Nestle-Purina Petcare Analysis

DFLMS Consultants

Nestle-Purina PetCare

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History/Timeline of Ralston Purina Company:

The history of Ralston Purina Company was filled with twists and turns, and an occasional fork in the road. Their past is paved with vivid, often disparate images from Brain Bread to dog litter, from Maud the Mule, the Energizer Bunny, Purina Layena to Purina Dog Chow Brand dog food and other pet food. Although there are many, these twists and turns have formed the path that has lead Purina to the company it is today.

In St Louis, 1902 an animal feed company called the Robinson Danforth Commission was created. The name was eventually changed to Ralston Purina Company to more accurately reflect the business where "Purity is Paramount." Seeking a distinctive logo for his company, Ralston Purina founder and president William H. Danforth remembered a family from his childhood who dressed their children in red and white checkerboard clothing. This striking image was the inspiration for the company's trademark checkerboard logo. Ralston and its logo gained exposure at the 1904 World's Fair in St Louis

• In 1957 the Eager Eater new pressure cooked Purina Dog Chow brand Food was introduced for grocery distribution

• By 1959 Ralston manufactured and sold 5 million tons of Chow brand animal feed for the first time.

Wednesday Jan. 10, 1962 the thermometer dropped to 7 below zero in St. Louis and worst disaster in Purina's history took place. At 3:23 pm, a violent dust explosion followed by a fire demolished the St. Louis Chow manufacturing plant elevator. Two workers were killed, and 35 were hospitalized with severe injuries. One fireman suffered a heart attack while battling the flames.

• 1966 Ralston achieved its first $1 billion sales year.

• 1973 Ralston sales eclipsed $3 billion

• 1977 Ralston acquired Missouri Arena Corporation and the St. Louis Blues National Hockey League franchise.

• 1982 Bill Stiritz named Chairman of Ralston Purina Company in January.

• 1994 Ralston spins off its cereal and smaller grocery human food businesses into a freestanding company named Ralcorp. The spin off included Bremner Beechnut Nutrition Corporation, Keystone and Breckenridge ski resorts and American Redemption Systems; Ralston celebrated its 100the Anniversary at the annual Shareholders meeting in St Louis.

1997 William P. Stiritz, Ralstons Chairman Chief Executive Officer and President retired

effective September 30 but remained as Ralston Chairman of the Board.

1997 W. Patrick McGinnis, President and Chief Executive officer of Ralston's Pet Products

Group, and J. Patrick Mulcahy, Chairman and CEO of Eveready Battery Company are elected to

be Co-CEOs of Ralston Purina Company.

• Ralston completes the sale of its Protein Technologies International subsidiary to DuPont.

• Ralston Purina acquires Edward Baker Pet foods, the UK's leading manufacturer of extruded complete dry pet foods.

• 1998 Ralston Purina Company completes the spin-off of Agribrands International Inc., formerly the Company's international agricultural animal feeds business.

• 2001 Ralston Purina Company merges with Nestle subsidiary. Nestle Purina PetCare Company is created.

The one thread throughout this evolution is the ability to adapt. The Darwian Concept of

biological survival applied to business is not new. Given World Wars, The Great

Depression, intense competition, and enormous shifts in business and technology, NPPC

has proven to withstand economic, environmental and political challenges over the years.

Employee Development and Training:

Nestle Purina PetCare creates a fulfilling working environment that puts the emphasis on individual responsibility, opportunity and autonomy. NPPC encourages self-growth through continuous development, on-the-job training, mentoring programs, and access to the International Training Centre in Switzerland. Equally, employees