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Big Food, Big Pharma Lock Horns Over Huge – And Growing – Nutraceuticals Market

October 18, 2010: 08:53 AM EST

A battle royal is shaping up between big food companies and pharmaceutical firms, both of which are taking the $175 billion nutraceuticals market with its 25 percent profit margins very seriously. Lined up on the food side of the field are companies like Nestlé, Danone and PepsiCo, all of which have launched initiatives. A major pharmaceutical entering the fray is Novartis, which has compiled a track record in the food industry by virtue of relationships with companies like H.J. Heinz. It’s still early in the fight, however, and so far neither industry seems to have a big lead. In fact it’s very possible, analysts say, that big food and big pharma will link up to share their respective expertise in tackling the market. Meantime, keep your eye on Nestlé.

Tony D’Altorio, "A Food Fight Over Nutraceuticals", Investment U Research, October 18, 2010, © The Oxford Club, L.L.C
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