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Ajinomoto

Japanese food and biotechnology company

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Ajinomoto Co., Inc. (味の素株式会社, Ajinomoto kabushiki gaisha; Japanese pronunciation: [a.(d)ʑi.noꜜ.mo.to]) is a Japanese multinational food and biotechnology corporation which produces seasonings, cooking oils, frozen foods, beverages, sweeteners, amino acids, insulating films, and pharmaceuticals. Aji-No-Moto (味の素, "essence of taste") is the trade name for the company's original monosodium glutamate (MSG) product, the first of its kind, since 1909. The corporation's head office is located in Chūō, Tokyo. As of 2024, Ajinomoto operates in 31 countries worldwide and employs an estimated 34,862 people. Its yearly revenue in 2024 is around ¥1.53 trillion JPY or $10.61 billion USD.

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, 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.

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.

In April 2002 Ajinomoto reorganized itself into food, amino acid, and medicine divisions, and owned subsidiaries for frozen foods, fats, and oils. In February 2003, Ajinomoto and Unilever completed a joint venture agreement in six countries and regions of Asia. Because of this, Ajinomoto launched the brand VONO to replace its use of the Knorr brand, and in the process established its own brand identity. In July 2003, Ajinomoto bought the French company Orsan from the UK-based Tate and Lyle Group, renaming Orsan to AJI-NO-MOTO Foods, Europe. In November 2005, AJI-NO-MOTO Pharmaceuticals USA, Inc. was liquidated, and its assets and functions were merged into AJI-NO-MOTO Pharmaceuticals, Europe. In January 2006, Ajinomoto bought the cooking sauce and condiments manufacturer Amoy Food from the French dairy company Groupe Danone. In 2009, the company released "Ajinomoto" to commemorate the 100th anniversary of its foundation.

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