The Evolution of Kraft Foods: A Journey from Cheese Wholesalers to Global Powerhouse

Kraft Foods, heralded as the preeminent food giant in the United States, traces its roots back to the enterprising spirit of James L. Kraft. Born in Ontario, Canada, Kraft's journey began with humble beginnings, but his vision and innovation would propel him to revolutionize the cheese industry.

In 1903, Kraft embarked on his entrepreneurial venture in Chicago, capitalizing on the daily pilgrimage of grocers to the cheese market. Sensing an untapped market opportunity, he established a wholesale cheese distribution business, streamlining the process by delivering cheese directly to retailers' doorsteps.

The nascent business gained momentum when Kraft, joined by his brothers, established the J.L Kraft and Bros cheese factory in Stockton, Illinois, in 1914. However, it was Kraft's ingenuity that truly distinguished the company. Recognizing the inefficiencies in traditional cheese retailing, Kraft pioneered the concept of pre-packaging cheese portions, a move that revolutionized the industry and accelerated sales.

In 1915, Kraft introduced its groundbreaking product – blended, pasteurized cheese, aptly coined "processed cheese," packaged in convenient tins. This innovation not only enhanced the product's shelf life but also appealed to the burgeoning convenience-oriented consumer market.

The year 1924 marked a significant milestone as the company was listed on the prestigious Chicago Stock Exchange under the banner of Kraft Cheese Company. Expanding its global footprint, Kraft inaugurated its inaugural European sales offices in London and Germany by 1927, solidifying its position as an international player.

Continuing its trajectory of growth and consolidation, Kraft acquired the Phoenix Cheese Company in 1928, subsequently rebranding as Kraft-Phoenix Cheese Company. This strategic move further augmented Kraft's market share and diversified its product portfolio.

Amidst the economic tumult of the 1930s, Kraft weathered the storm and, in 1930, was acquired by National Dairy, albeit maintaining operational autonomy. However, it was in 1976 that the company underwent a pivotal transformation, rebranding as Kraft Inc., signifying its ascension as a diversified food conglomerate beyond its cheese-centric origins.

In conclusion, Kraft Foods' evolution epitomizes the quintessential American success story, rooted in innovation, adaptability, and entrepreneurial foresight. From its modest beginnings as cheese wholesalers in Chicago to its current status as the unrivaled food powerhouse, Kraft's journey underscores the enduring legacy of James L. Kraft's pioneering spirit and the company's relentless pursuit of excellence.
The Evolution of Kraft Foods: A Journey from Cheese Wholesalers to Global Powerhouse

Cheese in United States

Many countries have developed one or more varieties of cheese peculiar to their own conditions and culture.

When the Pilgrims voyaged to America in 1620, they made sure that the Mayflower was stocked with cheese. When the colonists settled in the New World they brought with them their own methods of making their favorites kind of cheese. Cheese making in North America and specifically in the United States, remained a farmhouse process throughout the seventeenth and eighteenth centuries.

In 1851, entrepreneur Jesse William had built the first US cheese factory near Rome, Oneida County, New York and introduced production in a grand scale.

After extensive experimentation, Williams regulated the timing as well as the temperature for converting milk to curds, regardless of volume.

In 1867, Robert McAdam introduced the English Cheddar system in a factory near Herkimer, New York. This introduction made Herkimer County famous for its cheese.

For many years during this period, the largest cheese market in world as at Little Falls, New York.

As the population increased in the East and there was a corresponding increase in the demand for market milk, the cheese industry gradually moved westward.
Cheese in United States

The origin of Kraft Foods

Kraft Foods, which was spun off from Phillip Morris in 2001, is the largest food company in the United States.

Kraft Foods company history began with James L. Kraft’s wholesale cheese business in Chicago in 1903. 

James L Kraft born in Ontario, Canada immigrated to the United States where he engaged in a variety of pursuits.

He noticed that grocers traveled daily to the cheese market to buy cheese for their stores. Recognizing an opportunity, he started a wholesale cheese distribution business in Chicago that brought the cheese to the grocers.

His brothers joined him in the business and in 1914 J.L Kraft and Bros opened a cheese factory in Stockton, Illinois.

Sales were slow until Kraft came up with the idea of packaging the cheese in portions in advance, rather than weighing out and wrapping pieces to each customer’s specification.

In 1915 Kraft created a blended, pasteurized cheese, which called ‘processed cheese’ and packaged in small tin. 

The company was listed on the Chicago Stock Exchange as the Kraft Cheese Company in 1924. In the year 1924 James L Kraft opened its first European sales office in London and Germany in 1927.

In 1928, the Phoenix Cheese Company was acquired by Kraft Cheese Company and the name was changed to Kraft-Phoenix Cheese Company.

In 1930 Kraft was bought by National Diary, but its operations were kept separate. The company was renamed to Kraft Inc in 1976.
The origin of Kraft Foods