finished contemplating, he wanted the handle to be patented as soon as possible. The strange thing was that in front of Erik Torudd, who was to draft the patent application, he claimed that he himself was the inventor. Torudd, who knew the true circumstances, advised Ruben against it and stated that he wanted nothing to do with the matter."

"While the rest of the world was shaken by the consequences of the Kreuger crash, Ruben stood at just over 36 years old as the sole owner of a progressive company. He had reached an important goal. Now he would not have to compromise, something he found very difficult. Like many other visionaries, he was so convinced that he was right that it became difficult for him to handle counterarguments and criticism."

"For 450,000 kronor, Ruben purchased Erik Åkerlund’s half in the company. He only needed to put down 50,000 in cash. The rest would be paid over a ten-year period. The 50,000 kronor became the only cash investment that Ruben would ever make in his businesses."

"“No, this won’t do. We have to grab the bull by the horns and turn the opinion in our favor,” protested Erik Torudd. “We have to do a proper market survey in Eskilstuna and phrase the questions so that the outcome favors us instead of the loose-weight milk,” he suggested. But he received no support. “No, no, there will be no survey,” said Ruben. “If we don’t do it, the housewives will do it themselves,” responded Torudd, meaning that the consumers would prove in practice that they did not want the tetra."