Novartis, Quaker Form JV

SUMMIT, N.J.--Novartis Consumer Health Inc. and Quaker Oats Company have formed a functional foods joint venture, to be called the Altus Food Company. Based in Chicago, Altus will develop and market functional food brands for the United States, Canada and Mexico. Altus will focus on the development of products for women, children, athletes and maturing adults.

"The Quaker Oats Company and Novartis Consumer Health are ideal partners to pursue growth of the functional foods market," said Al Piergallini, president and chief executive officer of Novartis. "Novartis' product development skills and consumer health care business complement Quaker's consumer food marketing expertise and brand leadership."

The market for functional foods in the United States is estimated to be approximately $20 billion, with an estimated annual growth rate of 15 percent.