Rowntree Mackintosh Confectionery

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For the company established in 1862, see Rowntree's.
Rowntree Mackintosh Confectionery
TypeJoint Venture
IndustryConfectionery
Predecessor
Founded1969; 53 years ago (1969)
Defunct1988; 34 years ago (1988)
FateAcquired by Nestlé and merged to it
SuccessorNestlé
HeadquartersYork, England
ProductsChocolate bars, toffee, candies
Brands
Subsidiaries

Rowntree Mackintosh Confectionery was a British confectionery company formed by the merger of Rowntree's and John Mackintosh Co.. The company was famous for making well-known brands of chocolate, including Kit Kat, Aero and Quality Street. The company was purchased by Nestlé in 1988, which rebranded many products under its own brand.

Rowntree Mackintosh Confectionery also owned John Mackintosh Co.'s former headquarters and factory. The Halifax-based factory is still used today, located next to Halifax railway station for the production of Quality Street and more. Rowntree's former factory and headquarters were in York. Nestle has invested more than £200 million in the Rowntree's business since 1988, making the York site one of the world's largest confectionery factories. Nestle's global research centre for confectionery is also based here, and recently doubled in size following a £7 million investment.

History[]

Background[]

Main article: Rowntree's

In 1862, Rowntree's was founded at Castlegate, in York by Henry Isaac Rowntree, as the company manager bought out the Tuke family.[1] In 1864 Rowntree acquired an old iron foundry at Tanners Moat for £1,000, and moved production there.[2] In 1869 the factory was staffed by 12 men.[3] By 1869 Rowntree was in financial difficulties and his brother, Joseph Rowntree, joined him in full partnership, and H.I. Rowntree & Co was formally established.[2]

Rowntree had struggled to make a milk chocolate product of comparable quality or value to Cadbury's Dairy Milk.[4] In 1927, the company began to market its fruit gums, and its pastilles from 1928, in the now familiar tube packaging.[5]

Rowntree entered the continental Europe market in the 1960s, establishing production facilities in Hamburg, Dijon, Elst and Noisiel.[6] After Eights were launched in 1962.[6]

In 1969, the Rowntree board rejected a £37 million takeover bid from General Foods.[7] That same year, Rowntree entered into a long-term agreement with Hershey whereby Hershey would produce Rowntree products under license in the US.[6] Rowntree merged with John Mackintosh and Co in 1969, to become Rowntree Mackintosh.[6] Mackintosh produced Rolo, Munchies, Caramac and Quality Street.[1]

Formation of Rowntree Mackintosh[]

In 1969, Rowntree's merged with John Mackintosh and Sons Ltd. to form "Rowntree Mackintosh Ltd." The company signed a long-time agreement with Hershey Foods Corporation to market and even produce some of its products in the U.S., starting with Kit Kat. The following year, the company expanded opening plants in Castleford and Leicester. In 1971, French business "Chocolate-Menier SA" joined the group. The company released its own newspaper, Rowntree Mackintosh News, with a circulation of 26,000 copies.[8]

The Yorkie and Lion chocolate bars were introduced in 1976.[6] In 1978 the Hershey contract was renegotiated, giving Hershey the rights to the Kit Kat and Rolo brands in the US in perpetuity.[6]

Kenneth Dixon was appointed as chairman and chief executive in 1981.[6] Between 1981 and 1987, Rowntree invested nearly £400 million in upgrading its manufacturing facilities and developing high volume, product dedicated equipment for several of the company's brands, including Kit Kat, After Eights and Smarties.[6]

Between 1983 and 1987, Rowntree spent nearly £400 million on acquisitions, including Tom's Foods for £138 million (1983), Laura Secord Chocolates for £19 million (1983), Hot Sam Pretzels for £14 million (1986), the Sunmark confectionery business in the US for £156 million (1986) and Gale's honey for £11 million (1986).[6]

Between 1982 and 1987, the number of UK staff was reduced from 19,700 to 15,600.[6]

In 1987 Rowntree operated 25 factories in nine countries and employed 33,000 people, including close to 16,000 in its eight UK operations.[6] Group turnover was £1.4 billion, with the UK and Ireland accounting for 40 percent of the total.[6]

Purchase by Nestle[]

In 1988, Swiss company Nestlé purchased Rowntree Mackintosh Confectionery, re-branded all of its products and took over the Halifax and York headquarters and factories.

After the acquisition, Nestlé slowly began to re-introduce the brand under the name "Rowntrees". These include , and Fruit Pastilles. These are the only two non-Nestle branded sweets as no Mackintosh sweets have been re-branded.

References[]

  1. ^ a b History of Nestlé Rowntree
  2. ^ a b Fitzgerald 2007, p. 48
  3. ^ Anne Vernon (2005). Quaker Business Man: The Life of Joseph Rowntree. Taylor & Francis. p. 10. ISBN 978-0-415-38160-4.
  4. ^ Fitzgerald 2007, p. 89
  5. ^ Fitzgerald 1989, p. 50
  6. ^ a b c d e f g h i j k l Hyde, Dana (March 1991). "The Nestlé takeover of rowntree: A case study". European Management Journal. 9 (1): 1–17. doi:10.1016/0263-2373(91)90044-q.
  7. ^ Cadbury, Deborah (2010). Chocolate Wars: The 150-Year Rivalry Between the World's Greatest Chocolate Makers. PublicAffairs. p. 264. ISBN 978-1-58648-925-0.
  8. ^ Rowntree Mackintosh Ltd. history on The Rowntree Society

Sources[]

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