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Nabisco

From Alfawiki
Nabisco
Company typeSubsidiary
IndustrySnack food
Founded1898
FounderWilliam H. Moore, Adolphus Green, John Gottlieb Zeller
Headquarters
East Hanover, New Jersey
,
United States
Area served
United States, United Kingdom, Mexico, Bolivia, Venezuela, Canada (as Christie), South America
ProductsChips Ahoy!, Belvita, Oreo cookies, Ritz Crackers, Teddy Grahams, Triscuit crackers, Fig Newtons, Wheat Thins
Number of employees
1,200+
ParentMondelēz International

Nabisco—an abbreviation for National Biscuit Company—is a prominent American snack producer based in East Hanover, New Jersey. It functions as a subsidiary under the Illinois-headquartered conglomerate Mondelēz International. The company's facility in Chicago stands as the largest bakery on the globe, employing more than 1,200 staff members and manufacturing millions of snack products each year.

Among its flagship offerings are Chips Ahoy!, Belvita, Oreo cookies, Ritz Crackers, Teddy Grahams, Triscuit crackers, Fig Newtons, and Wheat Thins. These items are distributed throughout markets including the United States, United Kingdom, Mexico, Bolivia, Venezuela, and various other South American nations.

In Canada, Nabisco’s goods are marketed under the Christie brand, named after Canadian baker William Mellis Christie. However, Mondelēz closed the Christie main bakery located in Toronto in 2013. Founded originally in 1898 as the National Biscuit Company, the corporation's initial headquarters were situated in Chicago’s Home Insurance Building, recognized as the first skyscraper worldwide.

History

Pearson & Sons Bakery, established in Massachusetts in 1792, was known for producing pilot bread intended for lengthy maritime journeys. In 1889, entrepreneur William H. Moore consolidated Pearson & Sons along with six additional bakeries to form the New York Biscuit Company. Meanwhile, Chicago attorney Adolphus Green (1843–1917) launched the American Biscuit and Manufacturing Company in 1890 by acquiring 40 bakeries. The year 1898 saw Moore, Green, and John Gottlieb Zeller (1849–1939), founder of Richmond Steam Bakery, combine their enterprises to establish the "National Biscuit Company," appointing Green as president. Zeller later assumed the presidency from 1923 until 1931.

By its 50th anniversary in 1948, Nabisco had become an established corporate identity officially adopted by 1971. The company merged with Standard Brands in 1981 to create "Nabisco Brands," which subsequently merged with R. J. Reynolds Tobacco Company in 1985 to form RJR Nabisco. Kraft General Foods purchased Nabisco’s cold cereal lines from RJR Nabisco in 1993; these cereal brands are currently owned by Post Holdings. In 1999, Nabisco grew through acquiring Favorite Brands International. The acquisition by Philip Morris Companies Inc. in 2000 merged Nabisco with Kraft Foods, representing one of the largest consolidations within the food sector. Following Kraft Foods’ division into two publicly traded companies in 2011, Nabisco became part of the snack-focused entity now known as Mondelēz International.

The Nabisco brand made its debut on a cracker product in 1901. The company introduced several iconic snacks such as Fig Newtons, Barnum's Animal Crackers (1902), Cameos (1910), Lorna Doones (1912), Oreo cookies (1912), and Famous Chocolate Wafers (1924; discontinued in 2023).

In 1924, National Biscuit Company pioneered snack sales by launching sealed Peanut Sandwich Packets and Sorbetto Sandwich Packets aimed at soda fountains and newsstands. This innovation significantly increased sales and led to the shortened brand name "NAB" in 1928; even today, "Nabs" remains a colloquial term for snack crackers in certain southern U.S. regions.

On July 16, 2021, Mondelēz International shuttered its Fair Lawn, New Jersey factory after operating for 63 years. This closure affected roughly 600 employees who faced retirement or relocation options.

In August of the same year, over a thousand employees across several U.S. bakeries and distribution centers organized under the Bakery, Confectionery, Tobacco Workers and Grain Millers' International Union staged a strike due to unresolved contract negotiations with Nabisco.

Acquisitions

The National Biscuit Company broadened its range of products and expanded its market reach through several significant acquisitions. In 1928, it purchased the Shredded Wheat Company, the producer of Triscuit and Shredded Wheat cereals, along with Christie, Brown & Company based in Toronto, retaining the Christie brand for Canadian distribution. By 1931, it had acquired F.H. Bennett Company, renowned for its Milk-Bone dog biscuits.

Nabisco ventured into diversification in 1971 by acquiring J. B. Williams Co., a pharmaceutical manufacturer, which operated as a subsidiary until it was divested to the Beecham Group in 1982 following declining sales.

A pivotal development occurred in 1981 when Nabisco merged with Standard Brands, owner of well-known names such as Planters Nuts, Baby Ruth, Butterfinger, Royal gelatin, Fleischmann's, and Blue Bonnet margarines. This merger resulted in Nabisco Brands, Inc., further bolstered by the acquisition of the Life Savers brand from E.R. Squibb Company. The expanded portfolio significantly enhanced Nabisco’s position in the snack foods and confectionery markets.

R. J. Reynolds merger

In 1985, Nabisco was acquired by R.J. Reynolds, forming "RJR Nabisco" and extending its global footprint into both tobacco and food industries. After experiencing mixed financial results over three years, RJR Nabisco became a central figure in the leveraged buyout craze of the 1980s. The company was put up for auction between CEO F. Ross Johnson and private equity firm Kohlberg Kravis Roberts (KKR).

Ultimately, KKR secured ownership of RJR Nabisco in what was at the time the largest leveraged buyout ever completed—a landmark event chronicled in Barbarians at the Gate: The Fall of RJR Nabisco and its subsequent film adaptation, showcasing strategic leadership and corporate restructuring during that era.

Subsequent acquisitions and divestitures

In 1989, RJR Nabisco Inc. divested its Chun King foods division to Yeo Hiap Seng Limited and Fullerton Holdings for $52 million as part of efforts to reduce debt incurred from the $24.5 billion leveraged buyout executed by Kohlberg Kravis Roberts & Co.

Later that year, RJR Nabisco sold its Del Monte canned fruit and vegetable operations in South America to Polly Peck International PLC. In 1990, Curtiss Candy—holder of Baby Ruth and Butterfinger brands—was sold to Nestlé. European biscuit brands LU and Belin were transferred to Groupe Danone; these brands were later reunited with Nabisco when Kraft Foods acquired Danone’s biscuit division for €5.3 billion in 2007.

By 1994, RJR had sold its breakfast cereal business (primarily Shredded Wheat) to Kraft Foods while international licenses were assigned to General Mills, which subsequently became part of the Cereal Partners Worldwide joint venture with Nestlé. That same year included the acquisition of Rose Knox's Knox gelatin brand and integration of Shredded Wheat into Post Consumer Brands’ offerings.

In 1995, Nestlé purchased the Ortega Mexican foods line from Nabisco. Meanwhile, RJR-Nabisco acquired Kraft Foods' North American margarine and spreads division, encompassing Parkay, Touch of Butter, and Chiffon margarine brands.

By 1998, Nabisco exited the margarine and egg substitute market by selling these businesses to ConAgra; Fleishmann's, Blue Bonnet, and Parkay collectively generated $480 million in sales during 1997. Additionally, College Inn broth was sold to HJ Heinz and Venezuelan Del Monte operations were transferred to Del Monte Foods.

In 1999, RJR Nabisco divested its international tobacco division to Japan Tobacco for $7.8 billion, marking a major restructuring milestone.

In 2000, Nabisco Holdings collaborated with investors under the Finalrealm entity to acquire United Biscuits; United Biscuits assumed control over Nabisco’s European operations while Nabisco retained rights in the Far East. Nabisco held a leading stake in United Biscuits until Kraft Foods inherited this interest in 2006. That year also saw the sale of Nabisco’s gum and mint segment to Hershey Foods Corp.

Altria Group (formerly Philip Morris) purchased Nabisco (excluding Bubble Yum) in 2000 for approximately $19.2 billion, merging it with Kraft Foods. The Federal Trade Commission approved this transaction under conditions requiring divestiture of certain product lines including Jell-O dry mixes, strong mints such as Altoids, and baking powder.

In 2006, Milk-Bone pet snacks were sold by Nabisco to Del Monte Foods for $580 million. Altria subsequently spun off Kraft Foods along with Nabisco in 2007. Shortly thereafter, Kraft sold Cream of Wheat to B&G Foods in January 2007.

Legal disputes

In 1997, the National Advertising Division expressed concerns regarding a Planters Deluxe Mixed Nuts advertising campaign. The commercial featured a man and a monkey on an island celebrating the health advantages of the peanuts. Nabisco highlighted the nutritional benefits of Planters peanuts in comparison to snacks such as potato chips and Cheddar cheese chips. Although the advertisements adhered to FDA guidelines, Nabisco consented to enhance the visibility of fat content disclosures following the Division's recommendation.

In 1990, Nabisco initiated legal action against Arnie Kaye over his "A2 Sauce," marketed in Connecticut delis and grocery stores, alleging it infringed on their A1 Steak Sauce trademark. The US District Court ruled in favor of Nabisco in 1991, awarding the company profits generated from "A2" sauce sales along with legal fees.

Brands and product lines

Corporate identity

Nabisco’s emblem features a diagonal ellipse with antenna-like extensions known as the "Orb and Cross" or Globus cruciger, which serves as the centerpiece of its branding. This symbol is visible on Oreo cookies, product packaging, and promotional materials. Its origins trace back to a medieval Venetian printer’s mark symbolizing "the victory of moral and spiritual forces over evil and materialism."

The current Nabisco logo was redesigned by American graphic artist Gerard Huerta, renowned for crafting influential corporate identities, including those for the band AC/DC.

Sponsorship activities

From 2002 through 2005, Nabisco partnered with Kraft to sponsor NASCAR teams such as Dale Earnhardt, Inc. and Roush Racing. During this period, Earnhardt Jr., under Nabisco sponsorship, achieved four consecutive victories at the Daytona International Speedway. Additionally, the companies supported part-time Sprint Cup entries in car #81 driven by both Jason Keller and John Andretti. In 2010, Nabisco sponsored Dale Earnhardt Jr. at the Subway Jalapeño 250 and Tony Stewart at the DRIVE4COPD 300, both hosted at Daytona, promoting flagship brands including Oreo and Ritz.

External links

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