Rowntree Mackintosh Confectionery
English confectioner known for Kit Kat, Aero, and Quality Street.
Rowntree Mackintosh Confectionery was an English confectionery company based in York, formed by the merger of Rowntree's and John Mackintosh Co. It was known for chocolate brands including Kit Kat, Aero, and Quality Street. The company was purchased by Nestlé in 1988, and its products were rebranded under the Nestlé name. Rowntree Mackintosh owned Mackintosh's former Halifax headquarters and factory, still in use next to Halifax railway station for Quality Street and other confections. The former Rowntree's factory and headquarters in York remain operational as one of the world's largest confectionery factories, also housing a global research centre for confectionery base.
Quick Facts
- Founded
- 1969
- Defunct
- 1988
- Fate
- Acquired by, and merged with Nestlé
- Predecessors
- Rowntree Co.; Mackintosh Co.
- Successor
- Nestlé
- Headquarters
- York, England
- Industry
- Confectionery
- Products
- Chocolate bars
- toffee
- candies
Facts from the source article.
Did You Know?
- Rowntree's first factory was a former iron foundry bought for £1,000 in 1864.
- The Hershey contract was renegotiated in 1978, giving Hershey permanent US rights to Kit Kat and Rolo.
History
Rowntree's began in 1862 when Henry Isaac Rowntree took over the Tuke family's business in York. Two years later, he bought a former iron foundry for £1,000 and shifted operations there. By 1869, just twelve people worked at the factory, and the company was in trouble financially. Henry's brother Joseph stepped in as a full partner, and the firm became H. I. Rowntree & Co. The company had trouble making a milk chocolate that could match Cadbury's Dairy Milk.
In 1927, it started selling fruit gums in tubes, and pastilles followed in 1928. Rowntree moved into mainland Europe during the 1960s, opening plants in Hamburg, Dijon, Elst, and Noisiel. After Eights came out in 1962. In 1969, the board turned down a £37 million takeover offer from General Foods.
That same year, Rowntree merged with John Mackintosh and Co, creating Rowntree Mackintosh. Mackintosh had made Rolo, Munchies, Caramac, and Quality Street. The new company struck a long-term deal with Hershey to sell and produce some items in the US, starting with Kit Kat. It also launched its own newspaper, Rowntree Mackintosh News, which printed 26,000 copies.
Yorkie and Lion bars appeared in 1976. Two years later, the Hershey contract was changed, giving Hershey permanent rights to Kit Kat and Rolo in America. Kenneth Dixon became chairman and chief executive in 1981. Over the next six years, the company spent nearly £400 million upgrading factories and building high-volume machines for brands like Kit Kat, After Eights, and Smarties.
Between 1983 and 1987, Rowntree spent nearly £400 million on acquisitions, including Tom's Foods for £138 million (1983), Laura Secord Chocolates for £19 million (1983), Hot Sam Pretzels for £14 million (1986), the Sunmark confectionery business in the US for £156 million (1986), and Gale's honey for £11 million (1986). They also bought Scunthorpe snack maker Sooner Snacks in 1982, known for inventing Nik Naks and for making Murphy's Crisps, Seyshells and Wheat Crunchies.
Between 1982 and 1987, UK staff was reduced from 19,700 to 15,600. In 1987 Rowntree operated 25 factories in nine countries and employed 33,000 people, including close to 16,000 in its eight UK operations. Group turnover was £1.4 billion, with the UK and Ireland accounting for 40 per cent of the total. In 1988, Swiss company Nestlé purchased Rowntree Mackintosh Confectionery for $4.5 billion. The business was branded Nestlé Rowntree until 1991, when it formally became Nestlé UK.
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