What Most Family Business Leadership Stories Miss About Real Leadership | The Family Biz Show Ep. 75
Transcript
Michael Palumbos (00:48.75)
Welcome everybody to the Family Biz Show. I am your host, Michael Palumbos with Family Wealth and Legacy in Rochester, New York. I hope everybody is doing well. And we are really, really lucky today. Marshall, I am so excited to have you here. And we're going to be talking about everything that you have done with Hubbard Peanut Company, Hubs for short, correct?
Marshall Rabil (01:17.326)
Correct. Yes, sir.
Michael Palumbos (01:18.702)
And I'm just pumped about this conversation. So if you don't mind, we have kind of a tradition where I let you introduce yourself and kind of your journey of how you ended up working in the family business.
Marshall Rabil (01:33.432)
Sure. Well, Michael, thank you so much for having me. It's really be here. Well, I think like members of a family business, they grew up in some capacity.
Marshall Rabil (01:34.52)
much having me really fun to morning. Most men up in it and
Marshall Rabil (01:45.379)
my grandparents started business from their home back in the 50s and and ran it for a while until my mother came in in the late 70s. I'll be a young boy in the 80s and and remember going around the
Marshall Rabil (01:56.046)
was obviously.
Marshall Rabil (02:01.89)
production line. Stuff as a little kid.
Marshall Rabil (02:02.51)
and riding on the conveyor belts and doing all that kind of fun stuff. I mean, I always
Marshall Rabil (02:08.974)
knew the business and the brand and started out my sales journey giving peanuts to my teachers, gifts and elementary school and things of that nature.
Marshall Rabil (02:12.078)
would be sales unique teachers for holiday gifts entry school. Nature
Marshall Rabil (02:20.983)
so always been working. We know apples, it was strictly peanuts here in South Hampton. But yeah, so I started marketing entry schools in and out of the product.
Michael Palumbos (02:22.926)
There's no apples for the teacher, huh?
Marshall Rabil (02:28.056)
County. But started my sales and marketing journey as an elementary school student, hanging out and
Marshall Rabil (02:34.92)
promoting it around town. But you know, I was never. I'm back into the.
Marshall Rabil (02:37.89)
But I did, I felt any pressure to come to business.
Marshall Rabil (02:43.312)
was, I was always interested.
Marshall Rabil (02:45.462)
And kind of my own path and after. Environmental studies major and wanted to travel and explore the world and international. It's kind of my.
Marshall Rabil (02:47.694)
college. I was a history and
Marshall Rabil (02:54.386)
to travel the education was a
Marshall Rabil (03:00.132)
path to do so, take me to travel education abroad. For the JET program, which is through the Japanese Ministry of Education,
Marshall Rabil (03:02.294)
have someone pay and to continue my. And so I worked for program.
Marshall Rabil (03:12.63)
lived in a small village in Japan and taught English and was kind of
Marshall Rabil (03:16.566)
of a cultural on
Marshall Rabil (03:18.53)
between American culture and world Japanese culture, which was great. I was path to start.
Marshall Rabil (03:23.342)
And then on this. An
Marshall Rabil (03:27.549)
international school in my mind and started working. Program and I led college students on.
Marshall Rabil (03:30.552)
for a gap year.
Marshall Rabil (03:34.83)
study abroad trips all over the developing world, Africa and Central South and Southeast Asia. So spent most my abroad studying cuisine from all over the world, just different cultures.
Marshall Rabil (03:44.014)
most of my 20s abroad, studying the word.
Marshall Rabil (03:50.51)
Marshall Rabil (03:51.291)
and and and and his and loved and loved that and came back and
Marshall Rabil (03:53.038)
of that.
Marshall Rabil (03:56.942)
taught geography and world history at our local school here in Hampton County. Was inspired to start a different business. That never really took off. working as startup. wanted to get more involved in the food business. Started working at Whole Foods as a specialty foods buyer. was at that point,
Marshall Rabil (04:00.568)
and then
Marshall Rabil (04:10.856)
And so I moved to Nashville, Tennessee to work on a star. But while working on that
Marshall Rabil (04:19.255)
business.
Marshall Rabil (04:24.11)
And I was
Marshall Rabil (04:26.79)
learning a lot more about branding. And then I
Marshall Rabil (04:26.796)
learning packaging, just CPG in general. I
Marshall Rabil (04:33.06)
was working to get hubs into Whole Foods South while working in the specialty food department, which was great. So I did that, but was able to really learn specialty food, grocery, and that side before I went back to work for hubs. The startup never took off, but I
Marshall Rabil (04:36.174)
one
Marshall Rabil (04:43.438)
and out of the business or coming back. And so the obviously never gained
Marshall Rabil (04:55.564)
a lot more experience and knowledge in special foods, is sure and to kind of.
Marshall Rabil (04:58.774)
CPG, at home. It great to learn their culture, work for someone to see how a different corporate was
Marshall Rabil (05:08.054)
structured. so that was very good for me. And I came back and this sales and marketing role that I thought we needed that back here. started working in 2014 remotely.
Marshall Rabil (05:12.216)
free and then catch the bat and pitch my family kind of.
Marshall Rabil (05:20.942)
And so I moved. And
Marshall Rabil (05:26.202)
then move back in 2016, so on sales. And then.
Marshall Rabil (05:28.866)
to really focus on now kind of trans
Marshall Rabil (05:33.255)
leadership. So it's been a very circuitous route back to Virginia.
Marshall Rabil (05:38.04)
But I'm here and I'm really.
Michael Palumbos (05:41.27)
riding on the conveyor belt in high school and coming back to the business. How long were you out?
Marshall Rabil (05:48.482)
Well, so I went to boarding school. left when I was 15. Back essentially at 30.
Marshall Rabil (05:51.348)
and then I moved back to
Marshall Rabil (05:56.204)
U.S. for quite some time. while I was traveling and doing lot of international development and international relations,
Marshall Rabil (05:57.558)
And so I was gone for
Marshall Rabil (06:00.802)
That always I was trapped.
Marshall Rabil (06:07.503)
work. Like, it was wonderful experience but always back to our community. a
Marshall Rabil (06:09.794)
Great and felt drawn back. Small
Marshall Rabil (06:15.288)
rural town Frank. We've had minutes.
Marshall Rabil (06:16.846)
is about 40 west of north of Virginia Beach.
Marshall Rabil (06:21.086)
There are some higher rates of poverty, obesity, diabetes. Our educational system is struggling a little bit. there were a lot of things that I was seeing. We were working to these communities that I felt like were the same issues at home. It was in a new that with this business, we were very
Marshall Rabil (06:30.59)
that we're working on abroad and I was getting a glimpse into.
Marshall Rabil (06:39.694)
And so, I knew this business very
Marshall Rabil (06:45.012)
much.
Marshall Rabil (06:45.4)
community oriented and community driven. That's grandparents instilled in.
Marshall Rabil (06:47.544)
something that my
Marshall Rabil (06:49.758)
my mother and my father grew up in this town had things like this.
Marshall Rabil (06:52.374)
same so I felt business
Marshall Rabil (06:55.477)
really could be a part of community hopefully be attacked in different ways and so that's part of what I've brought to the the table or at least trying to articulate that message across our company.
Marshall Rabil (06:57.326)
a small community and hope to be impactful in many different ways.
Marshall Rabil (07:09.201)
and community differently.
Michael Palumbos (07:11.386)
Thank you for sharing. That's it's a great journey. Your, your skillset, you know, had you not done that, think about everything that you brought back to the business. Number one, there's just so many different things that you brought back to the business. But what I, one of the things I love the most is the fact that you're like, I'm out doing the work for other people's communities. Would be really nice to be able to do some of that right back at home.
Marshall Rabil (07:39.928)
Sure.
Michael Palumbos (07:40.49)
And you're thousand percent correct. We need, you know, people like you and us and what we're doing with, you know, our community. And we try to give back as often as we possibly can as well. And we look at how we do it a little differently. Meaning that like when we're working and coaching one of the family businesses that we work with, you know, we're impacting every one of those employees and all of their families. And so it goes that way. But I love.
Michael Palumbos (08:10.038)
I love what you're saying. Love.
Marshall Rabil (08:12.056)
Yeah, I and I was totally inspired by the culture that Mackey created at, in his book, Conscious Capitalism.
Marshall Rabil (08:15.671)
John.
Marshall Rabil (08:18.538)
Whole Foods, honestly, I'm really
Marshall Rabil (08:21.642)
laid out to me, a strategy and a playbook on how companies can impact the sold and the intent, the passion, heart, something that I really
Marshall Rabil (08:23.668)
a stress.
Marshall Rabil (08:27.054)
How come when their communities now he obviously they've things have changed a little bit with that culture and everything but I think the art was really played
Marshall Rabil (08:39.727)
it really well too so yeah.
Michael Palumbos (08:41.549)
So here's a question about Whole Foods. Did you know what the corporate culture and the company values were when you were working there?
Marshall Rabil (08:51.022)
Absolutely. That was one of the things I was attracted to learn from that.
Marshall Rabil (08:55.774)
example for sure. I mean, I healthy eating,
Marshall Rabil (08:59.614)
health communities,
Marshall Rabil (09:00.606)
all of their mission, it was important. So that was why, that was where I started as I started part-time here while I involved into a full
Marshall Rabil (09:05.9)
there. I working on the startup and I full-time
Marshall Rabil (09:09.113)
role and buying there. yeah, that company.
Marshall Rabil (09:11.288)
Yeah, it was, I was attracted to that culture. But
Marshall Rabil (09:15.293)
for sure.
Michael Palumbos (09:16.366)
Michael Palumbos (09:16.927)
Yeah, find that culture driven and values driven companies just really do tend to make a bigger difference in the communities that they live and work in. And that's now what you're bringing over to hubs. And my gut says, you know, the family had been doing that for years. wasn't just like, you know, Marshall went to Whole Foods and saw this wonderful thing. You've been doing it, but you're just probably
Michael Palumbos (09:45.826)
figuring out what are the actions that led by it? How do we make sure that people know that we're doing this consciously, not unconsciously?
Marshall Rabil (09:53.516)
Yeah, it's tying it all together. We've certainly been very much a part of this community since our inception, but like, how do we have
Marshall Rabil (10:00.622)
Marshall Rabil (10:00.926)
a common, like now.
Marshall Rabil (10:02.914)
we have partnered with the Food Bank of Southeast of Virginia and Arm. it's, we're, trying to, to consciously add and be a part of our team is we've donated space. So the food bank is actually based in our houses where we do the production of the backpack program, things of that nature. So it's, it has been that we're been, kind of out what it is that we can stand for and being in the food business, basically food insecurity is a
Marshall Rabil (10:05.292)
That's kind of our
Marshall Rabil (10:09.518)
promote some of and you we're
Marshall Rabil (10:16.046)
based in one of our where.
Marshall Rabil (10:28.782)
business.
Marshall Rabil (10:31.788)
worthy cause, right?
Michael Palumbos (10:33.762)
Matt Maslow's bottom of the pyramid. You've got to get taken care of. If people don't feel safe and they don't feel that they've got those basic needs met, it's really hard to be thinking about, you know, bigger and better things. I love that. Thank you.
Marshall Rabil (10:48.396)
You can't get a job if you're hungry. Yeah, right. Thanks first.
Marshall Rabil (10:51.576)
First.
Michael Palumbos (10:52.878)
Yeah.
Michael Palumbos (10:54.339)
Let's talk about, you know, the peanut company. Let's talk about Hubbard's Peanut Company. And do you mind sharing, you know, the history and kind of where did they start when and how did, you know, what's developed through the years? And then I'll jump in every now and again and ask some other questions.
Marshall Rabil (11:16.194)
Sure, well, it's a very much a homegrown business. grandmother, Dodd Hubbard, started from her kitchen in 1954. My father had a peanut. She was a school teacher, but she was literally handpicking the largest peanuts that she could find out of her father's, a unique way of cooking them. It's called blister fried cooking. So she would soak them in.
Marshall Rabil (11:18.98)
that my grandmother
Marshall Rabil (11:23.102)
In 19. My great grandfather. Farm and she.
Marshall Rabil (11:33.08)
find a farm and had. And it was.
Marshall Rabil (11:40.546)
hot
Marshall Rabil (11:40.788)
water and then fry them in oil. And that was kind of the low.
Marshall Rabil (11:44.024)
local
Marshall Rabil (11:44.494)
way, the specialty way of cooking peanuts. And, she would take the largest ones out of them in this unique way and then give them as a gift, colleagues or whatever. People started just like kind of the standard, how a business develops, like, Hey, you've got a product. There's a demand. Others started taking the peanuts to the hardware stores and the pharmacies.
Marshall Rabil (11:47.118)
and out of the farm, cook to friends, like some of her from college and then asking her for them, you know, that's just.
Marshall Rabil (12:06.094)
So my grandfather, he was that's.
Marshall Rabil (12:12.91)
And at the time, the road.
Marshall Rabil (12:15.31)
Planners was right down.
Marshall Rabil (12:16.89)
And so they're in Suffolk, Virginia. They're still in this area, they dry roast Virginia peanuts, but it's a different cook process. They're not using the same quality of peanuts that we said, the planters are a nickel. Well, hubs are twice as big. They're prepared differently and are twice as good. So they command twice the price. So he started.
Marshall Rabil (12:18.838)
And they feel a major in this.
Marshall Rabil (12:26.574)
use the same quality. So my grandfather, hey, you know,
Marshall Rabil (12:42.072)
selling for a dime.
Marshall Rabil (12:43.542)
next
Marshall Rabil (12:43.802)
to a nickel bag of planters. How the sales portion of that all started, which is great, specialty category of Virginia peanuts was born. This area has always been known for peanuts. came in the late 1600s. It was until the 1900s that planters commercialized peanuts and they bought a snack product. We are the original
Marshall Rabil (12:45.954)
And that's kind of how.
Marshall Rabil (12:50.149)
Marshall Rabil (12:52.534)
And this
Marshall Rabil (13:00.142)
But it wasn't until the early 90s that the commercial became a commodity.
Michael Palumbos (13:12.046)
Go ahead.
Michael Palumbos (13:12.508)
Sorry, you're the original.
Marshall Rabil (13:14.062)
We have this gift category of peanut that represents our region very well. There's a lot of other companies that have followed in HJ. But we are proud that we kind of started that trend as a specialty gift quality peanut.
Marshall Rabil (13:14.83)
And now...
Michael Palumbos (13:30.818)
Love it. Do you mind sharing like your group when as peanuts are grown, how are they grown? I don't think everybody even knows, you know, what type of plant is, is, peanuts come from and whatnot.
Marshall Rabil (13:44.076)
Yeah, that's a great question. They're technically more like a bean. So they're like that grow into the ground. They're planted and they grow throughout the summer, which is great. Wonderful soil here in Virginia. All of our peanuts are growing.
Marshall Rabil (13:45.11)
And so.
Marshall Rabil (13:48.557)
You
Marshall Rabil (13:52.086)
and May and they are. We have one.
Marshall Rabil (14:00.568)
Virginia, North Carolina, South Carolina. So
Marshall Rabil (14:02.229)
it's that nice sandy loamy humid soil. the peanuts.
Marshall Rabil (14:04.078)
But so they're in an harvested fall.
Marshall Rabil (14:12.0)
are great because they require a lot less water. Nuts and other tree nuts are grown in California, which has trouble with drought. This week, but. But yeah, so peanuts have grow really well here. Are nearly the. Or that we do harvest.
Marshall Rabil (14:14.966)
than other like almonds that
Marshall Rabil (14:21.102)
and sometimes here.
Marshall Rabil (14:28.782)
And don't require the same kind of Do and then we just
Marshall Rabil (14:32.941)
them in the fall and.
Marshall Rabil (14:35.64)
Yeah.
Michael Palumbos (14:36.896)
So Dotton, H.J., right? Did I get that right? H.J.? They created this specialty category of peanuts that they're giving away as gifts. this is back in the 50s. now what happens? know, what is, you know, where do they go? you know, from there?
Marshall Rabil (14:40.374)
Yep. Thanks, Jay.
Marshall Rabil (14:59.82)
Well, so one of the reasons we were able to grow and.
Marshall Rabil (15:02.296)
So
Marshall Rabil (15:02.507)
much of our marketing until,
Marshall Rabil (15:04.878)
still is, is this word of marketing.
Marshall Rabil (15:07.154)
So there's a great paper mill here. It was Union Camp prior to International Paper.
Marshall Rabil (15:09.121)
in town.
Marshall Rabil (15:12.43)
and
Marshall Rabil (15:14.394)
buying it and
Marshall Rabil (15:16.332)
You know, we had a lot of people that would come through the community and they would take them there. The work.
Marshall Rabil (15:19.758)
back to their homes. And so I think the
Marshall Rabil (15:24.953)
of mouth and the kind of the mail order business, really small town.
Marshall Rabil (15:27.842)
developed in this region
Marshall Rabil (15:29.703)
because we had a Fortune 50 company that had salespeople come in that liked our brand. It's a product that represents this region, so they would take them to their homes and then share them. And then we just slowly over the 60s, 70s, 80s built this mail order business. And we are still probably a direct consumer. I'd say, well, it's continuing to come a little bit, but I'd say 60 plus percent
Marshall Rabil (15:39.022)
And.
Marshall Rabil (15:54.622)
down a little bit
Marshall Rabil (15:57.216)
our business which is a of that way.
Marshall Rabil (15:57.55)
This is still D to C. It's wonderful because we have a huge of customers.
Marshall Rabil (16:04.846)
So that was our primary, we didn't really have a lot of wholesale accounts, pharmacies, hardware stores and so
Marshall Rabil (16:08.41)
Other than those small mom and pop.
Marshall Rabil (16:13.413)
But then my mother. Defying some of that in the 90s and early thousands and I can after. And.
Marshall Rabil (16:14.54)
really started diversifying.
Marshall Rabil (16:17.582)
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Being at Whole Foods and such, one the strategies