Nabisco is a company that has been in existence since 1898. During their 109 years inexistence, they have grown through natural growth, mergers, and acquisitions. This hasallowed Nabisco to be the leading snack maker in the world. The
Oreo chocolatesandwich cookie was first introduced in Hoboken, N.J. in 1911
Oreos today are far andaway the world’s most popular cookie. The Oreo family accounts for approximately 10 percent of all store cookie sales--a $3 billion market.However in recent years Nabisco has been reluctant to adapt to current market trends.The company was focusing on producing new versions of existing products to make themmore convenient.
In 1898, the New York Biscuit Company and the American Biscuit and ManufacturingCompany merged over 100 bakeries into the National Biscuit Company, later called Nabisco. Founders Adolphus Green and William Moore, orchestrated the merger and thecompany quickly rose to first place in the manufacturing and marketing of cookies andcrackers in America. To expand their global presence and to strengthen their position inthe fast-growing consumer snacks sector, Philip Morris Co. Inc. acquired NabiscoHoldings in December 2000. Philip Morris purchased Nabisco for $14.9 billion in cash plus assumed $4 million in debt.Eventually, Philip Morris integrated the Nabisco brands with its Kraft Food operations.And now it includes brands such as Chips Ahoy, Fig Newtons, Mallomars, Oreos,Premium Crackers, Ritz Crackers, etc….. Nabisco Arabia Company Ltd. (NAARCO) was formed in 1995 as a joint venture between Nabisco International and The Olayan Group of Saudi Arabia.In 2000, NAARCO made a major investment in a new plant to produce OREO, theworld’s most popular cookie. OREO cookies were launched in the Saudi market in March2001 with a major TV campaign.
The $3 million plant upgrade included a whole new production line, new offices,additional warehousing, and new mess rooms for the increased work force. Equipmentfrom Spain, Italy, India, France, and Austria went into the world-class facility, under thesupervision of Nabisco Technical Director Frank Willemsen and the Technical ServicesManager Anselmo Codina.The people of Kraft have recognized that the business has an important role in society- aresponsibility that included understanding and meeting the public’s expectations, helpingto address important social, environmental and economic issues and making a differencein local communities and the world. They firmly believe that “Our success will dependimportantly on our willingness and ability to listen, get feedback on what we’re doingfrom those both inside and outside Kraft and act responsibly on issues of importantconcern.”1