In 1981, when Las Hoyvald join Beech-Nut, the company was in financial trouble. In the competitive baby food industry, the company was a distant second behind Gerber, with 15 percent of the market. Although he was new to Beech-Nut, Hoyvald had wide experience in the food industry, and his aim, as stated on his resume, was “aggressively marketing top quality products.”

In June 1982, Hoyvald was face with strong evidence that Beech-Nut apple juice for babies was made from concentrated that included no apples. The concentrated was bought from the supplier of the low-cost apple concentrated, Universal Juice Company since 1977.

First investigation by two employees of Beech-Nut showed that there are presence of corn syrup, but the Vice President of Beech-Nut, Mr. Lavery dismissed the report. A turning point occurred when investigation by private investigator showed that Universal plant only produced sugared water and invited Beech-Nut to join a suit against Universal.

Some of the executives have urged Hoyvald to switch the supplier and recall all the apple juice on the market, but he was hesitant because he claimed that even if the apple juice was bogus, no evidence that the juice was harmful. Switching supplier required Beech-Nut to pay additional cost of $750,000 for the juice and recalling all the apple juice on the market would cost about $3.5 million and means that they are admitting that the company has sold adulterated product.

He also said that it tasted like apple juice and it surely provide some nutrition. Furthermore, he had promised his Nestle superior that he would return a profit of $7 million for the year. Recalling all the juice on the market and changing supplier means that he failed to keep the promise to his superior.

Fearful that state and federal investigators might seize stocks of bogus apple juice, Hoyvald had taken several