Blue Bell Creameries

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Blue Bell Creameries
Private
Founded Brenham, Texas, U.S. (1907)
Headquarters Brenham, Texas
Key people
Paul W. Kruse (CEO)
Revenue Estimated US$680 million (2014)[1]
Website www.bluebell.com

Blue Bell Creameries is an American food company that manufactures ice cream. It was founded in 1907 in Brenham, Texas. For much of its early history, the company manufactured both ice cream and butter locally. In the mid-20th century, it abandoned butter production and expanded to the entire state of Texas and soon much of the Southern United States. The company's corporate headquarters are located at the "Little Creamery" in Brenham, Texas.[2] Since 1919, it has been in the hands of the Kruse family.

Blue Bell sells its ice cream directly in 23 states, mostly in the Southern U.S., as well as at least 27 other countries.[3] Blue Bell ice cream has also been eaten aboard the International Space Station and at Camp David. Despite being sold in a limited number of states, Blue Bell is the third highest-selling ice cream brand in the United States as a whole.

History[edit]

A restored delivery truck at the Brenham factory.

The Brenham Creamery Company opened in 1907 to purchase excess cream from local dairy farmers and sell butter to people in the Brenham, Texas area. In 1911, the creamery began to produce small quantities of ice cream.[4]

By 1919, the creamery was in financial trouble and considered closing its doors. The board of directors hired E.F. Kruse, a 23-year-old former schoolteacher, to take over the company on April 1, 1919. Kruse refused to accept a salary for his first few months in the position so that the company would not be placed in further debt.[5] Under his leadership, the company expanded its production of ice cream to the local area and soon became profitable. At his suggestion, the company was renamed Blue Bell Creameries in 1930 after the Texas Bluebell, a wildflower native to Texas, which, like ice cream, thrives in summer.[2][4]

Until 1936, the creamery made ice cream by the batch. It could create a 10-US-gallon (38 L) batch of ice cream every 20 minutes. In 1936, the company purchased its first continuous ice cream freezer, which could make 80 US gallons (300 L) of ice cream per hour. The ice cream would run through a spigot, allowing it to be poured into any size container.[6]

Kruse was diagnosed with cancer in 1951 and died within 8 weeks. His sons Ed and Howard took over leadership of the company. By the 1960s, the company completely abandoned the production of butter and began focusing solely on ice cream. After many years of selling ice cream only in Brenham, the company began selling in Houston, then in Dallas, and throughout most of Texas. By the end of the 1970s, sales had quadrupled, and by 1980 the creamery was producing over 10 million gallons (37,850,000 liters) of ice cream per year, earning $30 million annually.[7]

In 1989, sales began in Oklahoma, and throughout the 1990s expansion pushed throughout the South Central and Southern United States. In 1992, Blue Bell built a new manufacturing facility in Broken Arrow, Oklahoma.[2] A third manufacturing facility opened in Sylacauga, Alabama 4 years later.

Once Blue Bell establishes itself within a market, word-of-mouth usually ensures that consumers in adjacent areas become aware of the brand. Blue Bell has been slow to expand: company executives say they thoroughly research each new market and ensure that all employees in the new markets are fully trained in Blue Bell practices so that product quality can be upheld.[8]

Blue Bell introduced its flagship flavor, Homemade Vanilla, in 1969[2] and was the first company to mass-produce the flavor Cookies 'n Cream.[9] Although the company at one time made Cookies 'n Cream from Nabisco's Oreo cookies, buying ordinary retail packages, today it bakes its own cookies.[10] As of 1997, Blue Bell Homemade Vanilla was the best-selling single flavor of ice cream in the United States.[6]

Operations[edit]

The Blue Bell factory in Brenham

As of 2009, the company operated three manufacturing facilities, with the largest facility in Brenham, and auxiliary facilities in Broken Arrow, Oklahoma, and Sylacauga, Alabama. There are also 50 sales and distribution centers, known as branches, spread throughout its 23-state market. These facilities employ a combined 2,800 employees, with 850 of the employees working out of Brenham. In 2006, annual sales exceeded $400 million.[11]

Blue Bell retains control over all aspects of its business, primarily to ensure quality control and the use of the freshest ingredients available.[8] The Kruses claim "the milk we use is so fresh it was grass only yesterday."[10] The company uses milk from approximately 60,000 cows each day, and the cream used during each day's production run is always less than 24 hours old. All production and packaging takes place within Blue Bell facilities, which are able to produce over 100 pints per minute.[10][12] Drivers of delivery vehicles personally stock store shelves so they can ensure it is handled properly.[6]

According to figures gathered by Statista, a market data and statistics portal, while combined private labels sold more, in 2014 Blue Bell was the best-selling ice cream brand in the United States.[13] The sales area includes southern states between Nevada and Florida and Kansas City, an area that comprises only 20% of the ice cream sales geographic market.[14] By comparison, each of Blue Bell's top four competitors sell its products in over 86% of the United States. To become one of the three biggest ice cream manufacturers, Blue Bell has consistently been the top seller in the majority of the markets the company has entered.[8] Within five months of its entry into Baton Rouge, Louisiana, the company had garnered 35% of the ice cream market.[15] In its home state of Texas, the company has a 52% market share.[16] People living outside the sales area can have the ice cream shipped to them, and U.S. President George W. Bush often had the ice cream shipped to Camp David during his administration.[17] In 2006 and 2012 astronauts aboard the International Space Station were also treated to Blue Bell ice cream "to help out (the crew's) happiness quotient."[18]

Blue Bell officially expanded its business to Colorado on March 14, 2011, debuting its new flavor exclusive to Colorado: Rocky Mountain Road Ice Cream. While the test market is in the Denver-metro area, there has been speculation that the rest of the state will soon see Blue Bell on store shelves.[19]

On March 4, 2013, Blue Bell Ice Cream began selling in the Richmond and Hampton Roads, VA areas with a new branch being built in the near future in the Richmond area and a smaller facility in the Suffolk, VA area. It was also introduced to Wilmington, NC on April 1, 2013.

On March 3, 2014, Blue Bell expanded its business to Nevada. Its distribution centre will be located near the Las Vegas Motor Speedway.[20][21]

Products[edit]

Blue Bell produces over 250 different frozen products. Of these, 66 are flavors of ice cream. Twenty of the flavors are offered year-round, while an additional two to three dozen are offered seasonally.[22] In addition to ice cream, the company produces frozen yogurt, sherbet, and an array of frozen treats on a stick.[22]

Unlike competitors which have reduced their standard containers to 48 fluid ounces (1.42 L), Blue Bell continues to sell true half-gallon (64 fl oz/1.89 L) containers, a fact it mentions prominently in its advertising.[23]

R.W. Apple, Jr., of The New York Times claimed in 2006 that "[w]ith clean, vibrant flavors and a rich, luxuriant consistency achieved despite a butterfat content a little lower than some competitors, it hooks you from the first spoonful. Entirely and blessedly absent are the cloying sweetness, chalky texture, and oily, gummy aftertaste that afflict many mass-manufactured ice creams." [10]

In 2001, Forbes named Blue Bell the best ice cream in the country.[24]

2015 recalls[edit]

In 2015, the company issued a voluntary recall on an assortment of items produced at its creameries, due to the discovery of five cases of listeriosis in Kansas believed to be caused by products from the Broken Arrow, Oklahoma creamery.[25] Three of the five patients with listeria died, possibly due to the infection.[26] Subsequently, Blue Bell expanded the recall covering all of its products—a recall of over eight million gallons, to be disposed of into a sanitary landfill.[27][28] This was as a result of "an enhanced sampling program" launched by Blue Bell which produced "several positive tests for Listeria in different places and plants", including three further cases in Texas.[29] Although a spokeswoman had previously demurred on the subject of job losses,[30] Blue Bell laid off 37% of its workers in May 2015.[31] They also announced that another 1,400 would be temporarily furloughed until the clean-up is finished. The remaining employees, who are essential to the clean-up effort, also had wage reductions imposed on them.[32]

The recalls were so severe that they threatened to shut down the company; executives warned shareholders that they faced a "capital crisis."[33] In July 2015, Sid Bass, a prominent Texas investor, became a partner and investor with the company; Blue Bell secured a $125 million loan to continue operations.[34] Later that month, the Sylacauga, Alabama plant resumed production, creating test batches.[33] The FDA found that the company failed to follow standard practices to prevent contamination. Two years prior to the recalls, the company "repeatedly found listeria in its Broken Arrow facility."[33] On August 17, 2015, Blue Bell announced that a return to store shelves would begin on August 31, 2015, starting with the Houston and Austin, Texas, markets as well as the Montgomery and Birmingham, Alabama, areas.[35] The date for additional markets will be announced at a later time.

See also[edit]

Further reading[edit]

References[edit]

  1. ^ http://www.privco.com/private-company/blue-bell-creameries
  2. ^ a b c d Blue Bell Creameries from the Handbook of Texas Online
  3. ^ "All product recall". 
  4. ^ a b Ferrell, David (May–June 2007), "Tasteful Celebration", Texas Aggie: 33 
  5. ^ Ferrell, David (May–June 2007), "Tasteful Celebration", Texas Aggie: 32 
  6. ^ a b c Travis, Christopher K. (1997), "The Kings of Ice Cream", The Round Top Register, retrieved 2007-04-30 
  7. ^ Ferrell, David (May–June 2007), "Tasteful Celebration", Texas Aggie: 34–35 
  8. ^ a b c Smith, Pamela Accetta (January 2002). "True blue". Dairy Field. Retrieved 2007-04-30. 
  9. ^ Dudlicek, James (2007). "Homemade Success". Dairy Field. Retrieved 2007-07-05. 
  10. ^ a b c d Apple Jr., R.W. (May 31, 2006), "Making Texas Cows Proud", The New York Times, retrieved 2007-04-30 
  11. ^ Ferrell, David (May–June 2007), "Tasteful Celebration", Texas Aggie: 36 
  12. ^ Ferrell, David (May–June 2007), "Tasteful Celebration", Texas Aggie: 36–37 
  13. ^ Statista (August 10, 2014). "The leading 10 ice cream brands of the United States in 2014, based on sales (in million U.S. dollars)". Statista. Retrieved 2015-04-22. 
  14. ^ Cornyn, John (March 30, 2007), "The Little Creamery that Could" (PDF), Texas Times Weekly (Office of Senator John Cornyn), retrieved 2015-04-22 
  15. ^ Dexheimer, Ellen (April 1990). "Blue Bell Creameries Inc - Movers & Shakers - company profile". Dairy Foods. Retrieved 2007-04-30. 
  16. ^ cullar, Meg (September 13, 2006). "Second Helping". Baylor Line. Retrieved 2007-04-30. 
  17. ^ Ma, Ji (October 21, 2004), "Blue Bell CEO encourages students to meet future challenges head-on", The Battalion, retrieved 2007-04-30 
  18. ^ Watson, Traci (September 14, 2006), "Orbiting station gets solar panels, and then dessert", USA Today, retrieved 2007-04-30 
  19. ^ "Blue Bell Ice Cream arrives in Denver". Retrieved 13 March 2011. 
  20. ^ "Blue Bell expanding to Vegas due to popular demand". Retrieved 12 February 2014. 
  21. ^ "Blue Bell ice cream expanding to North Las Vegas area with distribution centre". Las Vegas Review Journal. Retrieved 12 February 2014. 
  22. ^ a b Levey, Kelli (June 4, 2004), "Recipe For Success", The Bryan-College Station Eagle, retrieved 2007-04-30 [dead link]
  23. ^ "Blue Bell Ice Cream- Still a Half Gallon". Bluebell.com. Retrieved 2012-03-07. 
  24. ^ "50 of America's Best", Forbes, April 30, 2001, retrieved 2007-04-30 
  25. ^ "Blue Bell Recalls All Products After Listeria Outbreak". Retrieved April 21, 2015. 
  26. ^ "Invite Some Germs to Dinner". NYTimes. May 9, 2015. Retrieved May 10, 2015. 
  27. ^ "Blue Bell to dispose of 8 million gallons of ice cream after recall". 
  28. ^ Government, United States (April 3, 2015). "Outbreak of Listeriosis Linked to Blue Bell Creameries Ice Cream Products". CDC. Retrieved April 4, 2015. 
  29. ^ Yan, Holly (April 21, 2015). "Blue Bell recalls all its ice cream products over Listeria concerns". CNN (Atlanta). Retrieved April 21, 2015. 
  30. ^ "Blue Bell: We haven't laid off anyone in 100 years and we won't do it now". Retrieved May 3, 2015. 
  31. ^ "1,450 Blue Bell workers losing jobs after listeria problems". Associated Press. May 15, 2015. Retrieved May 15, 2015. 
  32. ^ "An agonizing decision". BlueBell.com. May 15, 2015. Retrieved July 9, 2015. 
  33. ^ a b c Jesse Newman (August 1, 2015). "Ice-Cream Recall Sends Chill Through Food Industry". Wall Street Journal. Retrieved August 2, 2015. 
  34. ^ "Blue Bell receives investment". BlueBell.com. 2015-07-14. Retrieved 2015-07-18. 
  35. ^ Owens, Marjorie (17 August 2015). "Blue Bell will begin limited distribution Aug. 31". USA Today. Retrieved 17 August 2015. 

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