Nestlé to form alliance with Snow Brand

Swiss food giant Nestle has announced it will join forces with the beleaguered Japanese food processor, Snow Brand Milk Products. Earlier this year the Japanese company suffered when a food poisoning outbreak sickened nearly 15,000 people. Yesterday the Associated Press reported that the fallout from the contamination had cost the company over $900 million. Yesterday the company announced that at least 1300 employees would loose their jobs and that directors' salaries would be cut by 30 per cent. It hoped to become profitable again by 2003. In a company press release, Nestle said the project was an opportunity to broaden its product base in Japan, where its coffee, confectionery and pet food lines are already doing well. Joining with the weakened dairy leader will give Nestle the opportunity to expand its global market presence and increase its dairy holdings in Japan.