The Japanese farm ministry has told beleaguered dairy company Snow Brand Milk Products (SBMP) that it should seek alliance with a Japanese investment partner. The ministry said it does not want to see the company hook up in a capital alliance with a foreign company as part of the restructuring programme it announced yesterday [Tuesday].
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Meanwhile, it emerged that SBMP has already entered into talks with several potential parties, although their identity remains unknown. The company has been hit hard by the impact of the beef labelling scandal at its subsidiary Snow Brand Foods, where sales have fallen by 85%. SBMP hopes to complete a tie-up with a major investor by the end of the current fiscal year. Some 1000 employees are in the process of taking voluntary retirement, and the company hopes this will be the extent of the job reductions necessary.
Meanwhile, 75% of 2,832 respondents to an Internet survey carried out by Kyodo News and Yahoo! Japan Corp. said they believed SBMP would not be able to regain consumer confidence even if it implements a successful restructuring programme. Just 5% said they through the company would be able to win back consumers’ trust.
To see a full story on the future of Snow Brand that we published yesterday, click here.
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