Wednesday, April 17, 2013

BOC: Apple Juice Scandal

The Beechnut corporation has completely ruined their brand by fooling all their customers. Instead of using real apples as ingredients for apple juice, they used substitutes such as beet sugar and water. This false representation saved them 20% in the production process but cost them their reputation for the long run.

"It said that the product that Beech-Nut had been marketing as 100 percent apple juice was actually made from beet sugar, cane sugar syrup, corn syrup and other ingredients, with little if any apple juice in the mixture."

The company along with the responsible corporate members were fined amounts to pay to continue the business. ''We believe that Beech-Nut's fine represents the largest fine ever paid under the Food, Drug and Cosmetic Act by at least sixfold since the act's enactment in 1938,'' Richard K. Willard, the Assistant Attorney General in charge of the civil division, said in Washington.

Although they have already payed the fines, the sin they've caused to their loyal customers were left unforgiven. The false advertising could have put children in danger of diabetes and other defects due to a mass amount of sugar intake when originally, these parents thought they were giving their children natural apple juice.

"He said that the misrepresented juice, although not pure apple juice, contained only 'safe food ingredients' and had presented no danger to health."

Now on Beechnut's website, they put concentration on advertising how they are a trusted brand by mothers and that they use 100% natural ingredients. It is clear that these are efforts made to regain their customers trust but in my opinion, they took too much of a risk and are serving the consequences.

http://www.nytimes.com/1987/11/14/business/beech-nut-is-fined-2-million-for-sale-of-fake-apple-juice.html

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