Fields, Otis Spunkmeyer soon branched out to deliver frozen cookie dough to food service establishments, which would eventually lead to its No. After dominating the food service space, Otis Spunkmeyer moved into school fundraising by offering its frozen cookie dough for purchase. It was a sector dear to Mr. Grace said. We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
Home » The evolution of Otis Spunkmeyer. Robert Mina left , vice-president of operations for Aryzta, and Charice Grace, brand director for Otis Spunkmeyer, bring together a sharp operational focus and the fun of an iconic brand.
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Or a cookie that's a taco? We're not quite sure either, but we know it's tasty! Is it a taco that's a cookie? Rawlings decided to abandon the retail market and moved headlong into wholesale. He sold the retail outlets and began marketing frozen cookie dough to hospitals, convenience stores, and corporate and school cafeterias, tapping into the demand for fresh-baked cookies by enabling his wholesale customers to tap into the demand.
By , the change in strategy had produced an entirely different sort of company than the Otis Spunkmeyer of the early s. Nearly all of the company's customers were in California, with the balance divided between customers in Texas and Washington, but immediate plans called for penetration into the Midwest, and from there to regions in the eastern United States.
During the s, Otis Spunkmeyer quickly emerged as one of the leaders in its industry, but the prolific rise of the company was not merely because of Rawlings's decision to switch from retail to wholesale. His move from one sector of the market to the other also came with an innovative approach to marketing frozen cookie dough to wholesale customers, making Rawlings an industry pioneer--later to be copied by competitors--and Otis Spunkmeyer distinctly different from other frozen cookie dough manufacturers.
Rawlings supplied more than dough to his customers. His fresh-baked cookies program included the loan of a small, pre-set-temperature oven, pre-portioned frozen cookie dough, and branded displays and point-of-sale materials--the marketing tools that fueled impulse purchases of cookies.
By the end of the s, the effectiveness of Rawlings's approach could be discerned by comparing the stature of Otis Spunkmeyer to its size in The number of wholesale customers had increased from 5, to more than 40, The true strength of the company, however, was not reflected in either of these remarkable increases. Underpinning the vitality of Otis Spunkmeyer was its distribution system, another unique characteristic of the company that distinguished it from its competitors.
Unlike other frozen cookie dough manufacturers who relied on distributors to deliver their products, Otis Spunkmeyer operated a direct-store-delivery system DSD that gave it greater abilities in customer relations and service and greater control over the supply of its frozen cookie dough. Otis Spunkmeyer's DSD system included its own fleet of freezer trucks and, most importantly, a network of distribution centers that served as company sales centers.
The effect of this distribution system on the company's success during the s and its evolution during the s was of paramount importance, representing the true strength of Otis Spunkmeyer. The first distribution center, fittingly, had opened during the company's turning point year in , established in Sacramento, California.
By the end of the s, there were 41 distribution centers supporting the company's operation. The value of Otis Spunkmeyer's distribution system was demonstrated during the s, as the company used its established network to market products other than frozen cookie dough. After the acquisition, muffins were fed into the same sales and distribution network that previously had marketed only frozen cookie dough.
Otis Spunkmeyer tripled the sales volume recorded by Sweet Happenings management during the first year of muffin sales. As work was underway to introduce muffins into the company's distribution network, Otis Spunkmeyer added another product, acquiring a wholesale specialty coffee-roasting company based in Mountain View, California called Peter James Coffee Ltd. The company began selling coffee in four flavors, with plans to introduce another 36 flavors at a later date, but while the development of these ancillary products was underway, Rawlings had not diverted his attention away from promoting the sale of Otis Spunkmeyer frozen cookie dough.
In , Rawlings made the ambitious leap into the international arena, introducing the company's frozen cookie dough into Mexico and Europe. Through a joint venture--Otis Spunkmeyer de Mexico--with a local pizza parlor operator, Otis Spunkmeyer opened a distribution center outside Mexico City in June. Overseas, the company leased office and warehouse space near Heathrow Airport in London, expecting to distribute cookie dough in England from its manufacturing plant in Pittsburgh.
Once established in the United Kingdom, Rawlings planned to expand cookie dough distribution into mainland Europe, with muffins and coffee to follow, until eventually a manufacturing plant could be opened in Europe. By the time international expansion was underway in , Rawlings's confidence was at a new high.
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