Getting a rise

Chubby, giggly, and ever-pokeable, the Pillsbury Doughboy has become one of the most easily recognizable American icons, outshining the likes of the California raisins and even Tony the Tiger. The little guy has made a lot of dough for the company, which is based in Minneapolis, Minnesota. Although the Pillsbury name is normally associated with rolls, buns, and other poppin' fresh bread products, the company's plentiful pantry also stores cookies, pizzas, and side dishes. Pillsbury sells a host of familiar brands such as Hungry Jack waffles products, Old El Paso Mexican Foods, Haagan-Dazs ice cream, Progresso Italian foods, and Totino's snack products. An apparent master of fantastical, food-promoting creatures, Pillsbury also owns the rights to the Jolly Green Giant.

Smart cookie

Pillsbury rose to existence when Charles Pillsbury and his father, George, purchased a portion of a floundering Minneapolis flour mill in 1869. As they collected more money and momentum, the duo built what was then the largest flour mill on the Mississippi river. In 1869 they launched the company's namesake flour under the banner of Pillsbury's BEST. Although English investors bought the company in 1889, the Pillsbury family kept management privileges; they bought back the company in 1923 and began trading stock four years later.

Half-baked ploy

In sync with the good housekeeping baking brigade of the early twentieth century, Pillsbury offered a line of cake and frosting mixes. As the cult of domesticity grew in the 1940s and 50s, so did Pillsbury. The success of the first Pillsbury Bake-Off in 1949 (a flour-marketing ploy) was testament of the company's growing reputation. The Bake-Off soon turned into an annual event.

Too many turnovers

In 1952 Pillsbury bought the Ballard and Ballard Flour Company. The purchase allowed Pillsbury to begin packaging and refrigerating unbaked biscuit dough. Eager and acquisition-happy, the company expanded by purchasing foreign food manufacturer, a publishing unit, and even an insurance company. It joined the ranks of fast food royalty with the 1967 acquisition of Burger King. From 1973 to 1984, under the reign of CEO William Spoor, Pillsbury diversified with purchases like Totino's frozen pizza and the Steak and Ale restaurant chain. Pillsbury was still on a roll as late as the 1980s, when it took over Haagen-Dazs and launched the popular chain of pubs known as Bennigan's. But the company's baking bliss fell flat shortly thereafter. New concept development proved too costly. By 1989, under the shadow of bankruptcy, Pillsbury yielded to Grand Metropolitan's advances. The UK distilling giant paid $5.75 billion for the Doughboy's domain.

Spending all the dough

After years of expanding its offerings of gut-enhancing foods, the company went on diet in the 1990s. It slimmed itself down by eliminating smaller food brands, its flour mills, and all of its restaurant chains - with the noteworthy exception of Burger King. But with the arrival of new CEO Paul Walsh in 1993, the company rebounded. Eager to gobble as many promising new businesses as possible, Grand Met acquired competitor Martha White in 1994, as well as Pet Inc. in 1995. In a particularly peptic pairing, the company merged with Guinness in 1997. The combination food-and-beverage business dubbed itself Diageo.

Flour power

In 1998 Diageo decided that Pillsbury was once again too round around the middle. To shed a few pounds, it sold still more brands, including Pet milk, Accent seasoning, and Underwood meats. On a positive note, the company did acquire the bakery division of Heinz, which produces bread dough, and Productos Kikuet, a sizeable dough company based in Puerto Rico. The company is certainly no stranger to international operations. It has facilities in Argentina, Australia, Brazil, Canada, China, Colombia, France, Germany, Greece, Hong Kong, India, Israel, Japan, Mexico, the Netherlands, Russia, South Africa, Spain, Taiwan, the UK, the U.S. and Venezuela.

Souper strange

A resourceful strategizer, Pillsbury maintains partnerships with several other companies (using M&Ms in its cookie dough, for example, and Tyson chicken in some of its Green Giant TV dinners). Stewing over bland sales of its Progresso line, Pillsbury sent a team of "Soupermen" out on the road to market the brand. "Clad with soup-dispenser backpacks, Soupermen hit the streets to offer samples of hot Progresso soup to all they encountered." All in all, the company announced that it distributed "more than 500,000 cups of new Tomato Basil and 100% White Meat Chicken Noodle soup." Pillsbury declared the souper strange promotional campaign a success: Progresso's total sales were up 5.3% by the end of 1997.

In 1998, the company announced it would break ground on a state-of-the-art frozen food facility in Geneva, Illinois. The 125,000 square-foot plant would employ 150 people initially; future expansion could yield as many as 600 new jobs.

An end to the binge?

The year 2000 began with expansion efforts by Pillsbury. The company purchased Kerry's DCA Bakery operations in the U.S. and Canada; and it formed numerous alliances, including one with Pure Foods Corporation, a food company in the Philippines. Recently, however, the company has announced the termination of 750 positions worldwide, including 278 in Minnesota. In summer 2000, on the heels of this down-sizing, news came that Diageo was considering selling its baking subsidiary.

Diversity alert

Pillsbury's diversity is a source of unabashed pride. Since 1993, the number of women and minorities at the company has increased almost 75 percent. Through its "minority supplier initiative," Pillsbury conducts more than $60 million in business with minority and women-owned companies each year. The company is equipped with a diversity research library, which stores videos, books, newspapers, and "culturalgrams" on various multi-cultural issues. In addition, Pillsbury has a diversity council, comprised of executives, that meets regularly to discuss intra-company initiatives and leadership projects.

Doughboy seeks doughgirl