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Quaker joins with Novartis
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February 10, 2000: 7:45 a.m. ET
Novartis and Quaker are set to form a joint venture in healthful foods
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LONDON (CNNfn) - Switzerland's Novartis and Quaker Oats are poised to announce a joint venture Thursday in so-called 'functional foods', in the hope of capitalizing on growing consumer demand for healthful food.
Novartis has confirmed news reports that it and Quaker (OAT: Research, Estimates) will form a jointly owned company to be called Altus Food Co. and based in Chicago. Terms of the deal were not disclosed.
Altus aims to combine Quaker's traditional processing and branding expertise along with Novartis' pharmaceutical skills. Altus will offer a range of "functional foods", also known as nutraceuticals, which promise health benefits beyond basic nutrition and are predicted to explode in popularity. Cholesterol-lowering margarines are one example.
The market for functional foods has been estimated at $20 billion annually in the U.S. alone, according to the reports. It is expected to grow at some 15 percent each year.
Novartis launched a new Aviva range of functional foods last November, set to penetrate the European market. The line promises to lower cholesterol, strengthen bones and improve digestion.
from staff and wire reports 
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