![]() ![]() In 1916 the company introduced a lower-cost alternative to condensed milk in which coconut oil was substituted for butterfat. Relations with the dairy industry were sometimes less friendly. The farms did not significantly reduce Carnation ’s reliance on independent dairymen, but they did contribute to a smooth rapport with suppliers, whose cows were crossbred with Carnation ’s, thus greatly improving the productivity of their stock. In 1915 a second farm was purchased near Oconomowoc, Wisconsin where, a year earlier, the company had located its eastern division offices. The investment paid off as Carnation cows set numerous records for milk and butterfat production and won the acclaim Stuart sought. He made the farms into a company showpiece by spending lavishly, buying prized Holstein-Friesian cattle and hiring animal husbandry experts. In 19, Stuart established Carnation Stock Farms on 750 acres of lush land in Washington ’s Snoqualmie Valley. The company had already rejected two purchase offers, including one for $1 million from its much larger competitor, Borden. By 1911, condenseries in Wisconsin were supplying the Midwest and East with “milk from contended cows, ” as the famous slogan introduced in 1907 said. But competition in much of the West was thin, so Pacific Coast Condensed Milk extended its territory systematically. Stuart expanded distribution cautiously at first, and insisted on capturing a 65% share of existing markets before penetrating new ones. While early newspaper advertisements emphasized that Carnation milk was safe for babies, a product formulated especially for this use called Sanipure was abandoned after a disappointing reception in the marketplace. As business picked up, a sales office was established in Seattle, another plant was opened in Forest Grove, Oregon, and state-of-the-art canning and homogenizing equipment was installed. ![]() Soon it found a sizable market among Alaskan gold prospectors who valued evaporated milk because it was nonperishable and easily transported. After this inauspicious beginning, the company seldom lost money again. Despite the memorable name and a bright red-and-white label, consumers were slow to buy Carnation evaporated milk at first, and the company lost $140,000 in its first year, prompting Yerxa to sell his interest to Stuart. Stuart chose the name Carnation after a brand of cigars by that name. Meyenberg ’s former employer, later renamed Pet Milk Company, soon faced growing competition from Pacific Coast Condensed Milk. Louis, Missouri -the maker of the evaporated milk Stuart had stock in his El Paso store. Distinct from condensed milk, which Gail Borden developed in 1856, evaporated milk contains no sugar preservatives and more closely resembles fresh milk.) Before signing on with Yerxa and Stuart, Meyenberg had helped establish the Helvetia Milk Company in St. (Evaporated milk is made by heating fresh milk quickly to kill harmful bacteria and then sealing it in an airtight can. Meyenberg, the Swiss inventor of evaporated milk, in charge of the condensery, and paid him $25,000 for his patented technology. Although both of his prior ventures in food sales failed, Stuart had developed a knack for marketing and publicity, which proved to be an important factor in the success of the Pacific Coast Condensed Milk Company, as he and Yerxa called their partnership. Having grown up on a farm in Indiana, however, Stuart was acquainted with dairying, and as the former proprietor of a general store in El Paso, Texas and later a wholesale grocery in Los Angeles, he recognized the value of sanitary milk at a time when fresh milk was neither universally available nor always potable. Yerxa persuaded him to join in the purchase of a bankrupt condensery in Kent, Washington in 1899. holding company, Carnation focuses on domestic sales.Įlbridge Amos Stuart knew almost nothing about the evaporated-milk business when Thomas E. Today it markets more aggressively, acting like an independent company while sharing risk with its Swiss-based parent. Carnation once had a reputation for conservative yet effective marketing, capturing small markets before advancing to larger. The $3 billion deal allowed Carnation to renew its focus on consumer foods and pet foods and reduced its traditional reliance on its dairy division ’s cash flow. The 1984 Nestl é takeover of Carnation was at the time the largest acquisition outside the oil industry. Incorporated: 1916 as Carnation Milk Products Company Sales: $2.65 billion 5045 Wilshire Boulevard Los Angeles, California 90036 U.S.A.
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