Don Levin, the 72-year-old founder of D.R.L. Enterprises, which owns Republic Brands, is an enigma in the world of rolling papers. Despite owning iconic brands such as E-Z Wider, Zig-Zag, OCB, and JOB, Levin doesn’t smoke weed or even know how to roll a joint. Yet, he’s the man behind the world’s most extensive rolling papers empire, a journey that has turned him into a billionaire.
The Rise of Don Levin
Raised in the Albany Park neighborhood of Chicago, Levin came from humble beginnings. His father was a used car salesman, and his early life was marked by financial struggle. Despite these hardships, Levin found success in selling cars, a skill he nurtured after a stint in the Marines Corps Reserves and attending a General Motors’ training program.
In the early 1970s, Levin entered the retail business, buying a specialty store in Chicago’s Rogers Park called Adams Apple. Initially, he intended to sell bell-bottom jeans and English music. However, he soon discovered the store’s true potential as a head shop, selling rolling papers and other cannabis paraphernalia.
The Adams Apple Distributing Co. was formed after Levin decided to cut out the middleman and order rolling papers directly from manufacturers. His initiative led him to stumble upon a deal with JOB, a brand created in 1838 by Jean Bardou, the inventor of the rolling paper booklet. This move marked the start of Levin’s exclusive brand distribution.
The Birth of Republic Brands
Despite a thriving business, the federal government’s crackdown on cannabis paraphernalia in the late ’70s forced Levin to pivot his business model. He decided to focus solely on rolling papers and renamed his company Republic Tobacco to remove any hints of its counterculture roots.
In 2000, Vincent Bolloré, a French industrialist who owned Odet-Cascadec-Bolloré rolling papers (OCB), decided to sell his company. Levin, having expressed interest years before, was the natural choice for the sale. This purchase brought Levin full control over the manufacture of paper, the production of booklets, and distribution, solidifying his position in the rolling paper industry.
The Success of Republic Brands
Republic Brands now owns several iconic paper brands, including Top, Bali Shag, and E-Z Wider. The company controls about one-third of the North American rolling paper market, generating an estimated $650 million in revenue with a 35% EBITDA margin. Republic produces more than 1.2 billion booklets of rolling paper annually, which Levin estimates translates into 3.7 million miles of paper.
Despite his dominance in the industry, Levin maintains a low-key demeanor. He attributes the success of Republic Brands to a team effort rather than his individual prowess. His focus is on creating rolling papers that are as least noticeable as possible, and he believes that in the rolling paper business, marketing is everything.
The Legacy of Don Levin
While Levin continues to lead his $1.7 billion empire, he has begun to consider the company’s future. His son, Robert, a tax lawyer, is not likely to take over due to his non-entrepreneurial nature. Levin has also ruled out selling to a private equity firm, fearing they would gut the company of most of its employees to boost profits.
Don Levin, an enterprising entrepreneur, has built an empire over the last five decades that encompasses some of the world’s most recognized rolling paper brands. These include Zig-Zag, E-Z Wider, OCB, and JOB, despite Levin himself not being a cannabis user. He is the founder of D.R.L. Enterprises, the parent company of Republic Brands, and is worth an estimated $1.7 billion.
Levin’s journey to success has been marked by numerous fascinating incidents. From hanging out with Hunter S. Thompson to bidding on the Chicago Cubs with billionaire Mark Cuban, Levin has led a colorful life. His journey even included a stint in movie production, with credits such as the 1986 Stephen King horror film Maximum Overdrive.
However, despite his impressive accomplishments and associations, Levin does not smoke cannabis nor does he know how to roll a joint. Instead, his empire depends on the millions of other cannabis users who do. This has allowed him to build a business that spans the entire supply chain, from the factories that produce paper from hemp, wood, bamboo, and rice, to the manufacturing plants that package the paper into booklets.
Republic Brands produces over 1.2 billion booklets of rolling paper per year, which Levin estimates is equivalent to 3.7 million miles of paper. This monumental production is possible thanks to the acquisition of iconic brands such as E-Z Wider, which was created by former billionaire Bob Stiller who later established Green Mountain Coffee and Keurig.
Levin’s journey began in the Albany Park neighborhood of Chicago. His early experience with financial difficulties following the failure of his father’s car dealership shaped his perspective on the importance of financial stability. Following a stint in the Marine Corps Reserves, Levin became a car dealer himself, honing his selling skills and eventually transitioning into the rolling paper business.
His entrance into the rolling paper business was almost accidental. After purchasing a boutique in Chicago’s Rogers Park with a friend, he discovered that a significant portion of the store’s clientele came for the rolling papers. This led to the establishment of Adams Apple Distributing Co., which started as a local distributor and eventually became a major player in the rolling paper industry.
One of Levin’s breakthroughs was the acquisition of the JOB rolling paper brand, which he inadvertently stumbled upon during a visit to the Zig-Zag office in Paris. His business continued to grow, and by the end of the 1970s, his company was generating $10 million in annual revenue.
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Despite the success, the company wasn’t immune to challenges. With the enforcement of anti-paraphernalia laws, Levin had to pivot his business strategy to focus exclusively on rolling papers. He also changed the company’s name to Republic Tobacco to shed any counterculture connotations.
The turn of the century marked a significant phase for Levin with the acquisition of Odet-Cascadec-Bolloré rolling papers, better known as OCB. This not only expanded his brand portfolio but also gave him control over the manufacturing process, from the paper mills to the production of booklets.
Today, Levin’s Republic Brands controls about one third of the North American rolling paper market, with global sales estimated to be between $2 billion and $3 billion annually. Despite being a non-smoker, Levin’s success lies in his understanding of his customers’ needs and his aggressive marketing strategy.
As he contemplates his legacy, Levin is not keen on selling his company to a private equity firm, fearing job losses. He prefers the idea of external management taking over after his demise. Looking back, Levin marvels at his journey, from aspiring to sell cars on Western Avenue in Chicago to becoming a billionaire king of rolling papers. His story is a testament to the power of seizing opportunities and adapting to changing circumstances.
