Ajinomoto

Ajinomoto Co., Inc., introduced the original seasoning AJI-NO-MOTO into the market in 1909, making unami known to the world. Since then, placing customers first and constantly exploring new themes, Ajinomoto has been supplying original, high-quality products with its original technology and superior marketing skills. Ajinomoto Co., Inc., the world's first and still-largest producer of monosodium glutamate (MSG), is one of Japan's largest food-processing companies. In addition to seasonings, Ajinomoto produces edible oils, frozen and processed foods, beverages and dairy products, amino acids, pharmaceuticals, and other specialty chemicals. Although the company has operations in 20 countries, it derives nearly 80 percent of its revenues in its domestic sphere. MSG, the company's mainstay for more than 80 years, was discovered in kelp by Kikunae Ikeda at the University of Tokyo in 1908. With help from Ikeda, Saburosuke and Chuji Suzuki--two brothers who had been extracting iodine from seaweed since 1890--formed Ajinomoto to produce the substance commercially. They began marketing it in 1909 as "AJI-NO-MOTO," which translates literally as "essence of taste." The company focused on international sales and established a strong base in chemical development at its inception. A New York office was opened in 1917, and between the wars production and sales offices were opened throughout Asia, giving the company a global position decades before other Japanese companies. During this time the company began to produce MSG from soybean protein, which eventually led to the production of cooking oils. World War II halted MSG production, but between 1947 and 1953 AJI-NO-MOTO became available in the United States and Europe, and the company also began to sell cooking oil. In 1954 Ajinomoto opened offices in São Paulo, Paris, Bangkok, and Hong Kong. The oil crisis led most companies to consolidate in 1973 and 1974, and internal development of food products increased during the 1970s. By 1978 seasonings accounted for only 22 percent of sales and processed food had boomed to 31 percent from 3 percent in 1965. In 1970 the company created Ajinomoto Frozen Foods and also began to collaborate with the NutraSweet Company of the United States. A 1979 joint venture with Dannon introduced dairy products for the first time to the company's product line. In 1987 the joint Ajinomoto-CPC International venture was altered, with Ajinomoto taking full control of the Japanese joint venture firm, Knorr Foods Co., Ltd. At the same time, Ajinomoto purchased from CPC a 50 percent equity stake in CPC's seven Asian subsidiaries located in six countries. In 1990 Ajinomoto joined with the Calpis Food Industry Co., Ltd. in an agreement whereby beverages and dairy products manufactured and marketed by Calpis would be distributed by Ajinomoto. Ajinomoto's new venture department was established in 1987 with a focus on new markets and cooperative producers in the life-sciences area. The department symbolized the company's commitment to the industry, and earnings showed why. In 1988 sales rose only 0.5 percent, but earnings grew 15.4 percent--due largely to the much higher margins the company earned on life-science products. In 1989 Ajinomoto ventured further into the area of fine chemicals through the US$92.4 million acquisition of S.A. OmniChem N.V. of Belgium, a maker of intermediate chemical products for the pharmaceutical and food industries. The new president, Kunio Egashira, announced in early 1999 that Ajinomoto would adopt a holding company system by the year 2002 and integrate 130 domestic and overseas group companies into about 90 firms. The company also planned to reduce its overall number of employees from 5,200 to 4,800 by 2005, and to cut its 150-person administrative staff in half by 2002. Through these moves to consolidate and streamline operations, Ajinomoto hoped to improve its early 21st century profitability. Principal Subsidiaries: Knorr Foods Co.,