Gerber Products Company is a purveyor of baby food and baby products. The company was founded in 1927 in Fremont, Michigan, by Daniel Frank Gerber, owner of the Fremont Canning Company producing canned fruits and vegetables. At the suggestion of a pediatrician, Gerber's wife (Dorothy Gerber) began making hand-strained food for their seven-month-old daughter, Sally. Seeing a business opportunity, Gerber began devoting resources at the cannery to baby food production. By 1928, Gerber had developed five products for the market: strained peas, prunes, carrots and spinach, and beef vegetable soup. Six months later, Gerber's baby foods were distributed nationwide.
The brand eventually became a major international player in the baby food industry, offering more than 190 products in 80 countries, with labeling in 16 languages. The company's main competitors are Beech-Nut and Del Monte Foods, although Gerber controls about 83 percent of the baby food market in the United States.
Gerber merged with Sandoz Laboratories in 1994. In 1996, Sandoz merged with CIBA-Geigy to form Novartis, one of the largest pharmaceutical companies in the world. In 2007, Gerber was sold to the Nestlé Company for $5.5 billion. Its subsidiary Gerber Life Insurance Company is also located in Fremont.
Product diversification
In 1960, Gerber started selling its baby food in glass jars, which often found new life as a generic household storage item. Soon after, other items such as pacifiers, baby bottles and small baby toys were introduced. In 2003, Gerber partially replaced the glass jars with plastic tubs, for fruits and vegetables. Meats and some fruits are still sold in jars.
In 1967, executives at Gerber Products decided to offer a line of life insurance products aimed at young families. Floyd N. Head, Jr. worked for the company from 1946 to 1985. His first job title was that retail sales person. At the time of his retirement, his title was Executive Vice President and General Manager. He was part of the Gerber Life Insurance Company board.
Today, the Gerber Life Insurance Company is one of the largest purveyors of direct-marketed life insurance in the United States. Gerber Life currently has more than two million life insurance policies in force, and controls more than $650 million in assets. The company's term and whole life insurance products for adults and children are available in the United States, Puerto Rico, and most of Canada. Gerber Life currently has an A ( Excellent ) rating with independent rating entity AM Best, the third-highest rating out of thirteen categories.
Early in the 1990s, Gerber tried to enter into the sugar-free food market with a Sugar Free Vanilla Custard flavor, favorable to diabetic babies. The product did not see as much demand as expected, and it was dropped off the supermarket shelves after a few years. Gerber also began to produce juices, which are still being sold as of March 2009. In 1999, Gerber established Gerber Skincare products for babies.
Other Gerber products currently produced include breastfeeding supplies, such as the Premium Feeding System Manual Massaging Pump, as well as baby bottles and nipples. They also market a line of health care products, including Tooth and Gum Cleanser and Vitamin Drops.
Consumer relations
Gerber has a long history of projecting a family-friendly image. When Gerber Products established a consumer relations department in 1938, then ten-year-old Sally Gerber began answering each customer's letter individually, a practice she would continue for many years, even after she became a senior vice president of the company. In 1986, the company set up the Gerber Parents' Resource Center, a toll-free customer relations hotline, which has been providing information on baby food and parenting issues ever since.
Gerber Baby
Main article: Gerber BabyAccording to Gerber, Ann Turner Cook is the famous Gerber baby, whose portrait is featured prominently on all Gerber product packaging. Cook is now a retired teacher and mystery writer. She was depicted in a charcoal sketch by neighbor Dorothy Hope Smith. Smith submitted the sketch as an entry for the company's logo contest.
A few interim Gerber babies were selected to appear on Gerber products in the mid '70s including babies known only as Hogg and Murray.
Numerous urban legends have incorrectly identified the Gerber baby. Some legends claim that the baby is Sally Gerber herself, the reason why the company itself was established.
Tax break and expansion
In September of 2008, Gerber's Fremont facilities were designated as a Michigan Agricultural Renaissance Zone, and received $43 million in tax breaks over 15 years. In order to receive the incentives, Gerber agreed to continue its employment in Fremont at 1,100 jobs and invest $50 million in its Fremont facilities over the course of the next 10 years, however to get the full 15 years of tax breaks, Gerber agreed to increase employment by 200 and spend a total of $75 million on its facilities. The Tax Breaks have been largely supported, despite large revenue losses by local governments. $300,000 in losses a year for the City of Fremont, 10% of their budget, $160,000 a year for Newaygo County. It is estimated local governments would give up potentially $15 million in revenues over the 15 years as part of the tax break. Both the county and the city will be working with the Fremont Area Community Foundation to receive funds in the initial years to help with specific projects and programs. The Fremont Public School District would receive assistance through the state school aid formula. Nestle Nutrition North America CEO Kurt Schmidt said that the Fremont research and development center will be one of 23 worldwide Nestle "product technology centers" and also include scientific research for baby and infant nutritional products. It is expected that the new investment will help make Newaygo County a "global leader in scientific research."
References
- ^ "Novartis Completes its Business Portfolio Restructuring, Divesting Gerber for USD 5.5 Billion to Nestlé." Novartis, 12 April 2007.
- ^ "Novartis Completes Divestment Program with Transfer of Gerber Baby Foods Business." Novartis, 3 September 2007.
- ^ Alexander, Dave (September 22, 2008). "Tax breaks could save Gerber $43 million, extend company operations 15 years". The Muskegon Chronicle . http://blog.mlive.com/chronicle/2008/09/tax_breaks_could_save_gerber_4.html . Retrieved 2009-01-05 .
- ^ Alexander, Dave (December 17, 2008). "Gerber investment to create 200 jobs". The Muskegon Chronicle . http://www.mlive.com/news/muskegon/index.ssf/2008/12/gerber_investment_to_create_20.html . Retrieved 2009-01-05 .
- ^ Alexander, Dave (September 24, 2008). "Gerber gets unanimous backing for low-tax zone". The Muskegon Chronicle . http://blog.mlive.com/chronicle/2008/09/gerber_gets_unanimous_backing.html . Retrieved 2009-01-05 .
External links
- Gerber : Corporate Website
- Nestlé : Official website
- Gerber Life : Gerber Life Insurance Company
- Novartis :
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