Business Nation - May 2007

A PUFF PIECE

It may seem as though it's based on pure puffery, but the marshmallow industry is rock solid. From campfire treats to Easter Peeps, more than $150 million worth of marshmallows are sold every year. That number could be much higher if not for one thing: marshmallows contain gelatin, an animal byproduct, and so strict vegetarians can't eat them. But the search for the holy grail of the vegetarian world -- a non-animal based marshmallow -- is a delectable story everyone will enjoy!

As Jane Wells reports, it includes two earnest entrepreneurs who suffered financial ruin, a mysterious businessman who disappeared without a trace, and an army of vegetarians in search of one sweet treat.

Vegetarians in Paradise:

Pineapple Test:

Eager Entrepreneurs:

COUNTERFEIT

Zippo lighters have been manufactured at the same factory in Bradford, Pennsylvania, population 9,000, for 75 years. Now, the iconic American flip-top lighters are also being manufactured in China. Problem is, the Chinese "Zippos" are fakes -- cheap knock-offs -- and the flood of counterfeits has put a big dent in Zippo's business. The town of Bradford has felt the pain too; the company laid off workers as sales of the real lighters have fallen. But Zippo is fighting back, hiring its own investigators to go to China to get at the source of the problem.

As the national debate over Chinese piracy heats up, Scott Wapner reports on the impact of counterfeiting on one American company, its employees, and the small town it calls home.

SHOWDOWN IN McCLOUD

The northern California town of McCloud is known for its breathtaking beauty. But today in McCloud, all eyes are focused on an ugly fight over a most precious natural resource: water. The Nestle Company, one of the world's biggest sellers of bottled water, is preparing to build a plant to bottle the pristine water that flows down Mt. Shasta. Some people in McCloud see Nestle as a savior -- bringing much-needed jobs to a town that fell on hard times when its only employer, a lumber mill, closed in 2003. Others say the new factory could ruin one of the most picturesque places in America. Caught in the middle is Nestle. With 23 bottling facilities from coast to coast, it depends on a steady supply of water from local streams, lakes and rivers.

And as Michael Okwu reports, clashing with local citizens has become part of the price of doing business.