Justin Jr. was a fan of Texas Christian University football.43 In the mid-1950s, he tailored a special pair of boots to wear to their games. Inlaid on the front was a horned frog, the team’s mascot and nickname. Justin Jr. had once again invented a product tailored to his customer base—other fans clamored for them and Justin produced them in large numbers. Press coverage prompted interest from fans of other schools, so the company turned the whimsical innovation into a line, making boots for all of Texas Christian’s rivals. Long before such university apparel branding proliferated, Justin forged a productive marketing program selling to big schools, such as Baylor University, Texas Tech University, University of Kansas, and University of Texas.
Beginning in the late 1950s, Justin targeted a broader market with a style based on the spirit of the old Wild West that was sweeping the nation. The ad campaign featured cowboys wearing traditional western garb in cattle country. To complement the outreach to a general audience, Justin Jr. emphasized service to retail dealers, saying “they were king.”44 The coordinated effort succeeded. The company tapped new markets and minted the Justin brand in the minds of American consumers. During Justin Jr.’s tenure, annual sales rose from $1 million to $450 million.45
In 1968, Justin Jr. had a medical scare—appendicitis.46 He became concerned about the future of his family and the company without him. Everything he had was tied up in the company, and he worried over the liquidity, valuations, and taxes. At his attorney’s suggestion, he agreed to merge the company with Forth Worth Corporation, a larger enterprise that included Acme Brick Company, then preparing to list on the New York Stock Exchange. By selling Justin to Fort Worth, he would obtain liquid assets, get a public listing to provide a valuation, and address the payment of estate taxes.
The deal closed, but Justin Jr. quickly grew disillusioned.47 The Fort Worth managers seemed more interested in the quick buck than long-term value. They were willing to juice the books rather than be conservative, and were less open with their business partners than Justin Jr. preferred. After airing his objections and threatening legal action to rescind the merger, the Fort Worth team offered to surrender managerial authority to Justin Jr. He accepted and took control of the entire operation—bricks as well as boots, though he knew nothing about the brick business.
Justin Jr. enjoyed manufacturing and found that he could add value at Acme, which was struggling in the late 1960s. In 1970, Acme’s business ground to a standstill as orders declined amid a housing downturn. Rather than curtail production, however, Justin Jr. built up inventory. He figured closing the plant would cost more than running it at low capacity. In addition, company records dating to 1917 indicated that the brick business was cyclical. The economy soon recovered, bringing with it a rising demand for bricks that Justin was able to meet readily and profitably.
By the 1980s, Acme Brick’s brand dominated the market—a feat for what many would say is a commodity. The company hired Dallas Cowboys football star Troy Aikman as its spokesman. Acme stamps its residential bricks with its logo and gives a one-hundred-year guarantee. Surveys show that consumers recognize and prefer the Acme brand. Growth continued by an organic expansion of the brick business, and through diversifying acquisitions in construction materials (e.g., American Tile Supply in 1994 and Innovative Building Products in 1997). Justin Jr. had branded a commodity product, proven by the 10-percent premium Acme charges.48
In 1985, Justin Industries, as the company had been renamed, became the target of a hostile takeover. With its stock price far below intrinsic value, bidders proposed to “unlock” that value, perhaps by breaking up the company. Justin’s board said no. The company acquired a competitor, Tony Lama Company, an acquisition it had long sought but the timing for which had never been right. Justin, usually averse to debt, assumed all of Lama’s liabilities, making his company less attractive to bidders. In addition, Justin loyalists purchased large blocks of stock. Feeling secure, Justin Jr. spent the rest of the century focused on his business—but even with the takeover threat behind him, it wasn’t all smooth sailing.
In 1998, the company planned a computer system overhaul to integrate all divisions and functions. By linking everything from sourcing to sales and from bookkeeping to personnel, efficiency would rise and costs would fall. They launched the new system just before the Christmas shopping season, but rather than increasing efficiency, the whole computer system failed. Justin Jr. looked to his hand-picked successor, Randy Watson, who dove in, reassured jittery colleagues, and directed improvisation. But the failure took eighteen months to rectify, and the company was not back at full speed until the fall of 2000. During this period, competitors gained market share and Justin nearly went out of business. To survive, Watson closed two boot factories, laying off five hundred employees—an action that likely saved the business but which has haunted Watson ever since.49