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Top 10 (formerly) “born in the USA” products now made elsewhere

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The editors at financial site Minyanville have put together an interesting list of the top 10 "American" brands that are no longer made in the USA -- and there are some surprising manufacturers and products on the list.

Rawlings baseballs:

The official supplier of baseballs to Major League Baseball, and sole supplier since 1977, Rawlings was founded in 1887 by George and Alfred Rawlings who set up a small shop in St. Louis. In 1969 Rawlings moved its manufacturing plant from Puerto Rico to Haiti where labor was cheaper. After the fall of Jean-Claude Duvalier’s dictatorship in 1986, Rawlings made the decision to exit the country, and it opened a plant in Turrialba, Costa Rica the following year. It's a curious location. Even though the balls are made in Costa Rica, there's never been a single Major Leaguer who hailed from Costa Rica itself. With almost four million residents, Costa Rica has a mere 15 baseball fields. They do have a semi-pro baseball league, but approximately 75% of the players are from Nicaragua. I guess we can be thankful that at least all materials for the baseballs are sourced from suppliers in the U.S.A.

Levi's jeans:

What could be more American than blue jeans? Levi was founded in 1853 when Levi Strauss moved from Bavaria to San Francisco and started manufacturing denim overalls. By the 1920s they had invented the modern pair of jeans. Embraced by the counter-culture in the 1950s, Levis soon became an international sensation. Noting that global demand calls for global production, Levi’s responded by opening more than 50 plants and offices in 35 countries. During the boom of the 90s, had Levi’s spent less time in the courts defending its designs, and had a closer watch on its plunging sales (40% since 1996), it might not have had to lay off half its workforce and close multiple plants. Today, Levi’s sells its products in 60,000 retail outlets around the world and derives nearly half its revenue from operations in Europe and the Asia-Pacific region. Check out Levi’s jeans label to see if your Levi's were by chance made in the USA -- the inference being that not many are these days.

Firestone tires:

A name synonymous with Ohio, Ford and the Indy 500 – is credited as playing an integral role in shaping American culture and its economy over the last century. The name Firestone represented America’s passion for speed and freedom. In an ear when people still believed that the horseless carriage was a sin against nature, a chance meeting between Firestone and Henry Ford galvanized Firestone’s path toward the automobile business. Sub-par bicycle tires that were too weak to hold a vehicle’s body plagued Ford. Firestone suggested a pneumatic tire for a softer, smoother ride. It worked. The Firestone Tire & Rubber Co. was incorporated at the turn of the 20th -- the horse and buggy’s declining years and the rise of the automobile. Tires were supplied for Ford’s first mass-produced autos in America. Firestone’s illustrious history with the Indy 500 began in 1911 when Ray Harroun won the first in a Marmon Wasp decked out with Firestone tires. The first overseas plant was opened in England in 1928. 1931 Shojiro Ishibashi founded Bridgestone in Japan. Bridgestone’s Japanese buyout wouldn’t come until 57 years later. Facing increased competition in an oversaturated market and a billion dollars in debt (much of it due to a recall of its Radial tires), Bridgestone acquired the company in 1988 for a fraction of what it was worth before the Radial scandal. Today, Bridgestone has turned the once-struggling company around and has become the world's largest tire manufacturer. Because of its acquisition of Firestone, the company was able to celebrate 100 years in the business in 2000.

Gerber Products:

"Gerber baby" is synonymous with “cute, all-American child.” In 1901, Frank Gerber and his father started the company in rural Michigan as the Fremont Canning Co., a packager of peas, beans and fruit. It was Gerber’s wife, a psychologist, who conceived the idea to market mashed food for babies in 1928. The company prospered through two world wars and the “baby boomer” era. The Swiss pharmaceutical co., Sandoz, bought Gerber in 1994 for $3.7 billion, but baby food didn’t fit the company’s future plans. This opened the door for the Swiss conglomerate, Nestle, who acquired ownership in 2007 for $5.5 billion. Despite being owned by Swiss conglomerate, "Gerber still owns a solid majority of the U.S. baby food market and it sells its products in 80 countries, with labeling in 16 languages."

Fender guitars:

In the 1940s, California inventor Leo Fender decided to solve the problem of the hollow-bodied electric guitar. Though Les Paul is widely credited with creating the world's first solid-body electric guitar, the Fender Esquire was the first commercially successful solid-body, thereby revolutionizing the guitar industry. In declining health, Leo Fender sold his company to CBS in 1965 for $13 million. CBS divested itself of all “non media” properties and it was repurchased by a loyal group of Fender employees in 1985. Fender’s flagship factory in Corona, CA still builds some of the high-end guitars. Manufacturing facilities in MX, and more recently Japan and South Korea build most of instruments for the “value” portion of the market. The company also produces lower-priced guitars under the Squier brand in China, Indonesia and India.

 

Ben & Jerry's:

Thirty-two years ago, lifelong friends Ben Cohen and Jerry Greenfield completed a speed course on ice cream making at Penn State University. Soon after, they opened up their first ice cream store in a renovated gas station in downtown Burlington, Vermont. By 1979, Ben & Jerry’s began what would eventually become an international festivity, debuting the first-ever “Free Cone Day” to commemorate its one-year anniversary. It seemed that this American company, with its hippie granola roots, was taking the nation by storm. But its story has evolved to be a lot less all-American than it started. As only die-hard Cherry Garcia fans know, Ben and Jerry fell into the arms of the British-Dutch food conglomerate, Unilever, who bought the company in 2000 for $326 million. The Ben & Jerry’s-Unilever marriage continues to prosper, working to expand their 64 flavors of tasty treats to satisfy pallets of consumers all over the world. And while critics still argue that selling out to the man may tarnish the overall goal of the company, Ben & Jerry’s vows to continue to support all organizations that are working toward eliminating the causes of social and environmental issues.

Trader Joe’s:

Trader Joe’s is where eco-friendly consumers go to do their guiltless shopping. But this isn’t your average grocer. This isn’t even your average organic grocer. Founder Joe Coulombe, known as “Trader Joe”, opened a small chain of convenience stores outside of Los Angeles in 1958 which he later switched to the grocer model in 1967 with his first Trader Joe’s. From that starting point, the expansion has been steady. The chain is so beloved for its sense of humor, product quality, and competitive pricing that in the May 2009 issue of Consumer Reports it was named the second-best supermarket chain in the US, right behind Wegmans. Who would have guessed that a chain with over 300 locations, all of which are located within the continental United States, is not American-owned? In 1979, the all-American company was bought by Theo Albrecht, the German billionaire behind the discount supermarket giant Aldi. What they have in common: offering their own specialty products and buying directly from producers cut out all the middlemen. The result: low cost items. Both companies also have a strong “green” awareness. Today, Aldi is an international powerhouse. It operates over 8,000 locations, including 1,000 in the US.

Seven Eleven stores:

In 1927, founder John Jefferson Green proposed a retail shop of foodstuff staples to the Dallas Southland Ice Co, and the first convenience store was conceived. Locations sprouted up throughout northern TX and in 1946, the store’s retail name, 7-Eleven, was adopted. Exponential growth was realized in the 50’s and 60’s throughout the U.S. and into Canada. By 1970, it reached $1 billion in sales and appeared on the NYSE. 7-Eleven locations began popping up in England and MX and later Japan. Following its buyout of Citgo Petroleum, the company suffered significant losses. In 1991 it was forced to sell a controlling share of the company to Japanese franchisee Ito-Yokado Co. Ltd. and Seven Eleven Japan for over $400 million. The remaining shares of 7-Eleven were purchased in 2007 for $1 billion. In the U.S. there was no perceptible change and to date the stores have maintained their American image.

Miller beer:

Miller Beer, once an American icon, is now owned by SABMiller -- the world’s second-largest brewer, and markets its beer in the U.S.A. with Canadian brewer Molson. Frederick Miller took over Plank Road Brewery in 1855. (Remember “If you’ve got the time, we’ve got the bear” slogan?). In 1966, W.R. Grace & Co. agreed to buy 53% of the company from Miller’s granddaughter, who objected to alcohol. In 1969, Phillip Morris bought Miller from W.R. Grace for $130 million. In 2002, South African Breweries bought the company for $3.6 billion. In 2007, SABMiller and Molson Coors (Molson is a Canadian company) agreed to combine operations in the USA in a joint venture ingeniously named Miller Coors.

The Chrysler Building:

The Chrysler Building is a permanent fixture in the American mosaic. In the movies, it’s been blown up, struck by a meteor, ravaged by an enormous lizard monster, and consumed by a cataclysmic tidal wave. It’s one of those buildings we hold near and dear to our patriotic hearts. Yes, it’s another sad-but-true reminder of how many of our national treasures are American in name only. On July 9, 2008, the Abu Dhabi Investment Authority, or ADIA, reported that it had purchased a 90% stake in the building for $800 million. In reality, all things Chrysler-related have been going slowly international for years. 1998 to 2007 Chrysler was part of the German company, DaimlerChrysler AG. Earlier this year Chrysler went bankrupt and merged with the Italian automaker, Fiat. Actually, the Chrysler Building hasn’t been exclusively American since 2001 when TMV, a German investment fund, purchased a 75% stake in the building from Tishman Speyer. Then again, foreign investment in NYC properties is nothing new. Rage ensued in the early 1990s when Mitsubishi bought Rockefeller Center.

 

 

You can read more about these companies at http://www.minyanville.com/articles


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