
Muscling in on the MSG market
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With designs on Myanmar and new factories opening in the region, the world's largest monosodium glutomate producer is sweeping health concerns aside in the battle for supremacy
In an Ajinomoto advert recently screened in Cambodia to promote monosodium glutomate (MSG), the symbolism is unmistakable. At the end of the 35-second spot, a Cambodian actress in a white dress with red trim holds a bag of pure, white MSG in the same Ajinomoto brand colours.

Earlier, the flavour enhancer is shown being extracted from crops including sugar cane, a process that ends when a worker in white overalls picks up a packet of MSG as it rolls off the Japanese firm's production line.
The message, like any effective marketing, is based on brand perceptions carefully disseminated among Cambodia's public. Ichiro Nishimura, president of Ajinomoto (Cambodia) Ltd, said it reinforces the brand's Japanese origins, striking a balance between natural ingredients and the hi-tech methods of extraction. "Most important is branding and quality," he said.
Last year, Ajinomoto – which translates as 'essence of taste' – spent $2m on marketing in Cambodia, including public taste testing and prize draws. In October it opened its first factory in the country, a $6m packaging facility.
The company first identified the active ingredient in MSG, glutamic acid, back in 1908. Countries such as Cambodia are now at the forefront of a drive to raise sales of the seasoning. "We will focus on emerging and developing countries to speed up our growth," Ajinomoto president Masatoshi Ito said in February, identifying Africa and Asia as key future markets.
Of the total world supply of MSG, which is expanding at 3-4% per year, Ajinomoto holds a market share of more than 30%. Stock rose 8% in Tokyo up to the end of the first week of March, but the firm has had to fight stagnant demand and prices in Japan of late, leading to two consecutive years of falling revenues. Ahead of results due for the 2010 financial year, sales fell 1.6% to $14.12 billion.
In response, Ito insists costs will be cut to accommodate rising food prices. The firm is targeting a 26% rise in operating profit over the next three years, with the aim of reaching $15.54 billion in sales by 2014. The strategy hinges on one of the largest MSG-consuming markets in the world: Southeast Asia.










