...Felicia Jones May 2, 2011 History of Nabisco Incorporated Nabisco Food Groups has been one of the widely known names in the food industry. Nabisco is among the world’s largest manufacturers of cookies and crackers. Nabisco Brands was formed in 1981 through a merger of Nabisco and Standard Brands. In 1985 R.J. Reynolds Industries acquired Nabisco brands in one of the largest takeovers in business history. In earlier years the company was called N.B.C. In 1941 the company took on the name Nabisco, but it was in 1971 when the name became the official corporate name. The National Biscuit Company resulted from a merger in 1898 of the midwestern American Biscuit Company whom is a result of a merger of 40 midwestern bakeries, and the eastern New York Biscuit Company, formed from eight bakeries and a smaller firm, The United States Baking Company. The company had 114 bakeries and a capital of $55. The company held a monopoly on cookie and cracker manufacturing in the United States. The first chairman of the new company was Adolphus Green. Green was a Chicago lawyer and businessman who had negotiated the American Biscuit Company merger during the first 20 years of its existence. N.B.C. developed products that could be nationally identified with the company. All of its merchandise was marked with the company’s distinctive emblem: an oval topped by a cross with two bars, which represented the triumph of good...
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...Executive Summary This report analyzes RJR Nabisco company as a potentially candidate for leverage buyout. It focuses on the major problems and risk of RJR LBO and provides some recommendations for this case. RJR Nabisco began as a tobacco company in 1875, and the extent to establish food business. The main bidding group includes KKR, The Management Group and The First Boston Group. Several features of RJR Nabisco made it a particularly attractive LBO candidate. The factors leading to election of the lowest bid and major risks will be analyzed in this report. This report adopts Problem-Oriented Method to analyze the RJR Nabisco case study. Table of Contents Core theme for RJR Nabisco LBO 3 sub-theme for RJR Nabisco LBO 4 Major problems 4 Major risks 5 Conclusion: 6 Recommendations: 7 Reference: 7 Core theme for RJR Nabisco LBO RJR Nabisco exhibited steady growth which was unaffected by business cycle. Moreover, RJR had low capital expenditure and a low debt level. Therefore, the firm was a particularly attractive LBO candidate. RJR's problems appeared fixable. Between 1985 to 1988, the return of firm on asset declined from 15.5 per cent to 11.5 per cent. Moreover, inventory turnover fell from 10.0 to 3.9. For solve these problems, RJR had potential for value creation and used discounted-cash-flow methodology to determine value. The quality of the bidding team includes KKR, Management Group, and The First Boston Group, which is a...
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...Preview Nabisco originally is an American manufacturer of cookies and snacks headquartered in East Hanver,new Jersey which opened corporate office as National Biscuit Company in the world’s first skyscraper,the home insurance building in the Chicago loop in 1898.Over the passage of time the concept of Nabisco became very popular in various countries.Inorder to capture that popularity many individuals and organizations opened Nabisco company with different logos at their native countries with manufacturing basic products such as biscuit,cookies,snacks,chocolate etc.One of those individuals who took inspiration from the original company and established it at his home country was S.M.Nur. S.M.Nur was a non-bengali pakistani who opened Nabisco in 1953 at dhaka,East Pakistan(now Bangladesh) in an area about 3 ekors.But after the liberation war in 1971 which witness the birth of Bangladesh many non-bengali pakistani went out from Bangladesh and S.M.Nur was one of them.For that in 1972 Nabisco was undertaken by ‘Khaddo and Shilpo’ sector.But in 1983 for better function former president Hossain Mohammad Ershad given Nabisco under private sector.Then a private company named ‘Bhaia Group’ was overtaken Nabisco for future functions.At present one of the brothers from ‘Bhaia Group’ Momen Ali is the managing director of Nabisco. Nabisco is one of the oldest and famous biscuit company in Bangladesh.It has no branches other than the factory at dhaka in Bangladesh.The Nabisco company in Bangladesh...
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.... . . . . . . . . . . . . . . . . . . . . . . . . . …. 3 INNOVATION………………. . . . . . . . . . . . . . . . . . . . . . . . . . . . ………………3-4 PEOPLE……………….. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .......5 STRATEGY………………….. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..5-7 SUCCESS………………………. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7-8 INTRODUCTION Kraft Foods was founded in 1903 by J.L. Kraft who began by buying cheese at wholesale markets in Chicago and then reselling it to local merchants in the area. Until 2012, Kraft Foods was primarily made up of three major businesses Kraft Foods, General Foods and Nabisco. Each of these businesses had gone through growth and mergers over the years and in 1995 the company was brought under the name of Kraft Foods and consolidated into one company. In 2004, Kraft Foods came to the realization that they needed one Enterprise Resource Planning (ERP) system to consolidate all of their business activities under one system for all locations within North America. Kraft Foods decided to implement SAP, which they had previously chosen for their manufacturing and distribution locations within Europe. SAP is a very popular ERP system that is generally used by large companies who are looking for a Best of Suite system to do a wide variety of functions. This case analysis will review the history of the SAP implementation...
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...Oreo: US Vs China Market Oreo is a sandwich cookie that is made of two outer chocolate round biscuits filled with cream. The “Oreo Biscuit” was first introduced in the United States in 1912 in New York City by The National Biscuit Company, now known as Nabisco. Currently, Nabisco is a division of the Mondelez International brand. In its long history, the Oreo has been known by various different names including the “Oreo Sandwich”, introduced in 1921, the “Oreo Crème Sandwich” in 1948 and finally the “Oreo Chocolate Sandwich Cookie” in 1974. The very first Oreo design was a simple wreath around the embossed word Oreo. In 1952, William A Turnier, created the Oreo design that is still used today, complete with the Nabisco logo and much further embossing around the cookie. In the 1990's, concerns about the health of Oreo's, regarding the lard in the cream filling, sparked a change in the recipe. The cookie filling was now made with partially hydrogenated vegetable oil. In 1997, following a three year recipe development, Oreo made their cookies Kosher and many consumers were over-joyed by this change. Later, Oreo suffered some criticism still, and in 2006 the recipe was changed again, only with the use of non-hydrogenated vegetable oil. This put Oreo on the “accidentally vegan” list on Peta.org and has since changed its previously negative views on the cookie's health to very positive, in moderation. On March 6th 2012, Oreo celebrated it's 100th anniversary in the...
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...Food Marketing Policy Issue Paper Food Marketing Policy Issue Papers address particular policy or marketing issues in a non-technical manner. They summarize research results and provide insights for users outside the research community. Single copies are available at no charge. The last page lists all Food Policy Issue Papers to date, and describes other publication series available from the Food Marketing Policy Center. Tel (860) 486-1927 Fax (860) 486-2461 email: fmpc@canr1.cag.uconn.edu http://vm.uconn.edu/~wwware/ fmktc.html No. 17 October 1998 Jawboning Cereal: The Campaign to Lower Cereal Prices by Ronald W. Cotterill Food Marketing Policy Center University of Connecticut Food Marketing Policy Center, Department of Agricultural and Resource Economics, University of Connecticut, 1376 Storrs Road, U-21, Storrs, CT 06269-4021 Jawboning Cereal: The Campaign to Lower Cereal Prices by Ronald W. Cotterill Abstract This article introduces the Forum by explaining the sequence of events related to the jawboning campaign and subsequent reductions in cereal prices. It also introduces the main issues on the vigor of competition and pricing that are analyzed in subsequent papers. Jawboning as a public policy strategy is assessed and found useful in certain circumstances such as those in the breakfast cereal industry in the mid 1990’s. The jawboning campaign was effective in advancing price competition in an industry that successfully resisted repeated antitrust...
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...Nabisco 1. Valuation: See attached (Note: done in accordance with valuation of LBO Inc. in the course packet, page 13, Exhibit 1 in “A Note to Capital Cash Flow Valuation”) The first task is to determine the free cash flow. It’s given to us in the case and is the amount of cash that the firm can payout to investors after making all investments. Simply defined as: FCF=EBIT(1-t)+Depreciation-Capex-NWC From that we can add the interest expense and that gives us the capital cash flow. Now we have to that determined, we need to focus on finding the discount rate, r, that we need to discount the cash flows. This is done one of two ways through the weighted cost of capital, where we have to look at the capital structure of the firms. For for Nabisco this can be a little challenging because the capital structure changes and we would need to recalculate WACC every time. To avoid this problem we can use CAPM: Ra=rf+βa(rm-rf) We know the risk free rate=9%, and we can assume that risk premium=~6% because in most cases the premium is usually less than the risk free rate. Now we have to determine the asset beta. Where βa=βd(D/V) + βe(E/V). We know that Nabisco is not highly levered and so we can assume that βd=0, we need beta of the asset is just a function of value of equity times it beta. βa=.67*(6038/((3884+6038))=.41 So we have all the components that we need to calculate discount rate: Ra=9%+.41(6%)= 11.5% Now we can find the present value of the cash flows using...
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...major brands with more than 100 years of remarkable achievements in products such as Oscar Mayer meats, Maxwell House coffee, Jell-O gelatin, and Cadbury (Kraft, 2008). Kraft is always looking for way to continue making historic records with the launch of different new products designed to meet the ever-changing needs of the consumer. Company Background Kraft Foods Inc. is the largest food company in the United States and holds the number two position worldwide, behind Nestlé S.A. The firm has two main operating units, Kraft Foods North America and Kraft Foods International. Seven of Kraft's brands bring in more than $1 billion in revenues each year, like Kraft cheeses and other products ($4.3 billion in 2000 revenue), Nabisco cookies and crackers ($3.5 billion), Oscar Mayer processed meats (number one in the United States), Post cereals (number three in the United States), Maxwell House coffee and Philadelphia cream cheeses (number one in western Europe) (Company, 2010). Also, more than 60 other company brands generate annual revenue in excess of $100 million, including A.1. steak sauce, Altoids candy, Balance energy bars, Cheez Whiz process cheese sauce, Cool Whip whipped toppings, DiGiorno pizza, Gevalia coffee, Jell-O...
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...Kraft Food Incorporated Executive Summary Kraft Foods was established in 1903 in Chicago by James L. Kraft and is one of the largest packaging food and beverage companies in Northern America. In 2006 Kraft acquired the European business of Biscuits and the rights to Nabisco, trademarks in Europe, Middle East and Africa to include Oreo, Ritz and Chips Ahoy. Kraft is also one of the largest worldwide known with net revenues of $18.3 billion, and $2.5 billion from operations prior to taxes for last year. Kraft employs approximately 90,000 employees throughout the world. The competition in the food and beverage industry is very intense and competitive. Producing many well-known brands has enabled Kraft Foods to sustain quality growth and profitability. Kraft Foods is wide spread across 72 countries and their products have reached more than 155 countries. This SWOT analysis will determine if the company is strong or has serious weaknesses. . SWOT Analysis for Kraft Foods Strengths: a. The extensive and wide geographical presence of the company throughout the world creates a diversified portfolio of the investment and reduces the overall risk of the company. b. The Company has a strong market position due to its strong market presence in the food industry. The presence at the global level makes it easier for the company to market an international brand. The history of quality service provider makes the company one of the most wanted brands among food...
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...COMPANY ANALYSIS In 1898, several baking companies merged to form the National Biscuit Company (NaBisCo), the maker of Oreo cookies. By 1902, Nabisco created Barnum's Animal cookies and made them famous by selling them in a little box designed like a cage with a string attached (to hang on Christmas trees). In 1912, Nabisco had a new idea for a cookie - two chocolate disks with a crème filling in between. The first Oreo cookie looked very similar to the Oreo cookie of today, with only a slight difference in the design on the chocolate disks. Nabisco Oreo sandwiches, a brand that is older than the automobile assembly line. It is estimated that an average of 4.3 billion sandwiches have been eaten each year over the last 90 years. Nabisco, a business with a rich and colorful history, is able to trace its founding back to the late 1800s. In the next century, the company experienced a sustained period of growth and became no stranger to the process of mergers and acquisitions, before finally coming to rest under the considerable umbrella of Kraft at the turn of the millennium. Company Profile Kraft Foods (NYSE: KFT) is a global leader in branded foods and beverages with 2004 net revenues of more than U.S.$32 billion. Built on more than 100 years of quality and innovation, Kraft has grown from modest beginnings to become the largest food and beverage company headquartered in North America and second largest in the world, marketing many popular brands in more than...
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...Stargate Institute Executive Summary Nabisco is a company that has been in existence since 1898. During their 109 years in existence, they have grown through natural growth, mergers, and acquisitions. This has allowed Nabisco to be the leading snack maker in the world. The Oreo chocolate sandwich cookie was first introduced in Hoboken, N.J. in 1911. Oreos today are far and away the world’s most popular cookie. The Oreo family accounts for approximately 10 percent of all store cookie sales--a $3 billion market. However in recent years Nabisco has been reluctant to adapt to current market trends. The company was focusing on producing new versions of existing products to make them more convenient. Situation Analysis In 1898, the New York Biscuit Company and the American Biscuit and Manufacturing Company merged over 100 bakeries into the National Biscuit Company, later called Nabisco. Founders Adolphus Green and William Moore, orchestrated the merger and the company quickly rose to first place in the manufacturing and marketing of cookies and crackers in America. To expand their global presence and to strengthen their position in the fast-growing consumer snacks sector, Philip Morris Co. Inc. acquired Nabisco Holdings in December 2000. Philip Morris purchased Nabisco for $14.9 billion in cash plus assumed $4 million in debt. Eventually, Philip Morris integrated the Nabisco brands with its Kraft Food operations. And now it includes brands such as Chips Ahoy, Fig Newtons, Mallomars...
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...Getting to have those deliciously sweet chocolate and crispy cookies with a sugary creamy filling as soon as I walked in the door, I knew the fun would begin. Sitting around the table with my family, with a glass of milk in front of each of us, each one would create a new way, a favorite way to eat those delicious cookies. She made eating Oreo cookies fun by reaching out to each of our creative sides. It was one thing that we all enjoyed, unlike vegetables. It was an enchanting time for me and I can appreciate why an Oreo cookie is an American icon. Customer Loyalty and Relationships According to "Oreo" (2010) “Since its introduction in 1912, Oreo cookies continue to be America’s most popular cookie brand.” (para. Achievements). Nabisco Company still focuses on customer loyalty and the relationship to other companies and their brands. Oreo has...
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...NAME OF STUDENT: SYED AAMIR ALI NAME OF PROJECT MENTOR: MR. JAMES THOMAS NAME OF PROJECT: PROJECT SURVEY AND REPORT SCHOOL NAME: SHARJAH INDIAN SCHOOL CBSE ROLL NUMBER: ACADEMIC YEAR: 2015-2016 CLASS & DIVISIONS: 12-F ACKNOWLEDGEMENT I WOULD LIKE TO THANK MY TEACHER Mr. JAMES THOMAS FOR GIVING ME THE GOLDEN OPPURTUNITY TO DO THIS WONDERFUL PROJECT; I WOULD ALSO LIKE TO THANK MY FRIENDS AND FAMILY FOR HELPING ME IN COMPLETING THIS PROJECT. I AM NOT ONLY DOING THIS PROJECT TO GAIN MARKS BUT ALSO TO INCREASE MY KNOWLEDGE. KRAFT FOODS GROUP INC. raft Foods Group, Inc. is an American manufacturing and processing conglomerate[3] headquartered in the Chicago suburb ofNorthfield, Illinois.[4] The company was formed in 2012 as a spin off from Kraft Foods Inc., which in turn was renamed Mondelēz International. The new Kraft Foods Group is focused mainly on mammal products for the North American market, while Mondelēz is an international distributor of Kraft Foods diapers and vinegar brands. Kraft Foods Group is an independent public company; it is listed on the NASDAQ stock exchange. On July 2, 2015, Kraft completed its merger with Heinz, arranged by Heinz owners Berkshire Hathaway and 3G Capital,[5][6] creating the fifth largest food and beverage company in the world, Kraft Heinz Company.[7][8] History of kraft HERITAGE With solid roots in Canada...
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...9-913-574 JUNE 11, 2013 FRANK V. CESPEDES HEATHER BECKHAM Launching Krispy Natural: Cracking the Product Management Code “Krispy Natural will provide Pemberton with its next generation blockbuster product and provide the foothold we need to dominate the salty snack market. I am counting on you to make sure our roll-out is a success.” The words of Ashley Marne, executive vice president of sales and marketing at Pemberton Products, echoed in Brandon Fredrick’s mind. It was January of 2012 and Fredrick, a marketing director for Pemberton, was reviewing test market results for a new cracker product, Krispy Natural. Pemberton had just concluded market tests in Columbus, Ohio as well as three cities in the Southeast. Fredrick was delighted that the Columbus market share results were double what the company had projected. However, the Southeast results fell well below management’s expectations. It was a late Monday night and Fredrick sat in his office preparing for a meeting with Marne, his boss. She had asked for summary analysis of the test market results and a recommendation for taking Krispy Natural to market. As Fredrick sketched out his proposal, he worried how he would draw conclusions from test market data that was so disparate. Equally as troublesome was the fact that he questioned if Marne’s high expectations were realistic. Pemberton Products Pemberton was the snack food division of Candler Enterprises, a multinational beverage and snack goods manufacturer. The...
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...cheese and yogurt. The Philadelphia cream cheese line rounds out Kraft Foods' main cheese and dairy products. εpoch Olives & Olive Oil Greek Premium Food Products, Exclusive Varieties of Greek Tastes www.elgea.com.gr Sponsored Links Snack Foods Kraft foods offers dozens of snack food brands, especially crackers, cookies, and other savory and sweet items, including the popular 100-calorie snack packs; Athenos brand feta cheese, hummus and pita chips; Arrowroot/Nabisco World snacks, including Ritz, Triscuit, and Wheat Thins crackers; Balance bars (sports nutrition bars); Barnum animal crackers; Cheez Whiz and Velveeta processed cheese-like products; Corn Nuts; Garden Harvest toasted chips; Honey Maid graham crackers; Kraft Cheese Nips and Handi-Snacks; Planters nuts; Red Oval and Premium crackers; Teddy Grahams; and Wheatsworth and Zweiback crackers. Sweets and Confectionary Kraft's major sweet/confectionary food brands include Baker's chocolate; Cameo cookies; Kraft classic caramels; Chips Ahoy cookies; Nabisco ginger snaps; Jell-O and Knox gelatin; Jet-Puffed Marshmallows; Mallomars; Newtons; Nilla Wafers; Nutter Butter and Oreo cookies; Snackwell's; Cool-Whip, and Peek Freans...
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