Ajinomoto

1907–1944: Origins and expansion

Ajinomoto Co., Inc. was created in 1908 as a subsidiary of Suzuki Pharmaceutical Co., Ltd., which was founded in May 1907 by Saburōsuke Suzuki II and Kikunae Ikeda. Ajinomoto was created to let Ikeda, a professor at Tokyo Imperial University, sell monosodium glutamate (MSG) seasoning made from wheat that he invented and patented. He created the seasoning after discovering that MSG was the source of a flavor that he called umami. In April 1909, Ajinomoto presented Ikeda's seasoning under the brand name "AJI-NO-MOTO" at a new product exhibition event in Tokyo, and began selling the product the next month. Ajinomoto primarily marketed the seasoning to housewives by using their trademark, a housewife in an apron, in newspaper advertisements, on signboards, and on-ground stamps.

Output gradually increased from 4.7 tons in 1910 to 23.3 tons in 1913, with sales reaching 400 thousand yen. In 1914 Ajinomoto built a new factory in Kawasaki to expand its production of flavoring. Japan's improved economy after World War I resulted in output hitting 84.6 tons and sales reaching 1.5 million yen in 1918. Despite rising sales, Ajinomoto experienced a deficit during its first ten years due to altering its methods of production and lowering its prices to get its product into ordinary households, among other reasons. Because of rising Japanese exports after World War I, Ajinomoto opened offices in New York and Shanghai in 1917 and 1918, respectively. In 1918 Ajinomoto exported 20.5 tons of its seasoning, accounting for a quarter of its total sales. The company opened new offices in Singapore and Hong Kong in 1927 and in Taiwan in 1929 to distribute its product throughout Southeast Asia. Between 1920 and 1929, revenue from the seasoning's sales rose from nearly 3 million yen to 10 million yen, largely due to increased exports of the product to foreign markets.

To lower the cost of mass production, the seasoning's wheat was replaced with soybeans, as the price of the latter at the time was lower than the former's. In the United States, the seasoning, labeled by the FDA as a "Vegetable Protein Derivative", sold poorly on the consumer market, but Ajinomoto expanded their operations in the United States in 1931 due to mass orders of the seasoning by H.J. Heinz, Co. and Campbell Soup Co. Between 1931 and 1937, seasoning production increased from 1,077 tons to 3,750 tons, with revenue rising from 13 million yen to 27 million yen. Due to Japan's increasing isolationism in the late 1930s, the production of AJI-NO-MOTO decreased from 3,750 tons in 1937 to 2,339 tons in 1940. By 1942, production of the seasoning was reduced to 1,000 tons before completely stopping by 1944 due to World War II.

1945–1979: Post-war Japan and diversification

After World War II, Ajinomoto was slow to resume production of its seasoning as it lacked sufficient funds to continue production and its factory had been destroyed. In April 1946, the company changed its name to Ajinomoto Co., Ltd. In 1947 production of the seasoning resumed, in addition to the production of new food products such as nucleic acid-based seasonings and processed foods. In May 1949 Ajinomoto was listed on the Japanese stock exchange. By 1950, exports accounted for 95% of the company's revenue, with exports to Southeast Asia, Europe, and the United States increasing in subsequent years. In Europe, AJI-NO-MOTO was used as a seasoning by many processed food manufacturers, including Maggi and C.H. Knorr AG. In 1950, sales in Japan resumed after the lifting of postwar sales controls, surpassing pre-war sales by 1953.

In the 1960s, Ajinomoto began to diversify its production by securing alliances with international food companies, including the Kellogg Company in 1962, CPC International Inc. in 1963, and Best Foods Company Ltd. in 1964. Because of these partnerships, Ajinomoto began selling Kellogg's corn flakes and Knorr soup in Japan and created its own brand of mayonnaise. During this time period, Ajinomoto modified AJI-NO-MOTO's recipe by using amino acids from sugar cane instead of soybeans, which allowed the seasoning to be produced locally in the countries it was exported to, which reduced shipping costs for the company. Domestic production first began in Thailand in 1962, followed by the Philippines (previously established in 1958), Malaysia, Peru, Indonesia, and Brazil in subsequent years. By 1979, nearly half of all AJI-NO-MOTO was being produced outside of Japan.

In the 1970s, Ajinomoto diversified further by launching a flavored seasoning called HON-DASHI in 1970 and producing frozen foods in 1972. In 1973 Ajinomoto and General Foods Inc. launched Ajinomoto General Foods Inc., a joint venture between the two companies that would sell instant coffee. In 1978, Ajinomoto launched a brand of Chinese seasonings under the brand name "Cook Do". In Asian and Latin American markets, Ajinomoto created new products for consumers, while the company primarily delivered its products to processed food manufacturers in Europe and the United States.

During this era, the company also expanded into other product markets. In 1956, the company began supplying crystalline amino acids for pharmaceutical use, contributing to the world's first release of amino acids infusion. In the 1960s and 1970s, the company developed feed-use amino acids, pharmaceuticals such as enteral nutrients, and specialty chemicals like surfactants.

1980–2009: Expansion globally

As the Japanese economy worsened in the 1980s, Ajinomoto sought to outsource more of its production overseas, which increased the number of employees the company employed overseas from 4,000 in 1979 to more than 11,000 in 1996. Starting in 1980, Ajinomoto began to refocus its diversification efforts from food products to its amino acid business. Following the US FDA's re-approval of aspartame in 1981, Ajinomoto began producing the sweetener at its Tokai factory in 1982. In 1987, Ajinomoto began researching drug development in the fields of clinical nutrition, anti-cancer drugs, infectious diseases, and cardiovascular drugs. Through this research, the company developed ELENTAL for use in clinical nutrition, LIVACT to fight liver disease, and Lentinan in collaboration with the Japanese Foundation for Cancer Research. Ajinomoto later released JINO as a cosmetic and amino acid for athletes, followed by Amino Vital, a supplement to JINO released in 1995. In 2000, Ajinomoto acquired NutraSweet and Euro-Aspartame from Monsanto.

Fertilizer

AJIFOL (Brazil, Peru, Thailand, Indonesia, Vietnam, US)

AgriTecno Biostimulant (EU, China, Africa)

PEK (Spain)

Food products

In 1909, Ajinomoto Co. Inc. released its umami seasoning AJI-NO-MOTO, made from molasses and tapioca starch derived from sugarcane. In Asia and Latin America, the product was primarily sold to consumers, while in North America and Europe it was mostly sold to processed food manufacturers. In 1970, Ajinomoto launched the bonito flavored seasoning HON-DASHI in Japan, and later adapted the product to other markets with local flavors. In 1978 Ajinomoto released Cook Do, a series of Chinese cuisine seasoning products, and later added other cuisine seasoning flavors to the Cook Do product line. The company entered the frozen food business in 1972, and currently sells a variety of frozen food products, including dumplings, noodles, and cooked rice. In 1982, Ajinomoto Co., Inc. entered the sweetener business by producing aspartame. In 1984 it released a low-calorie consumer sweetener PAL SWEET. By 2021, Ajinomoto was ranked 6th overall and 1st in Asia on FoodTalks' Top 50 Global Sweetener Companies list. Ajinomoto Co., Inc. is the world's largest manufacturer of aspartame, sold under the trade name Aminosweet. Ajinomoto also sells soup, mayonnaise, porridge, pasta sauce, and instant noodles under the "VONO" brand name. Through Ajinomoto AGF Corporation, Ajinomoto sells instant coffee, regular coffee, bottled coffee, stick coffee, and canned coffee, and is the top coffee brand in Thailand with a 70% market share.

Controversies

Lysine price fixing

In 1986, the Ajinomoto Group produced lysine at its Iowa factory of Heartland Lysine Co. U.S.A., followed by production in its Pathum Thani factory in Ajinomoto, Thailand, in 1986, and Bio Italia, BioPro in Italy in 1992, gradually upgrading its worldwide production bases. In the United States, competitors increased their own lysine production, which resulted in lower prices due to an overabundance of lysine on the market. To raise prices again, several companies, including Ajinomoto, price fixed lysine in the 1990s. Along with Kyowa Hakko Kogyo and Sewon America, Inc., Ajinomoto admitted to price fixing and settled with the United States Department of Justice Antitrust Division in September 1996. Each firm and an executive from each pleaded guilty as part of a plea bargain to aid in further investigation. Their cooperation led to Archer Daniels Midland settling charges with the US government in October 1996 for $100 million, a record antitrust fine at the time. Cartels were able to raise lysine prices 70% within the first six months of cooperating.

MSG

In 1996, the FDA commissioned the Federation of American Society for Experimental Biology (FASEB) to study the effects of MSG, who concluded that MSG is safe for most people. At the time, Ajinomoto also noted the possibility that asthma patients and carriers with symptoms of Chinese restaurant syndrome symptoms may be affected, but ultimately, the safety of this group was also confirmed by subsequent test results in the United States and Australia.

In 2020, Ajinomoto along with other activists launched the #RedefineCRS campaign to combat the myth that MSG is harmful to people's health, which highlights both the underlying xenophobic biases against Asian cuisine and scientific evidence that the myth is false.

The FDA Food Code 2022 removed MSG from the table of common chemical hazards and associated food and control measures in retail establishments.

Low-sodium salt substitutes are considered to be formulations where sodium is reduced – usually by partial or full replacement of NaCl with other chloride and non-chloride salts such as KCl, magnesium chloride, calcium chloride or potassium lactate. Monosodium glutamate (MSG) was also considered a low-sodium salt substitute.

Indonesian pork incident

In early 2001, Ajinomoto was involved in an incident in Indonesia, a predominantly Muslim country, when it was revealed that a pork-based enzyme had been used in its MSG production. According to Islamic dietary laws, pork is a haram (forbidden) meat, and is regarded as unclean. Immediately after the incident, the Food and Drug Administration of the Indonesian government stepped up to announce that Ajinomoto's end product did not contain pig-derived substances. Additionally, Ajinomoto also announced that its products were derived from soybeans.