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Historians generally agree that the Christmas cracker was invented by London-based confectioner and baker Tom Smith in 1847.
With the size of the paper increased, Smith decided to replace the bonbon with a trinket. This again served as a way to beat the competition. The product was initially marketed as the Cosaque (French for Cossack, chosen supposedly because the crack they made when pulled were reminiscent of the cracking whips of Russian Cossack horsemen). However, the novelty items were soon renamed "cracker" by the public.
Smith, who by now was being assisted by one of his sons, Walter, continued to develop the cracker. It was Walter who later added the gifts—paper hats and sourced novelties from Europe, America, and Japan, things like whistles, streamers, and party blowers.
Smith's assertion as the inventor of the cracker was challenged by one Gaudente Sparagnapane, whose family owned the Sparagnapane Christmas cracker and confectionery business. His company, which was established in London in 1846, a year before Smith's, described itself as "the oldest makers of Christmas crackers in the United Kingdom." Sparagnapane, however, was better known for being the father of British suffragist Florence Gertrude de Fonblanque (front row, center), who was a main organizer of the 1912 women's suffrage march from Edinburgh to London.
Smith set up shop in Goswell Road, Clerkenwell, in the 1840s. He initially produced wedding cakes and sweets.
During a sojourn in Paris, the English confectioner discovered the French bonbon, a sugared almond wrapped in a twist of tissue paper.
Back in London, Smith started making his own bonbons, which he sold in the same manner, in a twist of paper (the origins of the traditional sweet wrapper).
Smith's bonbons sold especially well during the festive season, which prompted another idea. Inspired by the "crackle" of a log fire, he designed a log-shaped package that would produce a surprise bang when pulled apart. Inside would be an almond and a motto.
The candy sold well. Smith then came up with an inspired marketing ploy. He began to insert a motto into the wrappers of the sweets. As most of his bonbons were bought by men to give to women, most of the mottos were simple love poems.
He achieved the bang by using two narrow strips of paper layered together, with silver fulminate painted on one side and an abrasive surface on the other. When pulled, friction created a small explosion.
By the 1890s, Tom Smith's business had expanded to the point where new premises were required to keep up with production. The company ended up in Finsbury Square, employing 2,000 people. In 1953 Tom Smith & Company merged with Caley Crackers, and is still in business today.
In the post-war years, competition became fierce among Christmas cracker manufacturers, with bold new publicity campaigns used to entice the public into purchasing their merchandise.
While crackers were produced for a variety of themes, including parties, votes for women, and for celebrating major events like the end of the First World War, it's for Christmas that the festive table decorations are most associated.
One item that has pretty much always been enclosed in a cracker is a colorful paper tissue hat.
Competing for customers with Tom Smith & Company in the 1920s and '30s was Batger & Co.
The Batger family were leading sugar refiners in Great Britain, and by the early 20th century had become the country's largest jam and confectionery makers.
The company specialized in novelty crackers, the enclosed gifts ranging anywhere from musical toys to animal masks.
The tradition of wearing festive hats dates back to Roman times and the Saturnalia celebrations, which also involved decorative headgear.
The idea of wearing a paper crown, however, may have originated from the Twelfth Night celebrations, where a king or queen was appointed to look over the proceedings.
Christmas crackers are mainly part of seasonal celebrations in the United Kingdom, Ireland, and Commonwealth countries such as Australia, Canada, New Zealand, and South Africa.
The Christmas cracker is not so well known in the United States, though the table decoration remains an important part of holiday traditions in some states, whether used as part of a family dinner or as part of a larger holiday celebration.
The Christmas cracker itself can serve as a sophisticated item of tableware. Some can be purchased filled with luxury gifts like fine chocolates, high-end cosmetics, and even jewelry.
In Sweden, a Knut's party is a tradition on Saint Knut's Day (January 13), which marks the end of the Christmas and holiday season. Pulling crackers that have been used as tree decorations is part of the festivities, with paper hats worn accordingly.
Christmas crackers were being produced in all sizes to fit every pocket.
A cracker is pulled apart by two people, each holding an outer chamber. This causes the cracker to split unevenly to leave one person holding the central chamber and prize. Of course, you can enjoy the activity solo as well.
Small toys, plastic models, or trinkets are the rewards claimed by those left with the outsized half of the cracker.
Rather than romantic verse, crackers these days regale diners with a motto, joke, riddle, or a piece of trivia.
And the humble Christmas cracker enjoys royal patronage: Tom Smith holds the Royal Warrant as suppliers of Christmas crackers and wrapping paper by appointment to the royal household. In fact, the company has been the proud recipient of a Royal Warrant to the monarch since 1906.
Sources: (Victoria and Albert Museum) (Historic UK) (HistoryExtra) (Tom Smith Crackers)
See also: The best Christmas light displays around the world
Click through and get into the festive spirit by finding out why we pull crackers at Christmas.
Why do we pull crackers at Christmas?
What are the origins of this fun-filled festive custom?
LIFESTYLE Xmas
Christmas crackers are popular paper novelties that are traditionally pulled during Christmas dinner or at Christmas parties. It's a practice that dates back to the mid-19th century and the Victorian era, when the Yuletide accessory first appeared. But who invented the Christmas cracker, and what are the customs associated with it?
Click through and get into the festive spirit by finding out why we pull crackers at Christmas.