Food giant Nestle pivots to gain a foothold in the personal nutrition market

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Nestle is pivoting to carve a niche in the medical food business and hone in on personal nutrition. On Thursday the company reported sales of $68.4 billion for the first nine months of the year and remains on track for its target of mid-single-digit expansion in 2020.

Nestle Health Science, a wholly-owned subsidiary of the food giant, specializes in nutritional products to improve overall health and has been investing heavily in companies that treat everything from gut health to Alzheimer's.

On Thursday the company reported sales of $68.4 billion for the first nine months of the year and remains on track for its target of mid-single-digit expansion in 2020.Mention global food behemoth Nestle and the name will likely conjure up images of chocolate, frozen pizza and ice cream. Yet recent moves by its Lausanne, Switzerland-baseddivision is making the company look more like a drug giant.

It makes sense. With health-care costs skyrocketing, consumers are doing all they can to get and stay healthy. Preventative measures — getting enough sleep, exercising, and eating a diet with more fruits and vegetables — have always been part of the equation.

Its latest purchase is Before Brands, specialists in early childhood allergy prevention. The company developed a line of childhood nutritional products called SpoonfulOne aimed at reducing food allergy development. Earlier this year, Nestle Health Science acquired an equity stake in Amazentis, and now has global rights to use its patented Urolithin A technology for dietary supplements and medical nutrition products.

 

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