Children love popcorn, especially if a caramel coating adds sweetness and flavor to each piece. Mix in some peanuts, and the result is a simple yet surefire taste treat. These three ingredients—popcorn, caramel, and peanuts—make up Cracker Jack, a snack that is an essential part of the American childhood experience. Adding to the fun of purchasing Cracker Jack is that included in each box is a small toy, made even more enticing by being labelled a "prize."

The label used on the 1902 Cracker Jack boxes, nearly ten years before "prizes" were added to each treat. AP/Wide World Photos. Reproduced by permission.

The origin of Cracker Jack dates to 1871, when a German immigrant named Frederick William Rueckheim (1846–1934) began selling a popcorn snack on a Chicago street corner. Customers loved his confection (sweet treat), but they were bothered by the stickiness of the caramel. This...