The Beech-Nut Apple Juice Scandal

Paper Summary:

When Beech-Nut was found to have marketed apple juice that contained virtually no apple juice, the scandal caused the company long-term damage. More importantly, perhaps, the actions of the managers at Beech-Nut were called into question, and this case study examines their motivations and the corporate culture that allowed the incident to happen. A summary of the research is provided in the conclusion.

From the Paper:

"In an episode of the popular animated television series, "The Simpson's," Mayor Qwimby is outraged to find that Fat Tony and his gang have been supplying rat milk to the schoolchildren of Springfield as part of a kickback scheme. Mayor Qwimby's reaction: "Rats? You promised me dog or higher!" This particular episode may well have been in response to the plight Beech-Nut's leadership, Niels L. Hoyvald and John F. Lavery, found themselves in when they were indicted and convicted for selling "apple juice" which was in reality nothing more than water, sugar, coloring and flavorings. Parents were outraged and James Traub says the Beech-Nut baby-food scandal "is a case study in the warping effects of blind corporate loyalty.""

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