WORLD WAR II AND THE POST-WAR BOOM

World War II signals an end to the Depression, as unemployment falls to 1.2 percent, incomes rise dramatically, and government and U.S. industry equip more than 12 million men and women in the armed forces. The Allies' victory in 1945 ushers in a post-war boom. Consumer durables, absent during the war, are available for cash or credit. Pent-up demand translates into a buying frenzy.

America's military might is complemented by its status as the pre-eminent economic power. The U.S. GNP is more than half of the world's GNP in 1950. The dollar becomes the world's anchor currency, a role played by the British pound before World War I.

Mass consumerism is fueled by fast foods, credit cards, TV dinners and the golden age of television. High-tech electronics based on the transistor become a part of industry and daily life.

Americans discover shopping centers, rock-and-roll music, the interstate highway and summer vacations.

In agriculture, productivity soars with the "Green Revolution" and new technologies. Far fewer farmers produce more than ever before.

Ralston Purina plays a role in the war effort, and benefits from the boom that follows. In 1942, Ralston Purina sells a million tons of feed for the first time. By 1947, Purina Chow® brand feed sales account for $190 million of the Company's $208 million total. The cereal business shifts to the background, despite successful introductions of Wheat Chex® in 1937, Rice Chex® in 1950 and Corn Chex® in 1958. The introduction of a new dry dog food under the Dog Chow® trademark in the mid-'50s leads to the transformation of Ralston Purina into a consumer products company.

A product with the code name X-24 squirts out of a pressure cooker and is destined to revolutionize the fast-growing pet food industry. New "Pressure-Processed" Purina® Dog Chow® brand dog food becomes the right product, at the right time, in the right place. Soon, Ralston's fleet of extruders can't make enough product, and Dog Chow® is actually rationed to a growing nation of customers. In two short years, Purina comes from "nowhere" to overtake market leader Gaines. Grocery stores become THE place to buy pet food, and the pet food to buy is New Purina® Dog Chow®.

The Marshall Plan opens world markets, helping agriculture and Ralston. Ralston's New Venture Group is formed, and the Protein Division gets its start with the 1958 acquisition of a small plant in Louisville from Procter & Gamble. On October 1, 1956, the International Division of Ralston is formed with its first operations in Mexico.

Ralston sales and profits more than double between 1950 and 1960, to $510 million and $18 million respectively.