1 00:00:01,627 --> 00:00:04,254 - [Narrator] Americans spend over $11 billion each year 2 00:00:05,547 --> 00:00:09,801 consuming over 2 billion pounds of crackers. 3 00:00:11,386 --> 00:00:12,930 - Today, when you're walking down a supermarket aisle, 4 00:00:12,930 --> 00:00:15,641 there's millions of options when it comes to crackers. 5 00:00:15,641 --> 00:00:17,893 - You will be spoiled for choice 6 00:00:17,893 --> 00:00:20,687 because every possible flavor under the sun 7 00:00:20,687 --> 00:00:23,815 can now be found in cracker form. 8 00:00:23,815 --> 00:00:25,943 - [Narrator] But this wasn't always the case. 9 00:00:25,943 --> 00:00:28,487 - In the 1800s, crackers have a lot of limitations. 10 00:00:28,487 --> 00:00:30,280 They were worse than stale bread. 11 00:00:31,740 --> 00:00:34,326 - [Narrator] It'll take a railroad entrepreneur 12 00:00:34,326 --> 00:00:36,495 and a struggling father and son. 13 00:00:36,495 --> 00:00:38,080 - What, you want to sell sandwiches? 14 00:00:38,080 --> 00:00:41,959 - No, a cracker that eats like a sandwich. 15 00:00:41,959 --> 00:00:43,335 - [Narrator] To break the doors 16 00:00:43,335 --> 00:00:46,129 for the entire cracker industry wide open. 17 00:00:46,129 --> 00:00:47,756 - The Cheez-It emerges 18 00:00:47,756 --> 00:00:50,968 as arguably the first snacking cracker. 19 00:00:50,968 --> 00:00:52,970 - Triscuit changed people's expectations 20 00:00:52,970 --> 00:00:56,056 when it came to what a cracker could actually be. 21 00:00:56,056 --> 00:00:58,558 - [Narrator] Then, America's new obsession with crackers 22 00:00:58,558 --> 00:01:02,813 will fuel an arms race between two baked-goods juggernauts. 23 00:01:02,813 --> 00:01:06,483 - Now you have a real rivalry between Nabisco and Sunshine. 24 00:01:06,483 --> 00:01:10,904 - They were just shamelessly copying each other at times. 25 00:01:10,904 --> 00:01:12,489 - [Narrator] Going head to head 26 00:01:12,489 --> 00:01:15,117 in an attempt to dominate the national cracker market 27 00:01:15,117 --> 00:01:18,245 and paving the way for snack food as we know it. 28 00:01:18,245 --> 00:01:20,914 - The Ritz Cracker changed everything. 29 00:01:20,914 --> 00:01:22,583 - [Narrator] These iconic brands 30 00:01:22,583 --> 00:01:26,795 will spawn a $24 billion a year global industry 31 00:01:26,795 --> 00:01:30,799 and give rise to the modern American snack food aisle. 32 00:01:30,799 --> 00:01:32,467 - They're crispy, they're crunchy, 33 00:01:32,467 --> 00:01:35,804 they are carbohydrate creativity in a box. 34 00:01:35,804 --> 00:01:38,265 This is the story of the cracker. 35 00:01:40,100 --> 00:01:42,352 [intense music] 36 00:02:01,204 --> 00:02:02,789 - [Narrator] In the late 1800s, 37 00:02:02,789 --> 00:02:07,210 Americans eat mostly fresh and naturally-preserved foods. 38 00:02:07,210 --> 00:02:08,919 Without modern preservatives, 39 00:02:08,919 --> 00:02:12,716 items like bread and produce spoil quickly. 40 00:02:12,716 --> 00:02:16,386 But one simple baked good is built to last. 41 00:02:16,386 --> 00:02:17,679 The cracker. 42 00:02:17,679 --> 00:02:19,097 - Prior to the 1890s, 43 00:02:19,097 --> 00:02:22,934 crackers were, in a word, super-duper gross. 44 00:02:22,934 --> 00:02:26,897 They were hard, they were brittle, not usually flavored. 45 00:02:26,897 --> 00:02:29,816 - The earliest crackers were really just sustenance food. 46 00:02:29,816 --> 00:02:33,195 - It was really something that was indestructible. [laughs] 47 00:02:33,195 --> 00:02:35,322 Mainly associated with sailors and other people 48 00:02:35,322 --> 00:02:37,783 that were doing kind of common laborer work. 49 00:02:39,201 --> 00:02:41,161 - [Narrator] At this time, crackers are produced locally 50 00:02:41,161 --> 00:02:43,080 and sold without branding. 51 00:02:43,080 --> 00:02:47,334 - The idea of this modern supermarket that has everything 52 00:02:47,334 --> 00:02:48,794 did not exist. 53 00:02:48,794 --> 00:02:52,881 Generally speaking, you would go to a general store, 54 00:02:52,881 --> 00:02:54,716 and in these general stores, 55 00:02:54,716 --> 00:02:59,012 there would be, quite literally, a cracker barrel. 56 00:02:59,012 --> 00:03:00,639 - [Adrian] But at the bottom, 57 00:03:00,639 --> 00:03:03,642 there were some unappetizing things, like soggy crackers, 58 00:03:03,642 --> 00:03:05,560 insects, or even rodent droppings. 59 00:03:05,560 --> 00:03:08,021 - That's where we get the expression, 60 00:03:08,021 --> 00:03:10,190 "Scraping the bottom of the barrel." 61 00:03:12,526 --> 00:03:14,528 - [Narrator] But in 1891, 62 00:03:14,528 --> 00:03:17,155 a struggling railroad entrepreneur 63 00:03:17,155 --> 00:03:19,658 is facing a very different problem. 64 00:03:21,243 --> 00:03:23,620 [Henry sniffing] 65 00:03:23,620 --> 00:03:25,038 - Smells like feet. 66 00:03:26,832 --> 00:03:27,999 - Must be ready. 67 00:03:29,126 --> 00:03:30,794 - Henry Perky was a former lawyer 68 00:03:30,794 --> 00:03:32,379 who entered the railroad business 69 00:03:32,379 --> 00:03:33,630 basically building rail cars. 70 00:03:36,133 --> 00:03:37,884 - As it happens in business, 71 00:03:37,884 --> 00:03:39,761 he fell on hard times, and at one point, 72 00:03:39,761 --> 00:03:43,098 they actually say he was living in an abandoned rail car. 73 00:03:45,225 --> 00:03:49,771 And he sort of developed some pretty intense stomach issues 74 00:03:49,771 --> 00:03:53,775 and was looking for something to help ease his pain. 75 00:03:53,775 --> 00:03:56,069 [pensive music] 76 00:03:58,321 --> 00:03:59,531 - What is it? 77 00:03:59,531 --> 00:04:00,699 - Boiled wheat. 78 00:04:02,242 --> 00:04:03,410 - [Adrian] The science of eating, 79 00:04:03,410 --> 00:04:06,121 the idea that food is medicine 80 00:04:06,121 --> 00:04:09,666 really starts to gain a currency in the late 1800s. 81 00:04:09,666 --> 00:04:11,793 - Doctors would prescribe different food 82 00:04:11,793 --> 00:04:13,962 for people who were suffering from different ailments. 83 00:04:13,962 --> 00:04:16,798 - [Robert] I mean, it was crazy things, like yogurt enemas. 84 00:04:16,798 --> 00:04:20,093 [chuckles] But for real, they tried it. 85 00:04:20,093 --> 00:04:22,971 - I want you to eat this three times a day for three days. 86 00:04:24,139 --> 00:04:25,640 - By the late 1800s, 87 00:04:25,640 --> 00:04:27,017 more and more doctors were thinking 88 00:04:27,017 --> 00:04:28,935 that wheat was a cure-all. 89 00:04:28,935 --> 00:04:32,105 So they were actually prescribing an all-wheat diet. 90 00:04:33,815 --> 00:04:35,275 - Three days? 91 00:04:35,275 --> 00:04:37,319 - But there's not really a great way to eat it. 92 00:04:37,319 --> 00:04:39,863 There aren't wheat cereals like we have now. 93 00:04:39,863 --> 00:04:42,240 There's bread, but there are a ton of additives. 94 00:04:42,240 --> 00:04:43,909 So the only way people are eating 95 00:04:43,909 --> 00:04:46,077 this medicinal health food is 96 00:04:46,077 --> 00:04:47,537 boiled wheat porridge, 97 00:04:47,537 --> 00:04:49,706 which is, to be honest, kind of gross. 98 00:04:52,209 --> 00:04:55,295 - [Narrator] Perky eats boiled wheat for three days, 99 00:04:55,295 --> 00:04:57,756 and the results surprise him. 100 00:04:59,090 --> 00:05:01,676 - [Edward] Perky finds that this wheat product works for him. 101 00:05:01,676 --> 00:05:03,929 It actually helps to settle his stomach down. 102 00:05:03,929 --> 00:05:06,181 But it's not very tasty. 103 00:05:06,181 --> 00:05:10,602 - It's slightly slimy from the actual husks of wheat 104 00:05:10,602 --> 00:05:12,312 that are floating around in it. 105 00:05:13,563 --> 00:05:14,940 - And he starts thinking, 106 00:05:14,940 --> 00:05:17,984 "How can I make this more palatable for myself?" 107 00:05:20,862 --> 00:05:22,155 - [Narrator] Perky uses his knowledge 108 00:05:22,155 --> 00:05:24,866 of building steel cars for the railroads 109 00:05:24,866 --> 00:05:28,912 and experiments with using machinery to process the wheat. 110 00:05:28,912 --> 00:05:30,539 - He takes wrought iron 111 00:05:30,539 --> 00:05:32,624 and he carves little grooves into it. 112 00:05:33,375 --> 00:05:34,876 And then he takes those plates 113 00:05:34,876 --> 00:05:37,546 and presses it down onto the boiled wheat. 114 00:05:37,546 --> 00:05:39,756 [compelling music] 115 00:05:45,428 --> 00:05:46,847 And what comes out on the other side 116 00:05:46,847 --> 00:05:49,349 are these thin thread-like things, 117 00:05:49,349 --> 00:05:51,351 kind of like really thin pasta. 118 00:05:53,687 --> 00:05:55,397 - He took those strands of wheat 119 00:05:55,397 --> 00:05:58,108 and he started to layer them on top of each other. 120 00:05:58,108 --> 00:06:00,443 - So he looks at this finely shredded wheat, 121 00:06:00,443 --> 00:06:02,654 [suspenseful music] 122 00:06:04,281 --> 00:06:07,450 and he said, "Well, what happens if I bake this?" 123 00:06:09,536 --> 00:06:10,912 - Then, of course, 124 00:06:10,912 --> 00:06:12,622 what he comes out with is thin and crispy, 125 00:06:12,622 --> 00:06:14,499 nutty, and toasted. 126 00:06:18,044 --> 00:06:19,921 - [Narrator] Perky's innovation will not only birth 127 00:06:19,921 --> 00:06:22,674 one of the most popular types of breakfast cereal 128 00:06:22,674 --> 00:06:27,971 generating over $2.8 billion in global sales per year, 129 00:06:27,971 --> 00:06:29,806 it will also lead to the creation 130 00:06:29,806 --> 00:06:31,850 of a pioneering cracker, 131 00:06:31,850 --> 00:06:36,062 which will bring in over $400 million in annual revenue 132 00:06:36,062 --> 00:06:37,522 and strike the match 133 00:06:37,522 --> 00:06:40,191 that will ignite the American cracker industry 134 00:06:40,191 --> 00:06:42,152 for the next century. 135 00:06:42,152 --> 00:06:45,530 But right now, Perky doesn't see the true potential 136 00:06:45,530 --> 00:06:47,198 of his recent invention. 137 00:06:47,198 --> 00:06:50,535 - Initially, his idea was to sell the machinery 138 00:06:50,535 --> 00:06:52,996 that shredded the wheat. 139 00:06:52,996 --> 00:06:54,414 - [Brooke] Perky's just invented 140 00:06:54,539 --> 00:06:56,249 one of the most iconic food products of all time 141 00:06:56,249 --> 00:06:58,084 and he doesn't even see the potential, 142 00:06:58,084 --> 00:07:01,046 which is kind of crazy, if you think about it. 143 00:07:02,297 --> 00:07:03,798 - [Narrator] Perky wants more people 144 00:07:03,798 --> 00:07:06,509 to experience the health benefits of shredded wheat, 145 00:07:07,969 --> 00:07:11,056 so he travels the country pitching his machine to hotels, 146 00:07:11,056 --> 00:07:13,558 restaurants, and bakeries. 147 00:07:13,558 --> 00:07:15,602 And he's now secured a meeting 148 00:07:15,602 --> 00:07:19,230 with one of the most powerful figures in baked goods. 149 00:07:19,230 --> 00:07:20,774 - [Adam] In the 1890s, 150 00:07:20,774 --> 00:07:24,694 Joseph Loose is the head of the American Biscuit Company. 151 00:07:24,694 --> 00:07:26,154 - It's a conglomerate 152 00:07:26,154 --> 00:07:28,615 that has over 40 different bakeries nationwide. 153 00:07:28,615 --> 00:07:30,283 - Henry Perky. 154 00:07:30,283 --> 00:07:31,409 - At the time, when there weren't 155 00:07:31,409 --> 00:07:32,952 national baking companies, 156 00:07:32,952 --> 00:07:35,080 some of the local mom-and-pop bakers 157 00:07:35,080 --> 00:07:37,165 decided to join with others 158 00:07:37,165 --> 00:07:39,292 in order to withstand the competition 159 00:07:39,292 --> 00:07:41,252 and improve their standing in the marketplace. 160 00:07:43,463 --> 00:07:45,006 - How much? 161 00:07:45,006 --> 00:07:46,925 - Well, I could sell you the machine for about-- 162 00:07:46,925 --> 00:07:49,094 - No, how much is the patent? 163 00:07:49,094 --> 00:07:54,849 - [chuckles] I mean, the patent's not for sale. 164 00:07:54,849 --> 00:07:56,851 - Look, what am I gonna do with one machine? 165 00:07:56,851 --> 00:07:58,978 - [Narrator] Loose sees bigger potential 166 00:07:58,978 --> 00:08:01,356 in Perky's innovative new creation. 167 00:08:01,356 --> 00:08:04,275 - I'll need to produce these biscuits at a larger scale. 168 00:08:04,275 --> 00:08:06,736 - [Narrator] If he can sell them exclusively. 169 00:08:07,696 --> 00:08:09,572 - Sell the biscuits. 170 00:08:09,572 --> 00:08:10,699 - Of course. 171 00:08:12,534 --> 00:08:14,077 - What he realizes 172 00:08:14,077 --> 00:08:15,662 is that no one really cares about the machine. 173 00:08:15,662 --> 00:08:18,707 They're really after what he made with those machines, 174 00:08:18,707 --> 00:08:20,125 the shredded wheat. 175 00:08:20,125 --> 00:08:21,710 - [Narrator] Perky decides, 176 00:08:21,710 --> 00:08:23,962 if anyone is going to profit from shredded wheat, 177 00:08:23,962 --> 00:08:24,963 it should be him. 178 00:08:26,214 --> 00:08:27,590 - $1 million. 179 00:08:28,967 --> 00:08:32,721 - $1 million then is $30 million today. 180 00:08:32,721 --> 00:08:35,765 And this is a totally unproven product, 181 00:08:35,765 --> 00:08:38,183 so this is a very, very bold ask. 182 00:08:40,352 --> 00:08:42,188 - Thanks for coming to see me, Mr. Perky. 183 00:08:44,274 --> 00:08:46,609 - Perky says, "You know what? I'm going to sell 184 00:08:46,609 --> 00:08:49,946 these baked, crispy shredded wheat biscuits." 185 00:08:51,906 --> 00:08:54,034 - [Narrator] As Perky develops a new plan 186 00:08:54,034 --> 00:08:55,368 for shredded wheat, 187 00:08:55,368 --> 00:08:57,787 Joseph Loose makes moves of his own 188 00:08:57,787 --> 00:09:00,790 by joining forces with a rival company. 189 00:09:00,790 --> 00:09:04,335 - [Adam] They decided to create an incredible strategic alliance 190 00:09:04,335 --> 00:09:06,463 between the American Biscuit Company 191 00:09:06,463 --> 00:09:08,006 and the New York Biscuit company 192 00:09:08,006 --> 00:09:10,550 to create one sort of monolith. 193 00:09:12,010 --> 00:09:17,474 The National Biscuit Company, or Nabisco. 194 00:09:17,474 --> 00:09:20,268 - [Narrator] The merger quickly makes Nabisco 195 00:09:20,268 --> 00:09:23,813 the most powerful bakery conglomerate in the country. 196 00:09:23,813 --> 00:09:28,359 - The idea behind Nabisco was for manufacturers 197 00:09:28,359 --> 00:09:32,363 to be able to have more power through collective bargaining. 198 00:09:32,363 --> 00:09:35,200 - [Jason] Their ability to buy wholesale now is increased, 199 00:09:35,200 --> 00:09:36,951 and they can get a much, much better price 200 00:09:36,951 --> 00:09:39,621 because they're buying at such huge volumes. 201 00:09:39,621 --> 00:09:41,998 It was very smart and very ahead of its time. 202 00:09:43,291 --> 00:09:45,376 - [Narrator] Nabisco envisions its logo 203 00:09:45,376 --> 00:09:48,004 on products across America, 204 00:09:48,004 --> 00:09:51,841 hoping to create a national baked goods empire. 205 00:09:52,675 --> 00:09:54,636 Meanwhile, Henry Perky 206 00:09:54,636 --> 00:09:57,931 has been quietly growing his shredded wheat business. 207 00:09:57,931 --> 00:10:00,642 - So Perky starts selling his shredded wheat biscuits 208 00:10:00,642 --> 00:10:02,519 out of a cart on the street, 209 00:10:02,519 --> 00:10:05,146 and people cannot get enough of them. 210 00:10:05,146 --> 00:10:06,397 - [Kate] As business picks up, 211 00:10:06,397 --> 00:10:09,609 Perky transitions to a factory in Boston. 212 00:10:09,609 --> 00:10:12,779 He then begins selling the product commercially in boxes. 213 00:10:12,779 --> 00:10:14,781 - [Narrator] Perky encourages his customers 214 00:10:14,781 --> 00:10:17,408 to eat shredded wheat at all times of day. 215 00:10:17,408 --> 00:10:18,993 - He's thinking, "This is a health food. 216 00:10:18,993 --> 00:10:21,579 This is to help people live healthier lives." 217 00:10:21,579 --> 00:10:23,039 - [Narrator] But right now, 218 00:10:23,039 --> 00:10:26,126 Americans are rethinking one meal in particular. 219 00:10:26,126 --> 00:10:28,878 - The launch of shredded wheat is around the same time 220 00:10:28,878 --> 00:10:31,047 as ready-to-eat breakfast cereals hit the market 221 00:10:31,047 --> 00:10:32,632 in the late 1800s. 222 00:10:32,632 --> 00:10:35,552 It really radicalized how people ate breakfast. 223 00:10:35,552 --> 00:10:37,762 It used to just be leftovers from the night before, 224 00:10:37,762 --> 00:10:39,973 but with these ready-to-eat cereals, 225 00:10:39,973 --> 00:10:41,599 it came right out of a box. 226 00:10:41,599 --> 00:10:43,601 - [Bill] So Perky starts taking advantage 227 00:10:43,601 --> 00:10:45,562 of the ready-to-eat cereal trend, 228 00:10:45,562 --> 00:10:48,565 and he starts marketing his products as a healthy breakfast. 229 00:10:48,565 --> 00:10:51,192 Sales take off, and within the few years, 230 00:10:51,192 --> 00:10:53,319 he can't even keep up with the demand. 231 00:10:53,319 --> 00:10:54,863 - [Kate] By 1900, 232 00:10:54,863 --> 00:10:57,365 Perky is selling shredded wheat on a national level. 233 00:10:57,365 --> 00:10:59,534 This is pretty wild when you think, 234 00:10:59,534 --> 00:11:02,328 10 years ago, Perky was in the railroad business. 235 00:11:02,328 --> 00:11:04,706 He had no experience in the food industry. 236 00:11:04,706 --> 00:11:06,166 - [Narrator] In 1901, 237 00:11:06,166 --> 00:11:09,419 Perky builds an enormous factory in Niagara Falls. 238 00:11:09,419 --> 00:11:11,254 It's one of the earliest in the nation 239 00:11:11,254 --> 00:11:13,256 to be powered by electricity. 240 00:11:13,256 --> 00:11:14,549 - The Niagara Power Company, 241 00:11:14,549 --> 00:11:16,551 which is located in Niagara Falls, 242 00:11:16,551 --> 00:11:19,971 is one of the first companies to harness hydroelectric power 243 00:11:19,971 --> 00:11:22,724 and to advertise that cheap power to corporations. 244 00:11:24,350 --> 00:11:25,935 - [Narrator] But Perky's new project 245 00:11:25,935 --> 00:11:28,521 requires him to take out massive loans. 246 00:11:30,064 --> 00:11:31,524 - We got another letter. 247 00:11:31,524 --> 00:11:33,568 - [Narrator] Against the advice of the company lawyer, 248 00:11:33,568 --> 00:11:34,777 William Hamlin. 249 00:11:34,777 --> 00:11:37,822 - We owe 1.4 million. 250 00:11:39,574 --> 00:11:41,159 The board's planning to take control 251 00:11:41,159 --> 00:11:42,535 until the bonds are paid off. 252 00:11:43,995 --> 00:11:46,122 - So he went from establishing a new factory 253 00:11:46,122 --> 00:11:48,875 to now fighting for control of the entire company. 254 00:11:50,793 --> 00:11:55,048 - [sighs] I'll find a way of increasing the sales. 255 00:11:57,842 --> 00:11:59,219 New product? 256 00:11:59,219 --> 00:12:00,803 - New products cost money. 257 00:12:01,763 --> 00:12:03,264 What can you make for no money? 258 00:12:04,265 --> 00:12:06,434 - Perky thinks, "What can I use 259 00:12:06,434 --> 00:12:08,728 to make something where you need this any time of day, 260 00:12:08,728 --> 00:12:10,730 you can put anything you want on it, 261 00:12:10,730 --> 00:12:13,691 and it's really versatile and really portable?" 262 00:12:13,691 --> 00:12:15,985 [pensive music] 263 00:12:18,196 --> 00:12:19,280 - Toast. 264 00:12:21,824 --> 00:12:23,243 Everybody loves toast. 265 00:12:24,827 --> 00:12:27,288 We'll make a shredded wheat version of it 266 00:12:27,288 --> 00:12:29,999 using the equipment we already have. 267 00:12:29,999 --> 00:12:31,209 - [Narrator] Though he doesn't know it yet, 268 00:12:31,209 --> 00:12:33,461 Perky's idea is about to invigorate 269 00:12:33,461 --> 00:12:36,673 one of America's most overlooked staples 270 00:12:36,673 --> 00:12:39,759 and put his company on a collision course 271 00:12:39,759 --> 00:12:41,427 with a rising giant. 272 00:12:41,427 --> 00:12:43,096 - That's crazy. 273 00:12:43,096 --> 00:12:45,723 Some might even say it's crackers. 274 00:12:52,730 --> 00:12:54,232 - [Narrator] In 1902, 275 00:12:54,232 --> 00:12:57,110 Henry Perky has an out-of-the-box idea. 276 00:12:57,110 --> 00:12:59,779 He wants to create a shredded wheat product 277 00:12:59,779 --> 00:13:02,198 that can be a substitute for toast. 278 00:13:02,198 --> 00:13:05,076 - Perky knows he cannot be tethered to breakfast, 279 00:13:05,076 --> 00:13:07,912 so he's thinking, "what else can I serve Americans 280 00:13:07,912 --> 00:13:09,122 at all times of the day?" 281 00:13:10,331 --> 00:13:11,749 - These just got sent up. 282 00:13:13,334 --> 00:13:14,961 - [Adrian] Perky was looking for something 283 00:13:14,961 --> 00:13:16,629 that would last longer than bread, 284 00:13:16,629 --> 00:13:18,131 but you could still do everything with it 285 00:13:18,131 --> 00:13:19,757 that you would do with bread. 286 00:13:19,757 --> 00:13:22,510 You could put cheese on it, you could put jam on it, jelly. 287 00:13:22,510 --> 00:13:23,720 - [Narrator] Perky tries flattening 288 00:13:23,720 --> 00:13:25,346 the shredded wheat strands 289 00:13:25,346 --> 00:13:29,309 before baking to create a thinner, crisper texture, 290 00:13:29,309 --> 00:13:31,311 but it just falls apart. 291 00:13:34,939 --> 00:13:38,151 So, Perky must rethink his process from scratch. 292 00:13:40,445 --> 00:13:42,655 [pensive music] 293 00:13:44,490 --> 00:13:45,867 - [Edward] So what he does 294 00:13:45,867 --> 00:13:47,243 is he takes the shredded wheat that comes out, 295 00:13:47,243 --> 00:13:50,038 and instead of rolling it and pillowing it up, 296 00:13:50,038 --> 00:13:52,707 he crisscrosses it, layers it, 297 00:13:52,707 --> 00:13:55,835 and then sort of presses it down and flattens it. 298 00:13:55,835 --> 00:13:58,087 - [Narrator] Perky then bakes them into thin, 299 00:13:58,087 --> 00:14:01,257 crisp, toast-sized rectangles. 300 00:14:01,257 --> 00:14:02,842 - [Adam] What he's ultimately created 301 00:14:02,842 --> 00:14:06,054 is a very large wheat cracker. 302 00:14:06,054 --> 00:14:09,474 And though he's set out to enter the cereal market, 303 00:14:09,474 --> 00:14:11,934 he's now entered a completely different one. 304 00:14:11,934 --> 00:14:13,019 Crackers. 305 00:14:14,020 --> 00:14:15,480 - [Narrator] In the early 1900s, 306 00:14:15,480 --> 00:14:18,816 a national market for crackers is just emerging, 307 00:14:18,816 --> 00:14:21,152 and it's led by Nabisco. 308 00:14:21,152 --> 00:14:22,653 - When they first formed, 309 00:14:22,653 --> 00:14:26,157 Nabisco came up with this product called Uneeda Biscuit. 310 00:14:26,157 --> 00:14:28,493 - [Jason] In addition to giving the country 311 00:14:28,493 --> 00:14:30,369 its first standardized cracker, 312 00:14:30,369 --> 00:14:33,664 they create the first, what they call the inner seal, 313 00:14:33,664 --> 00:14:35,917 which is basically an inner wax wrap 314 00:14:35,917 --> 00:14:38,461 that keeps the crackers fresher longer. 315 00:14:38,461 --> 00:14:41,005 - [Narrator] Able to be shipped long distances, 316 00:14:41,005 --> 00:14:42,757 the Uneeda becomes America's 317 00:14:42,757 --> 00:14:45,134 first nationally-branded cracker, 318 00:14:45,134 --> 00:14:47,762 but it's the packaging, not what's inside, 319 00:14:47,762 --> 00:14:49,430 that makes it special. 320 00:14:49,430 --> 00:14:52,266 - The Uneeda cracker itself wasn't anything revolutionary. 321 00:14:52,266 --> 00:14:55,394 It was plain, it's basically just a saltine. 322 00:14:55,394 --> 00:14:57,146 - [Narrator] Perky's shredded wheat cracker 323 00:14:57,146 --> 00:14:59,982 will have a completely unique flavor and texture. 324 00:15:01,234 --> 00:15:04,028 - [Adam] Because this idea of a mass-produced biscuit 325 00:15:04,028 --> 00:15:08,866 baked by electricity is so novel and so groundbreaking, 326 00:15:08,866 --> 00:15:10,952 he wants that to be at the center 327 00:15:10,952 --> 00:15:12,453 of the marketing campaign. 328 00:15:14,288 --> 00:15:15,623 - How's... 329 00:15:16,374 --> 00:15:17,750 Electricity Biscuit? 330 00:15:19,335 --> 00:15:20,670 - A bit wordy. 331 00:15:23,422 --> 00:15:27,135 - [Henry] Electrobiscuits. 332 00:15:29,345 --> 00:15:34,475 - He decides he is going to combine the words electricity 333 00:15:34,475 --> 00:15:37,478 and biscuit, and create... 334 00:15:37,478 --> 00:15:38,896 - Electro... 335 00:15:40,815 --> 00:15:42,024 Triscuit. 336 00:15:43,526 --> 00:15:44,944 - The Triscuit. 337 00:15:44,944 --> 00:15:46,571 - [Narrator] In May of 1903, 338 00:15:46,571 --> 00:15:50,158 Triscuit is first sold in Niagara Falls. 339 00:15:50,158 --> 00:15:52,827 By that fall, they roll out nationwide, 340 00:15:52,827 --> 00:15:55,454 proudly advertised as the first cracker 341 00:15:55,454 --> 00:15:57,456 baked by electricity. 342 00:15:57,456 --> 00:15:59,375 - Triscuit changed people's expectations 343 00:15:59,375 --> 00:16:01,961 when it came to what a cracker could actually be. 344 00:16:01,961 --> 00:16:05,298 - We don't just have to be utilitarian kind of flavorless; 345 00:16:05,298 --> 00:16:08,801 we can have more textures and more flavors for crackers. 346 00:16:08,801 --> 00:16:10,761 - [Narrator] But while consumers are intrigued, 347 00:16:10,761 --> 00:16:12,847 they're also wary. 348 00:16:12,847 --> 00:16:15,641 - When Triscuit first hits the market in 1903, 349 00:16:15,641 --> 00:16:17,727 nobody knows what to do with it. 350 00:16:17,727 --> 00:16:19,228 - It was literally enormous. 351 00:16:19,228 --> 00:16:21,731 It was supposed to be a healthy substitute for bread. 352 00:16:21,731 --> 00:16:23,900 You literally had to break it up to eat it. 353 00:16:23,900 --> 00:16:25,860 - It's not exactly a runaway hit. 354 00:16:27,403 --> 00:16:28,988 - [Narrator] Perky hoped that the Triscuit 355 00:16:28,988 --> 00:16:32,200 would get the Shredded Wheat Company out of debt, 356 00:16:32,200 --> 00:16:35,077 but his gamble didn't pay off. 357 00:16:35,077 --> 00:16:37,872 - The board realizes, "We need to improve sales." 358 00:16:37,872 --> 00:16:41,417 - Starting next month, we add a coupon inside. 359 00:16:41,417 --> 00:16:43,085 - But they aren't approaching this 360 00:16:43,085 --> 00:16:46,881 in the same way that Perky did, where it was all about health. 361 00:16:46,881 --> 00:16:50,384 - With all due respect, these are health foods. 362 00:16:50,384 --> 00:16:52,094 - Health foods don't pay the bills, Henry. 363 00:16:52,094 --> 00:16:53,262 Sales do. 364 00:16:54,680 --> 00:16:58,517 - So Perky's vision and the investors' vision clashed. 365 00:16:58,517 --> 00:17:00,770 - But Perky's shares in the company at this point 366 00:17:00,770 --> 00:17:02,271 are so watered down 367 00:17:02,271 --> 00:17:04,732 that his opinion does not carry that much weight. 368 00:17:04,732 --> 00:17:06,901 - Now, his title might be president, 369 00:17:06,901 --> 00:17:09,403 but at this point, the board has all the power. 370 00:17:09,403 --> 00:17:11,239 - [Narrator] In 1904, 371 00:17:11,239 --> 00:17:13,574 the board calls for Perky's retirement, 372 00:17:15,742 --> 00:17:19,664 nominating lawyer William Hamlin to take his place. 373 00:17:19,664 --> 00:17:22,500 - [Kate] Perky's spent 15 years building this company 374 00:17:22,500 --> 00:17:24,042 and this product from the ground up, 375 00:17:24,042 --> 00:17:27,213 and now he's just completely lost control. 376 00:17:27,213 --> 00:17:29,131 - [Erin] When Perky leaves the Shredded Wheat Company, 377 00:17:29,131 --> 00:17:31,050 he decides that he wants to start a school 378 00:17:31,050 --> 00:17:33,052 that teaches farming and domestic science, 379 00:17:33,052 --> 00:17:34,554 but unfortunately, 380 00:17:34,554 --> 00:17:37,682 he passes away before the school can come to fruition. 381 00:17:37,682 --> 00:17:39,684 - [Narrator] As the maker of Triscuit moves forward 382 00:17:39,684 --> 00:17:40,893 without its founder, 383 00:17:42,144 --> 00:17:44,855 Nabisco keeps its hold on the cracker market, 384 00:17:44,855 --> 00:17:48,526 selling tens of millions of Uneeda boxes a year. 385 00:17:48,526 --> 00:17:51,779 And it starts pouring resources into cookies, 386 00:17:51,779 --> 00:17:55,324 with products like Fig Newton and Barnum's Animals. 387 00:17:55,324 --> 00:17:58,995 But a competitor with a grudge is about to emerge. 388 00:17:58,995 --> 00:18:00,663 - [Brooke] Joseph Loose is betrayed 389 00:18:00,663 --> 00:18:02,248 by one of his lawyers at Nabisco 390 00:18:02,248 --> 00:18:04,000 and basically forced out of the company. 391 00:18:04,000 --> 00:18:06,419 - So, Loose, his brother, Jacob, 392 00:18:06,419 --> 00:18:09,338 and their brother-in-law, John H. Wiles, 393 00:18:09,338 --> 00:18:12,300 found a competing mega bakery, 394 00:18:12,300 --> 00:18:16,721 the iconic Sunshine Baking Company. 395 00:18:17,722 --> 00:18:19,348 - [Narrator] Sunshine soon releases 396 00:18:19,348 --> 00:18:21,434 their own Uneeda knockoff, 397 00:18:21,434 --> 00:18:22,852 the Takhoma, 398 00:18:22,852 --> 00:18:25,896 and then turns their focus to cookies as well. 399 00:18:25,896 --> 00:18:27,315 - There was no question 400 00:18:27,315 --> 00:18:30,568 that Sunshine and Nabisco were competitors. 401 00:18:30,568 --> 00:18:32,778 Not only were they always trying to better one another 402 00:18:32,778 --> 00:18:34,447 with new innovations, 403 00:18:34,447 --> 00:18:38,242 but they were just shamelessly copying each other at times. 404 00:18:38,242 --> 00:18:39,535 - Sunshine developed 405 00:18:39,535 --> 00:18:41,078 a number of successful cookies and crackers, 406 00:18:41,078 --> 00:18:42,413 including Hydrox, 407 00:18:42,413 --> 00:18:44,749 which Nabisco ripped off to create the Oreo. 408 00:18:44,749 --> 00:18:47,376 - Both companies have versions of animal crackers. 409 00:18:47,376 --> 00:18:50,129 There's lots of similar and competing products. 410 00:18:50,129 --> 00:18:51,714 - But both of these companies, 411 00:18:51,714 --> 00:18:53,132 they're still playing it pretty safe 412 00:18:53,132 --> 00:18:54,717 when it comes to crackers. 413 00:18:54,717 --> 00:18:57,428 They only have your run-of-the-mill graham crackers, 414 00:18:57,428 --> 00:19:00,431 soda crackers, nothing out of the ordinary. 415 00:19:00,431 --> 00:19:02,308 - [Narrator] Yet by the late 1910s, 416 00:19:02,308 --> 00:19:04,810 Nabisco and Sunshine still dominate 417 00:19:04,810 --> 00:19:06,771 with their low-cost crackers, 418 00:19:06,771 --> 00:19:11,233 thanks to a scale no small independent bakery can match. 419 00:19:11,233 --> 00:19:13,444 [pensive music] 420 00:19:15,196 --> 00:19:18,741 Like the one run by the Green family in Dayton, Ohio. 421 00:19:18,741 --> 00:19:20,326 - [Adam] J.W. and Weston Green 422 00:19:20,326 --> 00:19:22,995 were father and son from Dayton, Ohio. 423 00:19:22,995 --> 00:19:24,789 Now, Dayton, Ohio, at this time, 424 00:19:24,789 --> 00:19:27,875 was home to a business called the Wolf Bakery. 425 00:19:27,875 --> 00:19:31,921 And when Mr. Wolf died, father and son bought this factory. 426 00:19:31,921 --> 00:19:33,297 - [Narrator] The Greens sell a cracker 427 00:19:33,297 --> 00:19:35,341 named after their hometown. 428 00:19:35,341 --> 00:19:38,010 - The Dayton cracker becomes a sensation 429 00:19:38,010 --> 00:19:41,055 in a very small area of Ohio. 430 00:19:41,055 --> 00:19:42,682 It's not the most tasty cracker, 431 00:19:42,682 --> 00:19:44,558 it's a dry, hard butter cracker. 432 00:19:44,558 --> 00:19:46,268 And even though it's incredibly popular 433 00:19:46,268 --> 00:19:48,104 in the center of the United States, 434 00:19:48,104 --> 00:19:51,482 most of the country has no idea who they are. 435 00:19:51,482 --> 00:19:52,858 - [Narrator] During World War I, 436 00:19:52,858 --> 00:19:54,402 the Green & Green Cracker Company 437 00:19:54,402 --> 00:19:56,737 survives on government contracts, 438 00:19:56,737 --> 00:19:59,657 shipping biscuits and hard tack overseas. 439 00:20:00,658 --> 00:20:02,535 But as the war comes to an end, 440 00:20:02,535 --> 00:20:04,328 they're struggling to make ends meet. 441 00:20:05,329 --> 00:20:07,123 - New shipment is packed and ready. 442 00:20:08,582 --> 00:20:11,544 - [sighs] The store canceled their order. 443 00:20:11,544 --> 00:20:13,045 - Green & Green, 444 00:20:13,045 --> 00:20:15,548 they were relying on the government contract for so long. 445 00:20:15,548 --> 00:20:18,801 Now, in peace time, what are they going to do? 446 00:20:19,969 --> 00:20:22,012 - We need to give them something new. 447 00:20:22,012 --> 00:20:23,097 - Like what? 448 00:20:24,140 --> 00:20:25,474 - [Brooke] If the Greens wanna be successful 449 00:20:25,474 --> 00:20:26,767 in this post-war market, 450 00:20:26,767 --> 00:20:28,519 they need something innovative. 451 00:20:28,519 --> 00:20:30,563 They need something that's gonna stand out 452 00:20:30,563 --> 00:20:32,565 and get people to notice them. 453 00:20:32,565 --> 00:20:34,483 But all their ideas keep falling flat. 454 00:20:34,483 --> 00:20:36,736 [pensive music] 455 00:20:42,491 --> 00:20:45,035 - [J.W.] What have you got there? 456 00:20:45,035 --> 00:20:46,454 - Just Welsh rarebit. 457 00:20:47,747 --> 00:20:50,875 - Welsh rarebit is one of my favorite things to eat 458 00:20:50,875 --> 00:20:52,877 when I go over to the UK. 459 00:20:52,877 --> 00:20:57,798 It's essentially an open-face, gooey, grilled cheese, 460 00:20:57,798 --> 00:21:01,427 and it has a wonderful toasted cheese flavor. 461 00:21:01,427 --> 00:21:03,637 [pensive music] 462 00:21:03,637 --> 00:21:05,014 - That might be an idea. 463 00:21:06,432 --> 00:21:08,768 - What, do you want to sell sandwiches? 464 00:21:08,768 --> 00:21:12,855 - No, a cracker that eats like a sandwich. 465 00:21:12,855 --> 00:21:14,273 - [Narrator] The Greens don't know it yet, 466 00:21:14,273 --> 00:21:15,775 but they're about to create 467 00:21:15,775 --> 00:21:18,778 one of the most recognizable crackers in America. 468 00:21:18,778 --> 00:21:21,322 Their one-of-a-kind cheesy square 469 00:21:21,322 --> 00:21:24,658 will generate $1 billion in annual revenue, 470 00:21:24,658 --> 00:21:27,870 kicking off a new era in flavored snacks 471 00:21:27,870 --> 00:21:31,749 and paving the way for the American snack food industry. 472 00:21:31,749 --> 00:21:34,835 - [Adam] Green & Green, they know where they want to go, 473 00:21:34,835 --> 00:21:37,046 but they have no idea how to get there. 474 00:21:37,046 --> 00:21:39,882 And one wrong turn on this journey 475 00:21:39,882 --> 00:21:42,426 could spell disaster for the entire company. 476 00:21:46,847 --> 00:21:48,849 [pensive music] 477 00:21:48,849 --> 00:21:50,559 - [Narrator] In 1921, 478 00:21:50,559 --> 00:21:52,520 the Greens have an idea for a cracker 479 00:21:52,520 --> 00:21:54,480 that doesn't need a topping. 480 00:21:54,480 --> 00:21:57,733 They're trying to make one with cheese built right in. 481 00:21:58,651 --> 00:22:00,069 - Crackers, up to this point, 482 00:22:00,069 --> 00:22:02,363 had just been flavored with salt, honestly. 483 00:22:02,363 --> 00:22:04,448 There was no real flavored cracker on the market. 484 00:22:04,448 --> 00:22:06,116 - [Narrator] If they succeed, 485 00:22:06,116 --> 00:22:09,119 they'll have one of the first crackers built for snacking. 486 00:22:09,119 --> 00:22:10,830 - [Kate] You have some sweets in the market, 487 00:22:10,830 --> 00:22:13,916 where you have Fig Newtons, you have caramel corn. 488 00:22:13,916 --> 00:22:16,710 But salty snack foods, as we know them today, 489 00:22:16,710 --> 00:22:18,838 just do not exist in America yet. 490 00:22:18,838 --> 00:22:20,047 - Even flavored potato chips, 491 00:22:20,047 --> 00:22:22,216 those don't come out for another 30 years. 492 00:22:22,216 --> 00:22:24,593 - [Brooke] Remember, this was before anything like Cheetos, 493 00:22:24,593 --> 00:22:25,970 or Fritos, or Doritos. 494 00:22:25,970 --> 00:22:28,264 This was revolutionary at the time. 495 00:22:29,598 --> 00:22:33,394 - [Adam] Initially, the Greens first try melting cheese 496 00:22:33,394 --> 00:22:35,271 on a super-duper large cracker, 497 00:22:35,271 --> 00:22:36,897 but it's not sustainable. 498 00:22:36,897 --> 00:22:38,732 The texture is gross. 499 00:22:38,732 --> 00:22:40,192 - [Erin] With the Greens decide to do 500 00:22:40,192 --> 00:22:42,987 is to take cheese and put it in the dough. 501 00:22:42,987 --> 00:22:45,239 So, this is like totally flipping the script. 502 00:22:46,782 --> 00:22:49,368 - [Narrator] But the cheese is difficult to work with. 503 00:22:49,368 --> 00:22:51,579 [tense music] 504 00:22:54,748 --> 00:22:55,916 - Why so puffy? 505 00:22:57,209 --> 00:22:59,712 - Cheese has a certain level of moisture, 506 00:22:59,712 --> 00:23:03,090 and so if you put the cheese into the dough, 507 00:23:03,090 --> 00:23:06,093 once you bake it, the water turns to steam 508 00:23:06,093 --> 00:23:09,096 and causes the the cracker to puff up. 509 00:23:09,096 --> 00:23:11,891 - [Weston] Can we cut back on the cheese? 510 00:23:11,891 --> 00:23:14,018 - [Chef] We're using as little as we can already. 511 00:23:15,603 --> 00:23:17,730 - [Brooke] Green & Green are really trying to invent themself 512 00:23:17,730 --> 00:23:19,273 in this post-war world, 513 00:23:19,273 --> 00:23:21,567 and they don't have the capital 514 00:23:21,567 --> 00:23:24,570 to keep failing at this recipe over and over again. 515 00:23:24,570 --> 00:23:27,197 If they can't get it right, they will go bankrupt. 516 00:23:28,574 --> 00:23:29,867 - [Narrator] While the Greens 517 00:23:29,867 --> 00:23:32,036 struggle to create a product that can sell, 518 00:23:34,163 --> 00:23:35,539 the Shredded Wheat Company 519 00:23:35,539 --> 00:23:39,376 struggles to sell a product they already have. 520 00:23:39,376 --> 00:23:42,463 - Sales of Shredded Wheat are actually quite good. 521 00:23:42,463 --> 00:23:44,840 In fact, they're steadily increasing. 522 00:23:44,840 --> 00:23:46,216 However, the Triscuit, 523 00:23:46,216 --> 00:23:47,301 even though it's been around 524 00:23:47,301 --> 00:23:49,386 for a considerable period of time, 525 00:23:49,386 --> 00:23:50,763 it's really not selling at all. 526 00:23:50,763 --> 00:23:52,473 - [Narrator] For over 20 years, 527 00:23:52,473 --> 00:23:55,809 the Triscuit has been marketed as a substitute for toast. 528 00:23:55,809 --> 00:23:58,604 Now, Hamlin begins to consider a makeover. 529 00:23:58,604 --> 00:24:00,314 - [Erin] So the original Triscuit is harder 530 00:24:00,314 --> 00:24:02,316 and denser than the product that we know today, 531 00:24:02,316 --> 00:24:05,027 and it doesn't have any flavorings or salt on it. 532 00:24:05,027 --> 00:24:07,780 - It's also one of the largest crackers on the market. 533 00:24:07,780 --> 00:24:09,114 People don't know what to do with it. 534 00:24:09,114 --> 00:24:10,491 - You wanted to see me, sir? 535 00:24:11,825 --> 00:24:15,329 - Tell the team I wanna make the Triscuit smaller. 536 00:24:15,329 --> 00:24:17,581 - They decide it's no longer going to be the size 537 00:24:17,581 --> 00:24:19,041 of a piece of toast. 538 00:24:19,041 --> 00:24:20,125 Instead, it's gonna be 539 00:24:20,125 --> 00:24:22,586 a two inch by two inch little cracker. 540 00:24:22,586 --> 00:24:25,089 They also start adding a vegetable spray 541 00:24:25,089 --> 00:24:27,967 with a little bit of salt in it to make it taste better. 542 00:24:27,967 --> 00:24:29,551 - [Narrator] In the late 1920s, 543 00:24:29,551 --> 00:24:32,638 the Shredded Wheat Company relaunches the Triscuit. 544 00:24:34,264 --> 00:24:36,016 - [Bill] The Triscuit was always a cracker, 545 00:24:36,016 --> 00:24:37,518 but it was literally enormous. 546 00:24:37,518 --> 00:24:40,562 So now, in the 1920s, they wanna make it more portable, 547 00:24:40,562 --> 00:24:42,731 so you could literally eat it anywhere, anytime. 548 00:24:42,731 --> 00:24:45,317 - The Triscuit was the first cracker 549 00:24:45,317 --> 00:24:46,610 that was something different. 550 00:24:46,610 --> 00:24:48,904 It had a different texture, it was hardier, 551 00:24:48,904 --> 00:24:51,073 and it really showed that there was room for growth 552 00:24:51,073 --> 00:24:53,701 and innovation in the cracker space. 553 00:24:53,701 --> 00:24:55,327 - [Narrator] Just as the Triscuit gets smaller 554 00:24:55,327 --> 00:24:57,329 and more flavorful, 555 00:24:57,329 --> 00:25:00,958 the Greens also try new sizes and techniques 556 00:25:00,958 --> 00:25:04,795 as they try to perfect their cheesy cracker concept. 557 00:25:04,795 --> 00:25:06,839 - I have some more samples for you to try. 558 00:25:09,049 --> 00:25:11,468 We used docker holes to reduce the puffiness. 559 00:25:11,468 --> 00:25:13,721 [pensive music] 560 00:25:15,389 --> 00:25:16,890 - Docker holes are something 561 00:25:16,890 --> 00:25:18,684 that's been around for centuries in baking. 562 00:25:18,684 --> 00:25:20,102 - [Edward] Do you see those little holes 563 00:25:20,102 --> 00:25:21,395 in the middle of saltines? 564 00:25:21,395 --> 00:25:22,771 Those are docker holes, they're steam holes, 565 00:25:22,771 --> 00:25:24,398 they're vent holes, 566 00:25:24,398 --> 00:25:26,942 and they allow this buildup of steam an easy way to exit. 567 00:25:28,152 --> 00:25:30,237 - The cracker's small, we just went with one hole. 568 00:25:31,822 --> 00:25:33,949 - Some people think it's a design choice, 569 00:25:33,949 --> 00:25:36,326 some people wonder why there's only one. 570 00:25:36,326 --> 00:25:37,995 - Oh, heck. 571 00:25:37,995 --> 00:25:39,329 I could eat these by the handful! 572 00:25:39,329 --> 00:25:41,165 - Well, the truth of the matter is, 573 00:25:41,165 --> 00:25:44,752 that little tiny hole was truly a hole in one. 574 00:25:45,711 --> 00:25:47,129 - What do we call it? 575 00:25:47,129 --> 00:25:49,882 - So, because their inspiration was Welsh rarebit, 576 00:25:49,882 --> 00:25:52,426 the Greens called their new cracker... 577 00:25:52,426 --> 00:25:54,553 - Baked Rarebit. 578 00:25:54,553 --> 00:25:56,722 [suspenseful music] 579 00:25:58,348 --> 00:25:59,850 - [Narrator] In 1921, 580 00:25:59,850 --> 00:26:02,728 the Greens put all their hopes into their new cracker. 581 00:26:04,688 --> 00:26:06,190 And it's a flop. 582 00:26:06,190 --> 00:26:08,400 [pensive music] 583 00:26:10,027 --> 00:26:11,403 - Maybe it's the name. 584 00:26:12,446 --> 00:26:14,531 - The Greens realize, "We have a good cracker. 585 00:26:14,531 --> 00:26:17,076 We just have a terrible name. 586 00:26:17,076 --> 00:26:18,494 Let's think of a new name." 587 00:26:20,412 --> 00:26:22,331 - [J.W.] Cheesebit. 588 00:26:22,331 --> 00:26:23,999 - Short and sweet. 589 00:26:25,626 --> 00:26:27,044 - How's Cheese Toasty? 590 00:26:38,680 --> 00:26:41,683 - We could do Zesty. - [J.W.] Zesty? 591 00:26:41,683 --> 00:26:43,811 - I'm trying to come up with something fun, you know? 592 00:26:43,811 --> 00:26:46,730 Something that rolls off the tongue like Triscuit. 593 00:26:46,730 --> 00:26:48,899 - Triscuits. - It's fun, 594 00:26:48,899 --> 00:26:51,193 easy to say, one-of-a-kind. 595 00:26:51,193 --> 00:26:53,362 [suspenseful music] 596 00:27:01,453 --> 00:27:03,122 Cheese-It. 597 00:27:03,122 --> 00:27:04,623 - [J.W.] What do you think? 598 00:27:11,255 --> 00:27:13,549 [compelling music] 599 00:27:13,549 --> 00:27:14,967 - "Cheese it" used to be an expression 600 00:27:14,967 --> 00:27:16,718 that meant like, "Knock it off." 601 00:27:16,718 --> 00:27:18,220 Like, "Cheese it, the cops!" 602 00:27:18,220 --> 00:27:19,930 You know, or, "Cheese it, the teacher's coming." 603 00:27:19,930 --> 00:27:21,682 And they took that expression 604 00:27:21,682 --> 00:27:23,225 and made it to the name of their cracker, 605 00:27:23,225 --> 00:27:24,977 which is pretty distinctive. 606 00:27:24,977 --> 00:27:26,520 - [Narrator] With its new name, 607 00:27:26,520 --> 00:27:29,565 the Greens relaunch their cheese-flavored cracker. 608 00:27:29,565 --> 00:27:34,319 This time, the Cheez-It takes off across the region. 609 00:27:34,319 --> 00:27:35,904 - The Cheez-It emerges 610 00:27:35,904 --> 00:27:41,034 as arguably the first snacking cracker ever in existence. 611 00:27:41,034 --> 00:27:44,413 No one had ever seen anything like this before. 612 00:27:44,413 --> 00:27:45,455 - The idea of a cheese-flavored cracker, 613 00:27:45,455 --> 00:27:47,416 I mean, it was way ahead of its time, 614 00:27:47,416 --> 00:27:49,167 and it was a major game-changer. 615 00:27:49,167 --> 00:27:51,295 If I could flavor crackers with cheese, 616 00:27:51,295 --> 00:27:53,589 well, what else could I use as amazing flavoring? 617 00:27:53,589 --> 00:27:55,090 The sky was the limit at that point. 618 00:27:56,174 --> 00:27:57,676 - [Narrator] And it won't be long 619 00:27:57,676 --> 00:28:00,637 before the industry's biggest players take notice. 620 00:28:05,767 --> 00:28:09,563 - [Narrator] In 1921, a small orange cracker explodes 621 00:28:09,563 --> 00:28:12,524 onto the American snack foods scene. 622 00:28:12,524 --> 00:28:16,069 - People in Ohio absolutely love the Cheez-It, 623 00:28:16,069 --> 00:28:19,531 and pretty soon, it's expanding across state lines. 624 00:28:19,531 --> 00:28:22,784 - [Narrator] As Cheez-It slowly grows across the Midwest, 625 00:28:22,784 --> 00:28:24,286 the Shredded Wheat Company 626 00:28:24,286 --> 00:28:27,372 is selling their new and improved Triscuit nationwide. 627 00:28:28,832 --> 00:28:31,376 - Instead of just being that combination of flour and water, 628 00:28:31,376 --> 00:28:32,878 that shredded wheat opened way 629 00:28:32,878 --> 00:28:35,839 for actual flavor and texture in the cracker. 630 00:28:35,839 --> 00:28:36,840 - [Narrator] But as both companies 631 00:28:36,840 --> 00:28:38,675 see an increase in sales, 632 00:28:38,675 --> 00:28:42,429 they are still dwarfed by the bakery behemoth Nabisco, 633 00:28:42,429 --> 00:28:45,223 which is now bigger than Heinz, Campbell's, 634 00:28:45,223 --> 00:28:46,683 and even Hershey's. 635 00:28:46,683 --> 00:28:49,269 - Nabisco has national visibility at this point, 636 00:28:49,269 --> 00:28:53,440 and they have a lot of cookies like Oreo and Lorna Doone. 637 00:28:53,440 --> 00:28:56,276 - [Narrator] But while they have countless cookies on offer, 638 00:28:56,276 --> 00:28:59,571 their cracker repertoire hasn't changed in years. 639 00:28:59,571 --> 00:29:01,865 [pensive music] 640 00:29:03,825 --> 00:29:05,786 And their new president has no interest 641 00:29:05,786 --> 00:29:09,581 in ceding territory to their rising competitors. 642 00:29:09,581 --> 00:29:11,750 - Roy Tomlinson is the new head of Nabisco 643 00:29:11,750 --> 00:29:14,628 after the death of the founder, Adolphus Green. 644 00:29:14,628 --> 00:29:16,171 - Tomlinson, he's a lawyer. 645 00:29:16,171 --> 00:29:19,091 He's used to fighting cases in court and litigation, 646 00:29:19,091 --> 00:29:20,467 and he wants to win. 647 00:29:20,467 --> 00:29:23,679 And for him, that means everyone else has to lose. 648 00:29:23,679 --> 00:29:26,014 - [Narrator] Looking to strengthen Nabisco's hand, 649 00:29:26,014 --> 00:29:29,309 Tomlinson makes an unexpected move. 650 00:29:29,309 --> 00:29:33,814 He reaches out to a rival, the Shredded Wheat Company. 651 00:29:33,814 --> 00:29:35,273 - Mr. Hamlin. 652 00:29:35,273 --> 00:29:37,442 [tense music] 653 00:29:38,819 --> 00:29:40,445 I wanted to give you fair warning 654 00:29:40,445 --> 00:29:42,823 that we're coming out with our own shredded wheat products. 655 00:29:43,782 --> 00:29:45,075 - Why are you telling me? 656 00:29:46,702 --> 00:29:49,037 - I'm giving you an opportunity. 657 00:29:49,037 --> 00:29:52,416 I could go to all the trouble of making my own shredded wheat, 658 00:29:52,416 --> 00:29:55,210 or I could just buy your company. 659 00:29:55,210 --> 00:29:58,338 - [Jason] So Tomlinson wants to buy the Shredded Wheat Company. 660 00:29:58,338 --> 00:30:01,466 And an extra benefit from buying the Shredded Wheat Company 661 00:30:01,466 --> 00:30:03,885 is he's also gonna get the Triscuits brand. 662 00:30:03,885 --> 00:30:06,638 - At this point, Triscuit is doing well in the marketplace. 663 00:30:06,638 --> 00:30:08,974 It's become a unique option in the cracker aisle. 664 00:30:08,974 --> 00:30:11,018 And it's exactly what Nabisco needs 665 00:30:11,018 --> 00:30:12,686 to round out their cracker lineup. 666 00:30:14,146 --> 00:30:15,564 - [Narrator] In 1928, 667 00:30:15,564 --> 00:30:18,316 Nabisco acquires Shredded Wheat and Triscuit 668 00:30:18,316 --> 00:30:20,360 for $35 million, 669 00:30:20,360 --> 00:30:23,697 more than 650 million today. 670 00:30:23,697 --> 00:30:27,492 - [Jason] For decades, Nabisco has been the undisputed king 671 00:30:27,492 --> 00:30:30,328 of the bakery section in your grocery store. 672 00:30:30,328 --> 00:30:32,330 - And now, they've got Shredded Wheat 673 00:30:32,330 --> 00:30:35,876 and Triscuit in their stable and they seem unstoppable. 674 00:30:35,876 --> 00:30:39,004 - [Narrator] Yet Nabisco's dominance won't go unchallenged. 675 00:30:39,004 --> 00:30:42,007 - Tomlinson knows he has a very talented 676 00:30:42,007 --> 00:30:45,677 and very motivated competitor nipping at his heels: 677 00:30:45,677 --> 00:30:46,970 Sunshine. 678 00:30:46,970 --> 00:30:49,181 - [Narrator] By now, Sunshine has factories 679 00:30:49,181 --> 00:30:50,807 all across the nation, 680 00:30:50,807 --> 00:30:53,226 and it's second only to Nabisco. 681 00:30:53,226 --> 00:30:54,603 - This is a textbook case 682 00:30:54,603 --> 00:30:57,230 of competition being great for the marketplace 683 00:30:57,230 --> 00:30:58,815 because they both had to one up each other, 684 00:30:58,815 --> 00:31:00,484 which resulted in a lot of delicious cookies 685 00:31:00,484 --> 00:31:01,777 and crackers being made. 686 00:31:02,986 --> 00:31:04,404 - [Narrator] After the death of Joseph Loose 687 00:31:04,404 --> 00:31:05,947 and his brother, 688 00:31:05,947 --> 00:31:09,242 Sunshine is now in the hands of John Wiles. 689 00:31:09,242 --> 00:31:11,620 But while there's been a change in leadership, 690 00:31:11,620 --> 00:31:16,041 Sunshine's drive to beat out Nabisco hasn't wavered. 691 00:31:16,041 --> 00:31:18,460 - [Jason] So, Wiles sees what's happening with Nabisco, 692 00:31:18,460 --> 00:31:21,880 look, they've already made copies of their Hydrox cookies, 693 00:31:21,880 --> 00:31:24,674 and now he sees Nabisco getting into the shredded wheat game 694 00:31:24,674 --> 00:31:26,259 and they've acquired Triscuit, 695 00:31:26,259 --> 00:31:28,095 and he does not wanna fall behind. 696 00:31:29,346 --> 00:31:31,765 [knocking] - Come in. 697 00:31:31,765 --> 00:31:34,726 - So they decide that they have to make a big acquisition 698 00:31:34,726 --> 00:31:35,936 of their own. 699 00:31:37,312 --> 00:31:39,189 - Ah, Mr. Green. 700 00:31:40,065 --> 00:31:42,651 Weston. Have a seat. 701 00:31:42,651 --> 00:31:44,486 - And the battle lines are drawn. 702 00:31:49,407 --> 00:31:50,158 - [Narrator] In the late 1920s, 703 00:31:50,784 --> 00:31:52,953 the Cheez-It is one of the most unique crackers 704 00:31:52,953 --> 00:31:54,454 on the market, 705 00:31:54,454 --> 00:31:57,457 but few people outside of the Midwest have heard of it. 706 00:31:57,457 --> 00:32:01,294 One who has is John Wiles of Sunshine Biscuits. 707 00:32:03,004 --> 00:32:06,091 - I'm still not really clear on what you're looking for here. 708 00:32:06,091 --> 00:32:07,342 - Hmm, well... 709 00:32:08,969 --> 00:32:10,971 I'd like to acquire your company. 710 00:32:10,971 --> 00:32:13,682 [pensive music] 711 00:32:13,682 --> 00:32:16,184 - Why would we sell to you? 712 00:32:16,184 --> 00:32:18,103 - You're already successful in the Midwest, 713 00:32:18,103 --> 00:32:19,855 but with our marketing, 714 00:32:19,855 --> 00:32:22,399 everyone from Boston to the Pacific 715 00:32:22,399 --> 00:32:23,942 will know the name Cheez-It. 716 00:32:29,489 --> 00:32:31,032 - [Narrator] In 1929, 717 00:32:31,032 --> 00:32:34,327 Sunshine acquires Green & Green Cracker Company, 718 00:32:34,327 --> 00:32:36,663 and Wiles makes a bold move 719 00:32:36,663 --> 00:32:40,083 to launch the Cheez-It on a national scale. 720 00:32:40,083 --> 00:32:41,626 - Sunshine, when they get Cheez-Its, 721 00:32:41,626 --> 00:32:44,296 they're being sold in these sort of pale green 722 00:32:44,296 --> 00:32:46,464 and white tins and canisters. 723 00:32:46,464 --> 00:32:48,175 They could be easily, you know, 724 00:32:48,175 --> 00:32:50,051 confused from medical supplies. 725 00:32:50,051 --> 00:32:51,595 They realize, "Okay, 726 00:32:51,595 --> 00:32:53,096 we gotta immediately change up the branding on this." 727 00:32:53,096 --> 00:32:56,391 - Sunshine realizes it's not enough to have a cracker 728 00:32:56,391 --> 00:32:58,268 that stands out in the marketplace. 729 00:32:58,268 --> 00:33:01,021 They need a package that stands out on the shelf. 730 00:33:01,021 --> 00:33:03,940 They need something bright and eye-catching. 731 00:33:03,940 --> 00:33:07,068 So, they create this amazing bright orange, red, 732 00:33:07,068 --> 00:33:10,155 and yellow packaging to sort of evoke cheese, 733 00:33:10,155 --> 00:33:13,783 but also to grab the customer by the collar and say, 734 00:33:13,783 --> 00:33:15,660 "Buy this." 735 00:33:15,660 --> 00:33:17,162 - [Narrator] In 1929, 736 00:33:17,162 --> 00:33:20,707 the Sunshine Cheez-It is released nationwide. 737 00:33:20,707 --> 00:33:22,417 - People go bonkers for them. 738 00:33:22,417 --> 00:33:26,254 It just sets Sunshine's success into the stratosphere. 739 00:33:26,254 --> 00:33:28,924 - The Cheez-It really took off after that point. 740 00:33:28,924 --> 00:33:31,092 I don't think it's really looked back since. 741 00:33:32,594 --> 00:33:35,055 - [Narrator] Sunshine now owns the only mass-produced 742 00:33:35,055 --> 00:33:37,224 flavored cracker on the market, 743 00:33:37,224 --> 00:33:40,268 giving them something Nabisco doesn't have. 744 00:33:40,268 --> 00:33:41,853 But they also want a product 745 00:33:41,853 --> 00:33:44,397 that will directly challenge the Triscuit, 746 00:33:44,397 --> 00:33:46,608 so they funnel all of their resources 747 00:33:46,608 --> 00:33:49,986 into developing a new kind of cracker. 748 00:33:49,986 --> 00:33:51,571 - In the 1920s, the cracker 749 00:33:51,571 --> 00:33:54,032 really starts to take center stage at parties. 750 00:33:54,032 --> 00:33:56,159 You begin to see cracker trays, 751 00:33:56,159 --> 00:33:57,827 where you can put together little combinations 752 00:33:57,827 --> 00:33:59,246 to make the perfect bite. 753 00:33:59,246 --> 00:34:01,373 Cookbooks even have recipes 754 00:34:01,373 --> 00:34:03,291 for what you can put on your crackers, 755 00:34:03,291 --> 00:34:06,920 from pimento cheese to anchovies. 756 00:34:06,920 --> 00:34:10,340 - [Kate] So now, in the 1930s, Sunshine is starting to think, 757 00:34:10,340 --> 00:34:13,510 "Okay, how can we make crackers the centerpiece 758 00:34:13,510 --> 00:34:15,344 of the American dinner party?" 759 00:34:15,344 --> 00:34:18,223 - No, no, no, the texture... 760 00:34:18,223 --> 00:34:20,016 The texture's all wrong. 761 00:34:20,016 --> 00:34:23,270 - So Sunshine now gets deep into R&D, 762 00:34:23,270 --> 00:34:25,605 coming up with this brand-new product. 763 00:34:28,565 --> 00:34:29,650 - Mm. 764 00:34:30,443 --> 00:34:31,569 And buttery. 765 00:34:32,779 --> 00:34:33,947 And mild. 766 00:34:38,409 --> 00:34:39,995 Mm, perfect crumble. 767 00:34:41,371 --> 00:34:44,040 - It's a rich, round, buttery cracker, 768 00:34:44,040 --> 00:34:45,833 which they hope will be the next big thing. 769 00:34:47,668 --> 00:34:50,130 - Yeah, this is it. 770 00:34:51,715 --> 00:34:53,341 This is the Hi Ho. 771 00:34:54,342 --> 00:34:57,345 - Sunshine comes out with a real big hit called the Hi Ho. 772 00:34:58,722 --> 00:35:01,057 - [Adam] Now, this particular cracker is really unique. 773 00:35:01,057 --> 00:35:03,101 It's perfect for hor d'oeuvres, 774 00:35:03,101 --> 00:35:05,770 but it's also really delicious on its own. 775 00:35:05,770 --> 00:35:08,064 - [Narrator] Soon, Sunshine's newest cracker 776 00:35:08,064 --> 00:35:10,734 is showing up at dinner parties across America. 777 00:35:12,319 --> 00:35:15,322 But with great success comes attention. 778 00:35:15,322 --> 00:35:17,699 - [Jason] Tomlinson sees what Sunshine is doing. 779 00:35:17,699 --> 00:35:21,161 He sees the meteoric success of Cheez-Its 780 00:35:21,161 --> 00:35:23,913 and he sees what they've just rolled out with the Hi Ho. 781 00:35:23,913 --> 00:35:26,041 - [Adrian] Nabisco realizes, "This is a real challenge 782 00:35:26,041 --> 00:35:27,250 to our market share," 783 00:35:27,250 --> 00:35:28,793 and so they have to come up with something 784 00:35:28,793 --> 00:35:30,545 that answers that challenge. 785 00:35:32,464 --> 00:35:34,049 [knocking] 786 00:35:34,049 --> 00:35:35,675 - Come in, come in. 787 00:35:35,675 --> 00:35:36,968 - They're ready. 788 00:35:38,428 --> 00:35:42,140 - So Nabisco's scientists actually develop a cracker 789 00:35:42,140 --> 00:35:44,351 that's a good answer to the Hi Ho. 790 00:35:44,351 --> 00:35:46,561 [suspenseful music] 791 00:35:47,562 --> 00:35:48,605 - This? 792 00:35:49,606 --> 00:35:52,651 - Except it's exactly like the Hi Ho. 793 00:35:52,651 --> 00:35:55,570 - I can ask the bakers to make some changes. 794 00:35:55,570 --> 00:35:56,988 - There's no time for that. 795 00:35:56,988 --> 00:35:58,573 We're set to launch next month. 796 00:36:02,410 --> 00:36:04,120 - People that are testing and tasting 797 00:36:04,120 --> 00:36:06,122 Nabisco's imitation to the Hi Ho cracker 798 00:36:06,122 --> 00:36:08,667 feel that they're pretty much the same. 799 00:36:08,667 --> 00:36:10,960 They're both buttery, slightly salty, 800 00:36:10,960 --> 00:36:15,465 have a crumbly, flaky sort of eating experience. 801 00:36:15,465 --> 00:36:17,050 - So, the way Nabisco 802 00:36:17,050 --> 00:36:19,094 is now going to have to get through to people 803 00:36:19,094 --> 00:36:21,346 and establish that this is something different, 804 00:36:21,346 --> 00:36:23,556 they're gonna have to do it with the branding. 805 00:36:23,556 --> 00:36:25,767 [pensive music] 806 00:36:26,935 --> 00:36:28,353 [door clicking] 807 00:36:30,939 --> 00:36:32,273 - Look at this. 808 00:36:37,779 --> 00:36:39,864 - Is it a Hi Ho? 809 00:36:39,864 --> 00:36:41,574 - Exactly. 810 00:36:41,574 --> 00:36:43,993 - So Sydney Stern, he was trained as an artist, 811 00:36:43,993 --> 00:36:45,161 he went to school for it, 812 00:36:45,161 --> 00:36:47,956 and he accepted a job at Nabisco 813 00:36:47,956 --> 00:36:50,041 working on their cartons and packaging. 814 00:36:51,793 --> 00:36:53,753 - What makes it different? 815 00:36:53,753 --> 00:36:55,004 - That's up to you. 816 00:36:55,004 --> 00:36:56,673 - At this point, Stern has a reputation. 817 00:36:56,673 --> 00:36:59,759 A few years ago, he rebranded Barnum's Animal Crackers 818 00:36:59,759 --> 00:37:01,094 by adding a string, 819 00:37:01,094 --> 00:37:04,139 so the box itself ended up becoming an ornament. 820 00:37:04,139 --> 00:37:06,683 He was literally thinking outside of the box. 821 00:37:06,683 --> 00:37:09,853 - Apparently, the boxes all sold out almost immediately. 822 00:37:09,853 --> 00:37:11,438 - And now, Nabisco's challenge for him 823 00:37:11,438 --> 00:37:13,440 was to do that magic trick one more time. 824 00:37:14,649 --> 00:37:15,942 - You have until Monday. 825 00:37:18,403 --> 00:37:20,739 - [Erin] Stern really has his work cut out for him. 826 00:37:20,739 --> 00:37:24,117 He needs to take this new cracker and make it seem unique 827 00:37:24,117 --> 00:37:25,618 and better than the Hi Ho, 828 00:37:25,618 --> 00:37:27,704 and he's only got a weekend to do it. 829 00:37:27,704 --> 00:37:29,956 [intense music] 830 00:37:36,004 --> 00:37:38,590 - [Edward] Sydney Stern happens to take off his hat 831 00:37:39,549 --> 00:37:40,800 and he looks down inside, 832 00:37:40,800 --> 00:37:43,678 and inside the rim there's a gold seal 833 00:37:43,678 --> 00:37:45,722 with the name of the hat in it. 834 00:37:45,722 --> 00:37:48,099 That was his great inspiration. 835 00:37:48,099 --> 00:37:50,351 [compelling music] 836 00:37:55,315 --> 00:37:56,649 - [Narrator] In 1934, 837 00:37:56,775 --> 00:37:59,486 branding expert Sydney Stern has one weekend 838 00:37:59,486 --> 00:38:01,321 to come up with a marketing plan 839 00:38:01,321 --> 00:38:05,283 for Nabisco's newest, buttery, decadent cracker. 840 00:38:05,283 --> 00:38:06,993 - [Adam] Now, this particular cracker 841 00:38:06,993 --> 00:38:08,912 has these little ruffly edges. 842 00:38:08,912 --> 00:38:11,790 Its flaky, its delicate, and Sydney Stern wonders, 843 00:38:11,790 --> 00:38:15,627 "Maybe the key is to sell this cracker 844 00:38:15,627 --> 00:38:16,920 and to market it 845 00:38:16,920 --> 00:38:20,507 as an affordable taste of the good life." 846 00:38:20,507 --> 00:38:22,217 - [Kate] But we're in the Great Depression. 847 00:38:22,217 --> 00:38:24,427 If you're saying that this is so luxury, 848 00:38:24,427 --> 00:38:25,386 and fancy, and nice, 849 00:38:25,386 --> 00:38:27,472 like are people gonna be annoyed 850 00:38:27,472 --> 00:38:30,141 that this is what you're shoving in our faces 851 00:38:30,141 --> 00:38:31,935 when we're all struggling? 852 00:38:31,935 --> 00:38:33,311 It's a big risk. 853 00:38:33,311 --> 00:38:35,897 [suspenseful music] 854 00:38:35,897 --> 00:38:37,732 - Picture this. 855 00:38:37,732 --> 00:38:39,192 You're home from work, 856 00:38:39,192 --> 00:38:42,195 dinner is the same old boiled cabbage. 857 00:38:42,195 --> 00:38:43,321 Then you remember... 858 00:38:43,321 --> 00:38:45,573 [intense music] 859 00:38:46,908 --> 00:38:48,868 Ritz Crackers. 860 00:38:48,868 --> 00:38:49,953 - Ritz. 861 00:38:51,955 --> 00:38:53,206 Like the hotel? 862 00:38:53,206 --> 00:38:54,582 - Yeah, exactly. 863 00:38:54,582 --> 00:38:56,584 - Cesar Ritz is a Swiss immigrant 864 00:38:56,584 --> 00:38:58,086 who comes to the United States, 865 00:38:58,086 --> 00:38:59,671 and he gets into the hotel business, 866 00:38:59,671 --> 00:39:03,174 and he becomes well-known for creating luxury hotels. 867 00:39:03,174 --> 00:39:05,802 - [Jason] And so, Stern wants to deliver people 868 00:39:05,802 --> 00:39:08,388 the idea of elevation, 869 00:39:08,388 --> 00:39:09,722 of something special, 870 00:39:09,722 --> 00:39:11,766 of something they can't normally get. 871 00:39:11,766 --> 00:39:13,685 - We're in the midst of an economic crisis. 872 00:39:14,936 --> 00:39:16,271 People are suffering. 873 00:39:17,313 --> 00:39:19,941 - I know, I know times are tough. 874 00:39:19,941 --> 00:39:23,027 But with Ritz, anyone can afford a taste of luxury. 875 00:39:25,113 --> 00:39:26,614 - In the halls of Nabisco, 876 00:39:26,614 --> 00:39:29,033 they're not sure at all whether consumers 877 00:39:29,033 --> 00:39:31,286 will appreciate the reference to the Ritz 878 00:39:31,286 --> 00:39:33,162 or whether they'll find it offensive. 879 00:39:33,162 --> 00:39:35,915 - The Ritz Cracker. 880 00:39:40,211 --> 00:39:41,671 - [Narrator] But with no other options, 881 00:39:41,671 --> 00:39:44,966 Tomlinson approves Stern's marketing plan. 882 00:39:44,966 --> 00:39:50,054 And in 1934, Nabisco releases the Ritz Cracker. 883 00:39:50,054 --> 00:39:52,557 - And sells like gangbusters. 884 00:39:54,392 --> 00:39:57,520 - [Adrian] People went crazy for these crackers, 885 00:39:57,520 --> 00:39:59,564 and it shows you the power of marketing 886 00:39:59,564 --> 00:40:01,190 because it was a time of aspiration. 887 00:40:01,190 --> 00:40:02,483 People were going through hard times, 888 00:40:02,483 --> 00:40:04,360 but they wanted a taste of the good life. 889 00:40:05,361 --> 00:40:07,280 - [Bill] The success of this cracker cannot be overstated. 890 00:40:07,280 --> 00:40:10,575 After three years, they're making 29 million every day, 891 00:40:10,575 --> 00:40:12,952 making it the best-selling cracker in the world. 892 00:40:12,952 --> 00:40:16,039 - [Brooke] So, the Ritz quickly eclipses the Hi Ho. 893 00:40:16,039 --> 00:40:19,000 And the truth is, Nabisco just has better marketing. 894 00:40:19,000 --> 00:40:20,543 They have farther reach 895 00:40:20,543 --> 00:40:22,962 and they have more money to get their product out there. 896 00:40:22,962 --> 00:40:25,048 - [Narrator] Throughout the 1940s and '50s, 897 00:40:25,048 --> 00:40:27,800 Nabisco continues to expand the snack aisle 898 00:40:27,800 --> 00:40:29,636 with savory new products, 899 00:40:29,636 --> 00:40:31,930 like a new take on the shredded wheat cracker 900 00:40:31,930 --> 00:40:33,598 known as Wheat Thins. 901 00:40:34,849 --> 00:40:36,809 Sunshine will continue to challenge them 902 00:40:36,809 --> 00:40:38,519 in the cracker landscape, 903 00:40:38,519 --> 00:40:41,940 with Cheez-It leading the way as their flagship product. 904 00:40:44,442 --> 00:40:46,402 - The funny thing about rivalries is, you know, 905 00:40:46,402 --> 00:40:49,447 the best rivalries push both parties forward. 906 00:40:49,447 --> 00:40:53,159 So much of what we love about Nabisco 907 00:40:53,159 --> 00:40:56,955 was created as a reaction to what Sunshine was doing. 908 00:40:56,955 --> 00:41:00,333 Without the two of them, there would be no Oreo, 909 00:41:00,333 --> 00:41:02,293 there would be no Ritz Cracker. 910 00:41:02,293 --> 00:41:03,836 But no doubt about it, 911 00:41:03,836 --> 00:41:06,297 these two companies were the cracker kings 912 00:41:06,297 --> 00:41:08,633 for the entire 20th century. 913 00:41:08,633 --> 00:41:12,178 - [Narrator] In 1996, Sunshine, along with Cheez-It, 914 00:41:12,178 --> 00:41:13,680 sells to Keebler, 915 00:41:13,680 --> 00:41:16,265 which eventually gets acquired by Kellogg. 916 00:41:16,265 --> 00:41:20,311 Today, Cheez-It alone pulls in over $1 billion 917 00:41:20,311 --> 00:41:22,188 in annual revenue. 918 00:41:22,188 --> 00:41:25,441 Meanwhile, Nabisco's impressive cracker empire, 919 00:41:25,441 --> 00:41:28,361 including the Ritz, Triscuit, and Wheat Thins, 920 00:41:28,361 --> 00:41:32,949 continues to bring in over $1.5 billion per year. 921 00:41:32,949 --> 00:41:34,075 - [Adrian] The American genius 922 00:41:34,075 --> 00:41:35,827 when it comes to these baking companies 923 00:41:35,827 --> 00:41:39,038 is they took something that was pretty utilitarian, 924 00:41:39,038 --> 00:41:40,456 very basic, 925 00:41:40,456 --> 00:41:42,959 and they turned it into something beloved today. 926 00:41:42,959 --> 00:41:45,378 - There are core American memories 927 00:41:45,378 --> 00:41:48,006 that we've created around crackers, 928 00:41:48,006 --> 00:41:51,342 whether it's having them alongside a bowl of soup, 929 00:41:51,342 --> 00:41:54,012 something you had when you weren't feeling well. 930 00:41:54,012 --> 00:41:55,388 - You can use crackers 931 00:41:55,388 --> 00:41:56,973 as the centerpiece for your cheeseboard. 932 00:41:56,973 --> 00:41:58,433 They've really paved the way 933 00:41:58,433 --> 00:42:01,019 for the entire snack food industry. 934 00:42:01,019 --> 00:42:04,105 Today, we wouldn't have Cheetos, Funyuns, Bugles, 935 00:42:04,105 --> 00:42:08,526 or any other flavored snacks because crackers did it first. 936 00:42:08,526 --> 00:42:11,571 - And I think that's the beautiful thing about it. 937 00:42:11,571 --> 00:42:16,576 This strange, brittle, carbohydrate-laden food stuff 938 00:42:16,576 --> 00:42:20,204 really changed the way Americans eat forever. 939 00:42:20,204 --> 00:42:22,457 [dramatic music]