Seed Giant Burpee Wants Americans To Garden Like It’s 1776

Key Concepts

• Heirloom/Historical Seeds: Seed varieties dating back to the American Revolution, marketed for the country's 250th anniversary.
• Mail-Order Business Model: A traditional retail strategy relying on physical catalogs, order forms, and postal delivery.
• Hybridization: The process of cross-breeding plants to create more resilient or better-tasting varieties (e.g., Big Boy tomato).
• EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization; used here to estimate the company's valuation and profitability.
• Victory Garden Movement: A historical initiative during WWII that encouraged home food production, which Burpee leveraged to innovate home-grower-specific seeds.

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1. Burpee’s Historical and Patriotic Marketing

To commemorate the United States' 250th birthday, Burpee is promoting seed collections inspired by the gardens of Thomas Jefferson and Martha Washington. George Ball, the company’s chairman and owner since 1991, frames gardening as a patriotic act, stating, "One of the most patriotic things you can do is plant a garden." This initiative connects modern consumers with agricultural varieties from the American Revolution era.

2. Business Operations and Financials

• Revenue and Reach: Burpee generates over $110 million in annual revenue. Approximately 35% of this comes from mail and online sales.
• Distribution: The company maintains a dual-channel strategy:
  • Direct-to-Consumer: The annual catalog remains the "lodestar" of the company, still receiving thousands of orders via physical checks and mail.
  • Retail: Products are sold in over 24,000 locations, including major retailers like Walmart, Home Depot, and Tractor Supply.
• Valuation: Forbes estimates Burpee’s EBITDA profit margins exceed 10%. If sold, the company would likely command a 10x EBITDA multiple, though George Ball intends to keep the firm independent and private.

3. Innovation and Product Development

Burpee has historically functioned as a research-based entity, utilizing experimental trial fields to adapt seeds to North American soil—a departure from the industry standard of importing European varieties.

• Key Historical Innovations:
  • 1894: Introduced "Iceberg" lettuce, allowing for year-round salad consumption.
  • String Beans & Corn: Successfully bred the strings out of string beans and increased the sweetness of yellow corn, effectively displacing white corn in home gardens.
  • 1949: Developed the "Big Boy" tomato, which serves as the genetic ancestor for most modern home-garden tomato varieties.
• Modern Strategy: CEO Jamie Mattaco (formerly of Mars and Kraft Foods) emphasizes the brand's "fan" loyalty, noting that gardening offers a "wholesome" health and wellness appeal that packaged food companies strive to emulate.

4. Historical Evolution of the Company

• Founding (1876): W. Atlee Burpee, an 18-year-old medical student, pivoted from a poultry/sheep business to seeds after visiting the World’s Fair in Philadelphia. He recognized that seeds offered a more essential, recurring revenue stream.
• Leadership Transitions:
  • W. Atlee Burpee: Established the company as the first research-based seed firm. His philosophy was: "A business that has no vision of the future or the object of which is mere money-making would not be worth a life's work."
  • David Burpee: Took over in 1915 at age 22. He steered the company through the WWII "Victory Garden" era, shifting focus toward vegetables specifically optimized for home growers rather than commercial farms.

5. Synthesis and Conclusion

Burpee’s longevity is attributed to its ability to balance traditional mail-order heritage with consistent agricultural innovation. By positioning itself as a "fan brand" that promotes health, wellness, and historical connection, the company maintains a strong market position. The firm’s success is rooted in its early commitment to research-based breeding for local climates and its strategic pivot during the 20th century to cater specifically to the home gardener, a legacy that continues to drive its current business model and marketing efforts.