In 1996, Keebler opened an 83,000-square-foot technical center in Elmhurst for cookie and cracker development projects. In 1995, the last year of United Biscuit's control, Keebler registered $93 million in losses. Source: International Directory of Company Histories, Vol. Designed to replicate a functional bakery, including receiving docks, a mixing room, ovens, and manufacturing lines, the technical center enabled Keebler to test all possible scenarios and it enabled Reed to develop products for niches where Nabisco's dominance was less resilient. It worked. While Keebler began as a small bakery in 1853, its infamous Elves didn't make their appearance until over 100 years later. Keebler, under the vibrant leadership of Reed, was pushing forward impressively, something the company was expected to do in the future regardless of its relationship with Flowers Industries. > Debut: 1960. Though the line has since vastly expanded, the original sugar cookie — soft and chewy, with thick pink frosting covered with multi-color sprinkles — remains Lofthouse’s signature. Keebler is a division of the Kellogg Company. The Keebler Company turned 150 years old in 2003. Milestone birthdays are a big deal and come with a lot of pressure regarding how you're going to celebrate the occasion. But did you know that Keebler makes several types of cookies that are, let's say, awfully similar to those well-known confections that Girl Scouts sell each spring? Yet another invention by Nabisco, these graham crackers topped with marshmallow and coated in chocolate were created in Manhattan and originally sold in New Jersey to a grocer in what is now Union City. According to. Some 85% of Mallomars are consumed in the New York Tri-State area. Although the company lagged behind Nabisco, controlling approximately 20 percent of the market for cookies and crackers sold to supermarkets, drugstores, and mass merchandisers compared to Nabisco's 40 percent market share, the strides achieved under Reed's leadership were remarkable nonetheless. The elves (and their hollowed-out tree), however, didn't make their grand entry to the brand until Leo Burnett, the famed advertising titan, created them in 1969. He thought of his 4-year-old granddaughter Debbie, and the Little Debbie brand was born. We see them around but we don't know what goes on behind the scenes. Suncheros Tortilla Chips, which the company made in the '90s, according to, While the elves might seem to be fairly interchangeable, many of them actually have individual names, hobbies, talents, and character backstories. Since 2012, the company has been owned by ConAgra Foods, whose brands include Hunt’s, Marie Callender’s, and Chef Boyardee, among many others.). In fact, as CNBC reported, they're made in exactly the same factory. Keebler's acquisition of President Baking was strategically important for several reasons. You can't think of Keebler without thinking of that magic, hollow tree. Godfrey Keebler, of German descent, opened a bakery in Philadelphia, Pennsylvania in 1853. Little Debbie’s parent company, McKee Foods Corporation, was founded in 1934 when O.D. Its headquarters is based in Battle Creek, Michigan, United States of America. All rights reserved. Eventually, however, the management of the bakery network tightened the structure of its organization, aping a corporate trend that swept from coast to coast. President Baking Co. Inc. was established as a wholly owned subsidiary of Keebler. Since 2001, it has been part of the Kellogg Co. This spring, Keebler is teaming up to raise money for Make-A-Wish®. In January 2000, he agreed to acquire privately held Austin Quality Foods, a $200-million-in-sales manufacturer of cookies and crackers that was best known for its Zoo Animal Crackers brand. Principal Subsidiaries: Bake-Line Products Inc.; Little Brownie Bakers; Denver Bakery Keebler Co.; Chicago Bakery Keebler Co.; President Baking Co. Inc.; Sunshine Biscuit Co. Keebler is, in all likelihood, known best for its iconic American cookies, but the company also makes crackers and other products. 14. In 1988, he joined his wife in business and for the next three years the pair worked as marketing consultants. The first Keebler elf, dubbed J.J. Keebler, introduced in 1969, was the creation of Chicago’s Leo Burnett Co. ad agency. Keebler is a large manufacturer of cookie and cracker products. In less than three years, he had added nearly $1 billion in sales while leading a remarkable turnaround in profitability. Thomasville, Georgia-based Flowers Industries, a producer of fresh and frozen baked foods, and Artal Luxembourg S.A. acquired Keebler through a joint-venture arrangement, installing Reed and Vermylen as the saviors they would soon prove to be. The campaign was intended to promote the idea of the magic of the brand in general, rather than selling any particular product. The affiliated bakeries came under the control of a single corporate entity when the United Biscuit Company of America was formed in 1927. While they might not still grace supermarket shelves, according to The Chicago Tribune, Keebler introduced both Suncheros Tortilla Chips and another product, O'Boises potato chips, in 1988. Nabisco released these rectangular shortbread cookies the same year that Oreos first appeared. During the 1960s, countless companies embraced the benefits to be found in centralizing all corporate functions under a single entity. As a result, Keebler closed a Philadelphia-based factory — where the brand originated — due to low sales. To finance further acquisitions, Reed celebrated his second anniversary at Keebler by taking the company public, completing an initial public offering (IPO) of stock in January 1998. With greater exposure to consumers, Cheez-It sales began to climb, particularly after a flurry of product line extensions. Godfrey Keebler, a German immigrant baker, opened a small neighborhood shop in Philadelphia in 1853. Two individuals were credited with Keebler's revival, Sam Reed, who would become the company's president and CEO, and David Vermylen, who would oversee the management of Keebler's brands. In January 1999, Reed established two new business units to help integrate the distribution of President Baking's brands into Keebler's existing distribution system. According to the Girl Scouts, however, Keebler's year-round cookie sales haven't affected their sales each spring. It might be simply because they’re crisp cookies that snap when they’re broken in two, or the word might derive from the German “schnappen,” meaning to grab quickly. According to, You may well-know that Little Brownie Bakers is one of the commercial bakeries licensed to make Girl Scout cookies, as the, That's right, two of America's most famous cookie companies once had a little bit of a tiff. The resounding success of the Sunshine Biscuit purchase convinced Reed of the gains to be made by pursuing growth through acquisitions. Keebler took its name from Godfrey Keebler, who in 1853 opened a small bakery in Philadelphia. Godfrey John Keebler was born on month day 1870, at birth place, Wisconsin, to Frederick A. Morrell Keebler and Caroline Keebler (born Eastwood). St. James Press, 2001. David Vermylen and Sam Reed ended up working side by side at Mother's Cookies, with Vermylen joining as the company's vice-president of marketing before earning promotion to the post of president. The company’s elf lore began when ad man Leo Burnett created … > Debut: 1912. Further, Keebler drew criticism for trying to directly compete against Nabisco's stalwart brands, such as Frito-Lay, instead of building its market share in product niches where Nabisco's strength was more assailable. If a Girl Scout cookie craving hits outside of their normal selling season, head to your nearest Keebler-carrying grocery store for some that are pretty much just as good as the real deal. Meanwhile, Vermylen developed a portfolio strategy that emphasized Keebler as the company's signature brand. Ernest J. Copyright (c) 2019 Company-Histories.com. One of his suppliers suggested naming the new line after a family member. 11. Reed, a snack and baking industry veteran of more than 20 years, was about to become the new chief executive office of Mother's Cookies, and he solicited the Vermylens for help in developing marketing strategies. decided to market some of his products individually wrapped but packaged in multi-snack cartons. The time had come for profound changes to be made. Keebler’s enterprise grew, and in 1926, it became part of the United Biscuit Company of America, headquartered in Chicago. Well, Leo Burnett (the agency this time) created a real-life Hollow Tree in Golden Gate Park in San Francisco, accord to Ad Age. The McKees struggled for decades, until O.D. Keebler's cookies, crackers, and the like have been American cultural staples for over 150 years. The usual story is that because shortbread is Scottish in origin, the company named the new cookies after a popular Scottish novel, “Lorna Doone.” The only problem is that the book’s author, R. D. Blackmore, was English, and though the Doone family was of Scottish origin, the entire novel takes place in Exmoor, in southwestern England. Though it's a well-known, well-recognized brand, there are surely some things that even the brand's most ardent and loyal fans just don't know. According to Mental Floss, after J.J.'s debut in 1969, Ollie, the singing, golfing elf appeared on the scene. In addition to manufacturing private label cookies and crackers, the company ranks as the leading manufacturer of Girl Scout Cookies, producing more than 60 percent of such cookies sold. While Keebler began as a small bakery in 1853, its infamous Elves didn't make their appearance until over 100 years later. Principal Competitors: Nabisco Holdings Corp.; Campbell Soup Company; Lance, Inc. Godfrey's bakery earned the distinction of becoming the first member of a network of local bakeries that later was amalgamated under the Keebler corporate umbrella. The company was acquired by other companies and continued to expand from there.
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