U.S. Business: Milk & Chips

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The need to nibble is rooted deep in the human personality—and TV watching and growing liquor consumption have increased that need to a new pitch.

The result may put pounds on the populace, but "It also means an astounding expansion for the snack industry, which last year accounted for almost $2 billion in sales of everything from potato chips to pretzels to pralines. Attracted by such growth, dozens of big companies have hastened to get in their licks. One such is the Borden Co., a conservative, 107-year-old dairy company that bought out Cracker Jack and a pretzel and corn-chip manufacturer as part of its diversification program. Last week, Borden's continued to nibble, announced that it will acquire the Wise Potato Chip Co., whose annual sales are $20 million.

Borden's moves toward such products, which are linked more often to beer guzzlers than to milk sippers, will be supervised by a new top man. In a shift long expected at Borden's, Executive Vice President Francis R. Elliott, 61, last week stepped up to become president and chief executive, replacing Harold W. Comfort, Borden's chief since 1956, who is retiring at 67. Elliott joined the nation's fifth largest food firm 35 years ago as a junior lawyer, soon shifted to the milk and ice cream division, which still accounts for about 60% of Borden's $1.12 billion in annual sales. But he professes no "misplaced loyalty" for the dairy-centered milk and ice cream operation, intends to continue looking around for any logical extensions of the company's business. One example: to complement its longtime milk-for-babies business, the company this month will start test-marketing a new line of disposable tissue diapers.