Chicago-based Altus Food Co, an independent company established two years ago through a joint venture between US food giant Quaker Oats’ and Swiss health-care giant Novartis has been closed down.
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Altus was formed to develop a range of “functional foods”, including cholesterol-reducing cereals and female-orientated snack bars, but the companies admitted last week that the venture was sidetracked by their new priorities before its business plan was fully developed.
For Quaker, the biggest priority was its US$13.8bn buyout by PepsiCo Inc, after which its snack unit was merged with PepsiCo’s Frito-Lay unit, and the focus changed to functional drinks rather than foods.
Quaker spokesman Mark Dollins told the Chicago Tribune: “We’re looking at snacking opportunities differently as part of a realigned organisation, with a different structure and different strategic priorities.”
Novartis has meanwhile shifted its focus from functional since February 2000; earlier this month it revealed plans to sell its health and functional food brands to concentrate on its core pharmaceuticals and health-care businesses.
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By GlobalDataQuaker and Novartis have yet to decide the future of the Take Heart cereal line launched by Altus last year.
