| | Ferdinand Schumacher, a German immigrant, began the cereals revolution in 1854 with a hand oats grinder in the back room of a small store in Akron, Ohio. His German Mills American Oatmeal Company was the nation's first commercial oatmeal manufacturer. He marketed the product locally as a substitute for breakfast pork. Improved production technology (steel cutters, porcelain rollers, improved hullers), combined with an influx of German and Irish immigrants, quickly boosted sales and profits. In 1877, Schumacher adopted the Quaker symbol, the first registered trademark for a breakfast cereal. The acceptance of "horse food" for human consumption encouraged other entrepreneurs to enter the industry. Henry Parsons Crowell started operations in 1882, and John Robert Stuart in 1885. Crowell cut costs by consolidating every step of the processing—grading, cleaning, hulling, cutting, rolling, packaging, and shipping—in one factory operating at Ravenna, Ohio. Stuart operated mills in Chicago and Cedar Rapids, Iowa. Stuart and Crowell combined in 1885 and initiated a price war. After a fire at his mill in Akron, Schumacher joined Stuart and Crowell to form the Consolidated Oatmeal Company. In 1888, a trust or holding company combined the nation's seven largest mills into the American Cereal Company using the Quaker Oats brand name. By 1900 technology, entrepreneurship, and the "Man in Quaker Garb"—a symbol of plain honesty and reliability--gave Quaker Oats a national market and annual sales of $10 million. | | Ferdinand Schumacher, a German immigrant, began the cereals revolution in 1854 with a hand oats grinder in the back room of a small store in Akron, Ohio. His German Mills American Oatmeal Company was the nation's first commercial oatmeal manufacturer. He marketed the product locally as a substitute for breakfast pork. Improved production technology (steel cutters, porcelain rollers, improved hullers), combined with an influx of German and Irish immigrants, quickly boosted sales and profits. In 1877, Schumacher adopted the Quaker symbol, the first registered trademark for a breakfast cereal. The acceptance of "horse food" for human consumption encouraged other entrepreneurs to enter the industry. Henry Parsons Crowell started operations in 1882, and John Robert Stuart in 1885. Crowell cut costs by consolidating every step of the processing—grading, cleaning, hulling, cutting, rolling, packaging, and shipping—in one factory operating at Ravenna, Ohio. Stuart operated mills in Chicago and Cedar Rapids, Iowa. Stuart and Crowell combined in 1885 and initiated a price war. After a fire at his mill in Akron, Schumacher joined Stuart and Crowell to form the Consolidated Oatmeal Company. In 1888, a trust or holding company combined the nation's seven largest mills into the American Cereal Company using the Quaker Oats brand name. By 1900 technology, entrepreneurship, and the "Man in Quaker Garb"—a symbol of plain honesty and reliability--gave Quaker Oats a national market and annual sales of $10 million. |
| | William K. Kellogg (1860-1951) was a a private and humorless man who had dropped out of high school and stood in the shadow of his flamboyant brother John. William, after working many years for his brother, in 1906, broke away, bought the rights from his brother and set up the Kellogg Toasted Corn Flake Company.<ref> John dropped out of the cereal industry but continued to operate his sanitarium.</ref> William Kellogg discarded the health food concept, opting for heavy advertising and commercial taste appeal. His signature on every package became the company trademark and insurance of quality. | | William K. Kellogg (1860-1951) was a a private and humorless man who had dropped out of high school and stood in the shadow of his flamboyant brother John. William, after working many years for his brother, in 1906, broke away, bought the rights from his brother and set up the Kellogg Toasted Corn Flake Company.<ref> John dropped out of the cereal industry but continued to operate his sanitarium.</ref> William Kellogg discarded the health food concept, opting for heavy advertising and commercial taste appeal. His signature on every package became the company trademark and insurance of quality. |
| | An experimental full-page ad in the ''The Ladies Home Journal'' in 1906 sent corn flake sales skyrocketing to nearly three thousand cases a day. By 1915 the company was investing one million dollars a year in product promotion. There were premiums, games, and inserts for children and teenagers, and lucrative contests for retailers. "Wink at your grocer and see what you get," invited one ad.<ref> The winker got a free box of corn flakes.</ref> Kellogg devised a trade character—the "Sweetheart of the Corn," exemplar of the wholesome American girl—who smiled from every box of corn flakes. | | An experimental full-page ad in the ''The Ladies Home Journal'' in 1906 sent corn flake sales skyrocketing to nearly three thousand cases a day. By 1915 the company was investing one million dollars a year in product promotion. There were premiums, games, and inserts for children and teenagers, and lucrative contests for retailers. "Wink at your grocer and see what you get," invited one ad.<ref> The winker got a free box of corn flakes.</ref> Kellogg devised a trade character—the "Sweetheart of the Corn," exemplar of the wholesome American girl—who smiled from every box of corn flakes. |
| | During the 1920s the company expanded by embracing technological advances and new products; in 1925 Rice Krispies exploded on the market, using better packaging and sealed wax paper liners to insured freshness and better shipping. By 1930 Kellogg's nine plants nation wide controlled 40% percent of the American ready-to-eat cereal industry, with an expanding international trade as well. | | During the 1920s the company expanded by embracing technological advances and new products; in 1925 Rice Krispies exploded on the market, using better packaging and sealed wax paper liners to insured freshness and better shipping. By 1930 Kellogg's nine plants nation wide controlled 40% percent of the American ready-to-eat cereal industry, with an expanding international trade as well. |