Pet, Inc.
| Company type | Public (historical) |
|---|---|
| Industry | Food processing |
| Founded | 1885 in Highland, Illinois, United States |
| Founder | John Baptist Meyenberg, John Wildi, Dr. John Knoebel, Adolph Glock |
| Fate | Acquired by Pillsbury Company in 1995 |
| Successor | Pillsbury Company |
| Headquarters | St. Louis , United States |
Area served | United States, international markets (historical) |
| Products | Evaporated milk, Old El Paso Mexican cuisine, Progresso soups, Whitman's chocolates, Underwood canned meats |
Pet, Inc. was a pioneering American enterprise known for introducing commercial evaporated milk through its "PET Milk" label, providing a shelf-stable dairy option before refrigerators became common in households. While evaporated milk reached peak consumer demand during the 1950s, it continues to serve as a specialized ingredient in baking and culinary applications.
Recognizing evolving consumer trends, PET expanded beyond evaporated milk beginning in the 1950s by acquiring multiple brands and transforming into a diversified food corporation. Its portfolio grew to include well-known names such as Old El Paso Mexican cuisine, Progresso soups, Whitman's chocolates, and Underwood canned meats. From 1978 until 1991, Pet functioned as a division of the conglomerate IC Industries before regaining its status as an independent company.
The year 1995 marked the end of Pet’s autonomy when it was absorbed by the Pillsbury Company, with "PET" becoming one of Pillsbury’s product lines. After Pillsbury was acquired by General Mills in 2001, antitrust regulations prompted the sale of the PET brand to International Multifoods. Subsequently, Multifoods was purchased by J.M. Smucker in 2004. In 2014, Smucker divested its U.S. sweetened condensed and evaporated milk operations—including PET—into the newly formed Eagle Family Foods Group.
Currently, Eagle holds ownership of the "PET" trademark and continues producing PET Milk evaporated milk products. Additionally, it licenses the PET name to the Dairy Farmers of America cooperative, which markets fresh and processed dairy items under the "PET Dairy" label throughout the Southeastern United States.
Background
John Baptist Meyenberg (1847–1914) worked at the Anglo-Swiss milk condensery located in Cham, Switzerland, where he specialized in manufacturing sweetened condensed milk. Between 1866 and 1883, he innovated a technique for preserving milk without added sugar by heating it to 120 °C (248 °F) inside sealed containers. When Anglo-Swiss declined to implement his method, Meyenberg emigrated to the United States, initially settling in St. Louis before moving to Highland, Illinois. There, he obtained U.S. Patents numbered 308,421 and 308,422 for his milk preservation process on November 25, 1884.
Founding
In Highland, Meyenberg formed a partnership with Swiss immigrants including John Wildi, Dr. John Knoebel, and Adolph Glock. On February 14, 1885, they established the Helvetia Milk Condensing Company with $15,000 capital raised from local farmers and businessmen such as Louis Latzer, George Roth, and Fred Kaeser. Knoebel took on the role of president while Wildi served as secretary-treasurer; Roth, Latzer, and Kaeser joined the board of directors alongside Meyenberg who oversaw manufacturing operations.
The company's inaugural product was "Highland Evaporated Cream," an unsweetened condensed milk introduced on June 14, 1885. Production began with processing approximately 300 gallons of raw milk daily within a repurposed wool factory. After a temporary shutdown caused by a steam sterilizer explosion in July 1885, manufacturing resumed in August. By the end of that year, Helvetia’s product had gained acceptance in Southern U.S. markets aided by charitable donations to fire victims in Galveston, Texas and favorable retailer endorsements.
Despite early progress, Helvetia encountered operational difficulties including equipment failures, water supply shortages necessitating new wells, and spoilage issues affecting shelf life. These challenges led to intermittent production halts and internal disagreements regarding their root causes—Meyenberg blamed improper sealing techniques while others suspected his sterilization process. When requested to accept reduced compensation during this turbulent period, Meyenberg resigned in August 1886 and later contributed to developing Carnation Evaporated Milk in 1899.
After Meyenberg’s exit, Louis Latzer returned as technical director and president. With his academic background in chemistry and advanced education credentials, Latzer collaborated with Dr. Werner Schmidt, Wildi, and Knoebel to identify bacterial contamination as responsible for spoilage problems. Their efforts successfully eradicated these issues while simultaneously improving automation and boosting production efficiency at Helvetia’s facility.
Effective production
By the year 1890, Helvetia had overcome issues related to product spoilage and extended its reach both domestically and abroad. Under Wildi’s leadership in marketing, the company capitalized on relief efforts by distributing complimentary products following natural calamities. Significant markets included the Southern United States, where fresh milk had a short shelf life, and mining areas in the West where milk availability was limited.
Helvetia presented its offerings at global exhibitions such as the Paris Exposition and the World's Columbian Exposition held in Chicago. During the 1890s, Wildi positioned Helvetia’s product as a substitute infant formula alternative to sweetened condensed milk. Facing heightened competition and a slowdown in sales growth, the company introduced the "Economy" line alongside its Highland brand.
The "Our Pet Evaporated Cream" label originated after a New Orleans broker requested a smaller, cost-effective can. Registered in 1895, "Our PET" became Helvetia’s leading brand by 1907, surpassing both Highland and Economy in sales.
Disputed leadership
Following 1900, friction intensified between Latzer and Wildi regarding the company’s strategic path. By 1906, they were two of the three principal shareholders, with Kaeser as the third. Family relationships played a role: John Flournoy Montgomery, married to Wildi’s daughter Hedwig, joined as head of advertising, while Latzer formed an alliance with Kaeser after their children wed.
In 1907, Wildi was removed from daily management and officer positions but retained ownership of more than one-third of shares and kept a seat on the board. Subsequently, the board enacted a policy preventing members from engaging in milk condensing businesses. Ignoring this restriction, Wildi and Montgomery established the "John Wildi Evaporated Milk Company," operating facilities in Highland and Marysville, Ohio.
Despite Helvetia’s protests, Wildi maintained his board position but was excluded from meetings. The Wildi family successfully overturned the 1907 board rule through litigation by 1911. After Wildi’s death in 1910, he bequeathed his Helvetia shares to his wife Louisa and transferred stock of his new enterprise to his daughter. With no conflicting ownership interests remaining, the restrictive rule became obsolete.
Following John Wildi’s passing, family attorney William Nardin joined Helvetia’s board. Louisa divested her Helvetia holdings in 1923 for . Meanwhile, during World War I, the John Wildi company merged with Nestlé.
Contracts with government
Thanks to its long shelf life and robustness, "Our PET" was extensively utilized by the US military, including Teddy Roosevelt's Rough Riders during both the Spanish–American War and World War I. American soldiers dubbed a Helvetia milk can a "Tin Cow." To fulfill substantial government orders, Helvetia expanded by opening a second facility in Greenville, Illinois and repurposed a limburger cheese factory in New Glarus, Wisconsin for milk production in 1910. By 1918, it operated ten plants across the Midwest, Pennsylvania, and Colorado. Many of these closed after WWI as demand decreased, restricting distribution primarily to Western US regions. In 1919, Pet entered into an $875,000 joint venture with Carnation's General Milk Co. targeting international markets.
The Highland plant experienced a temporary shutdown in 1920 due to strikes among local farmers. Amidst a milk producers’ strike in St. Louis, surplus inventory was sold to businessmen, which triggered additional strikes among producers in Highland.
PET Milk Company
In 1921, the Helvetia company relocated its headquarters to St. Louis, with John Latzer taking over leadership from his father, Louis Latzer. Two years later, in 1923, the firm adopted the name PET Milk Company, inspired by its leading product.
By 1925, Pet expanded its reach by acquiring Sego Milk Products based in Salt Lake City, restoring its presence in the Western United States market that had diminished after World War I. The late 1920s saw further growth through purchases of an ice cream facility in Greenville, Illinois, and a fluid milk processing plant located in Johnson City, Tennessee.
Following a period of substantial expansion, Pet Milk made its debut on the New York Stock Exchange in 1928. The company then established a subsidiary named "Pet Dairy Products Company" in 1929 to handle fluid milk sales from the Johnson City operation.
After Louis Latzer passed away in 1924, John Latzer appointed Nardin to oversee sales and marketing efforts. Nardin brought on board Erma Proetz from Gardner Advertising Company to manage Pet’s advertising campaigns. Proetz launched a highly effective promotional effort beginning with features in Ladies' Home Journal (1927) and created the "Pet Milk test kitchen" dedicated to recipe innovation and marketing strategies.
Proetz invented the persona "Mary Lee Taylor," depicted as Pet’s expert nutritionist and home economist. Starting in 1933, "The Mary Lee Taylor Show" broadcasted bi-weekly radio segments showcasing recipes using Pet Milk products developed in the test kitchen. By 1943, this program evolved into a half-hour CBS Radio show combining soap opera narratives with culinary advice promoting Pet’s offerings. At its height, it was aired on 200 stations and continued until 1954 with various hosts.
In 1943, Pet became a pioneer by introducing vitamin D fortification of dairy items through irradiation technology; however, evaporated milk sales reached their peak around 1950. This shift encouraged the company to diversify through acquisitions and product enhancements, including advancements in nonfat dry milk processing. After John Latzer’s death in 1952, leadership transitioned to his brother Robert Latzer.
Diversification
During the late 1950s and early 1960s, Pet broadened its business scope via strategic acquisitions and international expansion. Theodore Gamble, grandson of Louis Latzer and company president from 1959, led efforts that included acquiring Michigan-based Pet-Ritz Foods in 1955 and launching a Canadian subsidiary. New product lines such as Mary Lee Taylor Ice Milk (1959) and Swiss Miss frozen pies were introduced, while the Canadian division purchased Old Cherry Hill Cheese House for over in 1960.
By 1960, Pet held a 35% ownership stake in General Milk Co., a joint venture with Carnation that also engaged in partnerships with Standard Brands in Brazil and Beechnut-Life Savers in West Germany, thereby extending Pet’s international footprint.
Under Gamble's leadership, the company evolved into a diversified food products conglomerate with emphasis on specialty foods and snacks. Notable acquisitions included C. H. Musselman applesauce (1961), Laura Scudder snack foods (1962), Stephen F. Whitman & Son chocolates, Downyflake frozen waffles, pecan producer R. E. Funsten, and Dutch jelly manufacturer C. V. Gebroeders Pel. Additionally, Pet entered gourmet food markets by acquiring Reese Finer Foods and fruit juice manufacturer D. E. Winebrenner Co., alongside snack food producer George H. Dentler & Sons.
In 1965, Pet extended beyond traditional food processing by acquiring Stuckey's, which operated roadside retail stores alongside pecan candy production—complementing Pet’s existing nut business—and established Matutano in Barcelona as a joint venture aimed at penetrating European snack markets.
By 1966, Pet introduced low-fat dairy options such as Skimmed Milk and "99% Fat Free Evaporated Skim Milk." Since Gamble assumed presidency in 1959, sales had increased by 123%, reflecting robust growth fueled by diversification initiatives and effective management strategies.
Pet Incorporated
In 1966, the firm adopted the name Pet Incorporated to better represent its broadened corporate strategy. That year, it merged with Hussmann Refrigerator Company and secured a controlling stake in American Refrigeration Products S.A., marking its expansion into the Guatemalan market. Pet pursued further growth by acquiring Aunt Fanny's Bakery in Atlanta (1966) and purchasing Schrafft's restaurant chain for $14 million in 1967.
The acquisition of Mountain Pass Canning Company in 1968 brought the Old El Paso Mexican food brand under Pet’s umbrella. Simultaneously, the company divested its interest in General Milk Co., earning $30.8 million from an original investment of $875,000. During the same year, Pet entered the retail sector by acquiring the 9-0-5 Liquor Store chain, consisting of 31 locations in the St. Louis area, for $6 million.
Operational difficulties arose when a Teamsters strike halted Hussmann’s production amid a $13 million plant relocation. This was compounded by economic slowdowns in housing and supermarket sectors, which negatively impacted overall results. Additionally, several newly introduced products struggled against intense competition or failed to establish market presence.
To address these challenges, Pet underwent a restructuring phase in the late 1960s: John Bittner took over leadership of the milk division; two milk processing plants were shut down; and approximately 200 corporate roles were eliminated. Following these changes, President and COO Gordon Ellis stepped down. After the passing of Gamble in 1969, Boyd F. Schenk—a veteran employee who had headed the frozen foods division since 1963—was appointed president and CEO.
Under Schenk’s guidance, frozen foods grew to become Pet’s largest business segment. The company achieved record profits, boosted advertising budgets, and introduced innovative products aimed at specialized markets. Notable launches included Old El Paso frozen Mexican pizzas, Pet-Ritz pizza crusts, frozen donuts, natural peanut butter, and Sego diet bars. In 1970, Pet expanded its liquor retail footprint by acquiring Vendome Liquor Markets in Woodland Hills, California. Conversely, less profitable units were divested in 1971: Red Seal (Denver) was sold to T&W, Inc., while PepsiCo acquired the Spanish snack brand Matutano.
ICI
By 1977, after nearly tripling its revenue to , Pet became subject to a hostile takeover bid by IC Industries (ICI) in 1978. This acquisition disrupted Pet’s ongoing purchase of Hardee's for , a deal that ICI opposed; Hardee's eventually agreed to a settlement of to conclude disputes prior to ICI finalizing its takeover.
ICI, a Chicago-based conglomerate led by former Railway Express Agency president William B. Johnson, held diverse holdings including Illinois Central Gulf Railroad, American Brake Shoe Company, Pepsi-Cola General Bottlers, Dad's Root Beer, Midas International, and Gulf, Mobile and Ohio Railroad. The company had been planning the acquisition of Pet for two years.
Within twelve months of acquisition, ICI separated Pet and Hussmann into distinct subsidiaries: Hussmann retained refrigeration and store equipment operations, while Pet maintained its food-related businesses. In 1981, Pet sold its Musselman division for , which Knouse Foods later acquired in 1984. The following year, ICI expanded Pet’s specialty foods portfolio by purchasing William Underwood Company for , adding Underwood canned meats, B&M beans, and Ac'cent flavor enhancer brands. Additionally, Pet acquired McGrew Color Graphics to complement its existing St. Louis Lithographing subsidiary.
In 1983, Pet exited the retail liquor market by divesting both the 9-0-5 Liquor Stores chain and Vendome Liquor Markets outlets; it also sold Laura Scudder's business that year.
Ray Morris assumed the role of Pet president in 1984. The subsequent year saw Schenk appointed as ICI president and COO while retaining his position as chairman of Pet. That same year, PET Dairy was sold to Challer Foods under Finevest Dairy Holdings; canned milk products were excluded from this transaction.
By the mid-1980s, Pet consolidated its structure from thirty divisions into four core groups: Grocery, Specialty, Frozen & Baker, and International. In 1986, it acquired Ogden Food Products—including Progresso and Hain brands—and Canadian marketer Primo Foods. Further expansions included purchasing Orval Kent Food Company in 1988; acquiring Van de Kamp's frozen seafood business from Pillsbury in 1989; and adding specialty meat producer Coorsh and Bittner through its Canadian subsidiary.
Restoration of autonomy
In 1988, ICI, the parent organization of Pet, underwent a rebranding to become Whitman Corp. and divested its railroad and defense divisions to concentrate solely on food-related products. By 1991, Whitman had spun off Pet, Inc., thereby reinstating its status as an independent company.[1]
During the early 1990s, Pet's product lineup expanded to include LaCreme whipped topping and the regional pie crust brand Oronoque, marketed through its subsidiary Pet-Ritz.[2] In 1993, Pet divested the Whitman's chocolate brand to Russell Stover Candies[3], and in 1994, it sold Orval Kent to a group of investors led by Dick Fogg, a former executive at Land O'Lakes.[4]
Pet's independence concluded in 1995 when it was purchased by the Pillsbury Company, itself a part of Grand Metropolitan.[5]
Developments after independence
Following the acquisition, Pet’s principal brands were progressively sold off amid various corporate restructurings. In 1997, Grand Metropolitan merged with Guinness to establish Diageo.[6] Pillsbury divested the Underwood division—which included brands such as B&M, Ac'cent, Las Palmas, and Joan of Arc—to B&G Foods in 1999, aiming to focus on more prominent brands like Green Giant.[7]
In 2000, General Mills reached an agreement to acquire Pillsbury along with its PET evaporated milk and dry creamer product lines from Diageo. However, due to antitrust regulations enforced by the FTC, both companies were required to sell multiple brands—including PET—to International Multifoods. These transactions were finalized in 2001.[8][9]
In 2004, The J.M. Smucker Company acquired Multifoods but later divested its U.S. sweetened condensed and evaporated milk operations in 2015. This new company, known as Eagle Family Foods Group, backed by private equity firm Kelso & Company and based in Akron, Ohio, took control of several Smucker brands including PET.[10][11]
PET brand
The PET trademark is currently held by Eagle Foods, which continues manufacturing "PET Milk" evaporated milk products. Eagle Foods licenses the PET brand name to the Dairy Farmers of America (DFA) cooperative for use under "PET Dairy," which traces its origins back to the original Pet Dairy Products Company established in 1929. After Pet divested its dairy operations in 1985, ownership transferred through Challer Foods before becoming part of Dean Foods’ Land-O-Sun division. Following Dean Foods’ bankruptcy filing in 2020, DFA acquired Pet Dairy and now utilizes "PET Dairy" as a regional brand for fresh and processed dairy items throughout the Southeastern United States.[12]
Former Pet product lines
- Laura Scudder's snack foods and peanut butter
- Matutano snack items
- Old El Paso Mexican cuisine products
- Progresso soups
- Schrafft's (restaurant chain)
- Sego (diet drink)
- Stuckey's pecan confections and roadside outlets
- Van de Kamp's frozen seafood products
- Whitman's chocolates
- William Underwood Company canned meat products
Related topics
General references
External links
- PET Milk (Evaporated milk by Eagle Foods)
- PET Dairy (Milk products from DFA)
- U.S. Patent 308,421, Device for Milk Preservation
- U.S. Patent 308,422, Method for Milk Preservation
- U.S. Patent No. 358,213, Milk Evaporation Process
- 1966 PET Advertisement for SEGO Diet Food
- Gardner Advertising Company digital archive featuring Pet Milk ads hosted by the St. Louis Public Library
- Articles with short description
- Companies based in Madison County, Illinois
- Food and drink companies established in 1885
- Dairy products companies of the United States
- Defunct companies based in Illinois
- Defunct consumer brands
- Dean Foods brands
- The J.M. Smucker Co. brands
- American companies established in 1885
- Companies that filed for Chapter 11 bankruptcy in 2019
- 4
- Companies of the United States by year of establishment
- Pages with script errors