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<br /> 1 By the 1920s, Morinaga's sales had been growing steadily. To meet the rising demand, the company
<br /> 2 installed its first production machinery--previously, production had been by hand--and launched mass
<br /> 3 production in 1925. Over the next decades, the company continued to add to its production capacity,
<br /> 4 opening four more plants, and adopting increasingly sophisticated, modernized production techniques. By
<br /> 5 the 1980s, the company manufacturing operations had become fully automated.
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<br /> 7 In the meantime, the company continued developing new product lines. Among these were baby biscuits,
<br /> 8 called Morinaga Manna, which the company began producing in 1930. In 1935, Hanzaburo Matsuzaki
<br /> 9 became company president. The company took a leaf from its Western counterparts in the 1930s,
<br /> 10 promoting holidays--such as Mother's Day starting in 1937--as a means of stimulating candy and
<br /> 11 confectionery sales.
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<br /> 13 During World War II, Morinaga turned part of its resources toward the production of penicillin, saving a
<br /> 14 good number of lives. Following the war, the company, now led by Taihei Morinaga, decided to split up its
<br /> 15 operations, separating its dairy business into a separate company, which became known as Morinaga Dairy
<br /> 16 Industries in 1949. That company then developed into one of Japan's major dairy groups. The two
<br /> 17 companies nonetheless remained closely linked, sharing the angel logo and developing common products
<br /> 18 and marketing campaigns.
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<br /> 20 The 1950s saw new expansion for the company. In 1954, its production capacity expanded with a new
<br /> 21 band oven--the first to be brought into Japan. Two years later, Morinaga extended its dessert offerings with
<br /> 22 the production of ice cream, which quickly developed into one of the company's key product lines. Another
<br /> 23 strong seller for the company came in 1957, when it introduced its popular Hotcake Mix. That line also
<br /> 24 became one of Morinaga's flagship brands.
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<br /> 26 Attempts to introduce Valentine's Day celebrations--and linking that holiday with chocolate--had been made
<br /> 27 since the 1930s by various Japanese companies. At the beginning of the 1960s, however, Morinaga at last
<br /> 28 succeeded, launching a "Chocolate for St. Valentine's Day" marketing campaign. The company had other
<br /> 29 hit products during the decade, such as Hi-Crown Chocolate, launched in 1964, and a new soft, milk-based
<br /> 30 caramel, Hi Soft, launched in 1969. At the beginning of the 1970s, the company added a new line of Twiggy
<br /> 31 chocolates as well.
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<br /> 33 Morinaga's sales continued to rise during the 1980's, nearing the equivalent of $1 billion by the end of the
<br /> 34 decade. The company by then had opened its fifth manufacturing facility and had continued to extend its
<br /> 35 product range, launching, for example, its brand of Ottoto crackers. The company also had expanded
<br /> 36 beyond candies and confectionery to some extent, adding production of alcoholic beverages. That
<br /> 37 business, operated under the name of Fukutokucho, produced primarily sake and shochu.
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<br /> 39 Closer to the group's core was its drive into the health and nutritional foods market. The company's entry
<br /> 40 into the sector began in the early 1980s, and a 1983 licensing agreement with the United States' Weider
<br /> 41 Nutrition International to develop and market Weider-branded products for the Japanese market. The
<br /> 42 company also entered the soft drinks market, launching a rice-based health drink, Amazake, which became
<br /> 43 one of its key brands. Tofu represented another fast-growing nutritional product for the company, and
<br /> 44 formed a strong part of the group's international growth. By the end of the 1980s, the company had entered
<br /> 45 some 32 countries, backed by sales and marketing subsidiaries in the United States and The Netherlands.
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<br /> 47 Morinaga's product development continued through the 1990s. Among the most successful company
<br /> 48 products launched during the decade were its Sold Dazen chocolates, introduced in 1993. The following
<br /> 49 year marked the debut of a new product line, developed under Morinaga's partnership with Weider. The
<br /> 50 new snack, called Weider in Jelly, was the first in a range of drinkable, jelly-like snacks touted by the
<br /> 51 company as nutritional foods. The Weider line, fully launched in 1995, was credited with creating an entirely
<br /> 52 new product category. The first variations included Weider Energy In, which claimed to provide a sustained,
<br /> 53 quick energy boost; and Weider Vitamin In, which claimed to provide a full spectrum of vitamins provided
<br /> 54 by a balanced meal. Targeting a young male market, the Weider line grew steadily into the next decade,
<br /> 55 and by 2002 represented nearly 20 percent of the company's total sales.
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