Ralston Purina

For the Ralston portion of the now defunct Ralston Purina Company, see Ralcorp.
Ralston Purina Company
Industry Food, pet food, animal feeds
Fate Merged with Friskies Pet Care to form Nestlé Purina PetCare
Founded 1894 as Purina Mills
Defunct 2001
Headquarters St. Louis, Missouri
Key people
 William H. Danforth, founder
Products Dog food, cat food, animal health products, breakfast cereal, crisp bread
Website www.purina.com

Ralston Purina Company was a St. Louis, Missouri-based American animal feed and pet food company. On December 12, 2001, it merged with Swiss food-giant Nestlé's Friskies division to form Nestlé Purina PetCare Company.[1]

History

Ralston Purina (originally Ralston-Purina) traces its roots to 1894, when founder William H. Danforth established the animal feed company Purina Mills. Its predominant brand for each animal was generally referred to as "Chow"; hence "Purina Horse Chow", "Purina Dog Chow", "Purina Cat Chow", "Purina Rabbit Chow", "Purina Pig Chow", and even "Purina Monkey Chow". Later, the company began producing cereal, which received endorsement by Webster Edgerly, founder of Ralstonism, to market Ralston breakfast cereals. Edgerly was at the time promoting the consumption of whole-grain cereal. These cereals became so successful that the name of the enterprise was changed in 1902 to the Ralston-Purina Company.[2]

In 1986, Ralston Purina sold Purina Mills, its US animal feed business, to British Petroleum. Purina Mills is now owned by Land O'Lakes. In 1994, the Ralston "human food" operations of the Ralston Purina Company were spun off into a new company called Ralcorp Holdings. In 1998, Ralston Purina spun off its international animal feed business as Agribrands which was acquired by Cargill in 2001.[3] The animal feed businesses continue to use the Purina and Chow brands which Purina Mills and Cargill license for use in the US and internationally, respectively.

Merger with Nestlé

Ralston Purina became the subject of an acquisition bid by Swiss-based Nestlé, whose Friskies brand was the other leading US brand of pet food. Nestlé S.A. and Ralston Purina announced in January 2001 a definitive merger agreement.[4] Under the agreement, Nestlé acquired all of Ralston Purina's (NYSE: RAL) outstanding shares for US$33.50 per share in cash. The offer represented a premium of 36% over the closing price on Friday, January 12, 2001. The transaction had an enterprise value of US$10.3 billion ($10.0 billion equity plus $1.2 billion of net debt, minus $0.9 billion of financial investments).

Both corporations saw this major strategic transaction as the ideal way to benefit from their combined know-how, complementary strengths, and international presence in the growing pet-care market. Several brands of pet food (e.g., "Meow Mix") had to be divested separately to meet antitrust concerns. Purina brands are now made and marketed by a division of Nestlé (Nestlé Purina PetCare) which is still headquartered in St. Louis.

While primarily a pet-food company, Ralston Purina also made some other pet-related products, such as Tidy Cats brand and Yesterday's News cat litter, which is made from recycled newspaper, purchased from Edward Lowe Industries in 1990. Also, Purina has honoured several Canadian animals every year since 1968 in their Animal Hall of Fame. The latest inductees included a police service dog which "rushed and subdued an armed robber".

Acquisitions and diversifications

In 1977, Ralston Purina acquired Missouri Arena Corporation and the St. Louis Blues National Hockey League franchise. During the company's ownership of the team, they changed the name of the St. Louis Arena to the Checkerdome, reflecting the Ralston Purina logo. The franchise was sold to Harry Ornest on July 27, 1983.

Ralston Purina purchased the Eveready Battery Company in 1986, owner of the Eveready and Energizer brands. The company was spun off in 2000.

Ralston Purina purchased Continental Baking Company, makers of Wonder bread and Hostess cakes, from ITT in 1984. Ralston spun off Continental Baking Company, subsequently bought by Irving, Texas-based Interstate Brands Corporation (IBC).

Ralston Purina opened test market pizza stores called Checkerboard Pizza in 1986. The format was similar to Domino's and Little Caesars. They opened the stores in markets such as Moorhead, Minnesota, to test how the Midwestern market would accept the concept. They did well, but Ralston Purina decided not to enter the pizza franchise business and closed all pilots by late 1987.

Ralston Purina owned and further developed the Keystone ski resort in Colorado. The "Checkerboard" slope for kids and beginners at Keystone still bears their logo.

Ralston Purina also owned Jack in the Box fast food restaurants from 1968 to 1985,[5] along with several high-end restaurants.

Ralston Purina owned Van Camp Sea Food Company from 1963 to 1988, a tuna cannery with Chicken of the Sea as its main product.

Ralston Purina owned an animal pharmaceutical company in the 1970s and 1980s.

Ralston Purina is famed for its "checkerboard" trademark. The inspiration for the Ralston Purina logo came from founder William Danforth's childhood who dressed in checkerboard cloth.[6] The checkerboard trademark was introduced in 1904.[7] Ralston Purina's headquarters was called Checkerboard Square. The checkerboard logo then evolved into a personal development concept Danforth put forth in his book I Dare You, in which he proposed the four key components in life ("Physical", "Mental", "Social", and "Religious") need to be in balance, and one area was not to develop at the expense of the others.[8] The concept became intertwined with the company in 1921, when it began selling feed that was pressed in cubes called "checkers".[9]

See also

References

  1. ↑ http://www.nestlepurina.com/
  2. ↑ Carman, Tim (2009-04-16), "Food History Potpourri: Ralston Purina's D.C. Roots", Washington City Paper, retrieved 2009-10-19
  3. ↑ History at Cargill.com
  4. ↑ Ackman, Dan (2001-01-16). "Nestle Seals Ralston Deal". Forbes. Forbes.com LLC. Retrieved 2009-10-19.
  5. ↑ "Jack In The Box Inc. - Our Company".
  6. ↑ "A Glimpse from the Past to the Present". Société des Produits Nestlé S.A., Vevey, Switzerland. Retrieved 2009-10-19.
  7. ↑ http://www.purinamills.com/ourheritage/default.aspx
  8. ↑ Danforth, William. I Dare You!. Kessinger Publishing, LLC. ISBN 0-7661-2786-9.
  9. ↑ "William H. Danforth, Founder". Société des Produits Nestlé S.A., Vevey, Switzerland. Retrieved 2009-10-19. Archived June 29, 2010, at the Wayback Machine.
This article is issued from Wikipedia - version of the 11/14/2016. The text is available under the Creative Commons Attribution/Share Alike but additional terms may apply for the media files.