United Kingdom

Details

  • Industry: Chemicals & Performance Technologies
  • Type: Press release
  • Date: 15/05/2014

Talks over sale of Danone’s medical nutrition business heralds the rise of the ‘nutraceutical’, says KPMG 

 

Commenting on the announcement by Danone that it is in talks with a number of potential buyers over the sale of the majority of its medical nutrition division, Chris Stott, food and drink partner at  KPMG, said:

 

“With these talks coming hot on the heels of Symrise’s acquisition of Diana Ingredients last month, we are witnessing a steady convergence of the food and pharmaceutical industries.

 

“There is certainly enormous potential for growth in the medical foods - or ‘nutraceuticals’ – market, as health-conscious consumers become increasingly focused on their diet, and healthcare takes a more preventative approach to disease.

 

“However, food and pharma business models are incredibly different. The success of a company wanting to occupy this space hinges on it selecting the very best aspects of both industries to develop the appropriate culture and capabilities for growth.

 

“For example, Danone acquired its medical nutrition business as part of its purchase of Numico in 2007. However, following the acquisition, it did not focus on adapting its organisational structure to support the sales model and R&D focus that a medical nutrition business requires.”

 

Chris Stirling, KPMG’s global head of life sciences, added: We’re all aware of the significant increase in M&A activity underway in the pharmaceutical and life sciences sector. This activity results primarily from the upheavals in healthcare systems across the globe. One healthcare trend is a shift towards ‘prevention’ away from focussing purely on ‘cure’ which will drive greater convergence between food and medicine in the longer term.  We therefore expect to see lots more activity in the nutraceuticals space.”

 

- Ends -

 

For press queries, please contact:

 

Katy Broomhead, KPMG Corporate Communications

Tel: 0161 246 4623 / 07824 537963

Email: katy.broomhead@kpmg.co.uk

 

KPMG Press office: 020 7694 8773

 

 

About KPMG


KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and operates from 22 offices across the UK with approximately 11,500 partners and staff.  The UK firm recorded a turnover of £1.8 billion in the year ended September 2013. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 155 countries and has 155,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity.  Each KPMG firm is a legally distinct and separate entity and describes itself as such.

 

 

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