Showing posts with label Philip Morris. Show all posts
Showing posts with label Philip Morris. Show all posts

From Humble Beginnings to Global Dominance: The Evolution of Iconic Confectionery and Coffee Brands

The confectionery and coffee industries have a rich history characterized by the evolution of small family businesses into global conglomerates. This transformation is marked by significant milestones, mergers, and acquisitions, reflecting the dynamic nature of these sectors.

In 1767, the origins of Terry's of York can be traced back to Messrs Bayldon and Berry, who began selling candied fruit peel to York's residents. Their business flourished with the addition of Joseph Terry, leading to the creation of a leading confectionery company known for iconic products like the Terry's Chocolate Orange.

1825 saw the establishment of Philippe Suchard's first confectionery shop in Neuchâtel, Switzerland. Suchard’s innovation and dedication laid the foundation for a brand that would become synonymous with high-quality chocolate.

1867 marked the beginning of Johann Jakob Tobler’s confectionery business in Berne, Switzerland. Tobler’s family later introduced the world to the Toblerone™ bar, a unique triangular chocolate bar that remains a global favorite.

In 1892, a blend of coffee was created specifically for the Maxwell House Hotel in Nashville, Tennessee. This blend's popularity led to the brand Maxwell House™, which became a household name across the United States.

1895 was a significant year for coffee in Europe, with Johann Jacobs establishing Jacobs Kaffee in Bremen, Germany. Jacobs Kaffee rapidly grew to become one of Europe's premier coffee companies, recognized for its quality and innovation.

James L. Kraft entered the food industry in 1903 by opening a wholesale cheese business in Chicago. By 1914, Kraft was manufacturing its own cheese, laying the groundwork for what would become a major player in the global food market.

The 1920s were a transformative period for these industries. In 1923, Kenyan coffee growers formed a cooperative to distribute high-quality beans in Britain, which eventually became the Kenco™ Coffee Company in 1962. By 1924, JL Kraft had opened its first European sales office in London. In 1928, Kraft merged with The Phoenix Cheese Corporation, renowned for Philadelphia™ Cheese, enhancing its product portfolio.

The consolidation continued with Maxwell House™ and other notable brands merging under General Foods Corporation in 1929. This consolidation strategy helped streamline operations and expand market reach.

The post-World War II era saw further expansion. In 1947, General Foods acquired Alfred Bird and Sons Ltd, famous for Bird's Custard. The merging trend persisted into the late 20th century, with Suchard merging with Tobler in 1970 and Jacobs Kaffee merging with Suchard-Tobler in 1982 to form Jacobs Suchard.

A significant development occurred in 1985 when General Foods Corporation was acquired by Philip Morris Companies Inc. This acquisition marked the beginning of Philip Morris's aggressive expansion into the food sector. In 1987, Kenco™ was bought by General Foods, establishing it as the leading soluble coffee company in the UK.

In 1988, Kraft Inc. also became part of Philip Morris, creating the world's largest consumer products company. This led to the formation of Kraft General Foods in 1989. The acquisition of Jacobs Suchard in 1990 propelled Kraft General Foods to the forefront of the European coffee and confectionery markets.

The acquisition spree continued with Kraft General Foods acquiring Terry's of York in 1993, consolidating its position in the confectionery sector. The formation of Kraft Jacobs Suchard in 1994 integrated the Kraft, General Foods, and Jacobs Suchard businesses, enhancing their market presence.

The new millennium brought further expansion. In 2000, Kraft Foods' parent company, Philip Morris Companies Inc., acquired Nabisco Holdings, a leader in biscuits and snacks. This acquisition bolstered Kraft's product offerings. By 2001, Philip Morris Companies Inc. offered an Initial Public Offering for Kraft Foods, marking its transition to a publicly traded company.

This historical narrative highlights the strategic decisions and innovations that have shaped the confectionery and coffee industries. From humble beginnings to global dominance, these brands have continually evolved, adapting to changing market dynamics and consumer preferences.
From Humble Beginnings to Global Dominance: The Evolution of Iconic Confectionery and Coffee Brands

Nabisco Brands

Nabisco, once a mighty cookie and cracker company, exists today only as a brand name, part of global conglomerate Kraft Foods.

In 1889 William Moore united six eastern bakeries into the New York Biscuit Company. In 1890 Adolphus Green united forty midwestern bakeries under the name the American Biscuit & Manufacturing Company.

In 1898 Moore and Green together with John G. Zeller of Richmond Steam Bakery formed the National Biscuit Company.

This merger ended the cutthroat competition among the companies. The new entity dominated the cracker and cookie industry.

By the early 1940s, the company had 59 manufacturing facilities across the country producing some 200 products.

In 1971 the National Biscuit Company changed its name to Nabisco, Inc.  In 1981 Ross Johnson of Standard Brands instrumental the merging of Nabisco with Standard Brands Incorporated to become Nabisco Brands, Inc.

In 1985 RJ Reynolds Industries, Inc., in an attempt to reduce its reliance on tobacco, acquired Nabisco brands, Inc. The acquisition created the largest consumer goods company in the United States.

A year later, in 1986, RJ Reynolds Industries Inc. changed its name to RJR Nabisco, Inc. and RJR’s Del Monte and Nabisco Brands operations were combined to form Nabisco Brands, Inc.

Philip Morris Companies, Inc. acquired Nabisco in December 2000 for $18.9 billion and merged it with Kraft Foods.

Eventually Kraft Foods was spun off into a separate company where Nabisco lives on as a brand name.

In 2010 Kraft Foods announced that it was making its Nabisco line of crackers healthier by adding more whole wheat.
Nabisco Brands

Business history of 7UP

Charles Leiper Grigg spent more than two years experimenting and perfecting his new drink all in search for lemon-flavored drinks before finalizing on Bib-Label Lithiated Lemon-Lime Soda.

Manufactured by Grigg’s Howdy Corporation, this soft drink appeared for sale in the fall of 1929 in St. Louis, Missouri, just two weeks before the great stock market crash. Shortly after its launched Grigg change the name to 7UP.

The drink was originally marketed as a hangover cure due to the inclusion of lithium citrate. It was release just a few years before the Wall Street crash of 1929.

It successfully promoted itself as a hangover cure, running a ‘7UP for hangovers’ campaign that pitched the drink as capable the effects, of overdrinking, over-smoking, under-drinking, mental lassitude, overwork, overeating and over worry.
7UP in can

The lithium citrate was abandoned in the drink in 1950, as lithium was found to cause side effects such as dizziness, nausea and thyroid problems.

In 1933 syrup sales topped 174,000gallons shooting up to 2,074,000 gallons a year by 1936, after Grigg’s post-Prohibition decision to start promotion his soda as a mixer that ‘tames whiskey’ and ‘glorifies gin’.

In the 1940s, 7-UP had successfully moved to the number three sales among soft drinks; only Coca-Cola and Pepsi-Cola outranked it.

In 1978, the drink was acquired by Philip Morris.

In 1979, a new advertising company campaign for the lemon-lime flavored 7UP shifted its ‘America’s Turning 7UP’ campaign to focus on a rational reason to buy product. Research had shown that consumers perceived colas as containing unhealthy ingredients.

In 1986 Philip Morris sold 7UP’s international operations to Pepsi and two years later offloaded the US business to Dr Pepper.  The merger between 7Up and Dr. Pepper Company, creating the world’s third largest soft drink company behind Coca-Cola and Pepsi.

Dr Pepper and 7UP later were purchased by Cadbury Schweppes in 1995.
Business history of 7UP

Brief History of Kraft Foods

History of Business
Year 1767:
Messrs Bayldon and Berry began selling candied fruit peel to the citizens of York. Joined later by Joseph Terry, the business grew to become Terry's of York, a leading confectionery company. 
Year 1825:
Philippe Suchard opened his first confectionery shop in Neuchâtel, Switzerland.
Year 1867:
Johann Jakob Tobler set up a small confectionery business in Berne, Switzerland. Nearly 50 years later the family business produced the Toblerone™ bar.
Year 1892:

A coffee blend developed for the Maxwell House Hotel in Nashville, Tennessee, USA, soon became known as Maxwell House™ coffee.
Year 1895:
In Bremen, Germany, businessman Johann Jacobs established Jacobs Kaffee, which was to become one of Europe's leading coffee company
Year1903:

James L Kraft opened a wholesale cheese business in Chicago, Illinois, USA. By 1914, the company was manufacturing its own cheese.
Year 1923:

A co-operative of Kenyan coffee growers set up the Kenyan Coffee Company to distribute high quality beans into Britain. It changed its name to the Kenco™ Coffee Company in 1962.

Year 1924:
JL Kraft opened its first European sales office in London. 1928:
Kraft merged with The Phoenix Cheese Corporation of Chicago, producers of Philadelphia™ Cheese.
Year 1929:

Maxwell House™ Coffee and other famous food brands consolidated under the name General Foods Corporation.
Year 1947:

General Foods purchased Alfred Bird and Sons Ltd.
Year 1970:
Suchard merged with Tobler.
Year1982:

Jacobs Kaffee merged with Suchard-Tobler to form Jacobs Suchard in Europe.
Year1985:

General Foods Corporation acquired by Philip Morris Companies Inc.
Year 1987:

Kenco™ bought by General Foods to form the biggest soluble coffee company in the UK. Year1988:
Kraft Inc became part of Philip Morris Companies Inc, creating the world's largest consumer products company.
Year1989:

The food products division of Philip Morris Companies Inc, became Kraft General Foods.
Year 1990:
Kraft General Foods acquired Jacobs Suchard, making it number one in the European roast and ground coffee market and a leader in confectionery.
Year1993:

Kraft General Foods acquired Terry's of York.
Year1994:
Kraft Jacobs Suchard is formed combining the Kraft, General Foods and Jacobs Suchard businesses.
Year2000:
Kraft Foods parent company Philip Morris Companies Inc acquired Nabisco Holdings, a world leader in biscuit, crackers and snacks.
Year 2001:
Philip Morris Companies Inc offered an Initial Public Offering for Kraft Foods in June.
History of Business


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