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- Previously, on
The Food That Built America:
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food pioneer, Henry Heinz,
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00:00:09,259 --> 00:00:10,589
brought his iconic
tomato ketchup
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00:00:10,594 --> 00:00:12,011
to the world.
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00:00:12,012 --> 00:00:14,512
- We're wiring this back
here, starting today.
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00:00:14,514 --> 00:00:18,194
- And revolutionized
the industrial process,
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creating an American dynasty.
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00:00:23,857 --> 00:00:26,484
And shrewd visionary,
Asa Candler...
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00:00:26,485 --> 00:00:29,485
- I'll give you $300 for
the rights to Coca-Cola.
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00:00:31,031 --> 00:00:32,571
- Turned John
Pemberton's formula
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for Coca-Cola
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00:00:34,159 --> 00:00:35,989
into the first
national soft drink,
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00:00:37,162 --> 00:00:39,462
becoming the richest
man in Atlanta.
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00:00:43,377 --> 00:00:46,045
Now, trailblazer
Milton Hershey...
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- Damn it!
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00:00:47,172 --> 00:00:48,012
- Get out.
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00:00:49,174 --> 00:00:50,764
- Bets on an unknown luxury
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00:00:50,765 --> 00:00:53,429
called milk chocolate
to make his fortune.
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- Make sure every sales manager
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has plenty of samples.
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They're gonna need 'em.
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- It's the start
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of a multi-billion
dollar enterprise.
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A father and son duo named
Frank and Forrest Mars
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create an iconic
candy of their own.
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- I call it the Milky Way.
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- And they're
gunning for Hershey's throne.
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- Hershey isn't our supplier.
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They're our competition.
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- C. W.
Post used the ideas
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he took from John
and Will Kellogg
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to launch a cereal empire.
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Now the brothers go to war
with Post and each other.
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- I'm gonna bury you.
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- But it's Post's daughter,
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teamed with outdoorsman,
Clarence Birdseye,
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whose bold vision will reinvent
the way the world eats.
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- Very, very
good; very, very good.
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00:02:56,183 --> 00:02:57,676
- Will Kellogg has spent a year
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00:02:57,678 --> 00:02:59,548
building his new
corn flake company.
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00:03:00,972 --> 00:03:02,682
- For decades,
he toiled in the shadow
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of his famous older
brother, Dr. John Kellogg.
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- John Harvey Kellogg had
this great reputation.
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Not always a lecturer
and a doctor,
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but he wrote best-selling books.
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And so, tens of thousands
of people per year
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came from around the
country and around the world
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to meet the great Dr. Kellogg,
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and to learn how to
be healthy from him.
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- The only reason you work here
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is because you're my brother.
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- But he never missed
a moment to humiliate
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or razz his brother.
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- You're not capable!
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- Will's cereal
brand is growing quickly
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thanks to the family name
his brother made famous.
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- Will Kellogg bought the
recipes from John Harvey Kellogg
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and he added a little bit
of malt sugar, not a lot,
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and he would put his
name, his signature on it,
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and so, it became Kellogg's.
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Will had to know
that the name Kellogg
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was very marketable
because of the doctor.
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00:04:02,868 --> 00:04:07,408
- By 1907, he
makes $178,000 in profit,
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00:04:07,414 --> 00:04:09,124
nearly five million today,
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and he pours almost
double that amount
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into making the name of Kellogg
synonymous with corn flakes.
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00:04:16,884 --> 00:04:19,049
- W. K. had a brilliant mind.
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He had business savvy.
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You know, "Only look for
the box with my signature."
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The marketing of
these things, genius.
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- The most important thing
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00:04:30,729 --> 00:04:33,269
for spreading the national
brand was advertising.
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It's going to change how
word-of-mouth comes out
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00:04:36,613 --> 00:04:39,030
about what type of food
you should be eating.
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Industries are buying
space in magazines,
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00:04:41,531 --> 00:04:44,116
saying, "Uneeda Biscuit."
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Jell-o takes off by
advertising itself
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as America's most
famous dessert.
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It wasn't famous at all,
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but they started an advertising
campaign calling it that
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and it took off.
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- Will Kellogg, he had all
sorts of amazing campaigns.
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He had these giant billboards,
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the largest
billboard of its time
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that he put up in Times Square,
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00:05:04,644 --> 00:05:06,718
similar things in Chicago.
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00:05:06,723 --> 00:05:09,892
He had a whole campaigns
where they suggested to women
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that they wink at the
grocer and that'd be a sign
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to give them the
Kellogg's Corn Flakes.
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00:05:15,690 --> 00:05:18,275
So, there was also
sexual innuendo.
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He promoted the hell out of
it with Kellogg's Corn Flakes.
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- By the early
part of the 20th century,
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food becomes the biggest segment
of the advertising market,
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beating out cosmetics,
tobacco, and automobiles,
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with Will Kellogg
leading the charge.
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Just a few miles
away, Dr. John Kellogg
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is determined to strike
back at his younger brother.
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- As Will Kellogg
became more successful,
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John resented that.
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He didn't want his little
brother to succeed,
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particularly with his
name, and his product.
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- John markets his
own unsweetened Corn Flakes,
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using the same
name and packaging,
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even though he sold
the rights to Will.
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- When John Harvey Kellogg began
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to make his own
Kellogg's cereal,
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it was a threat
to Will's company
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because if people
confused Will's product
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with Dr. Kellogg's product,
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which didn't taste as good,
he would lose customers.
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No wonder Will Kellogg
resented John Harvey Kellogg.
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He seethed with anger.
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- The Kellogg
Company will someday
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00:06:48,915 --> 00:06:50,539
be worth $20 billion.
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- The only
question is, which one?
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- What the hell is this?
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I bought the recipes!
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- The rights aren't exclusive,
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and Kellogg is my last name.
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- I have tried with you, John.
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I really have,
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but if you weren't
my brother, I swear.
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- You're nothing without my
name, and you never were.
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You know, I used to pity you.
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00:07:34,204 --> 00:07:35,584
Now I don't feel anything.
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You're pathetic.
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- I'm gonna bury you.
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00:07:50,637 --> 00:07:53,467
- With the Corn
Flakes legacy at stake,
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00:07:53,473 --> 00:07:55,432
John and will sue each
other for the right
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00:07:55,433 --> 00:08:00,193
to the Kellogg name, and the
massive fortune it represents.
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00:08:05,985 --> 00:08:09,445
- Meanwhile,
C. W. Post oversees
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the dynasty he's built on
ideas he took from Kellogg's.
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00:08:15,120 --> 00:08:17,710
- People forget how much
industrial espionage there was.
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00:08:17,711 --> 00:08:22,746
C. W. Post himself came to
the sanitarium as a guest,
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and then he creates Grape Nuts.
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- By 1908, his company makes
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00:08:28,174 --> 00:08:32,894
over $5.2 million,
147 million today,
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but Corn Flakes represent
the first real threat
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it's ever faced.
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- At this point, Post still
was marketing its products
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as a health supplement,
whereas Will Kellogg
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is really selling
his flakes as food,
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and was enormously
successful at it.
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- Years after a
nervous disorder landed him
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00:08:58,041 --> 00:09:00,078
at Dr. Kellogg's sanitarium,
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00:09:00,081 --> 00:09:03,081
the stress of competition
is taking its toll.
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00:09:03,084 --> 00:09:04,877
- Why is it so cold
in here all the time?
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- Cold?
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00:09:05,712 --> 00:09:07,712
It's not that cold, sir.
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- Right.
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00:09:08,882 --> 00:09:11,550
Well, you're doing a great job.
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Keep it up.
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You know.
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00:09:18,349 --> 00:09:23,059
- Post is a man who has
been plagued by illness
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throughout his entire life,
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and just around the time
the companies became rivals,
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C.W. Post's health
problems start coming back.
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- Post, desperate
to bring corn flakes
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of his own to market,
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00:09:39,746 --> 00:09:42,666
and his illness makes
him increasingly erratic.
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- I asked you to produce
flakes three-quarters
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of an inch across.
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This is mush.
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00:10:00,141 --> 00:10:02,979
- Whether he completely
rips it off or not
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00:10:02,980 --> 00:10:05,017
is another question,
but if you think
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00:10:05,021 --> 00:10:06,611
about C. W. Post's ethics,
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00:10:06,612 --> 00:10:10,776
he was just like the other
entrepreneurs of his time.
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He was part of that robber
baron generation, after all.
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It was a time when ruthlessness
was, if anything, admired.
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- I want you to find out what
equipment Kellogg is using
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and who makes it.
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Get us whatever the hell he has.
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- Yes, sir.
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- Wait.
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Buy them out.
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Order 100 of them
if you have to.
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I don't want anyone
else to get one.
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I don't care how much it costs.
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Money's not an issue.
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- Post Corners the market
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on Will Kellogg's
proprietary flake rollers,
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cementing himself as
Kellogg's fiercest competitor.
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- 480 miles from Michigan,
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a local businessman
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is looking for a
factory to mass-produce
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an entirely new product
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that almost no
American has ever tasted.
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- We're never going to
find a perfect space.
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00:11:22,849 --> 00:11:23,729
- I know.
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- We have to make a
compromise somewhere.
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00:11:26,691 --> 00:11:28,976
We've seen every available
factory in Philadelphia.
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00:11:28,980 --> 00:11:30,647
- I know.
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00:11:30,648 --> 00:11:32,478
- The people who, in my
experience,
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00:11:32,483 --> 00:11:33,692
tend to be innovators
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00:11:33,693 --> 00:11:35,694
are really kind of maniacal.
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They're not your average people.
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00:11:38,698 --> 00:11:41,028
- Now you're take me
to middle of nowhere.
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For what, exactly?
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00:11:42,535 --> 00:11:44,615
- Just hang
on, we're almost there.
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00:11:46,039 --> 00:11:49,249
- The ambition comes from
somewhere deep inside
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00:11:49,250 --> 00:11:51,840
where you think, "I
can do this better,"
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00:11:51,841 --> 00:11:55,876
or "I can find a way to
make this process better,
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00:11:55,882 --> 00:11:59,051
"that product better,"
and I think that's really
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what America's about,
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00:12:00,553 --> 00:12:05,183
and that has always been the
ethos that drives our society.
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00:12:06,726 --> 00:12:08,806
- This is where I
wanna build my factory.
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00:12:10,063 --> 00:12:11,563
- I don't get it.
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00:12:11,564 --> 00:12:13,274
There's nothing here, we're
surrounded by corn fields.
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00:12:14,567 --> 00:12:17,357
- They're not corn fields;
they're dairy farms.
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00:12:20,406 --> 00:12:23,156
- He hasn't yet
created a product to sell
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00:12:23,159 --> 00:12:25,869
but he has a dream that will
take the world by storm,
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00:12:27,247 --> 00:12:29,917
and his vision is to
build not just a factory,
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00:12:29,918 --> 00:12:31,786
but an entire town
to support it.
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00:12:32,752 --> 00:12:35,212
His name is Milton Hershey.
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00:12:40,051 --> 00:12:43,431
- By the early 1900s,
the average American worker
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00:12:43,432 --> 00:12:45,719
makes roughly $400 a year.
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00:12:47,225 --> 00:12:48,805
- The United States, by 1900,
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00:12:48,810 --> 00:12:52,020
has the most powerful
economy in the world,
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00:12:52,021 --> 00:12:53,771
and this permanent
working-class developed,
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00:12:53,773 --> 00:12:55,073
and when you walked
out each day,
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00:12:55,074 --> 00:12:56,275
you had money in your pocket,
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00:12:56,276 --> 00:12:58,106
and so, this all
of a sudden meant
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00:12:58,111 --> 00:13:00,408
that there were people
who were gonna find things
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00:13:00,409 --> 00:13:02,614
for the folks with
cash in their pocket
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00:13:02,615 --> 00:13:03,735
to spend the money on.
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00:13:05,118 --> 00:13:06,827
- A typical family
spends almost a quarter
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00:13:06,828 --> 00:13:08,158
of its budget on housing,
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00:13:09,330 --> 00:13:13,834
15% on clothing, and a
whopping 45% on food,
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00:13:13,835 --> 00:13:16,545
creating a huge potential
for new products.
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00:13:17,630 --> 00:13:21,130
- As much as creating
successful brands
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00:13:21,134 --> 00:13:25,804
is about innovation
and imagination,
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00:13:25,805 --> 00:13:28,135
there needs to be an
understanding
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00:13:28,141 --> 00:13:29,641
of the marketplace,
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00:13:29,642 --> 00:13:32,731
and I think that's the key
to real entrepreneurship,
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00:13:32,732 --> 00:13:36,318
is being able to just see
the next step moving forward
236
00:13:36,319 --> 00:13:38,936
and taking that door
when it opens to you
237
00:13:38,943 --> 00:13:40,490
and running running through it
238
00:13:40,491 --> 00:13:42,946
when you're not quite sure
what's on the other side.
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00:13:46,367 --> 00:13:49,036
- In rural Pennsylvania
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00:13:49,037 --> 00:13:52,164
almost 100 miles from the
nearest major city
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00:13:52,165 --> 00:13:54,825
Milton Hershey is gambling
everything
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00:13:54,834 --> 00:13:58,712
on an obscure product he
believes is the next big thing,
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00:13:58,713 --> 00:14:03,133
investing $20,000, more
than half a million today.
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00:14:03,134 --> 00:14:03,974
- Careful, careful.
245
00:14:03,975 --> 00:14:05,385
That wasn't cheap.
246
00:14:05,386 --> 00:14:08,386
- Into equipment
to make milk chocolate.
247
00:14:08,389 --> 00:14:10,479
It's virtually
unknown in the U. S.
248
00:14:12,518 --> 00:14:16,978
but will someday be sold in
90 countries across the globe.
249
00:14:20,526 --> 00:14:23,026
- It was very popular in Europe,
250
00:14:23,029 --> 00:14:24,948
but here in the United States,
251
00:14:24,949 --> 00:14:26,737
nobody was making
milk chocolate,
252
00:14:26,741 --> 00:14:29,491
and when Milton first
tasted milk chocolate
253
00:14:29,494 --> 00:14:32,374
at the World's Columbian
Exposition in Chicago,
254
00:14:32,375 --> 00:14:34,791
he recognized that
it was special.
255
00:14:35,875 --> 00:14:37,705
- Chocolate
consumption dates all the way
256
00:14:37,710 --> 00:14:40,550
back to the ancient Mayans, who
would drink chocolate beverages
257
00:14:40,551 --> 00:14:42,046
spiced with chili.
258
00:14:42,048 --> 00:14:44,928
Dark chocolate was common
in Europe by the late 1600s,
259
00:14:46,219 --> 00:14:49,888
and in 1875, a Swiss
baby formula manufacturer
260
00:14:49,889 --> 00:14:53,349
named Henri Nestle was the
first to make milk chocolate.
261
00:14:55,561 --> 00:14:57,231
- We all know the Nestle name,
262
00:14:57,232 --> 00:14:59,400
but what he was
really famous for
263
00:14:59,401 --> 00:15:02,234
was he took the water
out of the milk,
264
00:15:02,235 --> 00:15:04,355
and then he took the
solids that were left,
265
00:15:04,362 --> 00:15:07,072
and he combined
it with chocolate.
266
00:15:07,073 --> 00:15:08,573
People craved milk chocolate
267
00:15:08,574 --> 00:15:11,910
because it was more
mellow in flavor,
268
00:15:11,911 --> 00:15:14,749
and as far as inventions
goes, quite late.
269
00:15:14,750 --> 00:15:18,247
The machine gun had been
invented before milk chocolate.
270
00:15:18,251 --> 00:15:20,211
So, just think about
that for a minute.
271
00:15:22,922 --> 00:15:24,422
- These are nice.
272
00:15:24,423 --> 00:15:25,763
- Hershey left
school in the fourth grade
273
00:15:25,764 --> 00:15:27,884
to help support his family.
274
00:15:27,885 --> 00:15:30,345
After an apprenticeship
with a confectioner,
275
00:15:30,346 --> 00:15:32,764
he started his own
caramel company,
276
00:15:32,765 --> 00:15:35,305
and in 1900, sold
it for $1 million.
277
00:15:36,978 --> 00:15:38,268
- It actually made
the front page
278
00:15:38,271 --> 00:15:39,940
of the New York Times
when it was sold.
279
00:15:39,941 --> 00:15:42,899
That was enormous amount
of money back then,
280
00:15:42,900 --> 00:15:45,360
but Milton Hershey took a risk.
281
00:15:45,361 --> 00:15:48,405
He went and invested
his million dollars
282
00:15:48,406 --> 00:15:50,656
into making milk chocolate.
283
00:15:52,618 --> 00:15:55,038
- Hershey buys
1200 acres of farmland
284
00:15:55,039 --> 00:15:58,117
in dairy country, where he'll
spend his entire fortune
285
00:15:58,124 --> 00:16:00,130
on building not just a factory,
286
00:16:00,131 --> 00:16:01,836
but a dream to build a utopia.
287
00:16:04,130 --> 00:16:06,220
- Now, these'll all
be housing, right?
288
00:16:06,221 --> 00:16:09,085
And then, factory here.
289
00:16:09,093 --> 00:16:10,218
Roads, here?
290
00:16:10,219 --> 00:16:11,099
- Yep.
291
00:16:13,806 --> 00:16:15,426
- These dimensions are fine,
292
00:16:15,433 --> 00:16:17,312
but it doesn't have
any personality.
293
00:16:17,313 --> 00:16:18,520
- Personality?
294
00:16:20,605 --> 00:16:22,935
- Hershey had this
utopian vision,
295
00:16:22,940 --> 00:16:25,819
this idea that everyone would
have things taken care of
296
00:16:25,820 --> 00:16:27,818
for them like plumbing
and electricity,
297
00:16:27,820 --> 00:16:29,658
and all these
modern conveniences
298
00:16:29,659 --> 00:16:32,655
that workers of the day
couldn't even dream of.
299
00:16:32,658 --> 00:16:34,988
These were things that
people just did not do
300
00:16:34,994 --> 00:16:36,374
for their employees.
301
00:16:37,830 --> 00:16:39,499
- Since the 1880s
302
00:16:39,500 --> 00:16:42,498
remote industrial operations
requiring hard labor,
303
00:16:42,501 --> 00:16:44,794
like coal mines and lumber yards
304
00:16:44,795 --> 00:16:47,165
have been supported by
company towns.
305
00:16:47,173 --> 00:16:49,841
- Very often,
factories were built
306
00:16:49,842 --> 00:16:54,346
on relatively cheap
land outside of cities,
307
00:16:54,347 --> 00:16:56,847
but in those days,
automobiles didn't exist
308
00:16:56,849 --> 00:16:59,226
for the most part,
or very often,
309
00:16:59,227 --> 00:17:01,147
there weren't systems
of urban transport,
310
00:17:01,148 --> 00:17:04,065
so, the workers had
to walk to work.
311
00:17:05,149 --> 00:17:07,278
Well, if the factory's
outside of town,
312
00:17:07,279 --> 00:17:09,696
then you're gonna have to build
some place for them to live
313
00:17:09,697 --> 00:17:10,985
so they can walk to work.
314
00:17:14,700 --> 00:17:16,200
- Company towns are often dirty,
315
00:17:16,202 --> 00:17:17,912
poorly-built, and expensive,
316
00:17:19,038 --> 00:17:21,708
but Milton Hershey is
thinking much bigger.
317
00:17:21,709 --> 00:17:24,207
He doesn't even have
a product to sell,
318
00:17:24,210 --> 00:17:26,590
but he's already
building his ideal town.
319
00:17:27,713 --> 00:17:30,048
- He broke ground on the town
320
00:17:30,049 --> 00:17:33,885
before he ever finalized his
own milk chocolate recipe,
321
00:17:33,886 --> 00:17:35,556
which is insane when
you think about it,
322
00:17:35,557 --> 00:17:36,755
but that's what he did.
323
00:17:38,099 --> 00:17:40,058
- Yeah, these are boring.
324
00:17:40,059 --> 00:17:41,349
It all feels cheap.
325
00:17:42,478 --> 00:17:43,978
I want people will be
happy to work here.
326
00:17:45,064 --> 00:17:46,320
If they're happy to work here,
327
00:17:46,321 --> 00:17:47,685
they'll take pride
in their work.
328
00:17:47,692 --> 00:17:49,150
They'll work harder.
329
00:17:49,151 --> 00:17:51,241
- There certainly
will be costs associated--
330
00:17:51,242 --> 00:17:52,777
- Fix it.
331
00:17:52,780 --> 00:17:54,870
- Construction
will take nearly every penny
332
00:17:54,871 --> 00:17:57,325
of his $1 million investment.
333
00:17:57,326 --> 00:17:59,536
- Now, he
has to crack the formula
334
00:17:59,537 --> 00:18:00,537
for milk chocolate.
335
00:18:07,545 --> 00:18:10,085
C.W. Post has bought up
all the flake rollers
336
00:18:10,089 --> 00:18:12,218
that Will Kellogg helped design,
337
00:18:12,219 --> 00:18:15,046
and he's using them to crank
out corn flakes of his own.
338
00:18:16,137 --> 00:18:18,137
He calls them Post Toasties.
339
00:18:22,101 --> 00:18:24,351
- Will was furious
when he found out
340
00:18:24,353 --> 00:18:27,397
that Charlie Post had
bought the rollers
341
00:18:27,398 --> 00:18:29,068
for Post Toasties.
342
00:18:30,443 --> 00:18:32,990
Only so many machinists would
make these types of product,
343
00:18:32,991 --> 00:18:35,237
which was very smart
of Charles Post.
344
00:18:36,574 --> 00:18:40,952
- The genius of breakfast cereal
is that you take a product
345
00:18:40,953 --> 00:18:43,288
that costs virtually nothing,
346
00:18:43,289 --> 00:18:47,459
you lightly process corn by
cooking it and squashing it,
347
00:18:47,460 --> 00:18:49,129
and then you fill a box with it,
348
00:18:49,130 --> 00:18:52,128
and then you charge an enormous
amount of money for the box.
349
00:18:52,131 --> 00:18:54,215
This was not lost on C. W. Post
350
00:18:54,216 --> 00:18:55,926
and that is his genius.
351
00:18:57,094 --> 00:18:59,310
- Post hopes to gain ground
352
00:18:59,311 --> 00:19:01,845
while the Kellogg brothers
battle each other.
353
00:19:08,689 --> 00:19:10,148
- Yeah?
354
00:19:10,149 --> 00:19:12,029
- Just a few miles away...
355
00:19:14,987 --> 00:19:16,317
- Okay.
356
00:19:16,322 --> 00:19:18,032
- That fight is over.
357
00:19:19,033 --> 00:19:20,617
After years of abuse...
358
00:19:20,618 --> 00:19:22,408
- You're not capable!
359
00:19:22,411 --> 00:19:25,621
The only reason you work here
is because you're my brother.
360
00:19:26,957 --> 00:19:29,037
- Will Kellogg, once
his famous brother's lackey,
361
00:19:29,043 --> 00:19:29,963
has triumphed.
362
00:19:31,921 --> 00:19:33,961
Thanks To his brilliant
marketing scheme,
363
00:19:33,964 --> 00:19:36,514
the courts rule that
Will has sole ownership
364
00:19:36,515 --> 00:19:38,677
of Kellogg's Corn Flakes.
365
00:19:38,678 --> 00:19:41,008
- It was all about
who had the right
366
00:19:41,013 --> 00:19:43,183
to use the name Kellogg
as a brand name,
367
00:19:43,184 --> 00:19:46,351
and the doctor argued, "I'm
Dr. John Harvey Kellogg.
368
00:19:46,352 --> 00:19:48,190
"I'm a world-renowned physician.
369
00:19:48,191 --> 00:19:49,477
"I'm the real Kellogg,"
370
00:19:50,981 --> 00:19:54,029
and Will Kellogg mentioned
all the advertisements he did,
371
00:19:54,030 --> 00:19:56,196
the millions of
dollars he spent,
372
00:19:56,197 --> 00:19:58,695
the tens of millions
of people who read
373
00:19:58,698 --> 00:20:01,366
or saw his ads every year,
374
00:20:01,367 --> 00:20:05,036
and he said, "I'm the more
recognizable Kellogg."
375
00:20:05,037 --> 00:20:06,367
- All right, thank you.
376
00:20:07,415 --> 00:20:08,865
- And the Michigan State
Supreme Court said,
377
00:20:08,874 --> 00:20:11,876
"You know, Mr. Kellogg,"
not Dr. Kellogg,
378
00:20:11,877 --> 00:20:14,207
"Mr. Kellogg, you're right.
379
00:20:14,213 --> 00:20:16,214
"Your brand name is Kellogg's,
380
00:20:16,215 --> 00:20:18,255
"and that's the
recognizable one."
381
00:20:19,885 --> 00:20:22,255
- For John,
it's a shocking defeat.
382
00:20:22,263 --> 00:20:25,561
Worse, the court orders
John to cover all legal fees
383
00:20:25,562 --> 00:20:27,688
and forfeit all the
profits he's made.
384
00:20:29,061 --> 00:20:29,941
- Thank you.
385
00:20:31,063 --> 00:20:31,943
Goodbye.
386
00:20:34,442 --> 00:20:35,742
- It was, in a
way, it was trying
387
00:20:35,743 --> 00:20:38,565
to destroy his brother's legacy.
388
00:20:38,571 --> 00:20:42,240
It was grinding him out
from the annals of history
389
00:20:42,241 --> 00:20:45,621
so that only the Will
Kellogg company would remain.
390
00:20:53,085 --> 00:20:55,585
- John turns his
focus back to the sanitarium,
391
00:20:55,588 --> 00:20:59,257
and his groundbreaking research
on diet and digestion
392
00:20:59,258 --> 00:21:02,258
earns him a seat on the
Michigan Board of Health.
393
00:21:02,261 --> 00:21:05,471
But ultimately, the Battle
Creek Sanitarium closes
394
00:21:05,473 --> 00:21:08,771
due to financial difficulties,
and John eventually falls
395
00:21:08,772 --> 00:21:09,978
out of the public eye.
396
00:21:11,145 --> 00:21:13,435
- John Harvey Kellogg
is a forgotten figure.
397
00:21:13,439 --> 00:21:17,275
A lot of concepts of better
eating, and wellness,
398
00:21:17,276 --> 00:21:21,276
and preventing disease
were developed by him.
399
00:21:21,280 --> 00:21:23,280
A lot of the food
products that we enjoy
400
00:21:23,282 --> 00:21:24,949
were invented by him.
401
00:21:24,950 --> 00:21:27,038
He's just not given
credit for it,
402
00:21:27,039 --> 00:21:29,076
and that's a pretty
sad story in my view.
403
00:21:35,085 --> 00:21:38,665
- Will's victory
over his brother is complete.
404
00:21:38,672 --> 00:21:42,801
Now, he's finally ready to
go to war with C. W. Post.
405
00:21:42,802 --> 00:21:46,471
- Will Kellogg hated Charlie
Post for stealing his ideas,
406
00:21:46,472 --> 00:21:48,431
and once, somebody
told Will Kellogg,
407
00:21:48,432 --> 00:21:51,732
"You know, Charlie Post
calls you a dirty dog."
408
00:21:53,062 --> 00:21:56,481
Will said, "Well, you know what
a dirty dog does to a post,"
409
00:21:56,482 --> 00:21:58,902
and so, there was a lot
of animosity between them.
410
00:22:06,283 --> 00:22:08,289
- Will increases production,
411
00:22:08,290 --> 00:22:09,905
pushing his factory
to the Limit.
412
00:22:11,664 --> 00:22:13,044
- No more than usual today.
413
00:22:17,086 --> 00:22:18,956
is this--
- Fire! Fire!
414
00:22:20,840 --> 00:22:24,300
- No, no, no, no!
415
00:22:26,846 --> 00:22:27,716
No, no, no, no, no, no, no, no.
416
00:22:28,973 --> 00:22:30,433
Get out, everything,
the back door.
417
00:22:32,017 --> 00:22:33,137
Everyone out!
418
00:22:34,019 --> 00:22:35,899
Come on, come with me.
419
00:22:55,374 --> 00:22:57,003
- In July 1907,
420
00:22:57,004 --> 00:22:59,711
Will Kellogg's Corn Flake
factory burns to the ground,
421
00:23:00,588 --> 00:23:01,918
crippling his operation.
422
00:23:04,550 --> 00:23:05,720
- Do I even wanna know?
423
00:23:06,886 --> 00:23:08,716
- Our stock has been
completely destroyed.
424
00:23:10,139 --> 00:23:11,389
There's almost nothing left.
425
00:23:11,390 --> 00:23:13,890
The mixers, they're
barely recognizable.
426
00:23:17,980 --> 00:23:18,900
- Damn it.
427
00:23:25,112 --> 00:23:27,912
Well, at least nobody was hurt.
428
00:23:31,160 --> 00:23:33,286
Everything else is just details.
429
00:23:33,287 --> 00:23:34,117
- Yes, sir.
430
00:23:37,082 --> 00:23:40,501
- In the fire that destroyed
Will Kellogg's factory,
431
00:23:40,502 --> 00:23:42,462
it also destroyed his rollers.
432
00:23:42,463 --> 00:23:44,301
- No.
- You realize that his baby,
433
00:23:44,302 --> 00:23:46,758
his creation, had
burned to the ground.
434
00:23:49,595 --> 00:23:50,885
- Will needs
to be up and running
435
00:23:50,888 --> 00:23:53,097
as fast as possible
or risk losing ground
436
00:23:53,098 --> 00:23:54,978
to his nemesis, C. W. Post.
437
00:23:59,063 --> 00:24:02,732
- But when he orders
a new set of flake rollers,
438
00:24:02,733 --> 00:24:05,113
he learns about
Post's exclusive deal.
439
00:24:07,279 --> 00:24:08,819
- No, I heard what you said.
440
00:24:08,822 --> 00:24:10,031
I just don't understand it.
441
00:24:10,032 --> 00:24:11,782
I helped you design
the damn things.
442
00:24:11,784 --> 00:24:13,703
- I'm
sorry, Mr. Kellogg.
443
00:24:13,704 --> 00:24:15,831
I'd love to help you
out, but there's no way
444
00:24:15,832 --> 00:24:17,159
we can take any new orders.
445
00:24:18,207 --> 00:24:19,327
- Name your price.
446
00:24:19,333 --> 00:24:20,752
- Can't do it.
447
00:24:20,753 --> 00:24:23,301
Our contract is exclusive,
no new customers.
448
00:24:23,302 --> 00:24:25,965
I'm sorry.
449
00:24:29,051 --> 00:24:31,260
- Will was furious
when he found out
450
00:24:31,261 --> 00:24:33,851
that Charlie Post
had bought the rights
451
00:24:33,852 --> 00:24:37,767
to make rollers
for Post Toasties.
452
00:24:37,768 --> 00:24:41,354
It was a malicious idea
on Charlie Post's part,
453
00:24:41,355 --> 00:24:43,895
but Will was a very wily guy
454
00:24:43,899 --> 00:24:46,319
who could always get his
way out of a problem.
455
00:24:48,112 --> 00:24:49,320
- Wait, you said no
new customers, right?
456
00:24:49,321 --> 00:24:50,321
- That's right.
457
00:24:52,199 --> 00:24:53,659
- But I'm not a new customer.
458
00:24:57,788 --> 00:25:00,168
- What exactly
is it you have in mind?
459
00:25:04,378 --> 00:25:07,418
- Fix up my rollers, the ones
460
00:25:07,423 --> 00:25:08,843
that went down in the fire.
461
00:25:14,888 --> 00:25:18,178
- He picked the old
rollers out of the rubble,
462
00:25:18,183 --> 00:25:19,813
and said, "Your contract
doesn't say anything
463
00:25:19,814 --> 00:25:23,860
"about repairing rollers
you already made, right?"
464
00:25:24,732 --> 00:25:27,650
So, with this loophole in place,
465
00:25:27,651 --> 00:25:32,155
they would actually not
just fix the burnt rollers
466
00:25:32,156 --> 00:25:33,946
but replace them,
467
00:25:33,949 --> 00:25:37,827
and then they sent them by
secret along the train rails.
468
00:25:37,828 --> 00:25:40,658
His business almost was ruined,
469
00:25:40,664 --> 00:25:43,714
and it was his ingenuity
that saved the day.
470
00:25:46,086 --> 00:25:47,916
- Will takes
out the modern equivalent
471
00:25:47,921 --> 00:25:52,258
of $2 million in loans and
pours it into construction.
472
00:26:02,311 --> 00:26:03,731
- When Charlie Post
heard about it,
473
00:26:03,732 --> 00:26:07,069
he just threw a fit, but
it was already too late.
474
00:26:08,734 --> 00:26:10,904
- Why haven't these
shipments left yet?
475
00:26:10,905 --> 00:26:13,073
Where are my
department managers?
476
00:26:14,782 --> 00:26:16,657
I'm calling a meeting.
477
00:26:16,658 --> 00:26:21,618
15 minutes, boardroom,
attendance mandatory!
478
00:26:24,750 --> 00:26:25,630
Back to work.
479
00:26:27,294 --> 00:26:31,224
- He had some type of stomach
or gastrointestinal problem
480
00:26:31,225 --> 00:26:33,965
that would cause all
sorts of problems
481
00:26:33,967 --> 00:26:38,054
from feeling nauseated
to depression,
482
00:26:38,055 --> 00:26:40,765
and what we might call
a nervous breakdown.
483
00:26:46,980 --> 00:26:47,770
- You okay?
484
00:26:47,773 --> 00:26:49,107
Sir?
485
00:26:49,108 --> 00:26:49,938
Sir?
486
00:26:57,282 --> 00:26:58,912
- Milton
Hershey is doubling down
487
00:26:58,913 --> 00:27:02,959
on milk chocolate, building
a factory and a town.
488
00:27:07,501 --> 00:27:10,461
Even after months of failure,
trying to crack the formula.
489
00:27:12,089 --> 00:27:13,968
- Milton Hershey was a lunatic.
490
00:27:13,969 --> 00:27:15,586
That was just sort
of who he was.
491
00:27:15,592 --> 00:27:17,680
He wasn't afraid
of taking risks,
492
00:27:17,681 --> 00:27:19,508
and you know, he
believed in himself
493
00:27:19,513 --> 00:27:22,142
enough to think that,
"Trial and error.
494
00:27:22,143 --> 00:27:23,680
"I'm gonna get it right."
495
00:27:23,684 --> 00:27:25,234
Probably a lesser person might
have walked away from it,
496
00:27:25,235 --> 00:27:26,894
but that wasn't him.
497
00:27:26,895 --> 00:27:29,645
- European milk
chocolate uses prepackaged,
498
00:27:29,648 --> 00:27:31,438
condensed, or powdered milk.
499
00:27:32,484 --> 00:27:33,614
- But Hershey
believes he can use
500
00:27:33,615 --> 00:27:35,530
the nearly endless
supply of fresh milk
501
00:27:35,531 --> 00:27:38,906
from local farms to
mass-produce his chocolate.
502
00:27:38,907 --> 00:27:43,407
- The problem is that
milk has a lot of water
503
00:27:43,412 --> 00:27:47,415
and chocolate has a lot of
rich plant fat, cocoa butter.
504
00:27:47,416 --> 00:27:49,125
You try to mix oil and water,
505
00:27:49,126 --> 00:27:51,626
everybody knows that's
near impossible,
506
00:27:51,628 --> 00:27:53,838
and Milton Hershey didn't
understand any of this.
507
00:27:53,839 --> 00:27:55,968
Milton Hershey
was not a chemist.
508
00:27:55,969 --> 00:27:58,756
He was an experimenter,
he was a dreamer,
509
00:27:58,760 --> 00:28:01,180
and he thought it would
be a simple process
510
00:28:01,181 --> 00:28:03,889
to come up with his own
version of milk chocolate.
511
00:28:05,559 --> 00:28:08,436
- It needs to be
creamy, rich but creamy.
512
00:28:09,521 --> 00:28:10,938
- And smooth, you know?
513
00:28:10,939 --> 00:28:12,648
Like, you know there's fresh,
delicious milk in there
514
00:28:12,649 --> 00:28:14,734
even if you don't
really taste it.
515
00:28:14,735 --> 00:28:15,565
- Got it.
516
00:28:17,321 --> 00:28:18,991
- To help him solve the formula,
517
00:28:18,992 --> 00:28:22,158
he brings in top chemists
from across the nation.
518
00:28:22,159 --> 00:28:23,618
- Hey, where'd you say
you went to school?
519
00:28:23,619 --> 00:28:28,205
- Princeton undergrad,
doctorate at Cornell.
520
00:28:39,009 --> 00:28:43,429
So why are the condensing
and mixing so inconsistent?
521
00:28:43,430 --> 00:28:46,060
- I don't know yet, but that's
what I'm here to find out.
522
00:28:48,310 --> 00:28:51,187
- I'll stay outta your
way so you don't burn it.
523
00:28:51,188 --> 00:28:52,058
- Excuse me?
524
00:28:52,940 --> 00:28:54,570
- Your milk, that's gonna burn.
525
00:28:56,443 --> 00:28:58,613
- I promise you, I
know what I'm doing.
526
00:29:00,656 --> 00:29:01,566
- Okay.
527
00:29:23,428 --> 00:29:25,054
Damn it!
528
00:29:25,055 --> 00:29:26,595
I'll need to start a new batch.
529
00:29:28,517 --> 00:29:33,147
I'll try mixing in the
milk as it dehydrates.
530
00:29:34,022 --> 00:29:34,942
- Get out.
531
00:29:36,149 --> 00:29:37,525
- I'm sorry, what?
532
00:29:37,526 --> 00:29:40,236
- Just pack your things
and get the hell out.
533
00:29:40,237 --> 00:29:42,277
- I think I just let
it reduce too far.
534
00:29:42,280 --> 00:29:43,780
If I could have a
little more time--
535
00:29:43,782 --> 00:29:45,662
- I'm not paying you
to learn on the job.
536
00:29:47,327 --> 00:29:49,745
- In Europe, they
use powdered milk.
537
00:29:49,746 --> 00:29:51,326
- I don't wanna hear about
how they do it in Europe.
538
00:29:51,331 --> 00:29:53,124
I'm using fresh milk.
539
00:29:53,125 --> 00:29:54,075
Period.
540
00:29:54,084 --> 00:29:54,964
Just go.
541
00:30:02,843 --> 00:30:04,390
- Milton Hershey
was so committed
542
00:30:04,391 --> 00:30:07,386
to using fresh milk from
the local dairy cows,
543
00:30:07,389 --> 00:30:08,808
and he was doing experiments.
544
00:30:08,809 --> 00:30:11,387
At the same time, he was
financing all of this money
545
00:30:11,393 --> 00:30:13,773
that he was putting into
this town of Hershey,
546
00:30:13,774 --> 00:30:16,650
and he failed again and again.
547
00:30:18,984 --> 00:30:20,364
And it was very difficult.
548
00:30:20,365 --> 00:30:22,990
He was at the end of his rope.
549
00:30:25,907 --> 00:30:28,237
- Milton Hershey
is on the brink of disaster
550
00:30:28,243 --> 00:30:29,833
and he's running out of time.
551
00:30:44,342 --> 00:30:46,182
- Far from Pennsylvania,
552
00:30:48,180 --> 00:30:51,018
the son of a once-wealthy
New Jersey family
553
00:30:51,019 --> 00:30:53,346
braves temperatures
that reach 40 below.
554
00:30:54,394 --> 00:30:57,024
He's an avid outdoorsman
and scientist,
555
00:30:57,025 --> 00:30:59,862
trapping fur and
living off the land.
556
00:31:01,568 --> 00:31:03,447
- America as the
land of opportunity
557
00:31:03,448 --> 00:31:05,485
is essential to the
way that we think
558
00:31:05,489 --> 00:31:08,616
about entrepreneurship
and innovation.
559
00:31:08,617 --> 00:31:12,117
The common person could see
themselves achieving wealth,
560
00:31:12,120 --> 00:31:14,040
and that is very important.
561
00:31:15,540 --> 00:31:18,340
- His name is Clarence Birdseye.
562
00:31:44,236 --> 00:31:46,606
And here in the frigid
Canadian wilderness,
563
00:31:52,994 --> 00:31:56,254
the startling discovery he makes
564
00:31:58,250 --> 00:32:02,960
will give rise to a
$220 billion industry.
565
00:32:23,108 --> 00:32:25,278
- Deep in the
Canadian wilderness
566
00:32:25,279 --> 00:32:28,027
Clarence Birdseye
carves out a life for himself
567
00:32:28,029 --> 00:32:31,119
after his once-prominent
family lost their fortune.
568
00:32:32,450 --> 00:32:35,369
He survives on his own
making money as a fur trapper
569
00:32:35,370 --> 00:32:37,790
and living much like
the Inuit natives.
570
00:32:37,791 --> 00:32:40,878
- Clarence Birdseye was
very interested in nature
571
00:32:40,879 --> 00:32:43,376
and he always had a
tremendous sense of adventure,
572
00:32:43,378 --> 00:32:46,378
but he ended up
dropping out of school
573
00:32:46,381 --> 00:32:47,761
for financial reasons,
574
00:32:49,467 --> 00:32:51,967
but he was one of these
kids who just wanted
575
00:32:51,970 --> 00:32:54,430
to take everything apart
and see how it worked.
576
00:32:55,682 --> 00:32:57,312
- Birdseye subsists largely
577
00:32:57,313 --> 00:33:00,728
on something most Americans
at the time don't eat:
578
00:33:00,729 --> 00:33:01,979
- Frozen food.
579
00:33:03,190 --> 00:33:05,480
- Americans certainly
associated frozen foods
580
00:33:05,483 --> 00:33:06,817
with being gross.
581
00:33:06,818 --> 00:33:09,238
It was on the bland
side, sort of mushy.
582
00:33:09,239 --> 00:33:11,447
It's not like frozen
foods we know today.
583
00:33:13,992 --> 00:33:16,292
- Nobody wanted it
because it was terrible.
584
00:33:17,662 --> 00:33:21,290
It was terrible because
it was frozen very slowly,
585
00:33:21,291 --> 00:33:24,919
so it was kind of rotting
as it was freezing.
586
00:33:24,920 --> 00:33:26,837
It was served in prisons,
587
00:33:26,838 --> 00:33:29,128
but prison reformers
complained about it
588
00:33:29,132 --> 00:33:31,842
and tried to stop it
from being served there,
589
00:33:31,843 --> 00:33:35,183
and it just was the
worst food in the world.
590
00:33:36,598 --> 00:33:37,968
- Frozen food technology
591
00:33:37,974 --> 00:33:40,100
is virtually nonexistent,
592
00:33:40,101 --> 00:33:42,398
barely changed from the
ancient Roman technique
593
00:33:42,399 --> 00:33:44,305
of packing food
in compressed snow
594
00:33:45,649 --> 00:33:47,689
or in cold cellars
filled with ice,
595
00:33:51,488 --> 00:33:54,367
but the local Inuits produce
how much better product
596
00:33:54,368 --> 00:33:56,196
using the frigid
local temperatures
597
00:33:56,201 --> 00:33:58,371
to freeze fish almost instantly.
598
00:34:00,163 --> 00:34:03,540
- The frozen food that
Birdseye ate in Labrador
599
00:34:03,541 --> 00:34:04,881
was really very good,
600
00:34:06,878 --> 00:34:10,048
and so he began experimenting.
601
00:34:18,139 --> 00:34:20,429
- When you freeze
something slowly,
602
00:34:20,433 --> 00:34:25,145
you make these gigantic ice
crystals inside of the cell,
603
00:34:25,146 --> 00:34:28,065
and the jagged edges
of this ice crystal
604
00:34:28,066 --> 00:34:31,356
pierce the cell wall
so when it thaws,
605
00:34:31,361 --> 00:34:32,901
all that liquid runs out,
606
00:34:32,904 --> 00:34:35,160
and that's why things
look disgusting,
607
00:34:35,161 --> 00:34:38,026
and withered, and shriveled,
and devoid of taste.
608
00:34:39,160 --> 00:34:42,660
A fast freeze allows
small ice crystals
609
00:34:42,664 --> 00:34:44,083
to create within the cell,
610
00:34:44,084 --> 00:34:46,920
so upon thawing, the
cell wall is still intact
611
00:34:46,921 --> 00:34:48,588
and the flavor is
still preserved.
612
00:34:50,005 --> 00:34:53,755
- Birdseye figured out that if
you freeze fish fast enough,
613
00:34:53,758 --> 00:34:55,088
it's as good as fresh.
614
00:34:57,470 --> 00:34:59,010
- Birdseye realizes
615
00:34:59,014 --> 00:35:01,602
that if he can replicate
the fast-freezing process,
616
00:35:01,603 --> 00:35:04,310
he'll be able to apply
it not just to fish,
617
00:35:04,311 --> 00:35:06,271
but to every food imaginable.
618
00:35:07,397 --> 00:35:10,437
- Before frozen food,
foods were seasonal.
619
00:35:10,442 --> 00:35:12,030
You ate foods that were fresh,
620
00:35:12,031 --> 00:35:15,656
you ate foods that were
available at that time of year.
621
00:35:15,657 --> 00:35:17,525
There's not a
whole lot of access
622
00:35:17,532 --> 00:35:19,742
to various kinds of vegetables.
623
00:35:21,119 --> 00:35:24,829
- People would often buy
fresh meat from butchers
624
00:35:24,831 --> 00:35:28,959
and meat packers, and you
end up with meat rotting
625
00:35:28,960 --> 00:35:31,710
and becoming putrid
before you eat it.
626
00:35:31,713 --> 00:35:33,303
- Birdseye sees an opportunity
627
00:35:33,304 --> 00:35:36,178
to return to the U. S. and
capitalize on a process
628
00:35:36,179 --> 00:35:38,046
few in the world understand,
629
00:35:38,053 --> 00:35:40,929
but the technology to
do it doesn't exist.
630
00:35:40,930 --> 00:35:41,810
- Yet.
631
00:35:47,896 --> 00:35:49,106
- Milton
Hershey hasn't perfected
632
00:35:49,107 --> 00:35:50,975
his milk chocolate formula.
633
00:35:50,982 --> 00:35:53,612
- Construction
on his factory continues,
634
00:35:54,736 --> 00:35:57,736
and now he's doubling
down on his gamble.
635
00:35:57,739 --> 00:36:00,829
- Hiring
workers and a head of sales
636
00:36:01,743 --> 00:36:03,293
named William Murrie.
637
00:36:06,247 --> 00:36:07,117
- Milton Hershey.
638
00:36:08,041 --> 00:36:09,131
Pleasure to meet ya.
639
00:36:10,502 --> 00:36:13,762
- William Murrie was apparently
quite a good salesman.
640
00:36:13,763 --> 00:36:15,915
Hershey's struck by him.
641
00:36:15,924 --> 00:36:18,012
He sees value in
him, immediately.
642
00:36:18,013 --> 00:36:19,759
Successful people, I think,
643
00:36:19,761 --> 00:36:22,596
are able to realize
their shortcomings
644
00:36:22,597 --> 00:36:25,347
and to find people around
them to fill that void
645
00:36:25,350 --> 00:36:27,309
and to make them better.
646
00:36:27,310 --> 00:36:29,350
- Well, heard a lot of
good things about you,
647
00:36:29,354 --> 00:36:31,154
so I'm just gonna
cut to the chase.
648
00:36:32,649 --> 00:36:35,028
I'll beat whatever
you're making now
649
00:36:35,029 --> 00:36:36,526
plus commission on top.
650
00:36:37,987 --> 00:36:39,107
- What's the hook?
651
00:36:39,114 --> 00:36:41,164
- It's milk chocolate.
652
00:36:42,283 --> 00:36:44,621
It almost unheard of
outside of Europe,
653
00:36:44,622 --> 00:36:46,619
but once we get
people to try it,
654
00:36:46,621 --> 00:36:48,041
they're gonna want more.
655
00:36:48,042 --> 00:36:49,789
It'll sell itself.
656
00:36:49,791 --> 00:36:52,211
- Do you have any product
I could take a look at?
657
00:36:53,378 --> 00:36:55,878
- No, not at the
moment, but I will.
658
00:36:58,216 --> 00:37:01,506
- You're hiring me to sell
something that doesn't exist,
659
00:37:02,637 --> 00:37:04,387
people don't know
anything about,
660
00:37:04,389 --> 00:37:08,019
that's also gonna sell itself?
661
00:37:11,062 --> 00:37:12,062
- Is that a problem?
662
00:37:14,482 --> 00:37:15,362
Great.
663
00:37:16,651 --> 00:37:17,739
Happy to have you onboard.
664
00:37:17,740 --> 00:37:19,026
- Looking forward to it.
665
00:37:23,283 --> 00:37:24,952
- Hershey is bleeding money
666
00:37:24,953 --> 00:37:26,998
and if he can't
produce a product,
667
00:37:26,999 --> 00:37:29,035
all his dreams will
come crashing down.
668
00:37:37,172 --> 00:37:39,722
- Will Kellogg has
taken on today's equivalent
669
00:37:39,723 --> 00:37:43,796
of millions in debt, replacing
his industrial flake rollers,
670
00:37:43,803 --> 00:37:45,433
and rebuilding his factory.
671
00:37:47,098 --> 00:37:49,477
- When the corn flake
factory burned down,
672
00:37:49,478 --> 00:37:51,136
it was very hard to get loans,
673
00:37:51,144 --> 00:37:53,774
and he found one banker
who had faith in him.
674
00:37:53,775 --> 00:37:55,314
It was about $100,000,
675
00:37:55,315 --> 00:37:57,935
which was more than
$1 million, then,
676
00:37:57,942 --> 00:37:59,442
and it was a very real risk.
677
00:38:00,612 --> 00:38:02,700
- After just six months,
678
00:38:02,701 --> 00:38:04,447
Will Kellogg is
back in the game.
679
00:38:07,118 --> 00:38:09,248
- And winning.
680
00:38:11,456 --> 00:38:12,996
- Three shifts of workers
681
00:38:12,999 --> 00:38:15,789
keep the factory running 24
hours a day, seven days a week.
682
00:38:17,086 --> 00:38:19,206
- Great, great.
683
00:38:19,214 --> 00:38:20,304
Very good, very good.
684
00:38:21,716 --> 00:38:23,126
- And by 1909,
685
00:38:23,134 --> 00:38:25,394
output of Kellogg's
Corn Flakes increases
686
00:38:25,395 --> 00:38:29,096
from 4,000 cases
a day to 120,000,
687
00:38:30,642 --> 00:38:32,942
leaving Post
Toasties in the dust.
688
00:38:39,067 --> 00:38:41,987
- Meanwhile,
C. W. Post slides further
689
00:38:41,988 --> 00:38:42,986
into illness.
690
00:38:42,987 --> 00:38:44,487
- I'm not hungry.
691
00:38:44,489 --> 00:38:45,948
- And steps away
from day-to-day operations
692
00:38:45,949 --> 00:38:48,158
at the company he spent
his life building.
693
00:38:48,159 --> 00:38:49,449
- I'm going for a walk.
694
00:38:49,452 --> 00:38:51,372
- At that point, he
was a very wealthy man,
695
00:38:51,373 --> 00:38:53,040
and spent a lot
of time traveling.
696
00:38:53,041 --> 00:38:55,919
I sort of wonder about
him being out of touch
697
00:38:55,920 --> 00:38:58,587
with his business,
and being, in a way,
698
00:38:58,588 --> 00:39:01,046
forced to relax.
699
00:39:01,047 --> 00:39:03,677
It may have been stress
more than anything else.
700
00:39:06,135 --> 00:39:08,345
- Post tries everything from
701
00:39:08,346 --> 00:39:12,096
vacationing in Europe to
founding a town in Texas
702
00:39:12,100 --> 00:39:13,850
still named after him.
703
00:39:14,936 --> 00:39:16,646
And trying to irrigate it
704
00:39:17,814 --> 00:39:19,694
by dynamiting the clouds.
705
00:39:20,984 --> 00:39:24,945
But it does nothing to ease his
debilitating stomach pain.
706
00:39:24,946 --> 00:39:27,406
- C. W. Post has been
plagued by illness
707
00:39:27,407 --> 00:39:29,366
throughout his entire life.
708
00:39:29,367 --> 00:39:32,786
He claimed that Grape
Nuts would cure everything
709
00:39:32,787 --> 00:39:36,207
from appendicitis to impotence.
710
00:39:37,584 --> 00:39:40,090
Course, it doesn't cure him,
and that's the great irony.
711
00:39:40,091 --> 00:39:42,376
He was one of the richest
men in the country,
712
00:39:43,715 --> 00:39:47,384
but despite the money, despite
this incredible success,
713
00:39:47,385 --> 00:39:51,054
he's left with the
same debility he had
714
00:39:51,055 --> 00:39:53,885
when he entered the sanatorium.
715
00:40:14,746 --> 00:40:16,706
- Suffering more than ever,
716
00:40:18,124 --> 00:40:21,424
Post becomes convinced that
he's dying of stomach cancer
717
00:40:24,339 --> 00:40:26,589
and decides to do
the unthinkable.
718
00:40:40,271 --> 00:40:43,774
Milton Hershey's factory
is nearly complete,
719
00:40:43,775 --> 00:40:46,145
and workers are moving
to his company town.
720
00:40:47,904 --> 00:40:51,242
- He spent over 25
million in today's dollars,
721
00:40:51,243 --> 00:40:53,740
and if he can't start
making a profit
722
00:40:53,743 --> 00:40:54,953
he'll lose everything.
723
00:41:02,251 --> 00:41:05,629
Desperate to find a
formula for milk chocolate,
724
00:41:05,630 --> 00:41:08,924
Milton Hershey calls
on a former employee,
725
00:41:08,925 --> 00:41:13,925
an experienced candy maker
named John Schmalbach.
726
00:41:13,930 --> 00:41:16,770
- Should it be taking
this long to make a batch?
727
00:41:16,771 --> 00:41:18,176
- This is fine.
728
00:41:18,184 --> 00:41:19,644
Just let me concentrate.
729
00:41:26,901 --> 00:41:28,735
- Do you need more equipment?
730
00:41:28,736 --> 00:41:30,066
You know, everybody else
brought a lot of stuff.
731
00:41:30,071 --> 00:41:30,949
This doesn't seem like
very much stuff to me.
732
00:41:30,950 --> 00:41:31,697
- Shh.
733
00:41:34,659 --> 00:41:36,039
- Right, sorry.
734
00:41:37,787 --> 00:41:39,907
- John Schmalbach, I don't
wanna call him a chemist
735
00:41:39,914 --> 00:41:41,461
because he had no formal degree,
736
00:41:41,462 --> 00:41:43,625
but he was one of the
people Hershey knew early on
737
00:41:43,626 --> 00:41:44,496
that he trusted.
738
00:41:57,223 --> 00:41:59,599
- It's not perfect, but try it.
739
00:41:59,600 --> 00:42:01,059
Let me know if this
better or worse
740
00:42:01,060 --> 00:42:02,520
than what you've been getting.
741
00:42:10,361 --> 00:42:11,820
What do you think's
not right about it?
742
00:42:11,821 --> 00:42:14,950
- The texture is good,
but there's a little hint
743
00:42:14,951 --> 00:42:16,908
of sourness that
we could eliminate.
744
00:42:16,909 --> 00:42:18,539
- No, no, no, don't
change anything.
745
00:42:19,954 --> 00:42:22,914
Did you write down what you
did so you can do it again?
746
00:42:22,915 --> 00:42:23,745
- Of course.
747
00:42:25,168 --> 00:42:28,878
- What's really kind of
amazing is Hershey himself
748
00:42:28,880 --> 00:42:32,424
creating milk chocolate,
using these dairies.
749
00:42:32,425 --> 00:42:34,005
I sometimes look at
my self, and I go,
750
00:42:34,010 --> 00:42:37,058
"Would I have given up
under these circumstances?"
751
00:42:37,059 --> 00:42:40,515
I think that a lot of people
in the modern age look
752
00:42:40,516 --> 00:42:42,806
at brands like Hershey's
and just think,
753
00:42:42,810 --> 00:42:44,519
"Well, it must have
been easy to establish.
754
00:42:44,520 --> 00:42:46,020
"I could be a Hershey's,"
755
00:42:46,022 --> 00:42:49,072
and people don't realize
that the risk was massive.
756
00:42:50,651 --> 00:42:52,201
- This is fantastic.
757
00:42:52,202 --> 00:42:56,315
- The formula that Milton
Hershey ultimately came up with
758
00:42:56,324 --> 00:42:59,576
had what people
called sour notes,
759
00:42:59,577 --> 00:43:04,117
which actually means in
his process of condensing,
760
00:43:04,123 --> 00:43:05,624
he soured his milk.
761
00:43:05,625 --> 00:43:07,665
He didn't realize at the time
762
00:43:07,668 --> 00:43:12,588
that his chocolate didn't
taste like European chocolate.
763
00:43:12,590 --> 00:43:15,467
He just knew he had
a formula that worked
764
00:43:15,468 --> 00:43:17,718
and it was the first in the U. S.
765
00:43:17,720 --> 00:43:21,556
So, we have become accustomed
to the Hershey flavor.
766
00:43:21,557 --> 00:43:24,387
Hershey now goes
to great lengths
767
00:43:24,393 --> 00:43:27,854
to keep that sourness
in the chocolate,
768
00:43:27,855 --> 00:43:31,105
to protect that unique flavor.
769
00:43:31,109 --> 00:43:31,939
- Here.
770
00:43:33,736 --> 00:43:35,445
Here, take this.
771
00:43:35,446 --> 00:43:36,946
Take it, John.
772
00:43:36,948 --> 00:43:38,118
You earned it.
773
00:43:39,492 --> 00:43:40,992
Thank you.
774
00:43:40,993 --> 00:43:43,081
- Hershey pays
Schmalbach a $100 bonus
775
00:43:43,082 --> 00:43:44,289
for his contribution.
776
00:43:45,998 --> 00:43:48,667
- But the
distinct flavor it produces
777
00:43:48,668 --> 00:43:50,998
will go on to be worth billions.
778
00:44:19,657 --> 00:44:22,657
On May 9th 1914,
779
00:44:23,494 --> 00:44:28,214
national headlines announce the
tragic death of C. W. Post.
780
00:44:39,385 --> 00:44:41,175
- Hundreds
come to pay their respects
781
00:44:41,179 --> 00:44:42,559
to a Battle Creek legend.
782
00:44:44,098 --> 00:44:45,388
- I'm so sorry for your loss.
783
00:44:45,391 --> 00:44:46,231
- Thank you.
784
00:44:47,768 --> 00:44:51,688
- And mourn the loss
of a true titan of industry.
785
00:44:53,316 --> 00:44:56,106
- The idea of the
self-made millionaire
786
00:44:56,110 --> 00:44:58,987
was very much an American ideal.
787
00:44:58,988 --> 00:45:00,528
There were the Fords, there
were the Rockefellers,
788
00:45:00,531 --> 00:45:04,951
and C. W. Post takes that
model and applies it
789
00:45:04,952 --> 00:45:06,828
to a food product.
790
00:45:06,829 --> 00:45:09,164
Without people like C. W. Post,
791
00:45:09,165 --> 00:45:11,575
the American food
landscape would look very,
792
00:45:11,584 --> 00:45:13,214
very different than it does now.
793
00:45:14,337 --> 00:45:15,587
- Please accept my sympathy.
794
00:45:15,588 --> 00:45:16,418
- Thank you.
795
00:45:17,924 --> 00:45:21,014
- C. W. Post leaves
behind a personal fortune
796
00:45:21,015 --> 00:45:23,550
estimated at 22 million dollars,
797
00:45:25,056 --> 00:45:28,386
the modern equivalent of
more than 550 million.
798
00:45:30,102 --> 00:45:32,399
And in a stunning move
for the era,
799
00:45:32,400 --> 00:45:34,686
he leaves not just the
bulk of his wealth,
800
00:45:34,690 --> 00:45:37,817
but control of his
company to a woman:
801
00:45:37,818 --> 00:45:40,738
his 27-year-old
daughter, Marjorie.
802
00:45:42,698 --> 00:45:46,117
At the time, less than 20% of
college graduates are female,
803
00:45:46,118 --> 00:45:48,787
and women don't even
have the right to vote.
804
00:45:48,788 --> 00:45:51,038
- Women had been
involved in factories
805
00:45:51,040 --> 00:45:52,499
since the early 19th century,
806
00:45:52,500 --> 00:45:54,084
but they would work for a while,
807
00:45:54,085 --> 00:45:56,375
and then most of them had the
idea that they'd get married,
808
00:45:56,379 --> 00:45:57,587
and they'd have children,
809
00:45:57,588 --> 00:45:59,298
and they'd step out
of the paid workforce.
810
00:46:00,466 --> 00:46:03,466
You never saw them in
positions of ownership
811
00:46:03,469 --> 00:46:05,929
or at the highest levels
of corporate management.
812
00:46:11,227 --> 00:46:13,937
- C. W. Post
wanted to raise her
813
00:46:13,938 --> 00:46:15,818
like the son he never had.
814
00:46:17,483 --> 00:46:18,823
- It's okay to have fun
while you're working.
815
00:46:18,824 --> 00:46:20,358
You look so serious.
816
00:46:20,361 --> 00:46:22,654
So serious, got to...
817
00:46:22,655 --> 00:46:24,315
If it's not fun,
you can't do it.
818
00:46:25,574 --> 00:46:26,494
Right here.
819
00:46:27,952 --> 00:46:30,582
- C. W. Post would have
his board meetings
820
00:46:30,583 --> 00:46:34,416
and she would be there
under the table with him,
821
00:46:34,417 --> 00:46:37,627
and he taught her every
aspect of the business.
822
00:46:39,005 --> 00:46:40,585
- The company
is struggling in the wake
823
00:46:40,589 --> 00:46:43,678
of its founder's death
and now rests in the hands
824
00:46:43,679 --> 00:46:45,296
of an inexperienced young woman,
825
00:46:46,595 --> 00:46:49,465
but her leadership will
completely reinvent it.
826
00:47:00,693 --> 00:47:03,281
- For Will Kellogg,
the death of his greatest
827
00:47:03,282 --> 00:47:05,198
rival brings an end
to his long battle
828
00:47:05,199 --> 00:47:06,487
for cereal supremacy.
829
00:47:08,284 --> 00:47:10,834
- By every imaginable
metric, he won.
830
00:47:13,706 --> 00:47:18,626
He beat his brother, and
he outpaced C. W. Post,
831
00:47:18,627 --> 00:47:22,047
so that by World War II,
the Kellogg's Cereal Company
832
00:47:22,048 --> 00:47:25,218
had 50% of the
world's cereal market.
833
00:47:27,136 --> 00:47:29,006
- Today, Will Kellogg's company
834
00:47:29,013 --> 00:47:32,098
is valued at nearly
$20 billion dollars,
835
00:47:32,099 --> 00:47:35,389
boasting familiar products
like Rice Krispies,
836
00:47:35,394 --> 00:47:40,190
Frosted Flakes, Raisin
Bran, even Pop-Tarts,
837
00:47:40,191 --> 00:47:42,191
and Eggo Waffles.
838
00:47:42,193 --> 00:47:45,700
- He created not only one
of the major food companies
839
00:47:45,701 --> 00:47:47,276
in the world, but
he also created
840
00:47:47,281 --> 00:47:48,741
the W. K. Kellogg Foundation.
841
00:47:50,493 --> 00:47:52,202
- Will's
charitable organization,
842
00:47:52,203 --> 00:47:55,288
with an
$8.6 billion endowment,
843
00:47:55,289 --> 00:47:59,589
still helps disadvantaged
children all across the globe.
844
00:48:00,419 --> 00:48:02,919
- Will Kellogg could
never imagined himself
845
00:48:02,922 --> 00:48:04,964
as this giant mogul,
846
00:48:04,965 --> 00:48:10,045
but the impact of ready-to-eat
cold cereal was enormous.
847
00:48:11,097 --> 00:48:12,217
It was a game changer.
848
00:48:13,557 --> 00:48:16,597
It was the iPhone of its
day, if you will.
849
00:48:16,602 --> 00:48:18,436
Everybody wanted some.
850
00:48:19,688 --> 00:48:23,108
So, in a way it was the
job Will was born to do,
851
00:48:24,235 --> 00:48:26,065
even if he didn't know it.
852
00:48:34,912 --> 00:48:37,252
- After two years,
spent building
853
00:48:37,253 --> 00:48:42,958
his factory and his town,
854
00:48:42,962 --> 00:48:44,631
Milton Hershey is finally armed
855
00:48:44,632 --> 00:48:47,550
with the milk chocolate
formula he's been waiting for.
856
00:48:51,053 --> 00:48:52,763
- Let's take a look.
857
00:48:54,473 --> 00:48:56,773
- Wrapped its
iconic brown wrapper,
858
00:49:00,813 --> 00:49:02,401
the Hershey bar is about
859
00:49:02,402 --> 00:49:04,778
to take the United
States by storm.
860
00:49:07,027 --> 00:49:10,407
- Make sure every sales
manager is plenty of samples.
861
00:49:10,408 --> 00:49:11,486
They're gonna need 'em.
862
00:49:25,296 --> 00:49:26,586
- Milton Hershey is the first
863
00:49:26,589 --> 00:49:28,129
to mass-produce milk chocolate,
864
00:49:29,467 --> 00:49:32,007
quickly turning an
obscure European luxury
865
00:49:33,095 --> 00:49:34,635
into an American staple.
866
00:49:36,932 --> 00:49:40,442
- Milton Hershey's vision was
to give the average consumer
867
00:49:40,443 --> 00:49:43,936
this delicacy once
viewed as this thing
868
00:49:43,939 --> 00:49:47,939
for only kings and queens,
and on special occasions,
869
00:49:47,943 --> 00:49:51,203
and make it an everyday
item for folks in the U. S.
870
00:49:54,200 --> 00:49:58,660
- Sales reach $5
million, 135 million today,
871
00:50:00,039 --> 00:50:03,169
making Milton Hershey a true
American chocolate tycoon.
872
00:50:04,877 --> 00:50:07,127
- He's just so fascinating
because here's a man
873
00:50:07,129 --> 00:50:11,129
who really was a titan
just like the Rockefellers,
874
00:50:11,133 --> 00:50:13,803
and the Carnegies,
and the J. P. Morgans,
875
00:50:13,804 --> 00:50:17,680
but instead of having this
raw metal or iron product,
876
00:50:17,681 --> 00:50:20,521
his product is chocolate.
877
00:50:29,151 --> 00:50:31,861
- Then, on July 28th, 1914,
878
00:50:33,197 --> 00:50:36,574
simmering unrest
in Europe explodes
879
00:50:36,575 --> 00:50:40,535
into the first World War.
880
00:50:43,165 --> 00:50:46,915
Over four bloody years,
more than 15 million died.
881
00:50:48,462 --> 00:50:51,262
The United States joins
the conflict in 1917,
882
00:50:52,716 --> 00:50:55,926
and resources are quickly
diverted to the war effort.
883
00:50:57,263 --> 00:50:59,893
- In May of 1917, Herbert
Hoover is appointed
884
00:50:59,894 --> 00:51:03,726
as Federal Food Administrator
for the United States.
885
00:51:03,727 --> 00:51:06,057
There was no
mandatory rationing,
886
00:51:06,063 --> 00:51:09,899
but Hoover used a
combination of propaganda
887
00:51:09,900 --> 00:51:13,650
and peer pressure to really
try and coerce Americans
888
00:51:13,654 --> 00:51:15,284
into following these rules,
889
00:51:15,285 --> 00:51:18,366
which included things
like meatless Mondays
890
00:51:18,367 --> 00:51:21,617
and wheatless Wednesdays,
which are the most famous.
891
00:51:22,746 --> 00:51:25,456
As the war dragged
on, they did actually,
892
00:51:25,457 --> 00:51:27,077
formally ration sugar.
893
00:51:29,378 --> 00:51:30,878
- To avoid sugar rationing--
894
00:51:30,879 --> 00:51:32,338
- You draw this?
895
00:51:32,339 --> 00:51:34,219
- Milton Hershey
uses a brilliant strategy.
896
00:51:34,220 --> 00:51:35,296
- The char house, here,
897
00:51:35,301 --> 00:51:36,676
the mill, over here.
898
00:51:36,677 --> 00:51:39,095
Fields here, here, and here.
899
00:51:39,096 --> 00:51:41,636
- Opening his
own sugar refinery in Cuba.
900
00:51:42,600 --> 00:51:44,100
- These are good.
901
00:51:44,101 --> 00:51:46,271
- Complete with
a mill town and railroad.
902
00:51:47,062 --> 00:51:48,231
- Being a visionary,
903
00:51:48,232 --> 00:51:50,318
he realized that
there was a shortage,
904
00:51:50,319 --> 00:51:53,646
and he wanted to insulate
his company against it.
905
00:51:53,652 --> 00:51:55,486
So, despite World War I,
906
00:51:55,487 --> 00:51:57,567
Hershey profits
continue to increase,
907
00:51:57,573 --> 00:51:59,953
in large part because
of his venture in Cuba.
908
00:52:03,245 --> 00:52:05,785
- In Europe, the
war destroys food production,
909
00:52:05,789 --> 00:52:08,129
leading to shortages
across the continent.
910
00:52:09,585 --> 00:52:13,795
- It's a watershed period that
transforms the 20th century
911
00:52:13,797 --> 00:52:16,507
into the American century.
912
00:52:17,760 --> 00:52:20,300
In Europe, people are starving,
913
00:52:20,304 --> 00:52:23,604
and that's why the big
American food companies join
914
00:52:23,605 --> 00:52:27,139
to help produce more food
and have it sent overseas
915
00:52:27,144 --> 00:52:28,154
to our allies.
916
00:52:29,313 --> 00:52:30,363
- The
U. S. food industry
917
00:52:30,364 --> 00:52:32,606
expands International shipments,
918
00:52:32,608 --> 00:52:36,398
growing from $190 million
in exports before the war
919
00:52:36,403 --> 00:52:38,863
to over 510 million
at its height.
920
00:52:40,157 --> 00:52:42,277
When the war ends in 1918,
921
00:52:42,284 --> 00:52:45,504
the United States emerges
as an economic powerhouse.
922
00:52:46,872 --> 00:52:48,831
- The destruction
took place in Europe.
923
00:52:48,832 --> 00:52:52,042
The construction and the
production of all this stuff
924
00:52:52,044 --> 00:52:53,544
took place in America,
925
00:52:53,545 --> 00:52:58,295
so World War I gave the US
economy a great shot in the arm.
926
00:52:58,842 --> 00:53:00,392
For the first time,
electricity enters homes
927
00:53:00,393 --> 00:53:01,926
all over the country.
928
00:53:01,929 --> 00:53:04,349
For the first time, ordinary
people can buy automobiles.
929
00:53:06,642 --> 00:53:08,771
- In this new booming economy
930
00:53:08,772 --> 00:53:10,809
the Hershey company manufactures
931
00:53:10,813 --> 00:53:13,022
millions of pounds of
chocolate a year
932
00:53:13,023 --> 00:53:15,233
with sales topping $20 million,
933
00:53:16,151 --> 00:53:18,241
over 250 million today.
934
00:53:21,031 --> 00:53:22,990
And Milton Hershey's
best salesman
935
00:53:22,991 --> 00:53:24,741
is now the company's president.
936
00:53:28,205 --> 00:53:31,575
- Milton Hershey had a lot
of different interests.
937
00:53:31,583 --> 00:53:33,126
He had a town to run,
938
00:53:33,127 --> 00:53:35,877
so Murrie really the
chief operating officer
939
00:53:35,879 --> 00:53:38,049
while while Milton
was the C. E. O.
940
00:53:39,133 --> 00:53:41,093
He became Milton's
right-hand man.
941
00:53:42,886 --> 00:53:44,846
- The Hershey
Company is synonymous
942
00:53:44,847 --> 00:53:47,927
with milk chocolate,
with no clear rival.
943
00:53:53,105 --> 00:53:53,935
Then...
944
00:53:57,735 --> 00:53:58,565
- Look how she's
looking at you, boy.
945
00:53:58,569 --> 00:53:59,449
She wants you.
946
00:54:01,697 --> 00:54:03,617
- A 19-year-old college student
947
00:54:03,618 --> 00:54:08,575
raised in Canada works a summer
job hanging cigarette ads.
948
00:54:10,164 --> 00:54:11,124
- That's it.
- I mean, look
949
00:54:11,125 --> 00:54:12,498
at that gaze, man.
950
00:54:12,499 --> 00:54:15,459
- His name is Forrest Mars.
951
00:54:15,461 --> 00:54:16,878
- She's wantin' it.
952
00:54:16,879 --> 00:54:18,254
Ooh, mon cheri.
953
00:54:19,715 --> 00:54:21,125
- And he'll
someday rival Milton Hershey
954
00:54:21,133 --> 00:54:22,973
as an American chocolate tycoon,
955
00:54:24,261 --> 00:54:27,771
but for now, he's in the
wrong place at the wrong time.
956
00:54:53,290 --> 00:54:54,878
- Forrest wound up
getting arrested
957
00:54:54,879 --> 00:54:57,955
because he'd plastered
signs up for cigarettes
958
00:54:57,961 --> 00:55:00,631
all up and down State
Street in Chicago.
959
00:55:02,007 --> 00:55:04,757
He didn't know anyone
in the States at all,
960
00:55:04,760 --> 00:55:07,800
and so he needed
somebody to bail him out.
961
00:55:09,556 --> 00:55:12,056
- He calls
his father, Frank Mars,
962
00:55:12,059 --> 00:55:15,649
a modestly successful candy
maker in nearby Minnesota.
963
00:55:18,524 --> 00:55:20,154
It's the first time
they're seeing each other
964
00:55:20,155 --> 00:55:22,360
since Forrest's
mother left Frank
965
00:55:22,361 --> 00:55:23,651
when Forrest was a baby.
966
00:55:29,660 --> 00:55:32,620
- He knew absolutely nothing
about who his dad was.
967
00:55:32,621 --> 00:55:34,501
He knew his name, but
he'd never met him,
968
00:55:34,502 --> 00:55:37,328
and he'd never heard
very much about him.
969
00:55:37,334 --> 00:55:38,174
- You're welcome.
970
00:55:40,254 --> 00:55:42,051
- But he reached out to his dad,
971
00:55:42,052 --> 00:55:44,627
and the two of them met
under those circumstances
972
00:55:44,633 --> 00:55:45,843
for the very first time.
973
00:55:46,969 --> 00:55:48,389
- After his first company failed
974
00:55:48,390 --> 00:55:50,807
Frank's new business,
the Mar-O-Bar Company
975
00:55:50,808 --> 00:55:54,846
is a local hit, selling
candy mostly in Minneapolis.
976
00:56:15,122 --> 00:56:17,582
- That's a pretty nice shirt.
977
00:56:18,667 --> 00:56:20,037
- Yeah, things are good.
978
00:56:21,086 --> 00:56:23,045
Who doesn't like
chocolate candy, right?
979
00:56:23,046 --> 00:56:25,046
- Yeah, everybody
likes chocolate.
980
00:56:26,425 --> 00:56:28,384
So, how come I haven't seen
any of your stuff in Chicago?
981
00:56:28,385 --> 00:56:32,805
- Well, different
markets, different tastes.
982
00:56:32,806 --> 00:56:35,096
- Yeah, sure, because
nobody eats Hershey bars
983
00:56:35,100 --> 00:56:36,730
in California, right?
984
00:56:38,061 --> 00:56:40,521
I mean, take these malts.
985
00:56:40,522 --> 00:56:42,442
People drink these
across the country.
986
00:56:43,692 --> 00:56:44,942
So, why don't you just
make a chocolate bar
987
00:56:44,943 --> 00:56:46,743
that tastes like a
malted milkshake?
988
00:56:49,698 --> 00:56:50,738
No, I'm serious.
989
00:56:57,289 --> 00:57:00,958
- There wasn't a candy
bar business at the time.
990
00:57:00,959 --> 00:57:03,839
There were a lot of
chocolate bars out there,
991
00:57:03,840 --> 00:57:08,215
but the idea of the candy
bar being the staple of candy
992
00:57:08,216 --> 00:57:10,046
was really something
that was very different,
993
00:57:10,052 --> 00:57:12,102
and that got Frank
Mars thinking.
994
00:57:13,472 --> 00:57:15,222
- Forrest's
simple idea will give rise
995
00:57:15,223 --> 00:57:18,976
to one of the most popular
candy bars in the world,
996
00:57:18,977 --> 00:57:21,607
launch a $35 billion empire
997
00:57:22,564 --> 00:57:24,273
and rip his family apart.
998
00:57:43,543 --> 00:57:45,593
- In the wake of World War I,
999
00:57:45,594 --> 00:57:48,627
the US economy
continues to boom,
1000
00:57:48,632 --> 00:57:50,632
ushering in the Roaring '20s.
1001
00:57:51,968 --> 00:57:53,798
- But by 1920,
1002
00:57:53,804 --> 00:57:57,640
consumerism really sets
in, in American life,
1003
00:57:57,641 --> 00:57:59,520
and there is a demand
to have the latest,
1004
00:57:59,521 --> 00:58:01,308
to have the best, to
have the flashiest,
1005
00:58:01,311 --> 00:58:04,021
the notion of
conspicuous consumption,
1006
00:58:04,022 --> 00:58:06,982
we're gonna consume stuff to
show the world that we can,
1007
00:58:06,983 --> 00:58:08,484
that we can do this.
1008
00:58:08,485 --> 00:58:11,654
- Fueled by this
new spirit of consumerism,
1009
00:58:11,655 --> 00:58:14,155
groundbreaking new products
flood the market,
1010
00:58:14,157 --> 00:58:16,697
including the vacuum
cleaner, the washing machine,
1011
00:58:16,702 --> 00:58:17,912
and the wireless radio.
1012
00:58:22,040 --> 00:58:24,540
- Marjorie Post
recognizes the opportunity
1013
00:58:24,543 --> 00:58:26,335
in this new age.
1014
00:58:26,336 --> 00:58:29,046
Not content to be a
wealthy cereal heiress,
1015
00:58:29,047 --> 00:58:32,087
she has a vision of transforming
her father's company
1016
00:58:32,092 --> 00:58:33,592
into something much bigger.
1017
00:58:35,721 --> 00:58:38,806
- It was a time when
women were not serving
1018
00:58:38,807 --> 00:58:40,887
as chairman of the board.
1019
00:58:40,892 --> 00:58:42,892
A lot of the business
decisions that she made
1020
00:58:42,894 --> 00:58:46,314
were done privately in her home.
1021
00:58:47,691 --> 00:58:51,527
In those rooms in this
magnificent Tudor mansion,
1022
00:58:51,528 --> 00:58:54,864
she worked and had
a lot of influence
1023
00:58:54,865 --> 00:58:56,775
to move this company forward.
1024
00:58:58,702 --> 00:59:01,372
- We would be irresponsible
not to anticipate
1025
00:59:01,373 --> 00:59:03,539
the impact on our business.
1026
00:59:03,540 --> 00:59:05,790
We need to take care of
everything that we...
1027
00:59:09,546 --> 00:59:11,166
- Sorry to keep you waiting.
1028
00:59:11,173 --> 00:59:12,423
I figured this would
be more comfortable
1029
00:59:12,424 --> 00:59:13,514
than the board room.
1030
00:59:16,511 --> 00:59:18,387
- Young lady we're very--
1031
00:59:18,388 --> 00:59:19,308
- Miss Post.
1032
00:59:22,434 --> 00:59:23,524
- Miss Post.
1033
00:59:24,895 --> 00:59:26,685
- Years before
major food conglomerates
1034
00:59:26,688 --> 00:59:29,067
are common, Marjorie
directs her company
1035
00:59:29,068 --> 00:59:30,975
to snap up well-known brands,
1036
00:59:30,984 --> 00:59:33,444
like Maxwell House coffee,
1037
00:59:33,445 --> 00:59:37,275
Log Cabin syrup, Jell-o,
1038
00:59:37,282 --> 00:59:39,450
and Hellmann's mayonnaise.
1039
00:59:39,451 --> 00:59:41,951
Expanding from a cereal company
1040
00:59:41,953 --> 00:59:43,373
to a food juggernaut.
1041
00:59:44,748 --> 00:59:47,828
- Marjorie was very
strategic and a visionary,
1042
00:59:47,834 --> 00:59:49,381
just like her father was.
1043
00:59:49,382 --> 00:59:51,297
She is the reason
why the company
1044
00:59:51,298 --> 00:59:52,666
became the success it is.
1045
00:59:54,758 --> 00:59:56,428
- That will be all.
1046
01:00:01,014 --> 01:00:02,434
Let's get moving.
1047
01:00:03,600 --> 01:00:05,140
- Sales skyrocket,
1048
01:00:05,143 --> 01:00:09,563
and by 1927, profits
reach $13.6 million,
1049
01:00:11,066 --> 01:00:12,936
over 200 million today.
1050
01:00:14,277 --> 01:00:16,527
- And she
isn't finished expanding.
1051
01:00:23,119 --> 01:00:26,914
- By 1927,
Clarence Birdseye is back
1052
01:00:26,915 --> 01:00:29,665
in the U. S. with a
vision to freeze food
1053
01:00:29,668 --> 01:00:33,048
in a way that will open up a
world of new possibilities.
1054
01:00:34,548 --> 01:00:36,966
- Frozen food defies nature.
1055
01:00:36,967 --> 01:00:39,507
Food technology and
science take over
1056
01:00:39,511 --> 01:00:42,471
and make things available
that people have never seen
1057
01:00:42,472 --> 01:00:45,682
at different times of
year, in different places
1058
01:00:45,684 --> 01:00:49,603
Now food isn't confined
by geography anymore.
1059
01:00:49,604 --> 01:00:55,568
That idea of totally
exploding space and time
1060
01:00:55,569 --> 01:00:58,149
is kinda mind-boggling if
you really think about it.
1061
01:00:59,406 --> 01:01:00,816
- But he has a problem.
1062
01:01:00,824 --> 01:01:02,704
- A process
for freezing food as fast
1063
01:01:02,705 --> 01:01:06,996
as Labrador's negative 40 degree
temperatures doesn't exist.
1064
01:01:06,997 --> 01:01:10,997
- At the time, you had
drying food and smoking.
1065
01:01:11,001 --> 01:01:15,337
Then you had pickling,
and then you had canning,
1066
01:01:15,338 --> 01:01:18,838
but frozen food,
nobody had done that.
1067
01:01:18,842 --> 01:01:21,552
He takes the idea
that he had observed
1068
01:01:21,553 --> 01:01:25,514
from the First Nation
people in Canada,
1069
01:01:25,515 --> 01:01:29,385
and develops a company he
thinks is really gonna take off.
1070
01:01:29,394 --> 01:01:31,274
- Birdseye
raises the modern equivalent
1071
01:01:31,275 --> 01:01:33,898
of 5.5 million in capital,
1072
01:01:33,899 --> 01:01:36,028
and consults with
freezer manufacturers
1073
01:01:36,029 --> 01:01:38,026
and engineers working to build
1074
01:01:38,028 --> 01:01:41,528
a proprietary quick-freezing
system from the ground up.
1075
01:01:41,531 --> 01:01:43,578
- He hadn't yet
entirely figured out
1076
01:01:43,579 --> 01:01:45,945
the fast-freezing
process that would work,
1077
01:01:47,120 --> 01:01:49,660
but he was willing to
take tremendous risks,
1078
01:01:49,664 --> 01:01:51,252
and he was taking
everything he had
1079
01:01:51,253 --> 01:01:53,459
and staking it on
some crazy company.
1080
01:01:56,630 --> 01:01:58,170
- That is the low
convection pump?
1081
01:01:58,173 --> 01:01:59,590
- I think so.
1082
01:01:59,591 --> 01:02:00,678
- What does that mean?
1083
01:02:00,679 --> 01:02:02,135
- This is all your design.
1084
01:02:02,928 --> 01:02:04,178
It's only called that
1085
01:02:04,179 --> 01:02:05,888
because that's what
you wanted to call it.
1086
01:02:05,889 --> 01:02:09,058
- Just keep building it, 'kay?
1087
01:02:09,059 --> 01:02:11,479
Follow the schematics
as best you can.
1088
01:02:14,731 --> 01:02:16,401
- Birdseye's brilliant design
1089
01:02:16,402 --> 01:02:18,069
is called multi-plate freezing.
1090
01:02:19,444 --> 01:02:22,244
Two metal plates are cooled
to 50 degrees below zero,
1091
01:02:23,573 --> 01:02:25,743
then food is loaded into
a pressurized container
1092
01:02:25,744 --> 01:02:27,289
and held between the plates,
1093
01:02:27,290 --> 01:02:28,825
freezing them almost instantly,
1094
01:02:30,413 --> 01:02:32,333
locking in nutrition, taste.
1095
01:02:36,586 --> 01:02:38,206
Today, the frozen food industry
1096
01:02:38,213 --> 01:02:41,966
is worth more than
$220 billion worldwide.
1097
01:02:41,967 --> 01:02:43,467
- And is one
of the biggest segments
1098
01:02:43,468 --> 01:02:45,298
of the grocery market,
1099
01:02:45,303 --> 01:02:47,933
and it all starts here,
with Clarence Birdseye.
1100
01:02:48,974 --> 01:02:50,484
- You know, Clarence Birdseye
1101
01:02:50,485 --> 01:02:54,144
used this inspiration to
revolutionize frozen food.
1102
01:02:54,145 --> 01:02:58,435
Really, frozen food
has made the lives
1103
01:02:58,441 --> 01:03:03,278
of parents and people on the
go so easy, myself included.
1104
01:03:03,279 --> 01:03:05,779
My favorite recipe in the
world is my mom's spinach pie
1105
01:03:05,782 --> 01:03:08,120
and it calls for
Birdseye frozen spinach.
1106
01:03:08,121 --> 01:03:10,158
I probably have two
boxes of spinach
1107
01:03:10,161 --> 01:03:12,291
in my fridge, right now.
1108
01:03:13,707 --> 01:03:14,917
- And that was
one, two, three, four, five,
1109
01:03:14,918 --> 01:03:16,125
six of those.
1110
01:03:16,126 --> 01:03:17,456
Yeah, just keep
stacking 'em, there.
1111
01:03:17,460 --> 01:03:18,669
If that gets filled up,
just fill 'em in, here.
1112
01:03:18,670 --> 01:03:19,960
Come on in.
1113
01:03:19,963 --> 01:03:21,303
- Clarence
Birdseye is so convinced
1114
01:03:21,304 --> 01:03:23,167
he's found the next big thing
1115
01:03:23,174 --> 01:03:25,471
that he immediately
ramps up production.
1116
01:03:25,472 --> 01:03:27,098
- Back up there,
if you would, guys.
1117
01:03:27,099 --> 01:03:28,595
Yep.
1118
01:03:28,596 --> 01:03:29,846
If we're running out of
space, we can go back, okay?
1119
01:03:29,848 --> 01:03:32,266
- Even though in 1928,
1120
01:03:32,267 --> 01:03:35,897
fewer than one in 10 Americans
even has a refrigerator.
1121
01:03:40,650 --> 01:03:42,070
- In Minneapolis,
1122
01:03:45,613 --> 01:03:48,702
after years of estrangement,
Frank and Forrest Mars
1123
01:03:48,703 --> 01:03:52,000
work together on an idea that'll
launch an American dynasty
1124
01:03:52,912 --> 01:03:54,122
for one of them.
1125
01:03:55,665 --> 01:03:59,205
It's a candy bar meant to
taste like a malted milkshake.
1126
01:03:59,210 --> 01:04:00,250
- Just take a bite.
1127
01:04:01,838 --> 01:04:03,047
- I'm not in this alone.
1128
01:04:03,048 --> 01:04:06,508
- All right.
1129
01:04:10,847 --> 01:04:11,847
- No.
- You sure?
1130
01:04:11,848 --> 01:04:13,598
- No, it's not a milkshake.
1131
01:04:13,600 --> 01:04:15,059
- It's not bad, though.
1132
01:04:15,060 --> 01:04:16,350
- Yeah, but remember, we're
going for a milkshake.
1133
01:04:16,352 --> 01:04:17,561
Do we have any more?
1134
01:04:17,562 --> 01:04:18,862
- Yeah, we got some more.
1135
01:04:18,863 --> 01:04:20,685
- Frank Mars was
trying to understand
1136
01:04:20,690 --> 01:04:22,530
how he could make this work.
1137
01:04:24,194 --> 01:04:25,494
- How 'bout this one?
1138
01:04:31,242 --> 01:04:33,242
- Finally, after many failures,
1139
01:04:33,244 --> 01:04:35,960
he tried a mixture of
eggs, and milk, and sugar,
1140
01:04:35,961 --> 01:04:37,745
and whipped it all together,
1141
01:04:37,749 --> 01:04:40,169
and he added malt flavor to it.
1142
01:04:41,544 --> 01:04:46,304
And ultimately, he
developed the nougat center.
1143
01:05:04,567 --> 01:05:06,607
- The brilliant
recipe uses light, creamy nougat
1144
01:05:06,611 --> 01:05:07,491
and caramel...
1145
01:05:09,823 --> 01:05:11,323
- Covered in a
thin layer of milk chocolate.
1146
01:05:11,324 --> 01:05:12,741
- That's a keeper.
1147
01:05:14,786 --> 01:05:16,996
- Revolutionizing the candy bar.
1148
01:05:18,164 --> 01:05:20,584
- The thing that Mars
discovered is that
1149
01:05:20,585 --> 01:05:23,293
when you're taking nougat
and you're whipping it
1150
01:05:23,294 --> 01:05:25,838
to make it soft and light,
1151
01:05:25,839 --> 01:05:30,049
you're reducing the actual
ingredients in the candy bar
1152
01:05:30,051 --> 01:05:32,301
'cause there's a lot
of whipped air inside,
1153
01:05:32,303 --> 01:05:34,263
and it makes them
actually cheaper to make,
1154
01:05:34,264 --> 01:05:35,524
because air is free.
1155
01:05:36,307 --> 01:05:37,267
Spot on.
1156
01:05:38,810 --> 01:05:40,980
- In order to
mass-produce his new invention
1157
01:05:40,981 --> 01:05:44,815
Frank Mars needs a steady
supply of milk chocolate,
1158
01:05:44,816 --> 01:05:46,984
and by the late 1920s,
1159
01:05:46,985 --> 01:05:48,695
there's only one
place to get it.
1160
01:06:19,434 --> 01:06:21,018
- It's perfect.
1161
01:06:21,019 --> 01:06:23,649
No, it's absolutely perfect.
1162
01:06:23,650 --> 01:06:25,314
It's happy, it's bright.
1163
01:06:25,315 --> 01:06:27,105
Puts you in a good mood
when you look at it.
1164
01:06:27,108 --> 01:06:30,194
- At the time, there
was only one real master
1165
01:06:30,195 --> 01:06:31,645
of the universe when
it comes to chocolate
1166
01:06:31,654 --> 01:06:34,704
in the United States, and
that would be Milton Hershey.
1167
01:06:34,705 --> 01:06:36,279
He defines the space.
1168
01:06:38,369 --> 01:06:41,538
- The Hershey Company
was providing ingredients
1169
01:06:41,539 --> 01:06:43,329
and finished chocolate products
1170
01:06:43,333 --> 01:06:45,667
to a lot of other manufacturers,
1171
01:06:45,668 --> 01:06:48,837
and it became a big part
of the Hershey business.
1172
01:06:48,838 --> 01:06:51,338
In fact, everybody
knows Oreo cookies,
1173
01:06:51,341 --> 01:06:52,719
but they probably don't know
1174
01:06:52,720 --> 01:06:55,387
that the original
chocolate flavor in Oreos
1175
01:06:55,388 --> 01:06:57,096
came from Milton Hershey.
1176
01:07:02,018 --> 01:07:02,808
- What, you don't have phones
1177
01:07:02,810 --> 01:07:04,019
out there in Minnesota?
1178
01:07:04,020 --> 01:07:06,358
- Well, call me old
fashioned, but I prefer
1179
01:07:06,359 --> 01:07:08,356
to do business face-to-face.
1180
01:07:08,358 --> 01:07:10,858
- It's a long way to come
for a short conversation.
1181
01:07:12,195 --> 01:07:14,855
Look, I read your proposal,
1182
01:07:14,864 --> 01:07:16,073
and I respect your dedication,
1183
01:07:16,074 --> 01:07:19,868
but I just can't take
that kind of risk.
1184
01:07:19,869 --> 01:07:21,409
- I get it.
1185
01:07:21,412 --> 01:07:24,210
I don't know that I'd
take a risk on me either,
1186
01:07:24,211 --> 01:07:25,876
but I'm not asking for a lot,
1187
01:07:25,877 --> 01:07:28,625
just a modest line of
credit on your chocolates
1188
01:07:28,628 --> 01:07:30,128
so I can expand production
1189
01:07:31,673 --> 01:07:32,723
on this.
1190
01:07:34,175 --> 01:07:37,385
I called it the Milky Way.
1191
01:07:37,387 --> 01:07:39,557
- The Milky
Way will someday generate
1192
01:07:39,558 --> 01:07:42,724
more than $100 million
in yearly sales,
1193
01:07:42,725 --> 01:07:47,145
but for now, its fate rests in
the Hershey Company's hands.
1194
01:07:55,071 --> 01:07:57,447
Frank Mars is in enemy territory
1195
01:07:57,448 --> 01:08:00,238
determined to walk away with
the milk chocolate he needs
1196
01:08:00,243 --> 01:08:02,413
to create a candy
empire of his own.
1197
01:08:04,414 --> 01:08:07,921
- I'm not asking for a lot,
just a modest line of credit
1198
01:08:07,922 --> 01:08:10,667
on your chocolates, so
I can expand production
1199
01:08:12,130 --> 01:08:13,170
on this.
1200
01:08:14,590 --> 01:08:16,340
I call it the Milky Way.
1201
01:08:18,052 --> 01:08:18,932
Give it a try.
1202
01:08:32,608 --> 01:08:34,438
- Not bad.
- See what I mean?
1203
01:08:34,444 --> 01:08:36,534
Irresistible.
- Tell you what.
1204
01:08:38,114 --> 01:08:39,124
Why don't I bring
this by Mr. Hershey.
1205
01:08:39,125 --> 01:08:40,525
- That's all I ask.
1206
01:08:42,410 --> 01:08:43,290
Appreciate it.
1207
01:08:45,621 --> 01:08:48,461
- Frank Mars went to Hershey
and he asked William Murrie
1208
01:08:48,462 --> 01:08:51,126
if they would
become his supplier.
1209
01:08:51,127 --> 01:08:53,957
At the time that he
requests their assistance,
1210
01:08:53,963 --> 01:08:55,797
he isn't a huge success.
1211
01:08:55,798 --> 01:08:58,758
He is an unknown from
Minneapolis-Saint Paul.
1212
01:09:00,136 --> 01:09:02,806
- William Murrie
recognizes Mars as a threat
1213
01:09:04,140 --> 01:09:07,060
and goes to Milton Hershey
hoping to nip it in the bud.
1214
01:09:08,686 --> 01:09:09,596
- Try this.
1215
01:09:11,314 --> 01:09:14,574
It's a combination
of whipped nougat,
1216
01:09:15,318 --> 01:09:17,148
caramel, and milk chocolate.
1217
01:09:17,153 --> 01:09:18,111
Have a bite.
1218
01:09:18,112 --> 01:09:18,992
- I'm all right.
1219
01:09:20,323 --> 01:09:22,163
- He wants to buy chocolate
from us on credit.
1220
01:09:23,326 --> 01:09:25,496
I think we should
look into buying this.
1221
01:09:25,497 --> 01:09:26,865
We'd be eliminating a competitor
1222
01:09:26,871 --> 01:09:28,791
and expanding our product range.
1223
01:09:28,792 --> 01:09:30,330
- A competitor?
1224
01:09:30,333 --> 01:09:31,833
There's no one in our league.
1225
01:09:36,047 --> 01:09:37,587
What markets is he in?
1226
01:09:38,508 --> 01:09:40,926
- His hometown, Minneapolis.
1227
01:09:40,927 --> 01:09:43,007
- So, he's not much of a threat.
1228
01:09:44,555 --> 01:09:46,675
Give him a line of
credit if you want to,
1229
01:09:46,682 --> 01:09:48,182
and if you're worried
about this guy
1230
01:09:48,184 --> 01:09:50,900
suddenly getting too big,
make an exclusive deal.
1231
01:09:50,901 --> 01:09:52,395
We're his only supplier,
1232
01:09:52,397 --> 01:09:54,897
we get a piece of the action
no matter what happens.
1233
01:09:54,899 --> 01:09:55,779
Happy?
1234
01:10:01,197 --> 01:10:05,277
- Milton Hershey and
William Murrie took a risk
1235
01:10:05,284 --> 01:10:08,995
in deciding that they would
also support Frank Mars.
1236
01:10:08,996 --> 01:10:11,246
I don't think they had any idea
what they were getting into
1237
01:10:11,249 --> 01:10:14,539
at the time or certainly
didn't understand
1238
01:10:14,544 --> 01:10:17,382
the incredible success
that Frank Mars would find
1239
01:10:17,383 --> 01:10:18,510
with his candy bars.
1240
01:10:19,632 --> 01:10:21,552
- Instead
of eliminating a rival,
1241
01:10:22,760 --> 01:10:23,970
they're helping it grow.
1242
01:10:34,689 --> 01:10:38,275
- Clarence
Birdseye has raise $375,000
1243
01:10:38,276 --> 01:10:40,396
to start his business.
1244
01:10:40,403 --> 01:10:43,033
- Nearly five
and a half million today.
1245
01:10:43,034 --> 01:10:44,280
- Is that it?
1246
01:10:44,282 --> 01:10:46,162
- Go get it on the
truck before it thaws.
1247
01:10:48,327 --> 01:10:50,577
- His groundbreaking
technology freezes meat,
1248
01:10:50,580 --> 01:10:52,789
fish, fruits, and vegetables.
1249
01:10:52,790 --> 01:10:55,000
He even experiments
with aligator and whale.
1250
01:10:57,044 --> 01:10:59,674
The problem is nobody's
buying any of it.
1251
01:11:01,716 --> 01:11:05,676
- The problem with frozen food
was that nobody had freezers.
1252
01:11:07,013 --> 01:11:09,773
People didn't have
freezers in their home.
1253
01:11:09,774 --> 01:11:12,096
Stores didn't have freezers.
1254
01:11:12,101 --> 01:11:14,271
Trucks and trains
didn't have freezers
1255
01:11:14,272 --> 01:11:16,190
for transporting frozen food.
1256
01:11:18,149 --> 01:11:20,439
- There have to be major
changes in American society
1257
01:11:20,443 --> 01:11:23,403
before refrigeration or
freezing really comes
1258
01:11:23,404 --> 01:11:24,863
into everybody's homes.
1259
01:11:24,864 --> 01:11:27,414
You can't have a refrigerator
without electricity.
1260
01:11:29,285 --> 01:11:30,615
- By the mid-1920s,
1261
01:11:30,620 --> 01:11:32,458
almost half of
American households
1262
01:11:32,459 --> 01:11:33,915
still don't have electricity.
1263
01:11:35,416 --> 01:11:37,416
And the icebox, a
simple cupboard
1264
01:11:37,418 --> 01:11:39,047
with a block of
ice at the bottom
1265
01:11:39,048 --> 01:11:41,415
is what most Americans
use to keep food cold.
1266
01:11:43,341 --> 01:11:45,050
The electric
refrigerator was invented
1267
01:11:45,051 --> 01:11:48,136
more than a decade
before, in 1913,
1268
01:11:48,137 --> 01:11:50,387
but they're expensive
and slow to catch on.
1269
01:11:56,604 --> 01:11:59,147
Clarence Birdseye
is bleeding money
1270
01:11:59,148 --> 01:12:02,148
and has yet to make a
single dollar of profit
1271
01:12:02,151 --> 01:12:03,151
on his frozen food.
1272
01:12:11,327 --> 01:12:13,497
With a clever plan to
use Hershey's chocolate
1273
01:12:13,498 --> 01:12:15,616
as a coating, Frank
and Forrest Mars
1274
01:12:15,623 --> 01:12:18,708
quickly grow the Milky
Way from a local hit
1275
01:12:18,709 --> 01:12:19,789
to a national brand.
1276
01:12:22,755 --> 01:12:25,335
- The greatest thing
about the Milky Way
1277
01:12:25,341 --> 01:12:30,011
was that it looked enormous
next to the nickel Hershey bar
1278
01:12:30,012 --> 01:12:33,141
because sat up high, and
it looked twice as big,
1279
01:12:33,142 --> 01:12:34,430
but it was also a nickel.
1280
01:12:35,560 --> 01:12:37,686
So, people thought, "My God,
1281
01:12:37,687 --> 01:12:39,267
"there's so much more value.
1282
01:12:39,272 --> 01:12:40,822
"I'm gonna buy a Milky Way."
1283
01:12:42,233 --> 01:12:43,903
- Within two
years of its invention,
1284
01:12:43,904 --> 01:12:47,028
sales of the Milky
Way reach $800,000,
1285
01:12:47,029 --> 01:12:49,989
the modern-day
equivalent of 12 million.
1286
01:12:49,991 --> 01:12:51,581
- But a power
struggle is brewing
1287
01:12:51,582 --> 01:12:52,786
between father and son.
1288
01:12:54,829 --> 01:12:58,079
- Forrest takes credit
for this invention
1289
01:12:58,082 --> 01:13:01,751
telling everyone that it came
from his meeting with his dad
1290
01:13:01,752 --> 01:13:03,882
when they had this
little conversation
1291
01:13:03,883 --> 01:13:06,630
in the diner that
afternoon in Chicago.
1292
01:13:06,632 --> 01:13:09,885
He was eager to take
credit for anything
1293
01:13:09,886 --> 01:13:10,886
that his father did.
1294
01:13:10,887 --> 01:13:12,307
That was just in his nature.
1295
01:13:12,308 --> 01:13:15,215
He was very, very driven.
1296
01:13:20,897 --> 01:13:22,477
- Got you a little something.
1297
01:13:38,748 --> 01:13:39,918
- Nice.
1298
01:13:41,584 --> 01:13:42,464
Thank you.
1299
01:13:42,465 --> 01:13:43,919
- You don't like it?
1300
01:13:43,920 --> 01:13:44,920
- No, it's a nice shirt.
1301
01:13:44,921 --> 01:13:46,838
I just don't think I get it.
1302
01:13:46,839 --> 01:13:48,759
- It's the same
one that you liked
1303
01:13:48,760 --> 01:13:50,678
that day we had the
malteds, remember.
1304
01:13:54,138 --> 01:13:57,848
- It's my way of saying
I'm proud of you.
1305
01:13:58,935 --> 01:14:00,135
Look around.
1306
01:14:00,144 --> 01:14:01,064
This is everything
I've ever wanted
1307
01:14:01,065 --> 01:14:02,562
and you are a part of it.
1308
01:14:12,031 --> 01:14:14,950
- But I don't want a shirt.
1309
01:14:14,951 --> 01:14:17,748
I want to be put in charge
of the East Coast division.
1310
01:14:17,749 --> 01:14:19,995
- But we don't have an
East Coast division.
1311
01:14:19,997 --> 01:14:20,867
- No, exactly.
1312
01:14:21,958 --> 01:14:23,248
You're acting like we've won,
1313
01:14:23,250 --> 01:14:24,710
and we're not even
in the game yet.
1314
01:14:28,589 --> 01:14:29,879
You wanna win?
1315
01:14:32,176 --> 01:14:33,926
You have to start
thinking bigger.
1316
01:14:35,972 --> 01:14:37,562
Hershey isn't our supplier.
1317
01:14:38,683 --> 01:14:39,933
They're our competition.
1318
01:14:43,479 --> 01:14:47,069
- Forrest pushes his
father toward all-out war
1319
01:14:48,067 --> 01:14:50,857
with one of the most
powerful food empires
1320
01:14:50,861 --> 01:14:52,531
in the country.
1321
01:14:58,786 --> 01:15:02,366
- In 1927, Hershey's
sales of raw milk chocolate
1322
01:15:02,373 --> 01:15:04,624
to third parties are spiking,
1323
01:15:04,625 --> 01:15:07,585
accounting for over
20% of their revenue.
1324
01:15:07,586 --> 01:15:10,506
Hiding an attack
from their biggest challenger,
1325
01:15:12,466 --> 01:15:13,676
right in plain sight.
1326
01:15:15,219 --> 01:15:17,509
- Hey, do I have to
give you a raise?
1327
01:15:18,723 --> 01:15:19,643
I'm looking at these numbers.
1328
01:15:19,644 --> 01:15:20,890
This is a ton of raw products.
1329
01:15:20,891 --> 01:15:22,767
You must be selling
around the clock.
1330
01:15:22,768 --> 01:15:24,477
- Well, I'll take the
money if you're offering,
1331
01:15:24,478 --> 01:15:26,688
but that's just for one account.
1332
01:15:29,275 --> 01:15:31,315
Okay, I take back the raise.
1333
01:15:31,318 --> 01:15:32,278
Where's this all going, it looks
1334
01:15:32,279 --> 01:15:34,358
like enough for a small country.
1335
01:15:34,363 --> 01:15:35,243
- Minneapolis.
1336
01:15:36,157 --> 01:15:37,027
Frank Mars.
1337
01:15:42,747 --> 01:15:46,537
- Mars was Hershey's
biggest customer.
1338
01:15:46,542 --> 01:15:50,295
Mars Candy Company
represented a huge part
1339
01:15:50,296 --> 01:15:51,876
of Hershey's sales.
1340
01:15:51,881 --> 01:15:55,341
Few people understand
that two companies
1341
01:15:55,342 --> 01:16:00,012
that we see today as
enormous competitors,
1342
01:16:00,014 --> 01:16:01,811
that if you look back
in their history,
1343
01:16:01,812 --> 01:16:03,557
cooperation started it all.
1344
01:16:05,144 --> 01:16:06,064
- Mars.
1345
01:16:08,022 --> 01:16:08,902
Right.
1346
01:16:21,535 --> 01:16:24,704
- Threatened by
the Milky Way's success...
1347
01:16:24,705 --> 01:16:25,955
- It's bitter.
1348
01:16:25,956 --> 01:16:26,786
- Hershey immediately starts
1349
01:16:26,791 --> 01:16:28,131
innovating new products,
1350
01:16:31,295 --> 01:16:33,915
touching off years of
one-upsmanship with Mars.
1351
01:16:33,923 --> 01:16:34,843
- The ones on the right
have a little more
1352
01:16:34,844 --> 01:16:36,466
of a roasted flavor.
1353
01:16:36,467 --> 01:16:38,927
Think they might go well
with the milk chocolate.
1354
01:16:40,888 --> 01:16:43,768
- Hershey
introduces Hershey's syrup,
1355
01:16:43,769 --> 01:16:47,056
and the iconic
peanut-filled Mr. Goodbar,
1356
01:16:47,061 --> 01:16:50,151
while Mars introduces a bar
with Neapolitan-flavored nougat
1357
01:16:51,148 --> 01:16:53,438
called The 3 Musketeers,
1358
01:16:53,442 --> 01:16:55,742
and a version of the
Milky Way with peanuts
1359
01:16:55,743 --> 01:16:57,986
he names the Snickers bar.
1360
01:16:57,988 --> 01:17:01,488
- Frank has a favorite
horse named Snickers,
1361
01:17:02,868 --> 01:17:05,787
and they name their third
chocolate bar Snickers
1362
01:17:05,788 --> 01:17:06,957
after their horse.
1363
01:17:06,958 --> 01:17:08,746
I always wondered if
Snickers loved peanuts
1364
01:17:08,749 --> 01:17:10,539
because that's one of
the main ingredients
1365
01:17:10,543 --> 01:17:11,503
in a Snickers bar.
1366
01:17:13,212 --> 01:17:15,172
- I think we can
mass-produce it very quickly.
1367
01:17:17,258 --> 01:17:18,878
- Like Hershey's doing?
1368
01:17:18,884 --> 01:17:20,474
- Well, we have to compete.
1369
01:17:21,637 --> 01:17:23,807
- There's a mutual
a history here.
1370
01:17:23,808 --> 01:17:28,096
If it wasn't for Hershey
giving Mars chocolate,
1371
01:17:28,102 --> 01:17:32,188
he might not necessarily have
become this enormous success,
1372
01:17:32,189 --> 01:17:34,318
and you have to look
at both companies
1373
01:17:34,319 --> 01:17:36,856
as a single story that's
built the candy industry
1374
01:17:36,861 --> 01:17:37,701
in America.
1375
01:17:38,863 --> 01:17:41,410
There's a lot of
mutual connection here
1376
01:17:41,411 --> 01:17:42,867
that people don't understand.
1377
01:17:44,410 --> 01:17:46,410
- Mars sales balloon
to the modern equivalent
1378
01:17:46,412 --> 01:17:49,042
of more than $460 million a year
1379
01:17:51,458 --> 01:17:53,038
while Hershey's sales skyrocket
1380
01:17:53,043 --> 01:17:57,046
to more than 600 million,
keeping him in the lead for now,
1381
01:17:57,047 --> 01:17:58,667
but the fight is far from over.
1382
01:18:07,725 --> 01:18:09,725
Shoulders back for me.
1383
01:18:09,727 --> 01:18:10,687
Let's strike here.
1384
01:18:12,062 --> 01:18:14,814
Tilt your head
slightly, breathe in.
1385
01:18:14,815 --> 01:18:15,685
Breathe out.
1386
01:18:16,984 --> 01:18:19,861
Perfect.
1387
01:18:19,862 --> 01:18:21,072
Marjorie Post's plan
1388
01:18:21,073 --> 01:18:23,201
to build a food
conglomerate is working.
1389
01:18:24,658 --> 01:18:28,328
Her company is worth almost
three billion in today's dollar.
1390
01:18:28,329 --> 01:18:31,289
She's one of the wealthiest
women in the country,
1391
01:18:31,290 --> 01:18:33,920
and owns lavish estates
all across the nation.
1392
01:18:40,049 --> 01:18:44,594
- She built a home in Palm
Beach, Florida by the sea
1393
01:18:44,595 --> 01:18:46,135
called Mar-a-Lago.
1394
01:18:46,138 --> 01:18:48,678
Eventually, she would sell the
property to the government,
1395
01:18:48,682 --> 01:18:51,684
and then the government
eventually sold it
1396
01:18:51,685 --> 01:18:55,605
to our current president of the
United States, Donald Trump.
1397
01:19:06,617 --> 01:19:09,077
- But Marjorie isn't satisfied,
1398
01:19:09,078 --> 01:19:11,408
and she has her sights set
1399
01:19:11,413 --> 01:19:12,793
on a struggling new business
1400
01:19:12,794 --> 01:19:15,375
that's nearly out of
cash but will
1401
01:19:15,376 --> 01:19:18,086
someday be worth $1.3 billion.
1402
01:19:38,524 --> 01:19:39,444
- 'Kay, so, it's these two,
1403
01:19:39,445 --> 01:19:40,991
this one, and that one.
1404
01:19:42,361 --> 01:19:44,451
- Clarence Birdseye's
flash frozen food business
1405
01:19:44,452 --> 01:19:45,946
has yet to turn a profit.
1406
01:19:45,948 --> 01:19:47,156
- Let's keep it movin'.
1407
01:19:47,157 --> 01:19:48,366
- And he needs an influx of cash
1408
01:19:48,367 --> 01:19:49,487
to keep it afloat.
1409
01:19:52,329 --> 01:19:53,538
- Keep 'em on the table, okay?
1410
01:19:53,539 --> 01:19:54,459
Thank you.
1411
01:19:56,917 --> 01:19:59,667
- Hello, I'm looking
for Clarence Birdseye.
1412
01:20:00,796 --> 01:20:02,626
- What can I do for ya?
1413
01:20:02,631 --> 01:20:04,051
- Tell him Marjorie
Post is here to see him
1414
01:20:04,052 --> 01:20:05,799
about a business opportunity.
1415
01:20:06,844 --> 01:20:08,011
- Post?
1416
01:20:08,012 --> 01:20:09,852
You mean, Post, Post?
1417
01:20:11,765 --> 01:20:13,305
Wow.
1418
01:20:13,309 --> 01:20:15,349
Well, my name is
Clarence Birdseye.
1419
01:20:16,603 --> 01:20:17,483
Nice to meet you.
1420
01:20:18,355 --> 01:20:19,815
Come on in, I'll
show you around.
1421
01:20:21,233 --> 01:20:22,193
This is our freezer.
1422
01:20:28,032 --> 01:20:29,372
I can already
freeze more haddock
1423
01:20:29,373 --> 01:20:30,656
than the fishermen can catch.
1424
01:20:30,659 --> 01:20:31,989
I can do fruits,
vegetables, meat, anything.
1425
01:20:31,994 --> 01:20:34,164
The problem is, I
can't ship it anywhere.
1426
01:20:34,165 --> 01:20:35,872
Most trains don't
have freezer cars
1427
01:20:35,873 --> 01:20:37,373
and even if they did--
1428
01:20:37,374 --> 01:20:38,544
- There's no way for people
to keep it frozen at home.
1429
01:20:38,545 --> 01:20:39,751
- Exactly.
1430
01:20:39,752 --> 01:20:42,628
So, for now, all
our sales are local.
1431
01:20:42,629 --> 01:20:44,799
Folks let it thaw and
eat it the same day.
1432
01:20:44,800 --> 01:20:46,718
- And who are your
biggest competitors?
1433
01:20:47,634 --> 01:20:49,264
- I'm not sure I have any.
1434
01:20:49,265 --> 01:20:50,386
- None?
1435
01:20:50,387 --> 01:20:52,007
Come on, who else is doing this?
1436
01:20:52,014 --> 01:20:53,639
- No one.
1437
01:20:53,640 --> 01:20:55,058
The whole process,
top to bottom,
1438
01:20:55,059 --> 01:20:56,309
everything from the
equipment to the packaging,
1439
01:20:56,310 --> 01:20:58,144
it's all proprietary.
1440
01:20:58,145 --> 01:20:59,475
- And who controls the patents?
1441
01:20:59,480 --> 01:21:00,360
You?
1442
01:21:03,776 --> 01:21:04,856
- All 200 of them.
1443
01:21:07,154 --> 01:21:10,823
- Marjorie Post was the
very savvy business person
1444
01:21:10,824 --> 01:21:15,411
who went around acquiring
interesting food companies.
1445
01:21:15,412 --> 01:21:17,750
New England was her turf
and somebody told her
1446
01:21:17,751 --> 01:21:21,248
about this guy who was doing
frozen fish in Gloucester,
1447
01:21:21,251 --> 01:21:22,751
and she went and checked it out,
1448
01:21:22,753 --> 01:21:25,050
and she thought, "This
is an idea with a future.
1449
01:21:25,051 --> 01:21:26,547
"I think we'll buy it."
1450
01:21:28,842 --> 01:21:31,222
- Let's say I wanted
to make you an offer.
1451
01:21:32,346 --> 01:21:34,596
What would it take
to buy all of them?
1452
01:21:34,598 --> 01:21:36,138
All of this?
1453
01:21:36,141 --> 01:21:37,770
Your problem is distribution.
1454
01:21:37,771 --> 01:21:39,098
You said it yourself.
1455
01:21:39,103 --> 01:21:40,353
Without the money behind you,
1456
01:21:40,354 --> 01:21:41,904
you'll never be able to
build the infrastructure
1457
01:21:41,905 --> 01:21:45,437
to turn this from
a local curiosity
1458
01:21:46,610 --> 01:21:48,570
to a profitable
national business.
1459
01:21:49,446 --> 01:21:50,606
That's what I can offer.
1460
01:21:51,740 --> 01:21:52,950
Name a price.
1461
01:21:57,079 --> 01:21:59,289
I'm not leaving till
you give me a number.
1462
01:22:03,085 --> 01:22:03,955
- 12 million.
1463
01:22:05,921 --> 01:22:06,761
- For everything?
1464
01:22:07,881 --> 01:22:09,591
- For 75%.
1465
01:22:11,218 --> 01:22:13,968
- I'm not interested in owning
three-quarters of anything.
1466
01:22:13,971 --> 01:22:15,101
How much for the rest?
1467
01:22:23,480 --> 01:22:25,270
- I'm willing to do it
for another 10 million.
1468
01:22:27,359 --> 01:22:28,939
- So, 22 altogether?
1469
01:22:33,073 --> 01:22:35,158
I'll have the paperwork
sent over in the morning,
1470
01:22:35,159 --> 01:22:36,539
and you'll stay on as
president of the division
1471
01:22:36,540 --> 01:22:38,825
to run things under our
umbrella, on salary,
1472
01:22:38,829 --> 01:22:43,669
if that works for you.
1473
01:22:44,877 --> 01:22:45,787
- Yeah.
1474
01:22:47,254 --> 01:22:48,174
Yeah, it works.
1475
01:22:49,173 --> 01:22:50,256
- Good.
1476
01:22:50,257 --> 01:22:53,337
Well, congratulations.
1477
01:23:10,694 --> 01:23:11,954
- Convinced that frozen food
1478
01:23:11,955 --> 01:23:13,654
is the way of the future,
1479
01:23:13,655 --> 01:23:16,485
Marjorie Post make the
biggest gamble of her life:
1480
01:23:16,492 --> 01:23:18,789
buying Clarence Birdseye's
struggling company
1481
01:23:18,790 --> 01:23:21,705
for the modern equivalent
of more than $300 million.
1482
01:23:23,874 --> 01:23:26,212
- A lot of people felt
that they had overpaid
1483
01:23:26,213 --> 01:23:29,000
for the company and it
was actually investigated
1484
01:23:29,004 --> 01:23:30,254
in the Senate.
1485
01:23:30,255 --> 01:23:33,505
Marjorie Post was asked
why they spent so much
1486
01:23:33,509 --> 01:23:36,179
for this kinda crazy
frozen food thingy.
1487
01:23:36,180 --> 01:23:38,807
The total assets were a
fraction of what they paid,
1488
01:23:38,808 --> 01:23:41,224
and they said, "Well,
we weren't paying
1489
01:23:41,225 --> 01:23:42,515
"for the frozen food.
1490
01:23:42,518 --> 01:23:43,688
"We weren't paying
for the freezers.
1491
01:23:43,689 --> 01:23:45,685
"We were paying
for the patents."
1492
01:23:49,650 --> 01:23:51,240
- Clarence Birdseye is now rich
1493
01:23:51,241 --> 01:23:55,735
beyond his wildest dreams,
but no less determined
1494
01:23:55,739 --> 01:23:58,079
to make the company he
built into a success.
1495
01:24:00,327 --> 01:24:04,157
- Marjorie Post renames her
company General Foods
1496
01:24:04,164 --> 01:24:05,754
and uses her enormous resources
1497
01:24:07,292 --> 01:24:12,255
to help Birdseye pioneer frozen
food from coast to coast.
1498
01:24:12,256 --> 01:24:14,756
- He worked with a
refrigerator company
1499
01:24:14,758 --> 01:24:18,298
on a design for a store
freezer that had a window
1500
01:24:18,303 --> 01:24:21,433
in the top so you could look
in and see what was there.
1501
01:24:21,434 --> 01:24:24,600
They got stores to get
in on this experiment.
1502
01:24:24,601 --> 01:24:26,601
They didn't make they
buy the freezers.
1503
01:24:26,603 --> 01:24:29,272
They installed the
freezers for free.
1504
01:24:29,273 --> 01:24:31,899
And this opportunity turned up
1505
01:24:31,900 --> 01:24:34,026
a tremendous amount
of publicity.
1506
01:24:34,027 --> 01:24:36,407
- Today, frozen food
is the second biggest seller
1507
01:24:36,408 --> 01:24:38,155
in grocery stores
around the world,
1508
01:24:38,156 --> 01:24:40,406
and Birdseye still
leads the pack,
1509
01:24:40,409 --> 01:24:43,497
owning a third of the
frozen vegetable market,
1510
01:24:43,498 --> 01:24:45,075
more than any competing brand,
1511
01:24:46,206 --> 01:24:48,916
making Clarence Birdseye
the first true titan
1512
01:24:48,917 --> 01:24:49,917
of frozen food.
1513
01:24:52,588 --> 01:24:54,588
- When you look at any
of these innovators,
1514
01:24:54,590 --> 01:24:57,550
there's a certain kind
of drive and personality
1515
01:24:57,551 --> 01:25:01,051
you need to have in order
to be this successful,
1516
01:25:01,054 --> 01:25:03,602
but if you have that
sort of perseverance
1517
01:25:03,603 --> 01:25:06,099
and you know you've
got that personality
1518
01:25:06,101 --> 01:25:08,561
to carry something
through, it could lead
1519
01:25:08,562 --> 01:25:11,188
to, I mean, ridiculous success.
1520
01:25:11,189 --> 01:25:13,109
- Marjorie Post
is the most successful woman
1521
01:25:13,110 --> 01:25:15,278
of her day, and
a business tycoon
1522
01:25:15,279 --> 01:25:17,277
decades ahead of her time.
1523
01:25:17,279 --> 01:25:20,029
- Marjorie Merriweather
Post, in her day,
1524
01:25:20,032 --> 01:25:23,034
was the world's wealthiest woman
1525
01:25:23,035 --> 01:25:28,115
and she was a icon and
a advocate for women.
1526
01:25:29,207 --> 01:25:31,287
She, in her own
right, was a leader
1527
01:25:31,293 --> 01:25:34,963
and someone that other
women really did look up to.
1528
01:25:36,089 --> 01:25:37,469
- Led by
brilliant industrialists
1529
01:25:37,470 --> 01:25:40,756
like Marjorie Post
and Clarence Birdseye,
1530
01:25:40,761 --> 01:25:43,261
the 1920s are a time
of unparalleled wealth
1531
01:25:43,263 --> 01:25:44,813
and technological advancement,
1532
01:25:45,974 --> 01:25:48,643
but what no one realizes
is that it's about
1533
01:25:48,644 --> 01:25:50,154
to come to a crushing end.
1534
01:25:52,522 --> 01:25:56,484
On the next episode of The
Food That Built America:
1535
01:25:57,778 --> 01:26:00,488
Mac and Dick McDonald
design a new system
1536
01:26:00,489 --> 01:26:03,829
that turns their restaurant
into an assembly line...
1537
01:26:03,830 --> 01:26:05,735
- Start working!
1538
01:26:05,744 --> 01:26:08,084
- That will
generate untold wealth
1539
01:26:08,085 --> 01:26:11,120
for an ambitious
salesman named Ray Kroc.
1540
01:26:11,124 --> 01:26:14,214
- The American people will never
forget the name McDonald's.
1541
01:26:16,171 --> 01:26:17,801
- A Mars
family power struggle...
1542
01:26:17,802 --> 01:26:19,798
- This is my company!
1543
01:26:19,800 --> 01:26:22,340
- 30% or I walk out that door.
1544
01:26:22,344 --> 01:26:24,223
- Leads to an unlikely alliance.
1545
01:26:24,224 --> 01:26:25,431
- Mars and Murrie.
1546
01:26:25,432 --> 01:26:27,139
- It has a ring to it.
1547
01:26:27,140 --> 01:26:29,730
- And the creation
of an American empire.
1548
01:26:32,145 --> 01:26:33,895
And a visionary
Southern maverick--
1549
01:26:33,897 --> 01:26:35,897
- You're gonna wanna see this.
1550
01:26:35,899 --> 01:26:40,695
- Carves out an
iconic legacy at all costs.
117877
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