/ What ls Beatrice

$ Founded 1894 as Beatrice Greamery Co. in Beatrice, Neb. S tncorporated 1898 {< ttame changed to Beatrice Foods Co.1946 $ fen product Iines S +OS profit centers {< $s,ege,577,78osales in fiscal 1977 {< $t8Z,S66,209 after-tax profits in fiscal 1977 * Sz.tg earnings per share $ tZ.e per cent rate of sales growth 10 years prior to 1977 $ Stoctholders' Equity: 1967-$ 408,165,926 1977-$1,158,215,211 I Operations in 28 cduntries (see inside backcover) * T4,OOOemployees * 96 cents per share dividend I 11.5 per cent annual appreciation rate 10 years prior lo 1977 The Beatrice Foods Story

Beatrice Foods Co., founded as a partnership centers and sales offices serving the world. by George E. Haskell and William W. Sales were billion for the last fiscal Bosworth in 1894, has grown steadily to $5.289 year which ended February 28,1977,with become an international operation with net earnings of $182.6 million, equal to $2.13 almost 1,000 plants, branches, distribution

:,.'..: :.: I . _rr.' .'ti, illlj''i, The original office of Beatrice Creamery Co. in Beatrice, Neb., in 1898. per common share. It was the 25th consecu- Meadow Gold products are available in a tive year that sales, net earnings and variety of items, in 46 of the 50 United earnings per share of common stock had States. This widespread distribution fans increased. out from 107 dairy and soft drink manufac- turing plants and 190 branches, strategically Initially, the flrm handled butter, eggs, located to cover important market areas. poultry and produce. Today, Beatrice's line

Beatrice always has been dedicated to growth. One early cxpansion was into Denver, Colo., with Windsor Farm Dairy. of products has grown to more than 8,000 The story of the formative years of what is including in excess of 4,000 retail dairy and Beatrice Foods Co. today truly is the story of grocery items. These products are marketed George Haskell. . . and his vision. under more than 200 well-known brand That fabled decade of American history names from plants and branches in almost remembered as the "Gay '90's" was not so 400 cities and towns in the and gay for Haskell. In its flrst years, he found in 28 other countries. In addition, Beatrice himself jobless at the age of 29 when the products are exported to more than 100 Fremont, Neb., Butter & Egg Company for nations. which he worked went bankrupt. Assembling his assets, which consisted of six years'experience in the butter and egg business and a small "nest egg" he had managed to save, Haskell decided to build upon his experience with the Fremont Butter and Egg Company. Accordingly, in 1894, he formed a partnership with William W. Bosworth, who had been an employee of the Beatrice, Neb., branch. Haskell & Bosworth purchased the Beatrice branch of the defunct Fremont Butter & Egg First Beatrice operation in was Fox River Butter Company and also leased the plant of the Co. in 191I. Company headquarters was moved to Beatrice Creamery Company in Beatrice, Chicago in 1913. Neb., which had gone out of business shortly after it was founded in 1882. In addition, To overcome the shortage of cream, the they opened a branch in Lincoln, Neb. partners established skimming stations to which farmers delivered their to have Bosworth began Haskell & buying farm the cream, used to make butter, separated poultry, grading butter, eggs and and and from the milk. This led to the introduction of shipping them. their unique credit program of providing Late in 1894, Haskell and Bosworth farmers with hand cream separators so that purchased a small churn and began they could separate the milk on the farm producing creamery butter from milk and retain the skim milk for animal feeding. provided by local farmers. They devised This enabled the farmers to pay for the special protective packages and distributed separators from the proceeds of their sales it to grocery stores and restaurants in their of cream. The program worked so well that own wagons and through appointed jobbers. the company sold more than 50,000 sepa- rators in Nebraska from 1895 to 1905. The partners continued to operate Beatrice Company. Because he preferred the produce Creamery Company as a branch, churning business, W. W. Bosworth resigned from butter and also dealing in eggs and other the creamery and opened his own business produce, shipping by the carload to such in Beatrice. distant markets as Boston, New York and Soon more than 350 Nebraska cream San Francisco. reeeiving stations were shipping to the In 1898, this branch operation began to Lincoln plant, which churned up to 50,000 outgrow the parent business and the firm pounds of butter daily. In 1904, the company began to emerge into a semblance of its churned 10,061,032 pounds of butter. present identity. On Feb. 15th of that year, The company's program of financing cream Beatrice Creamery Company officially was separators in the Prairie States, cream incorporated in Nebraska with a capital of collection and central quality-controlled $100,000. churning formed the backbone of the butter The next step was the decision to consolidate industry in the West. all churning operations in one new plant in The company continued to pioneer and grow Lincoln, where railroad facilities were more steadily. Capitalization was increased to extensive, and to extend its procurement in 1902. Cold storage warehouses territory farther west to increase the cream $500,000 were built where products made in the season supply. of flush production could be stored for later In the flrst year of operation, the company sale when production was low. These ware- manufactured 940,000 pounds of butter houses also conducted a large public cold which were sold under the name, "Lincoln storage business in other perishable products. Brand Separator Creamery Butter." On March 1, 1905, the company was To eliminate some of the complications of incorporated as the Beatrice Creamery running two companies, Haskell & Bosworth Company of Iowa, with capital of $3,000,000. in July 1899, decided to consolidate their During the next two years, the company partnership with Beatrice Creamery built creameries in Oklahoma City, Okla., bsw ffid'B

The Meadou'(lold brand nanl('nirs chosrn bl ernployees in Topek;r, I{ans., in 1f)01 and became tho firsl niltioniilly:rrilcrtised butlcr anrl one (!{'th(' flirst 1o bc put up in one-pound crrrt0ns. Chicago, Ill., and Pueblo, Colo., and by 1910, To keep pace with the growth of business in the company was operating nine creameries the East and the need for wider distribution, and three ice plants and had sales branches the general offices were moved to Chicago dotting the nation. (their present location) in 1913. On Nov.20,L924, Beatrice Creamery Office granted the trademark "Meadow Company was re-incorporated and licensed Gold" for butter on Nov. t2,190L, making as a Delaware corporation, with head- this one of the flrst trademarked brands for quarters in Chicago. On June 24,1946, the butter. The name was chosen by the present name, Beatrice Foods Co., was employees of the Topeka, Kans., plant. adopted. Meadow Gold was one of the first to put up On March 31, 1928, William Ferguson, butter in one-pound sealed cartons. It was president since G. E. Haskell's death in 1919, one of the first to pasteurize churning cream was elected chairman of the board of on a large-scale operation. It was the first to directors, a post he held until 1935; and initiate a cash-for-cream payment policy Clinton H. Haskell, a nephew of G. E. to farmers. Haskell, was elected president. Meadow Gold butter was the flrst to be As the new president of the corporation, advertised in a nationalmagazine. The C. H. Haskell outlined a program of initial ad appeared on Feb. 17, L972. That diversification with the objective of develop- year Beatrice also embarked upon its initial ing milk and sales. coordinated consumer program which included newspaper ads, ads in six national In 1929, the company had only four milk magazines, direct mail, and counter posters. plants. By L932, Beatrice had milk plants in 32 cities. In L927, the company had sold less The company also was the first to establish a than one million gallons of milk. By 1932, nationally advertised brand of ice cream- volume had grown to 27 million gallons. under the Meadow Gold label. Sales of ice cream grew proportionately, The firm's flrst ice cream plant was opened rising from less than one-half million gallons in Topeka, in 1907, three years after the ice in1927 to 9.5 million gallons in 1931. cream cone made its debut at the St. Louis Exposition. The second plant was opened in In its constant quest for superior quality, Beatrice, Neb., a few years later. Beatrice established a series of distinguished "firsts" in the industry. The U.S. Patent The company was the flrst to adopt con- tinuous freezing methods for making ice aluminum foil cap to cover the pouring cream on a national basis, installing Vogt surface of glass milkbottles, thus eliminating equipment to produce "Smooth Freeze" ice the cap seat of the bottle, the hardest part cream in all of its ice cream plants in 1931 to wash.

Beatrice now markets every type of dairy product, manufactured in such modern plants as this one in Salt Lake City, Utah. at the then significant cost of more than Beatrice also developed and was the first to $600,000. use (1946) aluminum foil for wrapping butter in quarters. Meadow Gold pioneered the use of an Another major step was the standardization from the bottom-training and advancing of quality and the "Meadow Gold" brand men and women to responsible positions name for all dairy products. from within the ranks of the company. To help maintain its leadership, Beatrice The new president, elected in the spring of Creamery Company established a separate 1952, was William G. Karnes, a native research and new product department in Chicagoan, only 41, whose career was 1936. strikingly similar to those of George Haskell, William Ferguson, and Clinton Haskell. A central quality control laboratory also was Karnes, who had borrowed money to attend established in Chicago in 1936. law school, started as a law clerk with the The company also established a test kitchen company in 1936, at a salary of $110 per under the supervision of a graduate home month. Three years later, he was named economist known by the coined name of director of the company's new Employee "Beatrice Cooke." Relations Department, and in 1943, was promoted to assistant to the president and In 1945, Beatrice instituted its now well- vice president. He was elected to the board of known sanitation program under the direc- directors inL947, and appointed executive tion of William G. Karnes. This program vice president the next year. conducts constant checks at all plants to insure the highest standards of superior The growth of consumer desires for con- sanitation and cleanliness. venience foods following World War.II persuaded Beatrice to develop another major An employee insurance program, under phase its and expansion pays premiums, of diversification which the company all the program. and an Employee Service Emblem Plan also were introduced. New companies producing specialty foods or The company suffered a severe loss with the foods with so-called "built-in maid serviee," death of C. H. Haskell in L952. Haskell, were added to the Beatrice family, thus however, had provided for his successor continuing the policy of developing Beatrice through his policy of building management into a truly representative foods firm. Particular emphasis was placed upon foods One of the first convenience foods firms to that grow in popularity at a greater rate join the Beatrice Foods family was LaChoy than thepopulation, such as candy, pickles, Food Products, a pioneer company in the

Expansion into additional food areas has been concentrated in the convenience-food fields, such as nationality items, confections and specialty baked goods. olives, specialty and snack foods. Emphasis production of American-Chinese foods, consistently was in products of high quality on Nov. 1, 1943. in line with the long-established policy of the flrm. The D. L. Clark Co., which produces and distributes Clark andZag Nut candy bars, Black Jack Carmels and Peanut Blossoms Kisses and other confections in a modern six-story building in Pittsburgh and a two- story plant in Evanston, Ill., joined Beatrice Foods Oct. 1, 1955. Subsequent additions to the Confectionery and Snack Division included Holloway Milk Duds and caramel suckers, Richardson's After Dinner Mints, Jolly Rancher Fire Stix, Switzer's licorice, Mrs. Leland's confections and Fisher Nuts. In effect, this was the beginning of the development of the Grocery Division, which officially was organized in 1957. This division was augmented both by the internal growth and new additions. Emphasis is upon convenience foods products that are growing in consumer popularity ata faster rate than the national average. Martha White convenience corn meal and biscuit mixes and doughnuts are two of the more recent additions. International operations were launched in 1961, and the company now produces a wide range of products in 28 Beatrice Foods' next major step was to countries outside the United States. broaden its international horizons. After more than two years of study, the company Jaya, a suburb of Kuala Lampur, capital of Iaunched its flrst overseas operation on Feb. the Federation of Malaysia. The company, 7,196L, with the opening by Beatrice Foods which initially produced canned sweetened (Malaysia), Ltd., of a new plant in Petaling condensed milk, has tripled its capacity and expanded its dairy product line since then. products as Airstream travel trailers, Stiffel lamps, Melnor lawn sprinklers and garden Today, Beatrice Foods owns or has substan- care equipment, Charmglow gas barbecues tial interests in 185 plants and branches in and lamps, Hekman furniture, Taylor soft- 28 countries outside of the United States. serve ice cream dispensers, Holiday and To indicate the extent of its international New Yorker mobile homes, Vogel-Peterson operations, Beatrice now is manufacturing coat racks, Beneke and Magnolia bathroom dairy products or candy on every continent accessories and Chicago Specialty plumbing except Africa and is selling dairy and supplies. specialty chemical products in Africa. Total Chemical operations now include 25 plants sales of international operations exceeded in the United States and around the world. in flscal 1977. $1.1billion Beatrice is a leader in several specialized In 1964, Beatrice began diversifying into chemical fields. It produces high performance selected products and services outside of the flnishes for leathers and textiles for the food business. Specifically, the company fashion and shoe industries and a complete expanded into fields with excellent sales line of synthetic resins which are the bases and earnings growth potentials. of modern floor polishes. Sales of manufacturing, chemical, consumer Samsonite, which joined the company in arts and leisure products operations grew 1973, is one of the world's leading manufac- rapidly and last year surpassed the $1.3 turers of quality hardside and softside billion total. luggage and attaches. It also produces extensive lines of upholstered chairs and Manufacturing operations are divided into tables for schools, business offices and other five divisions-Consumer Products, institutions as well as folding bridge tables Institutional and Industrial Products, and chairs and metal framed and redwood Luggage and Home Environment Products, casual and patio furniture. Consumer Arts and Leisure Products. Consumer Arts consists of four groups- Included are such consumer well-known Mail and Direct Marketing, Inks, Adhesives and Coatings, Special Retail Lines and Insurance Company and Comco Insurance, a Graphic Arts. casualty insurance company. On July 24, L973, Beatrice expanded into the At the same time, Beatrice continued to financial services fleld when Southwestern expand its other operations. The company

Potential for continued growth is the common denominator for most Beatrice products, including specialty meats. Investment Company, Amarillo, Texas, entered the cold storage warehouse business joined the company. Southwestern Invest- at the turn of the century since warehouses ment is engaged in the consumer and com- were necessary for the storage of its perish- mercial finance business. It also has two able dairy products. Today, the company major subsidiaries: Western National Life operates 25 cold storage and dry storage warehouses in key market centers across the different products- from epicurean hors nation. In 1973, it completed a new auto- d'oeuvres and entrees to specialty desserts. mated computerized food distribution center The company also offers a full line of paper. in the Chicago warehouse which is the most goods and cleaning supplies. advanced of its kind in the world. Two more The Specialty Meat Division includes Peter public cold storage warehouses were opened Eckrich and Sons, Ft. Wayne, Ind., which in 1976, one in Denver, Colo., the other in joined in1972. Eckrich is a leading Allentown, Pa. Beatrice processor of specialty meat products such as Based on studies that indicated a rapidly- smoked sausage, bologna and frankfurts. increasing demand for protein and leather, Founded in 1898, Eckrich now has more Beatrice entered the agri-products fields in than 150 specialty meat products and frozen 1964. Agri-Products operations now total meats under the Eckrich brand as well as 50 plants. These plants handle hides, tan corned beef rounds, briskets and processed leather, process animai oils and inedible beef products under the Kneip label. The tallow, operate wool pulleries and produce division also includes Lowrey's meat snacks, animal protein feeds, feed supplements Rudolph Foods, Big Horn high protein under the Vigortone brand and animal snacks and specialties and County Line by-products. The latter are used by pet cheese. food manufacturers. Meanwhile, the Dairy Division continued to In 1968, the company began developing what expand and diversify into such fine quality now is its Institutional Foods Division when foods as Dannon and Johnston Yogurt, Viva John Sexton and Co., Chicago, Ill., joined low-fat dairy products, Louis Sherry ice Beatrice. Sexton, founded in 1883 as a cream and instant cocoa and one-man tea and coffee shop on Chicago's now puddings. famous State Street, is the nation's premier Today, annual world-wide sales of the Dairy processor and distributor to the food service & Soft Drink Division are almost billion. industry. Today, the company serves more $1.5 Sales and earnings of the division have in- than 90,000 customers with more than 2,000 creased every year for 38 consecutive years. On March 1,7972, William G. Karnes, president since MarchL952, was elected chairman of the board of directors and chief executive officer. Don L. Grantham was r l"t elected president and chief operating officer. t*r ! il, a public Mr. Grantham, certified accountant, ,i,,rr xrr joined the company in 1934 as a member of il the office staff of the company's dairy plant #i in his hometown of Mattoon, Ill. r#r#". He served successively as manager of the #, Mattoon, Ill. and Brooklyn, N.Y. dairy promoted Warehousing and lood distribution has grown plants, and was to dairy group from merely the storage of butter for shipment manager in 1957. He was named eastern into a substantial portion of the company's regional vice president in 1961 and executive business. It includes one of the largest underground storagc facilities in the world at vice president in 1966. He has been a Kansas ('ity, Kan. director since 1963. designated executive vice president William years as a In the 10 Don Grantham worked G. Mitchell to become chairman and chief team with William Karnes, first as executive corporate officer, and executive vice presi- president president, vice and then as sales dent Wallace N. Rasmussen to become billion of the company tripled to $4.7 from president ancl chief executive officer. This Among the important $1.4 billion. contribu- became effective July 1, 1976, upon the re- tions of the Karnes-Grantham team was the tirement of Mr. Karnes and Mr. Grantham. realignment of Beatrice's decentr alized Both William Mitchell and Wallace system into is substan- management what Rasmussen are seasoned veterans developed present form. tially its in the Beatrice Foods system, and both have In August, 1975, the board of directors devoted their entire business careers to Brand names recognized as Ieaders in their fields around the world are among the products marketed by Beatrice companies in the manufactured products and specialty chemical fields. A few shown here are Samsonite luggage, Stiffel lamps, Hekman furniture, E.R. Moore caps and gowns, World Dryer hand dryers and Taylor soft-serve ice cream freezers. building the company. of arts degree from the University of and a Mr. Mitchell joined the company's law Oklahoma law degree from North- department in 1958 after earning a baehelor western University. He advanced to corporate secretary in 1965 and was elected and Leisure Products Divisions. Harry vice president-administration in 1971. He Niemiec, elected an executive vice president was elected a director and executive vice and director of the company in 1967, is in president and chief financial officer in 1974. charge of the Grocery Specialties, Confec- tionery & Snack and Bakery Divisions. Mr. Rasmussen began his career with the company in 1934 as a member of the engi- Senior vice presidents are: Norman E. neering department of the Lincoln, Neb. Barber, who is chief financial officer, dairy plant. He was promoted to various Richard J. Pigott, general counsel, and positions to become superintendent of the Richard W. Hanselman, president of the Cincinnati, Ohio, dairy plant in 1947. He Luggage and Home Environment Division. was named manager of the Nashville, Tenn., The story of Beatrice Foods is a chronicle of dairy plant in 1955 and manager of the progressive growth in the American tradi- Southern Dairy Group in 1957. Subse- tion of free enterprise. From a small partner- quently, he was elected a regional vice ship in Beatrice, Neb., it has become a president in 1965, seniorvieepresident in publicly-owned corporation, international in 1966, a director in 1970 and executive vice scope but local in character, operating president and president of all food under a decentralized system of management operations in 1974. that encourages the entrepreneurial skills In Novemb er,l975,the board elected five of the management team at each plant. executive vice presidents. They are: James Ahead of the food industry and the other L. Dutt, supervising the Dairy and Soft fields in which Beatrice is engaged, is a far Drink, Agri-Products and International greater and far more challenging future. Foods Divisions; Donald P. Eckrich, super- The company, flrmly established on strong vising the Grocery, Specialty Meat, and foundations built by its people, looks to this Warehouse Divisions; Richard A. Voell, future as an invitation for even greater Products, supervising the Consumer Insti- progress. tutional & Industrial and Luggage & Home Environment Divisions; and James Weiss, supervising the Chemical, Consumer Arts Beatrice Foods lms operations in Urese countries aroutrd the v!,orld.

Australasia & Far East Europe Western Hemisphere AUSTRALIA BELGIUM BRAZIL HONG KONG DENMARK JAPAN FRANCE COLOMBIA MALAYSIA GREAT BRITAIN COSTA RICA NEW ZEALAND IRELAND DOMINICAN REPUBLIC SINGAPORE GUATEMALA THAILAND THE NETHERLANDS JAMAICA SPAIN MEXICO SWITZERLAND NICARAGUA WEST GERMANY . PERU VENEZUELA