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began extending its dairy product line, launching its first powdered baby formula in 1920. That launch
<br /> marked the start of the company's 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
<br /> installed its first production machinery--previously, production had been by hand--and launched mass
<br /> production in 1925. Over the next decades, the company continued to add to its production capacity,
<br /> opening four more plants, and adopting increasingly sophisticated, modernized production techniques. By
<br /> the 1980s, the company manufacturing operations had become fully automated.
<br /> In the meantime, the company continued developing new product lines. Among these were baby biscuits,
<br /> called Morinaga Manna, which the company began producing in 1930. In 1935, Hanzaburo Matsuzaki
<br /> became company president. The company took a leaf from its Western counterparts in the 1930s,
<br /> promoting holidays--such as Mother's Day starting in 1937--as a means of stimulating candy and
<br /> confectionery sales.
<br /> During World War II, Morinaga turned part of its resources toward the production of penicillin, saving a
<br /> good number of lives. Following the war, the company, now led by Taihei Morinaga, decided to split up its
<br /> operations, separating its dairy business into a separate company, which became known as Morinaga
<br /> Dairy Industries in 1949. That company then developed into one of Japan's major dairy groups. The two
<br /> companies nonetheless remained closely linked, sharing the angel logo and developing common products
<br /> and marketing campaigns.
<br /> The 1950s saw new expansion for the company. In 1954, its production capacity expanded with a new
<br /> band oven--the first to be brought into Japan. Two years later, Morinaga extended its dessert offerings
<br /> with the production of ice cream, which quickly developed into one of the company's key product lines.
<br /> Another strong seller for the company came in 1957, when it introduced its popular Hotcake Mix. That line
<br /> also became one of Morinaga's flagship brands.
<br /> Attempts to introduce Valentine's Day celebrations--and linking that holiday with chocolate--had been
<br /> made since the 1930s by various Japanese companies. At the beginning of the 1960s, however, Morinaga
<br /> at last succeeded, launching a "Chocolate for St. Valentine's Day" marketing campaign. The company had
<br /> other hit products during the decade, such as Hi-Crown Chocolate, launched in 1964, and a new soft, milk-
<br /> based caramel, Hi Soft, launched in 1969. At the beginning of the 1970s, the company added a new line
<br /> of Twiggy chocolates as well.
<br /> Morinaga's sales continued to rise during the 1980's, nearing the equivalent of$1 billion by the end of the
<br /> decade. The company by then had opened its fifth manufacturing facility and had continued to extend its
<br /> product range, launching, for example, its brand of Ottoto crackers. The company also had expanded
<br /> beyond candies and confectionery to some extent, adding production of alcoholic beverages. That
<br /> business, operated under the name of Fukutokucho, produced primarily sake and shochu.
<br /> Closer to the group's core was its drive into the health and nutritional foods market. The company's entry
<br /> into the sector began in the early 1980s, and a 1983 licensing agreement with the United States' Weider
<br /> Nutrition International to develop and market Weider-branded products for the Japanese market. The
<br /> company also entered the soft drinks market, launching a rice-based health drink, Amazake, which
<br /> became one of its key brands. Tofu represented another fast-growing nutritional product for the company,
<br /> and formed a strong part of the group's international growth. By the end of the 1980s, the company had
<br /> entered some 32 countries, backed by sales and marketing subsidiaries in the United States and The
<br /> Netherlands.
<br /> Morinaga's product development continued through the 1990s. Among the most successful company
<br /> products launched during the decade were its Sold Dazen chocolates, introduced in 1993. The following
<br /> year marked the debut of a new product line, developed under Morinaga's partnership with Weider. The
<br /> new snack, called Weider in Jelly, was the first in a range of drinkable, jelly-like snacks touted by the
<br /> company as nutritional foods. The Weider line, fully launched in 1995, was credited with creating an
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