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Quaking in its boots The stolid visage of the Quaker Oats man has been this company's unchanging public face since it was first introduced in 1901. Quaker Oats boasts a long history of innovation, including the first trademarked breakfast cereal (Quaker Oats), the first prepared mix (Aunt Jemima's), and the first prepared convenience food in America (Quick Oats, 1921). Founding partner Henry Crowell was also an advertising pioneer. In an era when most ads were little more than announcements, Crowell's assertion that his product made infants "strong, rosy, and healthy, with good teeth" sent droves of mothers to the supermarkets. Quaker sold its products in Asia as early as 1920, and the company has been acquiring smaller food producers since its 1925 purchase of Aunt Jemima Mills. Over the years, members of the Quaker family have included everything from Fisher-Price toys to Igloo ice chests. Quaker's more recent acquisition of Snapple, however, was a full-fledged failure. After unrelenting financial losses in 1997, Quaker opted to sell the famous iced tea brand at a reported loss of $1.4 billion. As good as it gets Recent years have brought a combination of good and bad news to the company. Quaker Oats' adopted a strategy to exit out of food services by selling businesses that are considered non-essential to its core food and beverages businesses. While sales of businesses such as Snapple and Ardmore Farms caused Quaker's overall earnings to drop in 1998, Gatorade's 25 percent increase in operating profits has helped take up some slack. In 1998, Robert Morrison, the new chief executive of Quaker Oats Co., declared that in light of Gatorade's growing profits, the sports drink business may exceed that of Quaker's food business in 5-6 years. His announcement comes as no surprise given Gatorade's sales record. Gatorade, which Quaker acquired in 1983, contributed to 33 percent of Quaker's total sales in 1998 and accounts for 88 percent of the sports-drink market. Its ambitious 10 percent annual growth rate is outpacing the ambling general foods industry. No dice - oops, rice In 1998, Quaker started a downsizing project that has caused hundreds of workers their jobs. One of the first to go was the Asheville, North Carolina rice cake plant, followed by the Shiremanstown cereal plant and a plant in St. Joseph, Missouri. Quaker also sold its Liqui-Dri Foods, which produced biscuits and hotcakes, to Value Added Bakery Co., while the Sara Lee Corporation snatched up Quaker's Continental Coffee Products. It is all part of a cost-cutting strategy, aimed at reenergizing sluggish cereal operations, which should save the company $40 million in 2000 and more than $60 million in 2001. This allows the company to focus on its more lucrative Gatorade business; a new Gatorade building is going up in Indianapolis. And not everyone is losing their jobs. A new distribution plant is being built in Texas, and the headquarters building is moving to a new location in Chicago, receiving $10 million in public financial assistance. Quaker has also joined forces with Novartis AG in a 50-50 joint venture called Altus Food Co. The new company will develop and market functional foods that address the health concerns of women, children, athletes, and aging adults. Scaling the Great Wall With the Gatorade line of top-selling sports-drinks accounting for 33 percent of sales, Quaker is heading east in search of more profits. Currently, 80 percent of Gatorade drinkers are in the U.S. and Canada, but Quaker hopes to change that soon. Having secured its first production plant in northern China back in 1995, Quaker planted its boots in a potentially lucrative consumer market. In an attempt to address the needs of 1/5 the world's thirsty people, Quaker proceeded to bring the largest production equipment available for installation to its second plant in the southern Guangzhou location. A slump in Asian sales prompted a major marketing strategy shift; Quaker has concentrated its focus on China in hopes that a strong Chinese base will eventually launch profitable expansion into Asia.
Most positions with Quaker Oats are located in the company's Chicago headquarters. Quaker lists current openings on its employment Web page, located at www.quakeroats.com/jobs.htm. Applicants can submit a resume via regular mail, fax, or e-mail, but those e-mailing their resumes should be sure to use a Word 6.0, Windows Write 3.1, RTF, or ASCII format. All resumes are scanned into the Quaker database, where they remain for up to six months. Although interviews for entry-level positions aren't "overly stressful or technical," insiders do suggest that applicants "do their homework and research Quaker's history." Another insider reveals that she had "one interview on campus" and "was flown to Chicago a few weeks later for a day-long follow-up." That day, the tired insider testifies, consisted of "eight interviews in eight hours." Although the interview process is rigorous, Quaker is gallant about response time. "I received an offer only days later," reports one successful applicant. What is the secret formula to getting hired? "Communication skills," divulges another sage respondent, "good ones."
The Snapple debacle Despite the "Snapple debacle," employees say they are proud of the fact that "Quaker is recognized throughout the industry as being cutting-edge in terms of efficiency and marketing initiatives." Employees enjoy the "challenges and prestige" of working on projects related to "highly visible brands." They also praise the "generous" benefits, especially the stock option plan. A history of endurance During 1998 Quaker laid off about 15% of its workforce and its temporary financial performance incurred by its Snapple snafu was "disappointing," but employees say they are "optimistic" about Quaker's ability to use its 120 years of experience to "prevail over the long run."
Corporate Recruiting and Staffing 321 North Clark Street #16-81 Chicago IL 60610
Aunt Jemima;Cap'n Crunch;Gatorade;Life Cereal;Quaker Oatmeal;Quaker Rice Cakes & Granola Bars;Rice-A-Roni;Near East
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