BusinessWeek reports that some companies are now making it possible for people to buy products that are NOT made in China. For example, Swiss ingredient maker DSM Nutritional Products launched a "premium" Vitamin C that's made in Scotland rather than China, which provides 80% of the world's supply. Now DSM's Quali-C Vitamin C brand is benefiting from consumer's reluctance to buy Chinese products in the wake of the contamination incidents.
Here are three other companies likely to benefit from this anywhere-but- China sentiment:
- Fairway, an upscale New York grocery, reassures consumers that none of its seafood is Chinese;
- International Business Machines Corp. (NYSE: IBM) is pushing systems to trace the food supply from source to market so that people will know where their products come from;
- Freshpet, a Secaucus, NJ all-natural producer of premium dog food blended from meat and vegetables has seen its distribution increase from 200 stores to 1,000 stores, with another 1,000 coming by the end of 2007, tripling its sales to $50 million.
I sense an opportunity for a publicly-traded purveyor of anywhere-but-China consumer products -- maybe Freshpet can do an IPO. It looks to me like IBM's offering will not grow to be big enough to make a significant boost to its corporate profits.
Peter Cohan is president of Peter S. Cohan & Associates, a management consulting and venture capital firm. He also teaches management at Babson College and edits The Cohan Letter. He has no financial interest in IBM.











Reader Comments (Page 1 of 1)
7-23-2007 @ 2:00PM
Nan said...
Yeah! It's about time! How about buying American made as much as possible. Also a lot of the overseas jobs need to come back home to employ people here. We are fattening the wallets and militaries of other countries and shooting ourselves in the foot. I'm not against trade, especially fair trade, but lately things have been rediculous! We are hurting ourselves. Other countries that have lax standards for food quality and product quality shoud be avoided as well. And what about the possibility of a terrorist act through one of these lax countries and food supply or even cleaners and chemicals etc... It's time we wisened up and looked beyond one paycheck at a time corporate America and the Amercian public. We need to be thinking a bit farther ahead. It may cost 5 cents more but the quality is typically better, you know under what standards it has been grown or raised or built and you know you are supporting the economy and future of your country.
7-23-2007 @ 2:36PM
Josh Ikemire said...
In the fair trade movement we have been getting crap for years for calling on all Americans and the world to stop buying goods from places like China, Indonesia, Korea, etc. If a country would allow a corporation to come in and treat their citezens like herds of cattle. Of course they aren't going to care what those products do to Americans or our pets. Ultimately it is up to us to stop this from happening. We have to hold Wal-Mart, Nike, Target, etc. responsible for carrying and producing these sweatshop made goods. It is the love of the money that caused all of our jobs to go overseas for real cheap labor as well as the goods being sold coming from these same countries. It is the consumer's responsiblity to speak with their dollars, euro's, yen, etc. and put a stop to corporate greed. The way it looks to me, we are getting shafted from every direction and we are smiling the whole time. When we start demanding goods that are produced in safe and humane ways, we will get it. When we start demanding that CEO's not get 500,000,000 dollar bonuses, we will get that as well. We have the power, we just have to use it. Hitting them in the wallet, will hurt worse than anything else we can do.
7-24-2007 @ 8:20AM
Randy said...
And lets not forget about the cars that are made over seas with chemicals that are banned here yet are used in production than end up as a new car smell ....
7-24-2007 @ 12:04PM
V said...
If there were a chain of stores with USA products only our family would shop there! For years we have been trying to avoid anything made in China, but it is almost impossible anymore. With so much publicity about the danger of Chinese made products I think the time is more than ripe!
7-24-2007 @ 3:55PM
Tom said...
One of my biggest dissappointments was when I recieved my new Dell computer and all the boxes said made in China. I will NEVER buy anything else from Dell.
7-24-2007 @ 5:33PM
Fermin said...
Yes I am really happy when I buy a product and is made in the good old USA
7-24-2007 @ 7:42PM
William Harmon said...
Hey, what exactly does a free market enterprise system represent? Does anybody understand the supply and demand curves that associated with such? Are we not a country on inovation?
Don't buy from China? (Sure, they have to meet quality standards.) Is our unemployment rate skyrocketing? This is our opportunity to excel in other areas. We are not weighted down making durable goods. They are! I am not saying to give up on our industrial might. Let's make it so we can compete by doing things better. Does the average Chinese individual have to opportunity to do what the average American has? This is our opportunity. The Pie mentality is not what our constitution is based on.
7-25-2007 @ 10:00AM
rainpromise said...
We can not totally repudiate the products that made in China because of specific phenomenon.
7-25-2007 @ 11:23AM
moonzie said...
The Syndrome of China mentioned in this article sound the alarm to some of the Chinese manufactory.But the competition between the small and medium sized companies who compete solely on cost will select the superior and eliminate the inferior in quality.Then those cut corners like crazy would be out of the market. So the choosing of the trade company would be an important step. AmeriChinaB2B is one of the professional B2B trade marketplaces to facilitate online trades between exporters and importers from America and China.I believe the ACB2B( http://www.acb2b.com/ ) might help the US importers in finding good suppliers.
For China(exporter): "The problems are structural, not the result of a few bad apples."- we should learn a lesson from the universality of the promblem.
For US(importer): I think the choose of trade company is important.
7-26-2007 @ 4:53PM
Glenda said...
Fair trade! What fair trade! The people in DC should wake up! Jobs outsouring, local tax increase (my real estate tax increased by 50.5% in good old MD). Our electric rates have increased by 100% and our new governor said there was not much he could do to help tax payers.
How can they realize that the American consumer cannot keep charging or refinancing their homes. People have reached their limits (and how about the increase in gas). They sent a lot of the industrial jobs overseas, our homes are losing value by the day, food has increased, and we the people look for someone in DC to give us some real reasons for the so called fair trade! How can China manufacture cars in Mexico and import them duty free to the US under NAFA??? China puts a 25% duty on American cars imported into their country.
Hey, people in DC wake up an smell the roses --- we the USA people want some relief from your trade deals that hurt us, and most of all how about bring our boys and girls home from the war that should not have happened.