Resolute Restructuring Strengthens the Company and Spurs Strong Growth

Beginning in the 1960s, uncontrolled product development and capital investment led to a deterioration in the company’s financial position and capital efficiency, while an increasing amount of interest-bearing debt squeezed its management. Ezaki Glico faced its first postwar management crisis. It responded in 1964 with company-wide structural reforms.

Over 80% of its bloated product lineup was discontinued in a single stroke, operations were streamlined with organizational reforms, and the corporate mindset was reframed to “challenge common sense.” These moves reflected firm resolution, especially in view of the fact that the Olympics were being held in Tokyo, and the era of rapid economic growth was at its peak.

Reforms included high sales of a small range of products and an emphasis on focus and concentration. The sales strategy included adding value to existing products and a restructured price range. The company worked to develop new products for the next generation, leading to the launch of Pretz and Pocky. By 1967, Glico’s 45th anniversary, its corporate condition had improved, moving from contraction to stable expansion.

With more households opting for color television sets, the appeal of television as a means to deliver advertising increased. The company noticed this early on and deployed commercials featuring entertainers who appealed to teenagers.

In addition, at the company’s 45th anniversary celebration in 1967, founder EZAKI Ri-ichi announced his intention to make Ezaki Glico a world-class company through international expansion. And in 1970, when the Japan World Exposition (Expo ’70) was held in Osaka to showcase postwar Japan’s progress to the world, Ri-ichi established Thai Glico Co., Ltd. This was the company’s first step toward building an international business.

In 1973, EZAKI Ri-ichi assumed the post of chairman. OKUBO Takeo was appointed president, and EZAKI Katsuhisa was appointed vice president. The first oil crisis hit that same year, and Japan entered an era of low growth. The economy slowed, raw material costs soared, and goods were in short supply. Meanwhile the distribution environment was changing, requiring a response to the emergence of supermarkets and convenience stores. Ezaki Glico weathered this crisis by embarking on structural reform, and maintained strong net sales and profits throughout the 1970s, thanks to its cultivation of hit products, which continues to this day, and the growth of its dairy products and food materials businesses.