Premium Essay

Eskimo Pie

In: Business and Management

Submitted By acvhlancastre
Words 1733
Pages 7
Advanced Corporate Finance
Professor Manuela Athayde Marques
TA Professor Ana Carolina Mota
Group Project

Introduction
Eskimo Pie was a well known brand of frozen novelties in the early 1990’s. As many companies in its stage, Eskimo Pie decided to explore growth opportunities by going public.
The aim of this report is to present Eskimo Pie’s business and its historical background in the first and second sections. The third and forth sections illustrate a historical and financial analysis of the frozen novelty industry. The last section refers to the different alternatives that Eskimo Pie has to go public.

Historical Background
Innovative ideas can start with day-to-day needs and Christian Nelson was able to spot one. When working in a confectionery store, Nelson was confronted by a little boy’s indecision between a chocolate bar and a scoop of ice cream. The idea of combining the two products gave birth to America’s first chocolate-covered ice-cream bar. In 1921 Christian Nelson commercialized his innovation under the name of “IceScream-Bar”. One year later, Eskimo Pie brand name resulted from a partnership with
Russel Stover, who later exited the company in 1923. This partnership was beneficial in many ways: the creation of a mechanism to collect royalties and the design of a glamorous tin foil wrapper manufactured and supplied by the U.S. Foil Company.
Despite of its success and the increase in sales, Eskimo Pie Corporation was not financially sustainable. Both its unreliable accounting system and patent infringers jeopardized the collection of royalties.
By the summer of 1923, the sale of over a billion of Eskimo Pies was not enough to pay a liability of $100,000. Nelson had no choice but to sell the corporation to U.S.
Foil Company. In 1924, Eskimo Pie Corporation became a subsidiary of U.S. Foil
Company. Nelson remained in the…...

Similar Documents

Free Essay

How to Make a Pumpkin Pie

...It's that time of year again, pumpkin season! Two wonderful family holidays are just around the corner. Traditionally, we spend Thanksgiving or Christmas (or both) with the family to have a nice holiday dinner. There is always delicious food prepared for dinner, but what's dinner without dessert? The most traditional holiday dessert is pumpkin pie, but how about "spicing" that dessert up a little this year? Well, here's the way to do it, a delicious holiday dessert that the whole family will love and it's quick and easy! The first step in baking, of course, is to gather all the ingredients necessary for the job. Luckily with this dessert, most of what you need, you'll already find in your kitchen. Whatever you don't have, you can just pick up at your local grocery store: 1 can pumpkin, 3 eggs, 1 cup milk, 1/2 tsp. salt, 1/2 tsp. ginger, 1/2 tsp. cloves, 1/2 tsp. cinnamon, 3/4 cup sugar, 1 box spiced cake mix, 1 1/2 cubes margarine or butter, and 3/4 cup favorite chopped nuts (if desired) and a 9 x 13 inch baking pan. You may also need a measuring cup and measuring teaspoons if you want to measure the ingredients evenly. Also, you'll need a small bowl, to beat the three eggs and melt the butter in, and a large bowl to mix the ingredients together. Now that you have all your ingredients, you can get started on the fun, but first, preheat the oven to 350 degrees. Before you mix all the ingredients, beat the three eggs together in the small bowl until they are well mixed.......

Words: 663 - Pages: 3

Premium Essay

Pie in the Sky vs Hobnob

...PIE IN THE SKY V/S HOBNOB | How Pie in the Sky can increase its market share? | | Dated: 13th December 2011 TABLE OF CONTENTS Contents LETTER OF TRANSMITAL 2 ACKNOWLEDGEMENT 3 EXECUTIVE SUMMARY 5 INTRODUCTION: 6 RESEARCH OBJECTIVES 7 RESEARCH HYPOTHESIS: 7 METHODOLOGY 8 SAMPLING 8 SAMPLING DESIGN 8 Sample Frame 8 Sampling Method 8 Sample Size 9 RESEARCH DESIGN 9 DATA ANALYSIS 12 APPENDIX 1 QUESTIONNAIRE 14 APPENDIX 2 FACTS & FIGURES 18 RECOMMENDATIONS Error! Bookmark not defined. CONCLUSION Error! Bookmark not defined.3 BIBLIOGRAPHY 344 EXECUTIVE SUMMARY This report is based on the research and in depth analysis of the consumer preference of Karachi between two bakeries “Pie in the Sky” and “Hobnob” and focuses on key areas on the fact that Pie in the Sky, being a new entrant will be able to form a strong brand image like Hobnob. We have focused on primary research which was done through questionnaires distributed to different universities of Karachi, as well as interviews with some young males and females. As you have got the idea that our research is based on comparing two brands, “Pie in the Sky” and “Hobnob”. Pie in the Sky has achieved fame respect and appreciation in a small span of time. Their aim is to make delicious, hygienic sweets and achieve a status in this market, keeping in mind the competitors. They......

Words: 5046 - Pages: 21

Free Essay

Vfx in Life of Pie

...n  as  a  character  in  a  tank  then  matching  the  sterio  and  reflections  of  water.  Then  Matching waves, Skies above and their reflections on the water­   Animating a tiger­ Richard Parker is one amazing digital charchter, Tiger animation  pipeline­ Rendering fur­ Mixing sims – how to create a wet tiger­   A zebra, a hyena and an orangutan­ Making fish fly , The Island challenges­ Whale of  a time and….  Explain.   The visuel effect used in each above category can be a chapter of a book to study ! but The  visuel effect company for Life of Pi is called R&H . The 3D effects for the film were created  by a team of artists from all of the R&H divisions around the world, including locations like  Malasia, Taiwan and Vancouver. Life Pie can stand among one of the first time Films with a  Remote rendering.  Every shot is artisticly exploration, to make the ocean a character and  make it interesting and  visually stunnin. The VFX in this film is not just a technic it is an art  they way they  integrating their animals in different situations and environments, pushing  them  to  do  more,  and  understanding  how  all  of  this  can  succeed  both  visually  and  dramatically and be this much belivable. One amazing job dircted Under R&H supervision  Discuss the kind of visual effects that were used. (5 points) •  Buf, responsible for the tiger vision sequence where Richard Parker peers down and sees a ......

Words: 440 - Pages: 2

Free Essay

Blackbird Pie Analythic Questions

...”Blackbird Pie” by Raymond Carver 1. Sum up the short story The story is about a divorce between the narrator and his wife. His wife leaves him a letter where she tells him, that she can’t live with him anymore. She has to go her own way and figure out things on her own. The narrator doesn’t believe the letter is from his wife because he doesn’t recognize the handwriting. However, it turns out the letter really is from his wife and as he confronts her about it in the front yard the sheriff and a guy named Frank shows up. They are collecting 2 horses, which walked up on the narrator and his wife’s property. When the sheriff and Frank leave, they take the narrators wife with them and leave the narrator alone. 2. The narrator doesn’t believe that the letter he receives is from his wife – why not? Why does the narrator spend so much energy and so many words on trying to convince the reader that the letter is not written by his wife? I think he is in denial. The fact that he doesn’t recognize his wife’s handwriting indicates he doesn’t know his wife anymore. He spend so much energy on trying to deny that the letter is from his wife, because he, in my opinion, knows it’s coming – it inevitable (in-evitable). 3. What does this letter indicate about the couple’s relationship? The letter indicates that there is a lack of communication between man and wife. During the years of marriage the man have become withdrawn – he has withdrawn himself from his marriage. He......

Words: 1027 - Pages: 5

Premium Essay

Eskimo Pie Case Study

...Eskimo Pie Case Stand-Alone Value: Reynolds Metals is considering the sale of Eskimo pie, a company they have an 84% stake in. In order to come up with an asking price, the stand-alone value of Eskimo Pie needs to be estimated. This calculation can be done a number of ways, but in this instance the Discounted Cash Flow method will be used. In order to utilize this method, the Weighted Average Cost of Capital (WACC) has to be calculated. Based on the financial reports, the WACC is estimated to be 12%. In addition, the horizon value of the company must also be calculated. The capital expenditures, depreciation, and working capital are not very significant in this calculation. The $13 million in generated cash needs to be added to the discounted cash flows. The final stand-alone value of Eskimo Pie is estimated to be $55 million. Nestlé’s Acquisition: Eskimo Pie is a successful frozen novelty producer. Nestle Foods produces similar products as Eskimo Pie. In the past Nestle had acquired Drumsticks and Carnation, two popular frozen dessert products. Its familiarity with Eskimo Pie would make it an easy target for acquisition. An acquisition of Eskimo Pie could create potential synergies. Because Nestle already owns the manufacturing and distribution capabilities, they could be used for Eskimo Pie. Consolidating their production would allow them to eliminate extraneous costs. Nestle could also eliminate the current management and other employees. Lastly, the......

Words: 408 - Pages: 2

Premium Essay

Rhubarb Pie Is a Dessert. Therefore, Whoever Eats Rhubarb Pie Eats a Dessert.

...force the tree to grow straight. Similarly, corporal punishment must sometimes be inflicted on children to force them to develop properly. Weak Analogy. The biggest problem with it is that trees don’t have emotions that can be damaged by violence, like children do. 30. The Book of Mormon is true because it was written by Joseph Smith. Joseph Smith wrote the truth because he was divinely inspired. We know that Joseph Smith was divinely inspired because the Book of Mormon says that he was, and the Book of Mormon is true. Circular argument. Joseph Smith validates the truth of the Book of Mormon and the Book of Mormon validates what Joseph Smith says, so the argument goes in a circle. 31. Rhubarb pie is a dessert. Therefore, whoever eats rhubarb pie eats a dessert. This is a deductive argument by definition. It might be construed as a circular argument, since the premise and conclusion basically state the same thing. 32. The vast majority of car accidents occur within twenty miles of one's home. Apparently it is much more dangerous to drive close to home than far away from home. Either Missing the Point or Suppressed Evidence, or maybe False Cause. The reason that accidents occur close to home is that people often relax and don’t pay enough attention when they’re close to home, and that the vast majority of driving is done within twenty miles of one’s home. 33. Either the government imposes price controls on the cost of prescription......

Words: 3033 - Pages: 13

Free Essay

Eskimo Childrens Literatur

...The Importance of Children’s Literature Learning Team E ENG/290 December 5, 2013 Ron Tatum Ph. D Eskimo Children’s Literature A child’s education is the backbone of any society. From the richest country in the world, to the poorest, without an educated population following behind, that country will not grow. From poetry, to science fiction, educating a child’s mind produces what we as a society will be exposed to and learn from. Ancient myths were the first tools used to teach our children where we came from and how the world around them came to be. Then there were the Greeks, introducing writing and a way to record our thoughts more accurately. With each generation, new concepts were discovered to teach with. It wasn’t until the invention of the movable type printing press in the 1400’s, that more children had a better chance for an education. Cheaper production meant less expenses, and more opportunities for widespread publication of books and reading material. The Bible was still the main teaching format used, but the printing press allowed more people to own their own bible. Most writing was still directed toward the adult population, but slowly, adults started realizing there was a need for information directed toward the child, more easily understood. By the mid-eighteenth century a man named John Newberry came along with the idea of creating books specifically for the child, publishing “A Little Pretty Pocket...

Words: 2421 - Pages: 10

Free Essay

Apple Pie

...Blip blap blop Apple Pie Filling Ingredients: 3-5 ml salt 750 ml apples (2 medium/large OR 3 small) 80 ml sugar 15 ml cornstarch 135 ml cold water 5 ml lemon juice 15 ml margarine 1-2 ml cinnamon Method: 1. Fill a medium bowl half full with cold or ice water. Dissolve 3-5 ml salt in the water. 2. Peel apples and cut into quarters. Remove cores. Keep salt in water until apples are finished to prevent browning. 3. In a separate bowl, stir together sugar and cornstarch. Stir in 125 ml cold water and lemon juice. Stir until well combined. 4. Rinse the salt water from apple quarters and slice fairly thin into a large saucepan. Add all of the sugar/ cornstarch mixture to the apples in the saucepan, making sure to scrape the bowl clean with a rubber spatula. 5. Bring just to a boil over high heat. Reduce heat and simmer gently for 2-3 min until liquid thickens and apple slices are fork tender. 6. Place in foil lined pans. Dot with margarine, sprinkle with cinnamon. 7. Wrap. Package must be air tight with no rips or tears to avoid drying out. Freeze. Pie Time: 1. Unwrap filling and set into pastry lined pan. 2. Sprinkle with more spice if desired. 3. Put on top crust – seal edges with water and finish with a decorative edge. (Fluting: fork/spoon impressions). Cut vents in top. 4. Bake at 400° F (200° C) for 40-50 min. If crust edges begin to overbrown, cover them carefully with foil. Enjoy!!! Baguette Sticks (makes 4...

Words: 311 - Pages: 2

Free Essay

Apple Pie

...We are in love with this--Apple Pie Baked in the Apple. You will need 6 granny smith apples, 1 pie crust, 1/4 cup sugar and 1tablespoon brown sugar. Cut off the top of 4 apples off and discard. Remove the inside of each apple with a spoon very carefully, as to not puncture the peel. Remove skin from 2 additional apples and slice very thinly. These apple pieces will give you filling needed to fill the four apples you are baking. Mix sliced apples with sugars and cinnamon in a bowl. If you prefer more or less cinnamon and sugar, make adjustments as desired. Scoop sliced apples into hollow apples. Roll out pie crust and slice into 1/4 inch strips. You can also add a strip of pastry inside the top of the apple almost like a liner to add a little more texture/sweetness to the pie. Cover the top of the apple in a lattice pattern with pie crust strips. Place apples in an 8×8 pan. Add just enough water to the cover the bottom of the pan. Cover with foil and bake for 20-25 minutes. Remove foil and bake for an additional 20 minutes or until crust is golden brown and sliced apples are soft. Fried Mashed Potato Balls Recipe..2 cups cold mashed potatoes 1 egg, lightly beaten 3/4 cup shredded cheddar cheese 1/2 cup chopped green onions 1/4 cup real bacon bits 1/2 cup dry bread crumbs Oil for frying Directions Place mashed potatoes in a large bowl; let stand at room temperature for 30 minutes. Stir in the egg, cheese, onions and bacon bits. Shape into 1-in. balls; roll in......

Words: 336 - Pages: 2

Free Essay

How to Make a Kool- Aid Pie

...Today I will teach you how to make a Kool-Aid pie. This is one of my favorite desserts. There are three main steps that you need to complete to create this dessert. Step one is having the utensils you will need, step two is the ingredients the desserts contains, and step three is the process of adding the final touches. Step one is to get all the supplies you will need. First you will need a bowl. It’s very important you use a medium size bowl. Secondly you will need a spoon or a spatula. A spoon or a spatula will basically help you mix the ingredients. Last but not least you will a can opener. Step two is the ingredients. To make the desert there are a few things you will need to start making the pie. First you will need the wet ingredient. Which includes: Condense milk and whipped topping. Secondly is the dry mix which is the Kool-Aid. It doesn’t matter what flavor of Kool-Aid that you choose to use. What matters is that you use it. Lastly is the solid ingredient which is the gramham crackers pie crust. Once you have all the ingredients you are ready for the last step. Step three is the last and final step. The first thing you will need to do is open the whipped topping and Kool-Aid packet. Then pour it into a bowl. I prefer that you use the spatula so you can use the folding method to mix the ingredient. Next you open the condensed milk and pour it into the bowl. After you have all the ingredients poured and mixed together. You will pour it into the crust. Last thing......

Words: 324 - Pages: 2

Premium Essay

Eskimo Pie

...Case 2: Harris Seafood Finance 380: Cases in Financial Decision Making Bojan Balaban, Tijo Jose, Nathan Liu NPV CALCULATIONS Charlie Harris is debating whether or not he should make an investment in the shrimp processing plant. We have concluded that he should make the investment in the processing plant if net present value (NPV) is positive. The NPV is calculated as: NPV= PV(benefits) – PV(cost) The goal here is to create value. Mr. Harris should only invest if the NPV is positive. To calculate the NPV of the processing plant, we are required to forecast a FCF and a discount rate. We have used the data from the Harris Seafood case to arrive at a FCF projection for both an inflation and a non-inflation scenario. The rest of the analysis will examine alternative NPV valuations and provide a recommendation to Mr. Harris as to whether or not Harris Seafood should make the investment in the shrimp processing plant. | FCR projection with 0% inflation | Free Cash Flow ($000) | 1980 | 1981 | 1982 | 1983 | 1984 | 1985 | 1986 | Revenues | $- | $26,125 | $57,119 | $67,759 | $68,875 | $70,063 | $71,250 | Cost Of Goods Sold | $- | $22,828 | $46,837 | $55,562 | $56,478 | $57,451 | $58,425 | Selling, General and Admin | $- | $2,874 | $6,283 | $6,437 | $6,543 | $6,656 | $6,769 | Depreciation | $- | $833 | $788 | $731 | $693 | $661 | $634 | Pre-Tax Op Profit | $- | $(410) | $3,211 | $5,029 | $5,161 | $5,295 | $5,422 | Taxes (48%) | $- | $- | $1,541 |......

Words: 2900 - Pages: 12

Free Essay

Academic Writing on Pie Chart

...www.ieltsbuddy.com - Free online IELTS Advice IELTS Writing Task 1 Sample - Pie Chart You should spend about 20 minutes on this task. The pie chart shows the amount of money that a children's charity located in the USA spent and received in one year. Summarize the information by selecting and reporting the main features and make comparisons where relevant. Write at least 150 words. Revenue Sources and Expenditures of a USA Charity in one year. www.ieltsbuddy.com - Free online IELTS Advice www.ieltsbuddy.com - Free online IELTS Advice Model Answer The pie charts show the amount of revenue and expenditures over a year of a children’s charity in the USA. Overall, it can be seen that donated food accounted for the majority of the income, while program services accounted for the most expenditure. Total revenue sources just exceeded outgoings. In detail, donated food provided most of the revenue for the charity, at 86%. Similarly, with regard to expenditures, one category, program services, accounted for nearly all of the outgoings, at 95.8%. The other categories were much smaller. Community contributions, which were the second largest revenue source, brought in 10.4% of overall income, and this was followed by program revenue, at 2.2%. Investment income, government grants, and other income were very small sources of revenue, accounting for only 0.8% combined. There were only two other expenditure items, fundraising and management and general, accounting for......

Words: 276 - Pages: 2

Premium Essay

Eskimo Pie Solutions

...9-293-084 REV: AUGUST 30, 2001 RICHARD S. RUBACK Eskimo Pie Corporation In early 1991, Reynolds Metals, the makers of Aluminum Foil and other aluminum products, decided to sell its holding of Eskimo Pie, a marketer of branded frozen novelties. Reynolds had few interests outside its aluminum and packaging business, and the Eskimo Pie Corporation, with roughly $47 million in sales, accounted for less than 1% of Reynolds revenues. Reynolds planned to use the proceeds from the sale of Eskimo Pie to fund investments in its core aluminum business. Eskimo Pie was 84% owned by Reynolds Metals, and 4% owned by the Reynolds Foundation. The remaining 12% of the Eskimo Pie was held by various Reynolds family members and a small group of outside investors. Goldman Sachs, a New York investment banking firm, was retained to assist with the sale of Eskimo Pie. Goldman estimated that the sale price of Eskimo Pie would be about 1.2 times 1990 sales, or about $57 million. Nestle Foods paid a comparable multiple for Drumstick, another ice cream novelty company, in 1990. Goldman organized an auction for Eskimo Pie, and Nestle was the highest of six bidders with a price of $61 million. Mr. David Clark, President of Eskimo Pie Corporation, recognized that the sale of Eskimo Pie to Nestle would mean the end of its independence. Nestle was likely to consolidate its ice cream novelty businesses by eliminating Eskimo Pie’s headquarters and management staff. He had struggled to......

Words: 4259 - Pages: 18

Free Essay

An Analysis of Hotel California and American Pie

...Andrew Zobel MUS 1014 February 13, 2016 Analysis of “American Pie” and “Hotel California” Perhaps no other song better expresses the overall attitude of the United States (U.S.) in the 1970s than Don McLean’s “American Pie”. Released in November 1971, the song is still considered one of the greatest songs in U.S. history. Additionally, the Eagles’ song “Hotel California”, released in 1976, also exemplifies American culture during the turbulent decade of the 70s. “American Pie” is, for lack of a better word, a long song, with a run time of over eight minutes. The song consists of seven verses, as well as a chorus which is repeated seven times. The song begins with McLean’s voice over a piano. When the opening verse ends, the piano becomes less relevant in the song, and an acoustic guitar becomes the predominant instrument. The song employs a standard AABA structure, alternating between choruses and verses, except at the end, when the chorus is repeated, with the second iteration acting as the coda. Like most popular songs of the 70s, The Eagles’ rock epic “Hotel California” is written in a verse/chorus format. It contains four verses, two iterations of the chorus, a coda, and a lengthy guitar solo to end the song. The standard Eagles’ instrumental setup for the song includes drummer Don Henley singing, as well as playing the drums. Joe Walsh, Don Felder, and Glen Frey play guitars, and bassist Randy Meisner plays the bass. All four offer backup vocals......

Words: 892 - Pages: 4

Free Essay

Experimental Eskimos

...The Experimental Eskimos It was in the 1950s that Canada started to look at the arctic regions and think about what they could get from that huge, icy and inhospitable region. Therefore, the government thought about the possibly cheapest way to achieve some control over this province: take three children, selected through an IQ test, and give them an education in order to create a Canadian-friendly political élite with the final objective of increasing the surface managed by the government. This is only the opening of the documentary “The experimental Eskimos”, born after the discovery of government documents that revealed how the experiment worked. One of the most curious aspects about these events is how such a radical and quick transition from a rural society to a metropolitan context can affect a man’s life. In the 1960s, Eskimos’ life was still pretty traditional. Though living in a part of Canada, they barely spoke English and the highest expectations for a grown up man were proper of a rural society: being a good hunter and own a kayak. Eskimos life was felt as incomplete, so the boys’ parents did not fight with the government project, probably thinking that it was a good opportunity for their children. Zebedee Nungak, Eric Tagoona and Peter Ittinuar, the three children, were then taken to Ottawa. The initial impact is how it can be expected from someone who lived in an underdeveloped society and observes a big city for the first time: the little Eskimos were......

Words: 673 - Pages: 3