New England Soup Company: Business Overview
NEW ENGLAND SOUP COMPANY
On January 11, 1991, William Kolander, president of the New England Soup Company of Boston,
Massachusetts, was reviewing a research report he had received from a Boston-based research house. The report presented the findings of a study on the firm’s new formulation of Kolander’s Chowder brand of canned soup. The study had also been sent to the firm’s sales manager, Kirk George, and the production manager, Edward Corey. A meeting was scheduled for January 12 with the research firm and the New
England Soup Company management. The purpose of the meeting was to discuss the research findings and to make decisions concerning Kolander’s product offerings.
The Company
The New England Soup Company was a small firm that produced and distributed a line of specialty canned soup products to both the institutional and retail markets. Approximately 62 percent of their 1990 sales volume went to the institutional market ($68,526), and 38 percent went to the retail market ($42,102).
The company was founded by William Kolander in 1957. Kolander’s father was a successful owner of several restaurants in the Boston area that were famous for their chowder. The young Kolander convinced his father in 1956 that there was a market to sell the chowder to local institutions (restaurants, hospitals, etc.) in the New England area, and he developed a canned chowder under his father’s supervision.
Production facilities were acquired in the same year.
After losses in the first few years, the business turned profitable in 1960. At this time, Kolander decided to enter the retail market with Kolander’s Chowder brand. Both the institutional and retail business grew rapidly during the 1960’s, as did the firm’s profitability. Expanded production facilities were built in 1968, and two additional specialty soup lines were introduced in 1970. These lines experienced limited success at retail but were reasonably profitable in the institutional market.
Current Situation
The last
On January 11, 1991, William Kolander, president of the New England Soup Company of Boston,
Massachusetts, was reviewing a research report he had received from a Boston-based research house. The report presented the findings of a study on the firm’s new formulation of Kolander’s Chowder brand of canned soup. The study had also been sent to the firm’s sales manager, Kirk George, and the production manager, Edward Corey. A meeting was scheduled for January 12 with the research firm and the New
England Soup Company management. The purpose of the meeting was to discuss the research findings and to make decisions concerning Kolander’s product offerings.
The Company
The New England Soup Company was a small firm that produced and distributed a line of specialty canned soup products to both the institutional and retail markets. Approximately 62 percent of their 1990 sales volume went to the institutional market ($68,526), and 38 percent went to the retail market ($42,102).
The company was founded by William Kolander in 1957. Kolander’s father was a successful owner of several restaurants in the Boston area that were famous for their chowder. The young Kolander convinced his father in 1956 that there was a market to sell the chowder to local institutions (restaurants, hospitals, etc.) in the New England area, and he developed a canned chowder under his father’s supervision.
Production facilities were acquired in the same year.
After losses in the first few years, the business turned profitable in 1960. At this time, Kolander decided to enter the retail market with Kolander’s Chowder brand. Both the institutional and retail business grew rapidly during the 1960’s, as did the firm’s profitability. Expanded production facilities were built in 1968, and two additional specialty soup lines were introduced in 1970. These lines experienced limited success at retail but were reasonably profitable in the institutional market.
Current Situation
The last