Gail Borden - Condensed Milk

Condensed Milk

In 1856, after three years of applying and refining his model, Borden received the patent for his process of condensing milk by vacuum. At that time he, again, completely abandoned his previous pursuit, the meat biscuit, to focus on his new product. Having lost so much money in his beef biscuit endeavors, Borden was forced to seek out partners in order to begin production and marketing of this new product. He offered Thomas Green 3/8 of his patent rights and gave James Bridge 1/4 interest on his investment and together the three men built a condensery in Wolcottville, Connecticut, that opened in 1856. Green and Bridge were eager for profits and when the factory was not immediately successful they withdrew their support and it was closed down in less than a year. However, Borden was so confident in his product that he was able to convince them, along with a third investor, Reuel Williams, to build a new factory, this time in Burrville, Connecticut, which opened in 1857. However, like many corporations that year, this second factory was hurt by the Panic of 1857 and had trouble turning a profit. The following year Borden’s fortunes began to change, however, when he met Jeremiah Milbank, a financier from New York, on a train. Milbank was impressed by Borden’s enthusiasm for and confidence in condensed milk and the two became 50/50 partners. Together they founded the New York Condensed Milk Company. . Milbank was a rail road magnate and banker but it was his understanding of large scale finance which contributed to Borden’s success (Frantz 128). Milbank invested around $100,000 into Borden’s business and when Milbank died in 1884, the market value of his holdings was estimated at around $8,000,000.

Following the founding of the New York Condensed Milk Company, sales of Borden’s condensed milk began to improve, and the outbreak of the Civil War, soon after, created a large demand for condensed milk from the Union Army. In 1861, Borden closed the factory in Burrville, Connecticut, and opened the first of what would come to be many condensed milk factories in New York and Illinois. Around this same time, Borden married his third wife Emeline Eunice Eno Church.

As the Civil War continued the New York Condensed Milk Company was forced to expand quickly to meet the growing demand. Many new factories were built and licenses were granted to individuals to begin producing condensed milk in their own factories using Borden’s Patent. Despite the quick growth of the company, Borden put a high value on sanitation and created cleanliness practices that continue to be used in the production of condensed milk to this day. While all of this rapid growth was occurring, Borden continued to experiment with the condensing of meat, tea, coffee, and cocoa, and in 1862, he patented the condensing of juice from fruits like apples and grapes. Borden attempted to incorporate these other products into the New York Condensed Milk Company but the greatest demand was always remained for the milk and so it remained the company’s major product.