Many of Japan's small and medium-size companies are feeling the pinch as they struggle to pass rising costs on to their larger corporate customers. One, however, Saitama-based tofu maker Shinozakiya Inc., succeeded in getting supermarkets to swallow a 30 percent increase in wholesale prices in November.
"The price hike was totally accepted by supermarkets. I said, 'If you cannot accept it, we can abandon the relationship with you,' " recalled tough-talking Shigeru Tarumi, the 44-year-old founder and chief executive officer of Shinozakiya.
Once dismissive of Tarumi's business, supermarkets now know that they need his innovative high-quality tofu on their shelves.