When selecting our case, we wanted to choose a company that the majority of our class would have never heard of before. We were researching possible topics and companies and came across Beech-Nut Nutrition Corporation. The company sold a wide variety of products ranging from vacuum-sealed bacon jars to chewing gum since its founding in 1890. However, Beech-Nut's most lucrative product was its baby foods, which began around the 1930s. At that time, the company was the second largest baby food producer in the United States. The company differentiated itself from its competitors by packaging its products in glass jars rather than cans, which were used by most manufacturers. Their line of baby foods did well, but sales took off with the arrival of the post-war baby boom, where sales nearly doubled between 1948 and 1950. By 1950, Beech-Nut had 48 different types of jarred baby food which provided more than a quarter of baby food. the company's $70 million in revenue. Through multiple mergers and acquisitions, Beech-Nut was eventually purchased as a subsidiary of Nestlé in hopes of turning around the product after a few struggling years. Nestlé had the marketing and advertising budget that Beech-Nut needed to gain competitive market share. By 1986, Beech-Nut had regained its position as the second largest baby food producer with a 20% market share. The company has been able to build a reputation for pure, high-quality products. However, this was not the case. Due to financial difficulties, Beech-Nut signed a contract with Interjuice Trading Corporation, a wholesaler that produced apple juice concentrate that sold well below the market price. This lower price saved the company approximately $250,000 per year. The first tests of apple juice concentrate...... middle of paper ......these and the difficult decisions that managers must make between the delicate balance between production costs and quality. We learned a lot from this case, including the process that followed the discovery of large-scale fraud by a major baby food producer. Although the executives and the company escaped their fraudulent behavior for quite some time, their actions eventually came to light and not only did they face the consequences of their actions, but the company's reputation was damaged. suffered enormously from their choices. Additionally, we gained a better understanding of the fraud triangle and how intense external and internal pressures can create the need to make unethical decisions. Finally, we learned that fraud is not just about embezzlement. In this case, the fraud consisted of a deliberate misrepresentation of information, not assets..