Personality: Diversification Route Pays Off; Pet Milk President Behind Program of Acquisitions - pet manufacturing process
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The blueprint for future development is an old milk company of ancient plates, which has relied on a product for more than 70 years and has now expanded to greener pastures.
In the process, Pet Milk has become a diversified food processor worth $0. 125 billion.
Its famous brands include Musselman's apple sauce, down waffles, Whitman's sampled chocolate, Laura Skard's potato chips, Sego liquid diet, petritz frozen pie serving pecans and breakfast juices.
Staki, the first non-manufacturing company in the South to have roadside restaurants, snack bars and motels, joined the family earlier this month. The St.
Louis-based companies have transformed through internal development, but more specifically through acquisitions.
The fresh new formula was synthesized by Theodore Robert Gambo, the grandson of the company's president and one of the company's founders, Louis laszer.
Until 1955, there are only two departments in the company.
Milk and dairy products.
The imilk market, which has evaporated for years, has been shrinking.
Gamble realizes that both inside and outside need to be diversified if pets are to grow.
As a relatively small company in the industry, it must compete with the highly diversified giants.
Five years ago, during the company's 75 th birthday, Robert L.
Chairman raze and his nephew.
They designed a project called the blueprint for progress.
With the help of a management consulting firm, Pet was reorganized.
The company's new plan emphasizes high quality products, good management and greater potential for acquisition profits.
New orders are packaging, promotion and marketing.
Manufacturing no longer dominates the power of the company . "Gamble asserts.
"Efforts to improve the manufacturing process and to find new manufacturing methods continue.
Five years after he left
After Gambo became chief executive, the company has made 15 acquisitions, only one in addition to the dairy sector.
This is the latest foreign acquisition of the whole milk powder and chocolate beverage powder business in Puerto Rico and the Virgin Islands a week ago.
Just two months ago, a large frozen strawberry processing company in Mexico called CENSA was acquired.
The seven sectors that have increased so far this year have expanded from eight in last March to 11.
In addition, the company currently spends five times as much on research and development as it did five years ago and has launched several new products.
The Sego liquid diet food, which was launched three years ago, has now surpassed the former leader in the field, Mr. may trekaer.
Gambo said proudly.
A coffee cream that does not contain dairy products, a chocolate syrup delivered by air, is a new product.
The Pet Formula nurse with pre-mix, pre-sanitized formula and nipples "should be another winner for us," the executive said ".
● Prior to the first major acquisition in 1961, manufactured goods accounted for 65 of sales, fresh dairy products, frozen food and non-dairy products.
In fiscal 1964, dairy products were produced in total, while fresh dairy products, snacks and sweets and all other products, including frozen foods, fruit and nut products, accounted for 20 of sales respectively.
The blueprint for progress is achieving results.
Sales for the fiscal year ended March 31 increased by 290 to US dollars.
The increase was 9 million per cent from the previous year's $0. 261 billion.
Profits rose to $5.
From $4 to $7 million in 1964 fiscal years.
1963 8 million. Mr. advertising
Unwilling to make predictions, Gambo expects revenue in fiscal 1965 to be about higher than in fiscal 1964.
The profit margin is still very small, the sales profit margin is 2, and 1.
Eight percentage points three years ago.
The massive spending spent on expansion over the past six years is a factor.
Capital expenditure this year will be equivalent to $10 million in 1964 fiscal years. Gamble said.
● "We are diversifying our health, which will enable us to participate in the growth of the food industry above average.
In fact, we should redouble our efforts in the coming year 45. ”Mr.
Gambo left the office for about three quarters to investigate potential new markets and acquisitions in the US and overseas.
Last year, he and six officials of the company's convo airlines visited 26 countries to study areas of interest.
The 6-foot-thin executive used to be a very good golfer, "but in those many years my disability has risen from S to 13," Mr. Gamble said.
"I just don't have time to play.
But I sometimes negotiate business at the golf course and drive a good car in hole 19!
"No, I never squeezed milk, but I tried it . "
Gambo admits. Born in St.
Louis, Ted Gambo attends public schools there.
He got his first food at the family-owned grocery store when he was very young.
"In fact, I peeled cabbage from school during the summer vacation," he recalls . ".
A new student at Purdue University when the war broke out
Gambo served in the Navy but continued to study in uniform.
His first job after he retired was Lieutenant. j. g. )
Working in a New York company in 1946.
He worked there for a year as a researcher.
Although he is a mechanical engineer, he plans to start his career on Wall Street. Mr.
"I am very fascinated by the financial sector," said Gambo.
Also, I make more money in the market than my job and do better than research analysts.
He was asked to add pet milk at the time.
In return to St.
Mr. Louis of 1949
Gambo takes a postgraduate course at Harvard Business School and holds a master's degree.
He joined the company in 1951 as an accountant and assistant to the general manager.
Three years later, he was elected vice president and director.
He was promoted to executive vice president in 1958 and became president in the second year. Mr.
Gamble is a board member of several pet subsidiaries.
His External Director position includes the First National Bank in St. Louis, the St.
Louis United Trust, Hussman refrigerator, American Grocery Manufacturer
And the Metropolitan Chamber of Commerce. Louis.
He is a member of the Finance Committee of the Economic Development Commission. Mr.
Gamble is active both nationally and locally in civil and business affairs and is an official or member of numerous organizations and universities. In 1951 Mr.
Gambo married former Rispah. Dowse.
They have an 11-year-old son, Robert Jr. Mr.
The father of Gambo, Merritt C.
Gambling, mother, former Irma.
Lazer, who lives in Peoria, is ill.
As early as 1884, when advertising started, he raised $15,000, a new chapter in the beginning of advertising Adventures
There are also some Swiss dairy farmers.
Today it operates about 75 factories in 38 states as well as Canada, Puerto Rico, Mexico and the Netherlands.
But the pet is going to take its cattle to a wider ranch.
A version of the file was printed on page F3 of The New York edition on September 27, 1964, with the title: Personality: Diversity routes pay off;
Pet Milk president behind the acquisition plan.