Nestlé on Monday said it will invest hundreds of millions of Swiss francs in a new
venture that will harness its food and pharmaceutical expertise to produce more
products with health benefits.
Nestlé created two new units, Nestlé Health Science SA and the Nestlé Institute of Health Sciences, aimed at developing products that may prevent and treat ailments such as diabetes, cardiovascular disease and Alzheimer's disease.
The combination of health economics, changing demographics and advances in health science show that our existing health-care systems, which focus on treating sick people, are not sustainable and need redesigning," Nestlé Chairman Peter Brabeck said. "Nestlé has the expertise, the science, the resources and the organization to play a major role in seeking alternative solutions."
Nestlé, the world's largest food and drinks maker by sales,
has for years pushed to broaden its health-food platform by creating new
products such as nutrient-enriched yoghurts or drinks. It has also acquired
many companies that are active in the area of sports and clinical nutrition.
Brabeck said Nestle was aiming for a leading role in health nutrition, while maintaining "the necessary focus on Nestlé extremely important food, beverages and nutrition business."
The health institute will be integrated into the group's research and development network and run by the former chief scientific officer of US biotech company ViaCyte, Emmanuel Baetge.
Nestle bolstered its health business in 2006-2007 by buying pharmaceutical giant's Novartis entire medical nutrition business for 2.5 billion dollars and announced a strategic shift to becoming a "nutrition, health and wellness company".
