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I <br />Attachment #4 <br />had limited access to confectionery products, and sugar consumption in general remained low. Milk and milk <br />products were also absent from the Japanese diet. The opening of the country's borders stimulated interest in all <br />things foreign, and the country's growing foreign population encouraged the import of Western -style <br />confectionery and candy. <br />Taichiro Morinaga recognized that the growing foreign influence in Japan, and the country's readiness to adopt <br />attributes of Western culture, would inevitably extend to the country's eating habits. Morinaga became <br />determined to learn the art of candy making, in order to introduce new confectionery products to the Japanese <br />market. Despite the anti -Asian prejudice, Morinaga found a job as a janitor at a candy factory, and there learned <br />how to make candy. <br />By the end of the century, Morinaga was ready to return to Japan and start his own candy company. Before <br />leaving, Morinaga performed his own bit of market research, questioning members of San Francisco's Japanese <br />community and other Japanese visitors to the city on their candy preferences. Morinaga discovered that the <br />sweet most preferred by the people he questioned was marshmallows, at the time also known as "angel food." <br />The fluffy, egg white - and - sugar -based candy also resembled existing Japanese confections, making it a natural <br />first product. <br />Morinaga founded his business with partner Hanzaburo Matsuzaki in 1899, opening a small shop in the Akasaka <br />neighborhood of Tokyo. The business, called Morinaga Western Candy Confectionery, developed quickly as the <br />country eagerly greeted the new candy type. Morinaga himself acted as salesman, pushing a cart from which he <br />sold marshmallows, and other Western - styled cakes and candies. Among these were caramels. This product <br />represented even more of a novelty in Japan in that it contained butter - -at a time when dairy products still had <br />not penetrated the Japanese diet. Morinaga's caramel sales were at first limited to his foreign customers, as the <br />Japanese shied away from the strange product. In addition, the country's climate made it difficult to produce - -and <br />to eat -- caramel, which tended to melt and become too sticky to hold in the heat and humidity. <br />Morinaga set out to develop a new caramel recipe for the Japanese market, and by 1914 had perfected a recipe <br />that both appealed to the Japanese palate and also offered a longer shelf life. The new product debuted in 1914, <br />and was packaged in a pocket -sized yellow box. Known as Hi -Chew, the product became a company flagship and <br />one of its core products into the next century. In the meantime, the company's strong marshmallow sales inspired <br />the adoption of a logo, an angel, in 1905 - -the angel logo also fit in with Morinaga's work as a missionary. The <br />company adopted the name Morinaga Confectionery Inc. in 1912. <br />The success of Hi -Chew led Morinaga to seek its own source of dairy products, and in 1917 the company set up a <br />dairy operation, which became Morinaga Dairy Industries. A year later, the company launched a new candy line, <br />becoming the first to introduce the chocolate bar to Japan. Meanwhile, the company began extending its dairy <br />product line, launching its first powdered baby formula in 1920. That launch marked the start of the company's <br />involvement in the nutritional products category as well. <br />By the 1920s, Morinaga's sales had been growing steadily. To meet the rising demand, the company installed its <br />first production machinery -- previously, production had been by hand - -and launched mass production in 1925. <br />Over the next decades, the company continued to add to its production capacity, opening four more plants, and <br />adopting increasingly sophisticated, modernized production techniques. By the 1980s, the company <br />manufacturing operations had become fully automated. <br />Q7 <br />