Kraft Cheese: A Long History Of Dairy Deliciousness

Kraft cheese has been around for over a century. The company was founded in the early 1900s by James L. Kraft, a Canadian immigrant who started a wholesale door-to-door cheese business in Chicago with his brothers. They incorporated in 1909, selling 31 varieties of cheese by 1914. In 1916, the company patented a pasteurized processed cheese with a longer shelf life, which became its first major product. This innovation proved valuable during World War I, as Kraft sold about six million pounds of cheese to the U.S. Army for military rations.

Kraft's origins in cheese

Kraft's origins lie in cheese, quite literally. The company was founded by Canadian immigrant James L. Kraft, who started a wholesale door-to-door cheese business in Chicago in 1903. Three years later, he was joined by his brother Charles, and they began processing cheese for distribution to area retailers. In 1909, two more of the Kraft brothers joined the firm, which was then incorporated as J.L. Kraft and Bros. Company.

In 1914, the company was selling 31 varieties of cheese, and in 1915, they invented pasteurized processed cheese, which had a longer shelf life than conventional cheese. This invention was particularly valuable during World War I, and about six million pounds of the product were sold to the U.S. Army for military rations. The process was patented in 1916, and the company began its national advertising campaign.

In 1924, the company changed its name to the Kraft Cheese Company and listed on the Chicago Stock Exchange. In 1928, it acquired the Phenix Cheese Company, the maker of Philadelphia cream cheese, and the company changed its name to Kraft-Phenix Cheese Company. By 1930, it had captured 40% of the cheese market in the U.S. and was the third-largest dairy company in the country.

In 1935, Norman Kraft, the younger brother of J.L. Kraft, began experimenting with a new method of cheesemaking. He created the very first cheese "slice" by pouring hot liquid cheese onto a cold stainless-steel table and cutting it. However, it wasn't until the 1950s that Kraft introduced the first commercially packaged cheese slices, called Kraft DeLuxe. In 1965, Kraft Singles, as we know them today, were introduced, and they quickly became a grocery staple.

Today, Kraft Singles are still one of America's favourite cheeses, with new varieties being added regularly.

Kraft's first major product

In the early 1900s, James L. Kraft, a Canadian immigrant, started a wholesale door-to-door cheese business in Chicago with his brothers. They incorporated it in 1909 as J.L. Kraft Bros. & Company. By 1914, the company was selling 31 varieties of cheese. Kraft's early circulars and advertisements from 1911 can be seen at the company's headquarters in Northfield, Illinois.

In 1915, the company invented pasteurized processed cheese that did not require refrigeration, thus extending its shelf life beyond that of conventional cheese. The process was patented in 1916, and about six million pounds of the product were sold to the U.S. Army for military rations during World War I. This innovation marked a turning point in the cheese industry, reducing waste and extending the product's reach worldwide.

In 1924, the company changed its name to the Kraft Cheese Company and listed on the Chicago Stock Exchange. In 1926, it was listed on the New York Stock Exchange (NYSE). The company continued to expand and diversify its product line, and by 1930, it had captured 40% of the cheese market in the U.S., becoming the third-largest dairy company in the country.

Kraft's processed cheese was not only a breakthrough invention but also a commercial success, solidifying the company's position in the market and paving the way for its future growth and acquisitions.

Kraft's headquarters

New York City (1912-1972)

In 1912, Kraft established its first headquarters in New York City as it prepared to expand internationally. By 1914, the company was selling 31 varieties of cheese across the US, thanks to heavy product development, marketing, and the opening of a wholly-owned cheese factory in Stockton, Illinois.

Northfield, Illinois, near Chicago (1972-2015)

In 1972, Kraft moved its headquarters to Northfield, Illinois, near Chicago. This move reflected the company's growth and expansion beyond dairy products into new areas like caramel candies, macaroni and cheese dinners, and margarines.

Chicago and Pittsburgh (2015-present)

In 2015, Kraft Foods merged with H.J. Heinz Company to form The Kraft Heinz Company, the fifth-largest food and beverage company in the world. As a result of this merger, Kraft Heinz established co-headquarters in Chicago at the Aon Center and in Pittsburgh at PPG Place. The company also has other offices across the United States, Canada, South America, Europe, Asia, and Australia.

Kraft's presence in Chicago dates back to its early days. James L. Kraft, the founder of Kraft, immigrated to the United States in 1903 and started a wholesale door-to-door cheese business in Chicago. Although the first year of operations was challenging, the business eventually took hold, and Kraft was joined by his four brothers to form J.L. Kraft and Bros. Company in 1909.

Kraft's merger with Heinz

The merger brought together two portfolios of well-known food brands, including Kraft, Heinz, Oscar Mayer, Ore-Ida, and Philadelphia. The combined company had eight brands with individual sales of over $1 billion. The merger aimed to create substantial value for Kraft shareholders, with the special cash dividend payment representing 27% of Kraft's closing price as of March 24, 2015. Additionally, Kraft shareholders could participate in the new company's long-term value creation potential.

The management of the two companies expected to achieve $1.5 billion in annual cost savings by the end of 2017 through increased scale, sharing best practices, and cost reductions. The larger volume of sales would help drive better bargains with clients, improve operating margins, and increase shelf space in retail outlets. The combined company would also benefit from Heinz's global footprint, especially in emerging markets, to sell Kraft's brands internationally.

The chairman of Heinz, Alex Behring, became the chairman of the new company, while Kraft's chairman and CEO, John Cahill, became the vice-chairman. Bernardo Hees, CEO of Heinz, retained his position in the merged firm. The merger was completed on July 2, 2015, and the new company continued to be co-headquartered in Chicago and Pittsburgh.

Kraft's most popular products

Kraft's history began in 1903 when James L. Kraft started a wholesale door-to-door cheese business in Chicago. By 1914, 31 varieties of cheese were being sold across the US, and in 1915, the company invented pasteurised processed cheese, which had a longer shelf life than conventional cheese. This was sold to the US Army for military rations during World War I.

• Kraft- and Velveeta-branded cheese products, including Kraft Singles, which were first introduced in the 1950s and are still one of America's favourite cheeses.
• Philadelphia cream cheese, which was acquired in 1928 when the company merged with the Phenix Cheese Company.
• Cadbury chocolates, acquired in 2010.
• Milka and Toblerone chocolates.
• Planters nuts.
• Jell-O desserts.
• Kool-Aid powdered beverages.
• Jacobs and Maxwell House coffees.
• LU biscuits.
• Nabisco cookies and crackers.
• Oscar Mayer meats.

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