Tuesday, April 24, 2012

Week 3 EOC: Apple Juice Scandal


Imagine buying apple juice and not receiving any apple juice at all. Well, in 1982 Beech-Nut Apple Juice did just that. “…an investigation by the Processed Apples Institute revealed that a company called Food Complex had omitted apples from its product altogether.” http://socyberty.com/crime/the-beech-nut-apple-juice-scandal/ Food Complex was Beech-Nut’s manufacturer, thus tainting the Beech-Nut brand. Niels Hoyvald, Beech-Nut’s president “…made the decision to continue selling the tainted product. Moreover, Hoyvald intentionally chose to market the product aggressively. Then on July 29, 1982, the U.S. Food and Drug Administration (FDA) notified Beech-Nut that samples taken from supermarket shelves had been found to be adulterated.” http://socyberty.com/crime/the-beech-nut-apple-juice-scandal/ If this was not bad enough, Beech-Nut then moved their entire inventory after being caught. Their warehouse was originally in New York and they moved 26,000 cases to New Jersey, out of New York’s jurisdiction. 23,000 cases from California were moved to Texas and from there they were shipped to the Dominican Republic and sold at 50% discount. “The sale of the appleless apple juice product earned the Beech-Nut Corporation approximately $60 million over a ten-year period .” http://socyberty.com/crime/the-beech-nut-apple-juice-scandal/ This author sees that Beech-Nut Apple Juice completely destroyed their brand name. By hiding from this scandal and avoiding the law, Beech-Nut became unprofessional and downright untrustworthy. It’s disgusting that a company would overlook the “appleless apple juice”and just write it off. Lying to customers is no way to gain sales because it is inevitable that you will be caught. You can’t hide things so crucial forever.

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