thumb|right|200px| The world's largest "paper" cup in front of what was once the Lily-Tulip manufacturing company in [[Riverside, California, later Sweetheart Cup Company. Actually made of poured concrete, the cup stands about tall.]]

Sweetheart Cup Company was a North American company that made paper cups, plastic cups and related products. In 2004, Sweetheart was acquired by the Solo Cup Company, which itself was acquired by Dart Container on May 4, 2012.

The company's brands included Sweetheart, Trophy, Lily, Preference, Jazz, Simple Elegance, Silent Service, and Guildware.

History

Early history

In 1911, Russian immigrants and brothers Joseph, Isaac, Nathan, and Samuel Shapiro, formed and ice cream cone business, called Eastern Baking Company, in Boston. In 1920, they moved the business to Owings Mills, Maryland in the hopes of pursuing year-round ice cream sales. It was incorporated as the Maryland Baking Company in 1926.

The company then began to diversify, first expanding to plastic drinking straws in 1933, then paperbook matches in 1935. By 1950, they entered the paper cup business. The family voted 14-1 against the move, but Joseph convinced them to agree. In 1957, it began producing plastic containers for dairy producers. as well as the opening of a facilities in the United Kingdom and Manchester, New York in 1970. By this time the company operated 27 plants, including those in Los Angeles, Chicago, Dallas, St. Louis, Atlanta, and Pittsburgh.

Relations between the two companies proved to be contentious in the years after the acquisition, resulting in many former Maryland Cup executives leaving. Fort Howard focused on cost cutting through layoffs, cutting employee benefits, and liquidating the company's pension fund. By the mid-80s, the firm's reputation with its customers had deteriorated and cup sales had started to slide. Despite increased efficiency, orders were down as disgruntled buyers went elsewhere.

Private equity and Sweetheart

In 1988, Fort Howard was taken private in a management-led leveraged buyout worth $3.9 billion. The deal received funding through Morgan Stanley. In 1989, Sweetheart and Lily were spun off and sold to Sweetheart Holdings for $532 million. The disposable products company was renamed Sweetheart Cup Company and moved to Chicago.

Despite attempts to turn the company around, sales continued to decline. McDonald's stopped using Sweetheart's foam clamshell containers and its yellow banana-split dish in 1990. Saddled with debt, the company's net worth had fallen to −$95 million by 1991. Morgan Stanley sold the company to American Industrial Partners in 1993 for $441 million. AIP held 66% of the company, while the General Motors Corporation's employee benefit plans held the rest. In 1994, new management cut staff to 7,000 employees and closed several facilities. In 1997, it sold off the Eat-It-All ice cream cone brand and announced the closure of a facility Riverside, California. In 1998, the Fonda Group took a significant stake in the company, reorganizing it under the SF Holdings Group.

In 2000, the company consolidated distribution to Maryland and Massachusetts. Corporate headquarters were also moved to Owings Mills. Following the September 11 terrorist attacks, a reduction in business and leisure travel hit the company's hotel and restaurant sales. Sweetheart recorded a loss of $3.15 million for its 2002 fiscal year. In 2010, Solo announced it would close the Owings Mills facility in 2012. It was demolished in 2013 to make way for new retail space.

References

  • Sweetheart's official web page - now redirected to Solo Cup
  • Here's to Lily Tulip (1952)