Snow Brand's Unethical Practices at Japan
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Case Details:
Case Code : BECG039
Case Length : 18 Pages
Period : 2000 - 2004
Pub. Date : 2004
Teaching Note : Available
Organization : Snow Brand Milk Products Co. Ltd.
Industry : Food
Countries : Japan
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BECG039) click on the button below, and select the case from the list of available cases:
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Please note:
This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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Background Note
The origins of Snow Brand can be traced back to May 1925, when a farmers' cooperative was formed in Hokkaido Prefecture,3 Japan. The cooperative was set up to help farmers in Hokkaidomarket their dairy products.
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The cooperative began to produce butter in December 1926, and ice-cream in June 1928. It also started using the trademark 'Snow Brand' in June 1928, to sell its products. The cooperative began to produce cheese and margarine in August 1933 and 1939, respectively.
In June 1950, Snow Brand was incorporated and in December the same year it incorporated Hokkaido Butter Co. as a subsidiary. In November 1953, it established Snow Brand Seed Co. Ltd. to run its farm feed business, which produced pasture, feed crop seeds and seedlings. In March 1955, Snow Brand Food was incorporated in the city of Sapporo. Snow Brand Food controlled the meat processing, canned and bottled foods units.
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It produced premium ham and sausage products, canned food, special jams and bakery items. It also processed and sold imported food items such as coffee extract and food additives. In March 1971, Snow Brand Food started selling frozen food and in August 1974, it started importing European wines and selling them in Japan.
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In April 1981, Snow Brand Food started producing oatmeal. In 1993, five wholesalers of Snow Brand merged to form Yukijirushi Access Co. Ltd. a food wholesale unit and frozen food distributor. It had more than 200 distribution centers across Japan and most of these distributed frozen food. Over the years Snow Brand added many products and services to its portfolio, which included baby food, medical supplies, packing materials, domestic wine, pharmaceuticals, juices, sports drinks, cooking oils, transportation, marketing, etc. To run each of its businesses separately, Snow Brand incorporated various wholly and partially owned subsidiaries. It also expanded its businesses to other countries such as China, Taiwan, Hong Kong and France. (Refer to Exhibit II)... |
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