Borden (company)
Encyclopedia
Borden, Inc., was an American
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...

 producer of food and beverage products, consumer products, and industrial products
Industrial production
Industrial production is a measure of output of the industrial sector of the economy. The industrial sector includes manufacturing, mining, and utilities. Although these sectors contribute only a small portion of GDP , they are highly sensitive to interest rates and consumer demand...

. At one time, the company was the largest U.S. producer of dairy
Dairy
A dairy is a business enterprise established for the harvesting of animal milk—mostly from cows or goats, but also from buffalo, sheep, horses or camels —for human consumption. A dairy is typically located on a dedicated dairy farm or section of a multi-purpose farm that is concerned...

 and pasta
Pasta
Pasta is a staple food of traditional Italian cuisine, now of worldwide renown. It takes the form of unleavened dough, made in Italy, mostly of durum wheat , water and sometimes eggs. Pasta comes in a variety of different shapes that serve for both decoration and to act as a carrier for the...

 products. Its food division, Borden Foods, was based in Columbus, Ohio
Columbus, Ohio
Columbus is the capital of and the largest city in the U.S. state of Ohio. The broader metropolitan area encompasses several counties and is the third largest in Ohio behind those of Cleveland and Cincinnati. Columbus is the third largest city in the American Midwest, and the fifteenth largest city...

, and focused primarily on pasta and pasta sauces, bakery
Bakery
A bakery is an establishment which produces and sells flour-based food baked in an oven such as bread, cakes, pastries and pies. Some retail bakeries are also cafés, serving coffee and tea to customers who wish to consume the baked goods on the premises.-See also:*Baker*Cake...

 products, snacks, processed cheese
Processed cheese
Processed cheese, process cheese, cheese slice, prepared cheese, cheese singles or cheese food is a food product made from normal cheese and sometimes other unfermented dairy ingredients, plus emulsifiers, extra salt, food colorings, or whey...

, jams and jellies
Fruit preserves
Fruit preserves are preparations of fruits and sugar, often canned or sealed for long-term storage. The preparation of fruit preserves today often involves adding commercial or natural pectin as a gelling agent, although sugar or honey may be used, as well. Prior to World War II, fruit preserve...

, and ice cream
Ice cream
Ice cream is a frozen dessert usually made from dairy products, such as milk and cream, and often combined with fruits or other ingredients and flavours. Most varieties contain sugar, although some are made with other sweeteners...

. It was best known for its Borden Ice Cream, Meadow Gold milk, Creamette pasta, and Borden Condensed Milk brands. Its consumer products and industrial segment marketed wallpaper
Wallpaper
Wallpaper is a kind of material used to cover and decorate the interior walls of homes, offices, and other buildings; it is one aspect of interior decoration. It is usually sold in rolls and is put onto a wall using wallpaper paste...

, adhesives, plastics and resins. By 1993, sales of food products accounted for 67 percent of its revenues. It was also known for its Elmer's Glue
Elmer's Products, Inc.
Elmer's Products, Inc. is the manufacturer of Elmer's Glue-All and other crafts and home repair products, including Krazy Glue, Ross Glue, ProBond adhesives, and X-Acto craft knives. Elmer's also produces foamboard and presentation board. It has its headquarters in Columbus, Ohio.The brand was...

 and Krazy Glue. It was owned and operated by Chris and Amanda Borden.

After significant financial losses in the early 1990s and a leveraged buyout
Leveraged buyout
A leveraged buyout occurs when an investor, typically financial sponsor, acquires a controlling interest in a company's equity and where a significant percentage of the purchase price is financed through leverage...

 in 1995, Borden divested itself of its various divisions, brands and businesses. KKR shuttered Borden's food products operations in 2001, and divested all its other Borden operations in 2005. The Borden dairy brands are currently used by both Dean Foods
Dean Foods
Dean Foods is an American food and beverage company with two operating divisions: Fresh Dairy Direct and WhiteWave-Morningstar. The company maintains plants and distributors in the United States and the United Kingdom. Dean Foods products are sold throughout the USA.-History:In 1925, Samuel E...

 and Grupo Lala
Grupo Lala
Grupo Lala is a Mexican dairy company, founded in 1950 in Gomez Palacio, Durango. It expanded into the United States in 2009, acquiring National Dairy and Farmland Dairies. The Company's chairman is Eduardo Tricio and the CEO is Arquimedes Celis. LALA is now the largest dairy company in Latin...

 (as Borden Milk Products
Borden Milk Products
Borden Milk Products L.P. is a privately held American corporation owned by the Dallas, Texas-based Milk Products LLC, a subsidiary of Grupo Lala.- Borden's Beginnings :...

) for milk and by Dairy Farmers of America
Dairy Farmers of America
Dairy Farmers of America, Inc. is a national milk marketing cooperative in the United States. It is owned by and serves nearly 16,000 dairy farmer members representing more than 9,000 dairy farms in 48 states. DFA buys raw milk from its members and sells milk and derivative products to wholesale...

 for cheese.

Founding

The company was founded by Gail Borden, Jr., in 1857 in Connecticut
Connecticut
Connecticut is a state in the New England region of the northeastern United States. It is bordered by Rhode Island to the east, Massachusetts to the north, and the state of New York to the west and the south .Connecticut is named for the Connecticut River, the major U.S. river that approximately...

 as "Gail Borden, Jr., and Company." Its primary product was condensed milk
Condensed milk
Condensed milk, also known as sweetened condensed milk, is cow's milk from which water has been removed and to which sugar has been added, yielding a very thick, sweet product which when canned can last for years without refrigeration if unopened. The two terms, condensed milk and sweetened...

. Struggling financially, the company was saved when Jeremiah Milbank
Jeremiah Milbank
Jeremiah Milbank American businessman, was a successful dry goods commission merchant, speculator in Texas territorial bonds, manufacturer, and railroad investor. His most successful business efforts were the New York Condensed Milk Company which he co-founded with inventor Gail Borden and the...

, a partner in the wholesale food distributor I. & R. Milbank & Co. and the son-in-law of banker Joseph Lake, agreed to invest and acquired 50 percent of the stock. The company changed its name in 1858 to the New York Condensed Milk Company. The company prospered during the Civil War
American Civil War
The American Civil War was a civil war fought in the United States of America. In response to the election of Abraham Lincoln as President of the United States, 11 southern slave states declared their secession from the United States and formed the Confederate States of America ; the other 25...

 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 began selling evaporated milk in 1892, and expanded into Canada
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...

 in 1895.

Growth

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
Mincemeat
Mincemeat is a mixture of chopped dried fruit, distilled spirits and spices, and sometimes beef suet, beef, or venison. Originally, mincemeat always contained meat. Many modern recipes contain beef suet, though vegetable shortening is sometimes used in its place...

 processors. Taking advantage of its many herds of cattle, the company became involved in rendering and the manufacture of adhesives. In World War II
World War II
World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...

, Borden pioneered the American manufacture of non-dairy creamer
Non-dairy creamer
Non-dairy creamers are liquid or granular substances intended to substitute for milk or cream as an additive to coffee or other beverages. They do not contain lactose and therefore are commonly described as not being dairy products...

, instant coffee
Instant coffee
Instant coffee, also called soluble coffee and coffee powder, is a beverage derived from brewed coffee beans. Instant coffee is commercially prepared by either freeze-drying or spray drying, after which it can be rehydrated...

 and powdered foods.

Borden became a holding company
Holding company
A holding company is a company or firm that owns other companies' outstanding stock. It usually refers to a company which does not produce goods or services itself; rather, its purpose is to own shares of other companies. Holding companies allow the reduction of risk for the owners and can allow...

 in 1929, but its operations were re-unified in 1936 and its subsidiaries became divisions
Division (business)
A division of a business entity is a portion of that business that operates under a different name. It is the equivalent of a corporation or limited liability company obtaining a fictitious name or "doing business as" certificate and operating a business under that fictitious name...

. Borden and other dairy companies were investigated in 1938 for violations of the Sherman Antitrust Act
Sherman Antitrust Act
The Sherman Antitrust Act requires the United States federal government to investigate and pursue trusts, companies, and organizations suspected of violating the Act. It was the first Federal statute to limit cartels and monopolies, and today still forms the basis for most antitrust litigation by...

, but the charges were dropped after Borden signed a consent decree
Consent decree
A consent decree is a final, binding judicial decree or judgment memorializing a voluntary agreement between parties to a suit in return for withdrawal of a criminal charge or an end to a civil litigation...

 in 1940.

In the 1950s, Borden moved into the printing ink, fertilizer
Fertilizer
Fertilizer is any organic or inorganic material of natural or synthetic origin that is added to a soil to supply one or more plant nutrients essential to the growth of plants. A recent assessment found that about 40 to 60% of crop yields are attributable to commercial fertilizer use...

, and polyvinyl chloride
Polyvinyl chloride
Polyvinyl chloride, commonly abbreviated PVC, is a thermoplastic polymer. It is a vinyl polymer constructed of repeating vinyl groups having one hydrogen replaced by chloride. Polyvinyl chloride is the third most widely produced plastic, after polyethylene and polypropylene. PVC is widely used in...

 (PVC) plastics business. By 1961, it was making 7 percent of all raw PVC in the United States. By 1968, Borden's international chemical and petroleum divisions had grown so large that Borden created the Borden Inc. International division to manage them. The company owned the Danish
Denmark
Denmark is a Scandinavian country in Northern Europe. The countries of Denmark and Greenland, as well as the Faroe Islands, constitute the Kingdom of Denmark . It is the southernmost of the Nordic countries, southwest of Sweden and south of Norway, and bordered to the south by Germany. Denmark...

 company Cocio
Cocio
Cocio is a chocolate milk drink produced in Esbjerg, Denmark. While not a staple in Danish culture, Cocio is a well-known product to Danes, often consumed on the street with a sausage . It's also at least moderately popular in the rest of Scandinavia and, to a lesser extent in some US regions,...

 from 1976 to 1999.

In 1987, Borden spun off some of its chemicals business in a public offering. Borden retained a small financial investment in the new company, known legally as Borden Chemicals & Plastics Operating Limited Partnership (BCPOLP)

Borden Food

The food products division was spun off as Borden Food Corporation when Borden, Inc., became a holding company 1929. The holding company reversed itself thirteen years later when it reacquired its child company.

In the 1950s, the parent company went on a buying spree, swallowing up companies such as Wyler's
Wyler's
Wyler's is a brand of food used by Heinz for bouillon and soup, and Jel Sert for soft drinks.Heinz uses it for Wyler's Instant Bouillon, a brand of bouillon cube, and Wyler's Mrs...

, which made bouillon and powdered soft drinks; ReaLemon, a manufacturer of synthetic and reconstituted lemon juice; Cracker Jack
Cracker Jack
Cracker Jack is a U.S. brand of snack consisting of strong molasses flavored candy-coated popcorn and peanuts, well known for being packaged with a prize of nominal value inside. Some food historians consider it the first junk food...

; Campfire brand marshmallows; Wise Foods, a makers of potato chips and other snack foods; and Bama, makers of jellies and jams.

Although Borden retrenched in the inflationary 1970s, it embarked on a second wave of mergers and acquisitions in the 1980s. 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 suffered significant losses for the period 1991-1993. 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 divested itself of nearly a third of its businesses in 1993 but could not find a buyer for its snack food concerns. In deep financial difficulty, Borden was bought out by Kohlberg Kravis Roberts (KKR) in 1995.

KKR increased the pace of divestiture, but was unable to right the company. The company's Borden/Meadow Gold Dairies subsidiary was sold in September 1997 to Southern Foods, controlled by the Mid-America Dairymen (later the Dairy Farmers of America
Dairy Farmers of America
Dairy Farmers of America, Inc. is a national milk marketing cooperative in the United States. It is owned by and serves nearly 16,000 dairy farmer members representing more than 9,000 dairy farms in 48 states. DFA buys raw milk from its members and sells milk and derivative products to wholesale...

). Borden licensed the use of Elsie the Cow
Elsie the Cow
Elsie the Cow has been the spokescow for the Borden Dairy Company since her introduction in 1936.Elsie was created in the 1930s to symbolize the “Perfect Dairy Product,” and made an appearance at the New York World's Fair in 1939. She also starred in a movie, RKO's Little Men, in 1940...

, but retained ownership of the trademark. The dairies are now owned by Dean Foods
Dean Foods
Dean Foods is an American food and beverage company with two operating divisions: Fresh Dairy Direct and WhiteWave-Morningstar. The company maintains plants and distributors in the United States and the United Kingdom. Dean Foods products are sold throughout the USA.-History:In 1925, Samuel E...

 and Grupo Lala
Grupo Lala
Grupo Lala is a Mexican dairy company, founded in 1950 in Gomez Palacio, Durango. It expanded into the United States in 2009, acquiring National Dairy and Farmland Dairies. The Company's chairman is Eduardo Tricio and the CEO is Arquimedes Celis. LALA is now the largest dairy company in Latin...

.

In 1997, KKR focused the company solely on its pasta and pasta sauces lines. But the new strategy failed as well. In June 2001, Borden Food sold several pasta lines to the American Italian Pasta Company
American Italian Pasta Company
American Italian Pasta Company is a pasta manufacturing company with corporate offices in Kansas City, Missouri and plants in Excelsior Springs, Missouri; Columbia, South Carolina; Tolleson, Arizona and Verolanuova, Italy...

 and its pasta sauce and soup businesses to the H. J. Heinz Company
H. J. Heinz Company
The H. J. Heinz Company , commonly known as Heinz and famous for its "57 Varieties" slogan and its ketchup, is an American food company with world headquarters in Pittsburgh, Pennsylvania.Perhaps best known for its ketchup, the H.J...

. In July 2001, Borden Foods sold its remaining pasta lines to the New World Pasta
New World Pasta
The New World Pasta Company is an American food company and wholly owned subsidiary of Ebro Foods. It is the largest retail branded pasta manufacturer in North America in terms of sales. The company's brands include Ronzoni, San Giorgio, Skinner, American Beauty, Light 'n Fluffy, Prince, Catelli,...

.

Borden, Inc., sold its final food product line, It's Pasta Anytime, to Kraft Foods
Kraft Foods
Kraft Foods Inc. is an American confectionery, food and beverage conglomerate. It markets many brands in more than 170 countries. 12 of its brands annually earn more than $1 billion worldwide: Cadbury, Jacobs, Kraft, LU, Maxwell House, Milka, Nabisco, Oscar Mayer, Philadelphia, Trident, Tang...

 in 2001 and shuttered its Foods division.

With the Chemicals business the sole remaining operating company, in 2001, KKR merged Borden, Inc., into Borden Chemical, Inc., with the resulting company named Borden Chemical to emphasize the fact that Chemicals were the company's sole remaining product line.

In 2004, KKR sold Borden Chemical to Apollo Management
Apollo Management
Apollo Global Management, LLC is a private equity investment firm, founded in 1990 by former Drexel Burnham Lambert banker Leon Black. The firm specializes in leveraged buyout transactions and purchases of distressed securities involving corporate restructuring, special situations and industry...

, a private equity firm. Borden Chemical was merged with Resolution Performance Products, Resolution Specialty Materials, and the German firm Bakelite AG to form Hexion Specialty Chemicals
Hexion Specialty Chemicals
Hexion Specialty Chemicals, Inc. is now Momentive Specialty Chemicals Inc. an operating company of Momentive Performance Materials Holdings LLC,“the new Momentive.” ...

. With the merger (which settled in 2005), the last vestige of Borden, Inc., ceased to exist except as spin-offs and brand names. Hexion retained control over the Elsie the Cow trademarks and Borden name until mid-2010 and has now assigned most Borden/Elsie trademarks to IBE BUSINESS ENTERPRISE AG of SWITZERLAND.

Borden once operated a chain of ice cream stores called Borden's Ice Cream
Borden's Ice Cream
Borden's Ice Cream is a historic ice cream parlor on Johnston Street in Lafayette, Louisiana that was built in 1940. In 1981 the then owner, lifelong Lafayette resident Flora Levy, died. Her will stipulated a large bequest to the University of Louisiana's Lafayette Foundation; the ice cream...

, but only a single location in Lafayette, Louisiana
Lafayette, Louisiana
Lafayette is a city in and the parish seat of Lafayette Parish, Louisiana, United States, on the Vermilion River. The population was 120,623 at the 2010 census...

, remains, under local ownership.

Brands

  • Anthony's pasta
  • Bama jam and jelly
  • Bennetts sauces
  • Borden cheese
  • Borden egg nog
  • Campfire marshmallows
  • Classico pasta sauce
  • Cracker Jack
    Cracker Jack
    Cracker Jack is a U.S. brand of snack consisting of strong molasses flavored candy-coated popcorn and peanuts, well known for being packaged with a prize of nominal value inside. Some food historians consider it the first junk food...

  • Creamette pasta
  • Cremora creamer
    Non-dairy creamer
    Non-dairy creamers are liquid or granular substances intended to substitute for milk or cream as an additive to coffee or other beverages. They do not contain lactose and therefore are commonly described as not being dairy products...

  • Eagle Family Foods
  • Elmer's Glue-All
    Elmer's Products, Inc.
    Elmer's Products, Inc. is the manufacturer of Elmer's Glue-All and other crafts and home repair products, including Krazy Glue, Ross Glue, ProBond adhesives, and X-Acto craft knives. Elmer's also produces foamboard and presentation board. It has its headquarters in Columbus, Ohio.The brand was...

     glue
  • Elsie Stix
    Elsie Stix
    Elsie Sticks were plastic ice cream sticks which became useful as and interlocking toy after the ice cream bar was eaten. They were produced in the early 1970s through Borden, Inc. dairy in the United States....

    , construction toy using ice-cream sticks
  • It's Pasta Anytime! convenience meals
  • Luxury pasta
  • Meadow Gold milk
  • None Such mincemeat
    Mincemeat
    Mincemeat is a mixture of chopped dried fruit, distilled spirits and spices, and sometimes beef suet, beef, or venison. Originally, mincemeat always contained meat. Many modern recipes contain beef suet, though vegetable shortening is sometimes used in its place...

  • Mrs. Grass
    Mrs. Grass
    Mrs. Grass is a food brand used on noodles made by the American Italian Pasta Company and a boxed soup manufactured by Wyler's.-History:...

     pasta and soup
  • Pennsylvania Dutch pasta
  • Prince pasta
  • R&F pasta
  • ReaLemon
    ReaLemon
    ReaLemon is a brand of lemon juice from concentrate now manufactured by the Dr Pepper Snapple Group. ReaLemon was created in 1934 by Irving Swartzburg. ReaLime was introduced later as a brand of lime juice from concentrate...

     lemon juice
  • Ronco pasta
  • Snow's chowder
    Chowder
    In North America Chowder is a generic name for a wide variety of seafood or vegetable stews and thickened soups, often with milk or cream. Some varieties are traditionally thickened with crushed ship biscuit instead of flour, which is more usual...

  • Wyler's
    Wyler's
    Wyler's is a brand of food used by Heinz for bouillon and soup, and Jel Sert for soft drinks.Heinz uses it for Wyler's Instant Bouillon, a brand of bouillon cube, and Wyler's Mrs...

     soup and soft drinks
  • Wise snacks
  • Wyler's
    Wyler's
    Wyler's is a brand of food used by Heinz for bouillon and soup, and Jel Sert for soft drinks.Heinz uses it for Wyler's Instant Bouillon, a brand of bouillon cube, and Wyler's Mrs...

     bouillons and soups
  • X-Acto
    X-acto
    X-Acto is a brand name for a variety of cutting tools and office products owned by Elmer's Products, Inc. Cutting tools include hobby and utility knives, saws, carving tools and many small-scale precision knives used for crafts and other applications....

    knives and craft tools


External links

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