How Did Walgreens Become Successful?

Who would have thought that a ban on booze would help build one of the world's largest drugstore chains?

It sounds crazy, but when America dried up during Prohibition, one of the few ways that regular folks could still obtain liquor was with a prescription. Under the law, people suffering from an assortment of ailments -- including diabetes, the flu, and even old age -- could ask for an Rx for alcohol.

The limitations were supposed to be strict (one pint per person per prescription every 10 days), but that didn't stop Walgreens from seeing a big opportunity to heal the pain of many customers. How many? Well, considering the fact that Walgreens grew from 20 stores in 1919 to 525 in 1929, the answer is: a lot.

Walgreens is quick to deny that booze was the boon that built their pharmacy empire, instead arguing that "a superb management team," "innovative store design," and its "immortal malted milkshake" were the keys to its success. Today, there are more than 9,000 Walgreens stores across America; ironically, only a relatively small percentage of them sell anything harder than wine and beer.

Inside Walgreens: