Robert Stuart (businessman)
Encyclopedia
Robert Stuart was a United States
businessman who was one of the founders of the Quaker Oats Company
.
in Embro, Ontario in the mid-1850s. In 1873, Stuart and his father moved to Cedar Rapids, Iowa
, opening an oatmeal
mill there. The father and son team later opened a second mill in Chicago
, and gained market share in the Midwest, especially in Chicago, Milwaukee, and Detroit.
In 1885, the Stuarts entered into a business partnership with competitor Henry Parsons Crowell
, proprietor of the Quaker Mill Company
in Ravenna, Ohio
in an attempt to compete against the much larger oatmeal business run by Ferdinand Schumacher
, the "Oatmeal King". The next year, Schumacher's largest mill burned down, leaving the uninsured Schumacher in difficult financial circumstances. Thus, he asked to join their business, thus forming the Consolidated Oatmeal Company, with Crowell as president, Stuart as vice-president, and Schumacher as treasurer. The Consolidated Oatmeal Company collapsed in 1888.
Later in 1888, Schumacher led the way in organizing a consolidation of seven mills as the American Cereal Company, with Schumacher as president, Crowell as vice-president, and Stuart as treasurer. This company survived the wake of the Panic of 1893
by consolidating its facilities into two mills, one at Cedar Rapids, Iowa
and the other at Akron, Ohio
. In 1897, Schumacher and Stuart disagreed about investing money in the Cedar Rapids mill, and Schumacher eventually forced Stuart to resign from the American Cereal Company. The next year, Schumacher also forced Crowell out of the American Cereal Company.
Stuart and Crowell, who together owned 24% of the American Cereal Company, now organized a proxy fight
and in 1899 managed to oust Schumacher from the company. Stuart and Crowell then undertook a massive expansion of the business, with Stuart managing the company's facilities and Crowell handling promotions. In 1901, the American Cereal Company was renamed the Quaker Oats Company
. At that time, the Quaker Oats Company was doing $16 million of sales annually, selling wheat cereals
, farina
, hominy
, cornmeal
, baby food
, and animal feed
. By 1918, the company did $123 million in sales.
Stuart's son, John
, became chief executive officer
of the Quaker Oats Company in 1922. A second son, R. Douglas Stuart
would take over Crowell's marketing duties a short time later.
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
businessman who was one of the founders of the Quaker Oats Company
Quaker Oats Company
The Quaker Oats Company is an American food conglomerate based in Chicago. It has been owned by Pepsico since 2001.-History:Quaker Oats was founded in 1901 by the merger of four oat mills:...
.
Biography
Robert Stuart's father, John Stuart, opened a millMill (grinding)
A grinding mill is a unit operation designed to break a solid material into smaller pieces. There are many different types of grinding mills and many types of materials processed in them. Historically mills were powered by hand , working animal , wind or water...
in Embro, Ontario in the mid-1850s. In 1873, Stuart and his father moved to Cedar Rapids, Iowa
Cedar Rapids, Iowa
Cedar Rapids is the second largest city in Iowa and is the county seat of Linn County. The city lies on both banks of the Cedar River, north of Iowa City and east of Des Moines, the state's capital and largest city...
, opening an oatmeal
Oatmeal
Oatmeal is ground oat groats , or a porridge made from oats . Oatmeal can also be ground oat, steel-cut oats, crushed oats, or rolled oats....
mill there. The father and son team later opened a second mill in Chicago
Chicago
Chicago is the largest city in the US state of Illinois. With nearly 2.7 million residents, it is the most populous city in the Midwestern United States and the third most populous in the US, after New York City and Los Angeles...
, and gained market share in the Midwest, especially in Chicago, Milwaukee, and Detroit.
In 1885, the Stuarts entered into a business partnership with competitor Henry Parsons Crowell
Henry Parsons Crowell
Henry Parsons Crowell was an American businessman, founder of the Quaker Oats Company and a philanthropist.At the end of the 19th century, steam engines, telegraph and telephone systems, electricity and typewriters were part of the explosion of technology in America.- Character :Henry Parsons...
, proprietor of the Quaker Mill Company
Quaker Mill Company
The Quaker Mill Company was a 19th-century American oat mill company in Ravenna, Ohio. After merging with three other companies in 1901, the company became the Quaker Oats Company, now a subsidiary of PepsiCo.-History:...
in Ravenna, Ohio
Ravenna, Ohio
* Chris Bangle; automobile designer* Bill Bower, last surviving pilot of the Doolittle Raid* David D. Busch; best-selling author* William Rufus Day; U.S. Supreme Court justice* Calvin Hampton; Classical organist* Robert B...
in an attempt to compete against the much larger oatmeal business run by Ferdinand Schumacher
Ferdinand Schumacher
Ferdinand Schumacher , aka The Oatmeal King, was a German immigrant, an American entrepreneur and one of the founders of companies which merged to become the Quaker Oats Company.-Biography:...
, the "Oatmeal King". The next year, Schumacher's largest mill burned down, leaving the uninsured Schumacher in difficult financial circumstances. Thus, he asked to join their business, thus forming the Consolidated Oatmeal Company, with Crowell as president, Stuart as vice-president, and Schumacher as treasurer. The Consolidated Oatmeal Company collapsed in 1888.
Later in 1888, Schumacher led the way in organizing a consolidation of seven mills as the American Cereal Company, with Schumacher as president, Crowell as vice-president, and Stuart as treasurer. This company survived the wake of the Panic of 1893
Panic of 1893
The Panic of 1893 was a serious economic depression in the United States that began in 1893. Similar to the Panic of 1873, this panic was marked by the collapse of railroad overbuilding and shaky railroad financing which set off a series of bank failures...
by consolidating its facilities into two mills, one at Cedar Rapids, Iowa
Cedar Rapids, Iowa
Cedar Rapids is the second largest city in Iowa and is the county seat of Linn County. The city lies on both banks of the Cedar River, north of Iowa City and east of Des Moines, the state's capital and largest city...
and the other at Akron, Ohio
Akron, Ohio
Akron , is the fifth largest city in the U.S. state of Ohio and the county seat of Summit County. It is located in the Great Lakes region approximately south of Lake Erie along the Little Cuyahoga River. As of the 2010 census, the city had a population of 199,110. The Akron Metropolitan...
. In 1897, Schumacher and Stuart disagreed about investing money in the Cedar Rapids mill, and Schumacher eventually forced Stuart to resign from the American Cereal Company. The next year, Schumacher also forced Crowell out of the American Cereal Company.
Stuart and Crowell, who together owned 24% of the American Cereal Company, now organized a proxy fight
Proxy fight
A proxy fight or proxy battle is an event that may occur when a corporation's stockholders develop opposition to some aspect of the corporate governance, often focusing on directorial and management positions. Corporate activists may attempt to persuade shareholders to use their proxy votes A proxy...
and in 1899 managed to oust Schumacher from the company. Stuart and Crowell then undertook a massive expansion of the business, with Stuart managing the company's facilities and Crowell handling promotions. In 1901, the American Cereal Company was renamed the Quaker Oats Company
Quaker Oats Company
The Quaker Oats Company is an American food conglomerate based in Chicago. It has been owned by Pepsico since 2001.-History:Quaker Oats was founded in 1901 by the merger of four oat mills:...
. At that time, the Quaker Oats Company was doing $16 million of sales annually, selling wheat cereals
Breakfast cereal
A breakfast cereal is a food made from processed grains that is often, but not always, eaten with the first meal of the day. It is often eaten cold, usually mixed with milk , water, or yogurt, and sometimes fruit but sometimes eaten dry. Some cereals, such as oatmeal, may be served hot as porridge...
, farina
Farina (food)
Farina is a cereal food, frequently described as mild-tasting, usually served warm, made from cereal grains. In contemporary American English use, the word usually refers to Cream of Wheat made from soft wheat. Wheat farina is a carbohydrate-rich food, often cooked in boiling water and served warm...
, hominy
Hominy
Hominy or nixtamal is dried maize kernels which have been treated with an alkali in a process called nixtamalization.The English term hominy is derived from the Powhatan language word for maize. Many other Native American cultures also made hominy and integrated it into their diet...
, cornmeal
Cornmeal
Cornmeal is flour ground from dried maize or American corn. It is a common staple food, and is ground to fine, medium, and coarse consistencies. In the United States, the finely ground cornmeal is also referred to as cornflour. However, the word cornflour denotes cornstarch in recipes from the...
, baby food
Baby food
Baby food is any food, other than breastmilk or infant formula, that is made specifically for infants, roughly between the ages of four to six months to 2 years. The food comes in multiple varieties and tastes, can be produced by many manufacturers, or may be table food that the rest of the family...
, and animal feed
Fodder
Fodder or animal feed is any agricultural foodstuff used specifically to feed domesticated livestock such as cattle, goats, sheep, horses, chickens and pigs. Most animal feed is from plants but some is of animal origin...
. By 1918, the company did $123 million in sales.
Stuart's son, John
John Stuart (CEO)
John Stuart was the chief executive officer of the Quaker Oats Company from 1922 to 1953.-Biography:John Stuart was born in Chicago in 1877, the son of Robert Stuart and his wife Margaret. He was educated at the University of Chicago Laboratory Schools. As a teenager, he would work in his...
, became chief executive officer
Chief executive officer
A chief executive officer , managing director , Executive Director for non-profit organizations, or chief executive is the highest-ranking corporate officer or administrator in charge of total management of an organization...
of the Quaker Oats Company in 1922. A second son, R. Douglas Stuart
R. Douglas Stuart
Robert Douglas Stuart was a United States businessman who served as United States Ambassador to Canada from 1953 to 1956.-Biography:R. Douglas Stuart was born in Chicago in 1886, the son of Robert Stuart and his wife Margaret...
would take over Crowell's marketing duties a short time later.