River Bend hopes to diversify with Kosmo

story by Michael Tilley
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Ron Embree is determined to not go the way of Southern Steel & Wire, Jarden, Fortis Plastics and other former Whirlpool vendors no longer in operation in Fort Smith.

Embree, a hybrid of entrepreneur and traditional factory owner and operator, is the head family-owned River Bend Industries. Plastic components for Whirlpool Corp. are produced in River Bend plants in Fort Smith and near Newton, Iowa.

Embree purchased the former Moll Plasticrafters plant in Fort Smith in 2006, and acquired bankrupt Victor Plastics in Iowa in 2008. In that time, Whirlpool has drastically reduced production in Fort Smith, with employment falling from about 4,600 in early 2006 to about 1,000 today.

During an interview with Embree just a few days before Whirlpool announced it will close its Fort Smith refrigerator manufacturing plant, he noted: “I’m working hard not to go the direction as they (other Whirlpool vendors) did.”

River Bend employs 118 in Fort Smith, and the Whirlpool business is about 60% of the River Bend work in Fort Smith. River Bend’s Newton plant employs about 200 and supplies parts to Whirlpool (formerly Maytag) operations in that area.

Following the Whirlpool plant closure news, Embree was somewhat defiant.

“We have every intention of keeping our doors open and keeping people employed and being a manufacturing operation in Fort Smith. We’ll get by. It will be tough for a little while, but we’ll get by.”

THE KOSMO
Embree’s tone is based partially in his efforts to create new product lines by developing new products. In other words, instead of looking for new customers, Embree and his ideas become the new customers. It’s his attempt to diversify the client roster, and Embree says the company has “several new projects” in the pipeline that could deliver the diversity.

One of those products is the Kosmo Cooler.

It’s a unique and simple design that places a cooler on the top of an adjustable tripod leg configuration that raises the cooler above the floor/ground for more convenient use. The tripod legs fold into the sides of the cooler. It’s one of those products that may create a “Why didn’t I think of that?” reaction from anyone seeing it for the first time.

About four years ago, Embree first learned of the cooler variant from Northwest Arkansas entrepreneurs Tim Mika and Stephen Bowman. Bowman, now a principal at Garfield Elementary School in Garfield, Ark., developed the idea when teaching cross country.

“He thought it would be great to have the cooler located at different points along the course, without having to have a 6-foot table. And the rest is history,” Embree noted.

Through a coincidental relationship with two bankers, Embree connected with Bowman and Mika. Embree liked the idea. He bought the concept and shares the patent with Bowman and Mika.

SELLING TO THE CLUB
Embree bought the tools to produce the cooler in January, and began production during the second quarter of this year.

A business club division of a large global retailer also likes the cooler concept. The retailer division bought several pallets for a test sale in southern Texas. The coolers, which sell for about $35 each, sold well, with the retail company now wanting more.

“The construction guys down there (southern Texas) love it. … It’s still been hot enough down there where they need them,” Embree explained, adding that retail officials have been great partners in promoting the cooler.

Embree said the coolers also should be popular with schools, ball leagues, hunters, tailgaters and even caterers.

“They set the cooler up at the end of the table, and that leaves the whole table open for their food, napkins and whatever,” he said.

PRODUCT THREATS
The problem is with sourcing for the legs, however. The metal legs are the only part of the Kosmo made in China. Embree is having a tough time finding a U.S. manufacturer to make the legs at a price that will allow him to meet the overall product price required by the global retailer.

And although the search for a U.S. maker of the legs is “promising,” Embree said time is ticking. He said buyers with the retailer want to buy more of the unique coolers, and need to know by mid-December how many River Bend can provide and at what price. Embree said it’s important to meet the retailers demand because the Kosmo has already passed the rigid product acquisition terms required by the retailer.

Another potential threat to the Kosmo is that large outdoor-product makers like Igloo and Coleman will try to copy the idea. Embree said the two companies were given a chance to make the cooler, but declined.

“The key (to avoiding copy attempts) is to protect the patent,” Embree said when asked how a small company like River Bend would fend off the larger companies. “We’ll have to do a real good job of protecting that patent.”

GROWTH POTENTIAL, NEEDS
The product line, if it continues, will initially keep 18 employed at the plant. If the line grows and Bass Pro Shop, Home Depot, Dick’s Sporting Goods and other retailers pick up the product, the new cooler would require more than 18 employees to produce, Embree said.

“I live here. I am part of Fort Smith and I’m invested in Fort Smith. We’re working really hard to keep this plant going and to keep people employed,” Embree said.

Embree plans to seek help from the Arkansas Economic Development Commission. He hopes the state’s job development agency may provide incentives or tax breaks for production equipment he may have to buy for the Kosmo and other product ideas. Embree was complimentary of the AEDC’s help when he bought River Bend, and is confident they will be of help in this new effort.

He also hopes the cooler garners Razorback support.

“I’d love to see the University of Arkansas want to buy some of these. … We could make these in red, black and white,” Embree said with grin.