This website uses cookies to ensure you have the best experience. Learn more

Eskimo Pie Essay

1733 words - 7 pages

Advanced Corporate Finance
Professor Manuela Athayde Marques
TA Professor Ana Carolina Mota
Group Project

Eskimo Pie was a well known brand of frozen novelties in the early 1990’s. As
many companies in its stage, Eskimo Pie decided to explore growth opportunities by
going public.
The aim of this report is to present Eskimo Pie’s business and its historical
background in the first and second sections. The third and forth sections illustrate a
historical and financial analysis of the frozen novelty industry. The last section refers to
the different alternatives that Eskimo Pie has to go public.

Historical Background
Innovative ideas can start with day-to-day ...view middle of the document...

Firm’s Operations
In addition to the two main lines of business - licensing and manufacturing Eskimo Pie emphasized product innovation.
The licensing approach arose from the lack of centralized refrigeration. Eskimo
Pie licensed to 2,700 manufacturers by the spring of 1922. Within these licenses,
manufacture, distribution and sale were channeled through a network of 20 diary
product manufacturers. However, Eskimo Pie kept control of quality standards through
strict conditions including the right of inspections on manufacture and handling of its
products. When using Eskimo Pie product, licensees would pay for the ingredients and

packaging, however, they would be charged a trademark license fee when choosing
other suppliers.
The licensing activities made up a major part of revenues. In fact, 75% of
revenues were realized through the top 10 licensees. In Exhibit 1 are reported the
sales breakdown of the business lines between 1989 and 1991. As one can see, Eskimo
Pie’s licensing sales remained constant at a level of approximately 60%. Welch’s and
Health sublicensing sales grew from 14% in 1989 to 24% in 1991 and Flavor, Packaging
and other sales decreased from 28% to 20%.
Alongside with the licensing of the Eskimo brand, the company sublicensed
frozen novelties under the name of other companies such as Nestlé for a period of
time. The brand licensees for products from Welch’s and Leaf Incorporated accounted
for approximately 80%.The centralized marketing that the company provided both to
its own product but also for Welch’s and Leaf allowed the high recognition of the
brand and its presence on 98% of all U.S. grocery stores.

Exhibit 1

Year Ended December 31



Eskimo Pie




Welch’s and Health




Flavors, packaging and





Eskimo Pie manufacture operations were done through three plants in the
United States with 46 hourly workers and 18 salaried employees. The company would
produce ingredients and packaging for its licensees and non-licensees.
As a first mover in the industry, Eskimo Pie operations were centered around
innovation and product development. The sugar freedom Eskimo Pie innovation had a
direct impact on market share increased by 3% from 1987 to 1991. The corporation

was the first to introduce the fat-free concept in the industry; moreover, it even
started developing a fat-free line by 1992.

Industry Characteristics
During the 1980’s, the frozen novelty industry was characterized by a structure
of low growth, little advertising, and few participants. Big companies such as General
Foods, Mars and Coca Cola entered the frozen novelty industry, transforming it into a
rapidly growing market. In 1980, the number of ice cream novelty brands was around
100, and in 1987, the number of ice cream novelty brands was already expanded over
500. The units sold increased from around 450...

Other assignments on Eskimo Pie

Course Syllabus Essay

2610 words - 11 pages [pic] COURSE SYLLABUS Semester: Fall, Year: 2012  College Mission Statement Richard J. Daley College provides high-quality education which leads to academic success, career development, and personal enrichment that fulfill diverse community needs. Mathematics Department Mission Statement Our mission is to deliver excellent service and to provide learning opportunities by offering a wide range of mathematics courses, which will help our

Management Essay

1477 words - 6 pages Boeing Management Planning Heather Oetzel MGT 330 October 22, 2012 Joe Cheng Abstract Boeing is known as “the world’s leading aerospace company and the largest manufacturer of commercial jetliner and military aircraft combined ("The Boeing Company: About Us", 2012). Every company uses different types of management techniques including how the planning function of management is used. Planning allows organizations to develop how the

Assisted Suicide

1015 words - 5 pages Should physician-assisted suicide be legal? While I believe if one chooses to end his or own life through physician assistance for reasons that they chose, the choice should be up to the individual. Physician-assisted suicide should be at one's discretion. “Assisted Suicide, also called Voluntary Euthanasia, is currently a contentious issue in many countries. Because Euthanasia is legal in a few modern democracies: the Netherlands, Belgium

Tanglewood Case 1

797 words - 4 pages Tanglewood’s staffing strategy requires the organization to make key decisions about the acquisition, deployment, and retention of the organization’s workforce. In order to accomplish this, Tanglewood’s must make thirteen decisions regarding its staffing levels and its staffing quality. One of the first decisions that Tanglewood needs to choose is to acquire or develop talent. Tanglewood should try to develop their current talent because one


1391 words - 6 pages Есе по въпроса: Кои от всички „действащи” лица могат да се разглеждат като морално отговорни и в какво именно? по казуса Форд „Пинто” Корпоративните злодеяния са нанесли повече вреди на обществото от всички улични престъпления взети заедно. Според данни на ФБР сумата от уличните престъпления възлиза на $3.8 млрд. годишно, а загубите от корпоративните измами между $100 млрд. и $400 млрд. годишно

The Penis

1052 words - 5 pages The short story ”The Penis” is written by Hanif Kureishi. The short story is about a penis, which has been separated from its owner Doug, who we hear from later on. At first though we hear about a guy called Alfie who was “a cutter – a hairdresser – and had to get to work”. He is having breakfast with his wife, when she asks him what he did last night, and if he had a good time last night? Alfie can not remember what he did last night, he then

Managed Care Paper

543 words - 3 pages Managed Care and Case Management Care Marvin Lloyd BSHS/402-Case Management 27 August 2012 Virgil Miller Managed Care are techniques employed to help reduce the cost for providing health benefits and a system for improving organizations quality of care


439 words - 2 pages The life expectancy is lower; so people are not kept alive with drugs for decades in a virtual sleep state. There is less state education; so kids don't have it drilled into them that their only goal in life is to make money, at the cost of 'everything' else. The health care is less; so diseases, usually brought by Westerners, kill many more than they do in countries where drug companies can make a fortune from selling medicines that aren't

Chapter 6 International Business

7113 words - 29 pages CGGGG The Political Economy of International Trade Chapter Outline OPENING CASE: Why Are Global Food Prices Soaring? INTRODUCTION INSTRUMENTS OF TRADE POLICY Tariffs Subsides Country Focus: Subsidized Wheat Production in Japan Import Quotas and Voluntary Export Restraints Local Content Requirements Administrative Polices Antidumping Policies Management Focus: U.S. Magnesium

Scope And Goals

279 words - 2 pages Introduction: Kudler Fine Foods is a specialty food store based in San Diego, California with its three locations in La Jolla, Del Mar, and Encinitas. Kudler Fine food prides itself on offering fresh and organic products that are carefully selected from local farmers and around the world. The organization has recently taken the initiative to start a Frequent Shopper Program to market and increase sales. This program will offer the customers a


251 words - 2 pages Meerkat The meerkat or suricate, Suricata suricatta, is a small mammal belonging to the mongoose family. Meerkats live in all parts of theKalahari Desert in Botswana, in much of the Namib Desert in Namibia and southwestern Angola, and in South Africa. A group of meerkats is called a "mob", "gang" or "clan". A meerkat clan often contains about 20 meerkats, but some super-families have 50 or more members. In captivity, meerkats have an average

Similar Documents

Mgt216 Essay

714 words - 3 pages The first ethical issue presented in the ethics game simulation was whether to warn consumers about the contaminated product and what information to provide consumers about the contaminant. The second ethical issue was whether to sell a product that does not meet U.S. safety requirements in a foreign market that has lower safety restrictions. G-BioSport was not required to meet prior approval from the Federal Drug Administration before they

Economy Effect Of Marijuana Essay

277 words - 2 pages Modern American History by Alan Renga 2nd Mid Term! You will be given 3 Short Essay questions and 20 Multiple Choice questions deriving from this list! 80 points total! The 1920s Warren Harding then Calvin Coolidge Tea Pot Dome 1st Red Scare Immigration Restriction, Sacco and Vanzetti Langston Hughes, Marcus Garvey, KKK Prosperity, advertising Prohibition, Al Capone Flappers, Clara Bow, Rudolph Valentino Babe Ruth, Jack Dempsey

The Vc Shakeout Essay

2033 words - 9 pages ECONOMY 26 Luring a big firm to town is not the secret to job growth DEFEND YOUR RESEARCH 30 Are morning people wired for success? VISION STATEMENT 32 The social web’s east-west divide COLUMN 38 Warren Bennis looks back on his surprising path to fame New Thinking, Research in Progress New Thinking, Research in Progress FIRST The VC Shakeout Venture capital hasn’t worked for a decade and must be radically

Hospitals Paper

6014 words - 25 pages I hope to provide in this paper a comprehensive understanding for what the term “hospital” has become. Hospitals are an extremely complex system that man has created and shaped and reshaped throughout history. My goal in writing and researching this paper will be to provide those who read it a clear understanding on how the hospital system got to where it is today, and to shed some light on the many organizations that affiliate with and