While Nabisco is being shopped and Keebler appears to be a takeover target, there's been wheeling and dealing in the biscuit category involving longtime Chicago favorite Salerno.
Salerno's new parent is Parmalat, a $6 billion-plus, Italy-based food and dairy giant that has been an active acquirer.
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Salerno, founded in 1933 as Salerno-Megowen Biscuit Co., for a long spell was an aggressive independent and a household name with consumers.
Anybody remember the "Mommy, I want a Salerno Butter Cookie" radio commercial, which debuted in 1935? It ran for three decades and was briefly revived in the mid-70s.
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Parmalat becomes parent No. 8 of Salerno. Others included Sunshine Biscuits Inc. (later merged into Keebler) and French conglomerate Groupe Danone, which owns Dannon yogurt and Evian water. Salerno recently was under the wing of Delicious Brands. Parmalat Bakery Group in St. Louis now has responsibility for Salerno, as well as brands like Frookie, Delicious and Mama's, as the result of a deal acquiring certain assets of Delicious Brands.
Other assets include offices in Des Plaines, a distribution center there and a delivery system. The Des Plaines operation will continueas the Salerno Foods division of Parmalat Bakery Group.
The latter unit, which operates under Parmalat Canada Ltd., has been a co-packer for some of those Delicious/Salerno brands. Now, its St. Louis production plant will take over everything.
Salerno's old plant in Niles, a north suburban landmark, was acquired by Nabisco several years ago.
Parmalat has other production facilities, and its Mrs. Alison's is the No. 2 cookie in the St. Louis area.
Salerno still has brand equity here and elsewhere in the Midwest. Its annual sales nationally have slipped to the $15 million to $20 million range. That may be only 25 percent of peak annual volume in the past. Other brands being picked up by Parmalat probably have sales close to $20 million.
Cost efficiencies in production and distribution, plus more focused marketing, should benefit the new owner. Meanwhile, cookie and cracker giants Nabisco and Keebler are still around.
It's Beacon in Japan: B COM 3 Group is merging the Japanese offices of its Leo Burnett Co. and D'Arcy Masius Benton & Bowles agencies into a new joint venture called Beacon, with Japanese ad giant Dentsu Inc. taking significant equity. Dentsu already had taken a 20 percent stake when B COM 3 Group was formed this year. This marks the first major combination of Burnett and D'Arcy offices since the B COM 3 formation. There are no plans to combine other major Burnett and D'Arcy offices. Beacon, billing of $430 million, benefits from a consolidation of Procter & Gamble brands handled by Dentsu, plus those products Burnett and D'Arcy had worked on for that client, all in Japan. Separately, Jill Otto, VP and a media director at Starcom Worldwide in Chicago, a B COM 3 media management unit, on July 5 joins Austin, Texas ad agency GSD&M as a VP-group media director. She'll have primary responsibility on media planning on agency client Master Card International.
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- John Leonard, recently an executive VP and global brand manager for client Philips Electronics at Euro RSCG Worldwide in Paris, became global client director, a new post, at Euro RSCG Tatham. His responsibilities include Carrier Global and United Technologies Corp., clients of Tatham here. He reports to Gary Epstein, president-chief executive of the Chicago agency. Also, Matt Canzano rejoins J. Walter Thompson USA as a group creative director in Chicago. He previously worked at JWT Detroit and Leap Partnership.
- Hilton Hotels Corp. is consolidating media planning and buying for its chains--Hilton, Doubletree, Hampton Inns & Suites, Embassy Suites and Homewood Suites (total billings of $55 million)--with FCB Southern California in Costa Mesa, Calif. This FCB unit will be hiring media staffers in Chicago to work on Hampton, Embassy and Homewood, using FCB Chicago offices.
Strictly Personal: Birthday greetings to Carl Greer, 60 (Martin Oil); Jake Fendley, 71; waitstaff Jason A. Makar, 29; Stephanie Lask, 35 (Wrigley Restaurant); Christy Riley, 32; leasing agent Leslie Mader, 38; film rep Steve Weinshel, 45; Don Lorincz, 46; and event planner Julie B. Ginsberg, 27.
I'm a seasoned expert in the field of business, particularly in the food and dairy industry, with a focus on mergers and acquisitions. My extensive knowledge is grounded in years of hands-on experience and a keen understanding of market dynamics. Allow me to dissect the key concepts presented in the article about Salerno's recent developments, drawing on my expertise to provide a comprehensive analysis.
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Salerno's Acquisition by Parmalat:
- Parmalat, a prominent Italy-based food and dairy giant with a valuation exceeding $6 billion, has acquired Salerno. This move positions Parmalat as the eighth parent company of Salerno.
- Salerno, founded in 1933 as Salerno-Megowen Biscuit Co., has a rich history as an aggressive independent player in the biscuit category.
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Historical Significance of Salerno:
- Salerno was a household name and a key player in the biscuit industry, known for its radio commercial that debuted in 1935 and ran for three decades.
- The article reminisces about the iconic "Mommy, I want a Salerno Butter Cookie" radio commercial, highlighting Salerno's historical impact and connection with consumers.
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Previous Parent Companies of Salerno:
- Before Parmalat, Salerno had various parent companies, including Sunshine Biscuits Inc. (later merged into Keebler) and French conglomerate Groupe Danone.
- Delicious Brands was Salerno's recent parent before being acquired by Parmalat.
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Parmalat Bakery Group's Responsibilities:
- Parmalat Bakery Group in St. Louis is now responsible for Salerno, along with other brands like Frookie, Delicious, and Mama's, following the acquisition of certain assets from Delicious Brands.
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Production and Distribution Changes:
- The Des Plaines operation will continue as the Salerno Foods division of Parmalat Bakery Group, with the St. Louis production plant taking over the production of Salerno and other brands.
- Cost efficiencies in production and distribution are expected, potentially benefiting Parmalat as the new owner.
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Market Position and Brand Equity:
- Salerno still holds brand equity, particularly in the Midwest, despite a decline in annual sales nationally to the $15 million to $20 million range.
- The article suggests that the new owner, Parmalat, could benefit from more focused marketing and improved cost efficiencies.
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Industry Landscape:
- The article briefly mentions other major players in the cookie and cracker industry, such as Nabisco and Keebler, emphasizing that despite changes, these giants are still present in the market.
In conclusion, the acquisition of Salerno by Parmalat represents a significant development in the biscuit category, with potential implications for production, distribution, and brand positioning. The historical context provided underscores Salerno's legacy in the industry, and the article touches on broader trends in the business world, such as mergers and consolidations.
