Borden Food Corporation

Borden Food Corporation was an American producer food and beverages, non-food consumer products, and packaging. At one time, the company was the largest U.S. producer of dairy and pasta products."International Directory of Company Histories," Vol. 22, 1998.] The company, based in Columbus, Ohio, focused primarily on pasta and pasta sauses, bakery products, snacks, processed cheese, jams and jellies, and ice cream. In 1993, sales of food products accounted for 67 percent of its revenues. It was best known for its Borden Ice Cream, Meadow Gold milk, Creamette pasta, and Borden Condensed Milk brands.

After significant financial losses in the early 1990s, Borden was purchased in a leveraged buy-out in 1995 by Kohlberg Kravis Roberts (KKR). KKR divested itself of the Borden Food brands and shuttered operations in 2001.

Founding and early years

The company was founded By Gail Borden, Jr., in 1857 in Connecticut as "Gail Borden, Jr., and Company." Its primary product was condensed milk. The company changed its name in 1858 to the New York Condensed Milk Company. The firm prospered during the Civil War by selling condensed milk to Union armies. Borden began selling processed milk to consumers in 1875, and pioneered the use of glass milk bottles in 1885. Borden started selling evaporated milk in 1892, and expanded into Canada in 1895.

Growth years

The company changed its name to the Borden Condensed Milk Company in 1899, and became the Borden Company in 1919. It expanded rapidly, buying numerous dairies, ice cream manufacturers, cheese producers, and mincemeat processors. Taking advantage of its many herds of cattle, the company got involved in rendering and the manufacture of adhesives. In World War II, Borden pioneered the American manufacture of non-dairy creamer, instant coffee and powdered foods.

In 1926, Borden spun off its food products division—leaving the parent company (Borden, Inc.) as a holding company. But Borden Food was brought back in 1929 as a division.

In the 1950s, Borden, Inc. went on a buying spree, swallowing up companies such as Wyler's (which made bouillon and powdered soft drinks), ReaLemon (manufacturer of synthetic and reconstituted lemon juice), Cracker Jack, Campfire brand marshmallows; Wise Foods (makers of potato chips) and Bama (makers of jellies and jams).

Although Borden, Inc., retrenched in the inflationary 1980s, Borden Food engaged in a wave of mergers and acquisitions. It purchased the Meadow Gold dairy products company, and the Prince pasta manufacturing concern (giving Borden 30 percent of the domestic pasta market).

Demise

Borden, Inc. suffered significant losses in 1991, 1992 and 1993. A 1991 restructuring failed to integrate the company's brands and marketing efforts. When whole milk prices dropped in 1992, Borden Food did not lower its prices—causing a significant drop in market share from which it was not able to recover. Borden, Inc. divested itself of nearly a third of its businesses in 1993, including many Borden Food brands, but could not find a buyer for its Wise snack food concern. In deep financial difficulty, Borden, Inc. was bought out by Kohlberg Kravis Roberts (KKR) in 1995.

Borden Food's Meadow Gold Dairies subsidiary was sold in September 1997 to the Dairy Farmers of America. Borden Food also licensed the use of Elsie the Cow, but retained ownership of the trademark.Jensen, "Crackerjack Plan? Borden to Sell Some Food Brands," "Wall Street Journal," March 21, 1997.]

In 1997, KKR focused Borden Food solely on its pasta and pasta sauces lines. But the new strategy failed. In June 2001, Borden Food sold several pasta lines to the American Italian Pasta Company and its pasta sauce and soup businesses to the H. J. Heinz Company. In July 2001, Borden Food sold its remaining pasta lines to the New World Pasta Company.Buchanan, "Borden Foods Turns Out the Lights, Sells Final Holding," "Business First of Columbus," August 27, 2001.]

Borden, Inc. sold its final product line, It's Pasta Anytime, to Kraft Foods in 2001 and shuttered its operations.

Notes

References

*Buchanan, Doug. "Borden Foods Turns Out the Lights, Sells Final Holding." "Business First of Columbus." August 27, 2001.
*"International Directory of Company Histories." Vol. 22. Farmington Hills, Mich.: St. James Press, 1998. ISBN 1558623639
*Jensen, Elizabeth. "Crackerjack Plan? Borden to Sell Some Food Brands." "Wall Street Journal." March 21, 1997.