YUZABURO MOGI

Chairman and CEO
Kikkoman Corporation

Perhaps no company better represents Japan’s unique ability to combine a strong respect for tradition with a drive to continuously innovate in the commercial sphere than Kikkoman Corporation, the world’s largest manufacturer of soy sauce.

The corporation, which is one of Japan’s oldest businesses, is headed by Yuzaburo Mogi, the chairman and CEO as well as a descendant of the family that started Kikkoman over 300 years ago. This charismatic leader has helped Kikkoman grow from a domestic firm with a noble history into a global player with enviable long-term market growth.

“For good management, a balance between
tradition and innovation is essential.”


“A balance between tradition and innovation is a key factor for success,” relates Mogi, a tall, slim figure who exudes energy and enthusiasm that belie his 72 years. “Tradition is the accumulation of generations of experience, and thus provides a guide for future action. However, with the business environment changing so radically, past models may not always be the most appropriate, so an over-reliance on tradition can inhibit a company’s growth. For good management, a balance between tradition and innovation is essential.”

That balance was evident back in 1957 when Kikkoman, a company with three centuries of tradition in Japan, decided to expand its business to the U.S. Soy sauce was not well known back then, so over the years the firm began to show Americans how its main product could enhance the flavor of a wide range of food, not just Asian cuisine. The investment in the U.S. has paid off handsomely: Kikkoman now books 50% of its operating profit from overseas businesses, 80% of which comes from the U.S.

After much consideration, Kikkoman opened a plant in America’s heartland, in the state of Wisconsin. It was 1973, Japanese cars and electronics were already pouring into the U.S., and trade friction was starting to heat up. Yet Kikkoman was able to operate with none of the problems other Japanese firms had to face stateside.

“We never experienced trade friction in the U.S.,” says Mogi. He attributes this success to Kikkoman’s early move to localize its business. “When we started up production in America in 1973, our soy sauce went from ‘Made in Japan’ to ‘Made in the U.S.A.,’ which eliminated the immediate source of trade friction.” Another important reason that the company has been so warmly accepted in the U.S. is its emphasis on fitting into the local community. “We are trying to be a good corporate citizen at the local level,” relates Mogi. “We participate in many activities, and we do lots of business with local companies.”

Kikkoman is naturally concerned with matters of food and health: “We organized the Kikkoman Food Foundation in Wisconsin, and we continue to contribute to various local activities, for example, in the food science area and high school education.”

Following its success in the U.S., Kikkoman advanced its global marketing strategy. “We are steadily developing the European market,” Mogi explains. “In the early 1990s, consumption of soy sauce really took off, and it’s been soaring ever since. Now we enjoy nearly 15% annual growth in that market.” This healthy expansion led Kikkoman to establish a factory in the Netherlands, which celebrated its 10th anniversary in autumn 2007.

In addition, Kikkoman is looking to Asia to become its future high-growth market. “Within 10 to 15 years I think the average Chinese income will rise, lifestyles will change, and people will regularly buy our products. In 10 to 15 years, our business in Asia, including China, will be very promising.”

With its roots deep in Japanese tradition and innovative strategies for developing its global market, the future indeed looks promising for Kikkoman.

A descendant of the family that started what is likely Japan’s oldest continuously operating business, Yuzaburo Mogi joined Kikkoman in 1958. Even before rising to the presidency in 1995, he worked to revitalize and further internationalize the company. In 2004, he was named chairman and CEO. A global thinker, the fully bilingual Mogi holds an M.B.A. from Columbia University.

www.kikkoman.com