Green Giant and the Move to Mexico

The Minnesota Valley Canning Company started in 1903, and was one of the first companies to be recognized through their advertising personality, "The Jolly Green Giant." As consumers became familiar with the marketing character, the Minnesota Valley Canning Company soon changed their name to The Green Giant Company. The company became a well-known canned and frozen vegetable foods vendor. To lengthen the growing season, the company expanded from Minnesota into California during the 1950 's and 60 's. Along with the expansion came the construction of a freezing vegetable facility located in Salina, California. In 1978 Pillsbury, a company that specialized in baking goods acquired the Green Giant Company to expand their market and product lines. Nine years later, Grand Metropolitan Company of Great Britain, a producer of alcoholic beverages, acquired Pillsbury and The Green Giant Company through a hostile takeover for $5.6 billion. Following the takeover, Green Giant executives were told to increase their profits significantly to help service the large amount of debt that resulted from the acquisition. This left the executives of the Green Giant Company with some difficult decisions to make. They knew Grand Metropolitan Company expected positive results quickly. After all, Grand Metropolitan 's reputation was characterized as "a light but firm hand upon the throat". Green Giant executives knew if their attempts failed, it could result in their careers. Although Green Giant held 14 percent of the market share in their industry, it would be difficult to increase market penetration because many considered frozen and canned vegetable goods as commodities. The growth in this industry had slowed to an all time low level. Executives at Green Giant realized that the options to meet Grand Metropolitan 's expectations meant they had to realize a significant decrease in operating costs, possibly by moving the plant operations to Irapuato, Mexico.

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