Marketing Mistakes and Successes, 12th Edition

CHAPTER THIRTEEN

Borden: Letting Brands Wither

Elsie the cow had long been the symbol of Borden, the largest producer of dairy products. But Borden grew well beyond dairy products to become a diversified food processor and marketer. Decades of children cherished its Cracker Jack candied popcorn with a gift in every box; its Creamette pasta was the leading national brand, and it had strong regional brands as well. Lady Borden ice cream, milk, and frozen yogurt were well known, as were its other dairy brands, national and regional. Even Elmer's Glue belonged to the Borden family. With its well-known brands, Borden experienced solid growth in sales and profits for years and became a $7 billion company. Then in 1991, fortunes took a turn for the worse, and dark days were upon Borden. Top management had somehow allowed its brand franchises—the public recognition and acceptance of its brands—to deteriorate. Regaining lost ground was to prove no easy matter.

PRELUDE TO THE DARK DAYS

Borden was founded in 1857 by Gail Borden Jr., a former Texas newspaperman. It sold condensed milk during the Civil War and later diversified into chemicals. In the 1960s Borden acquired such food brands as Cracker Jack and ReaLemon. Because of the wide earnings swings of cyclical chemical prices, Eugene J. Sullivan, the CEO, intensified the shift into consumer products in the 1970s.

In November 1991 Anthony S. D'Amato took the helm at Borden. He succeeded Romeo J. Ventres, a good friend, who when he retired ...