Hi Betty,

This was on Lactnet.  Apparently from Ross' annual report:


Date:    Mon, 31 Mar 1997 00:11:24 -0600
From:    Cathy Liles <[log in to unmask]>
Subject: Abbott Labs (Ross)

Thought you might be interested in this information from Abbott
Laboratories- Ross makers of Similac,
"Nutritional Products

Fundamental changes in global markets present Abbott's nutritional
business with
opportunities for growth. Abbott plans to pursue these opportunities in
three ways:

     Continued focus on developing new products, improving existing
products and
     developing new packaging;
     Continued expansion of its international presence, especially in
emerging markets
     such as China and Southeast Asia;
     Continued emphasis on identifying and developing new market
segments for
     medical and pediatric nutritionals, and capitalizing on the
strength of
its pediatric
     sales force.

These strategies will help the company grow this business despite
changing
demographics and challenging market conditions. In the United States,
births
declined
for the sixth year in a row. At the same time, the percentage of
children
covered by the
government-sponsored supplemental food program for women, infants and
children
(WIC) has increased. At the other end of the demographic spectrum,
Abbott's
adult
nutritional business has been positively affected by an increase in the
number of
consumers over the age of 45. These demographic shifts have prompted
aggressive
strategies from Abbott and other players as they contend for share in
this
important
market segment.

Outside the United States, economic and political changes in a number of
emerging
economies have led to an increase in discretionary income, which allows
consumers to
benefit from Abbott's broad line of adult and pediatric nutritional
products.


"Continuing a tradition of innovation
Abbott remains the U.S. leader in the overall retail market for infant
formula. In 1996,
Wyeth-Ayerst, with a market share of about 10 percent, exited the U.S.
infant formula market.
This created an opportunity for Abbott, and the company gained a major
portion of
Wyeth-Ayerst's market share. In the United States, Abbott continues to
see
price pressure,
particularly in the competition for state WIC contracts. Despite this
competitive market, the
company plans to continue to grow this business through innovative new
products and marketing
programs.

Similac and Isomil, Abbott's two primary infant formula products,
continue
to be U.S. market
leaders in the non-WIC segment. Supporting this success are the
company's
effective marketing
efforts, combined with long-term research and development efforts that
enable Abbott to develop
innovative products in response to market needs.

Similac NeoCare is a specialized nutritional formula with 20 percent
more
protein, 10 percent
more calories and more vitamins and minerals than the standard formula.
Because it was
formulated specifically for premature and low-birth-weight babies who
have
been discharged from
the hospital, it has been well received by physicians and mothers.

In 1996, Abbott's R&D focus was most clearly illustrated with the launch
of Similac Advance in Canada, Italy, Spain and Latin America. This
improved infant formula is the result of a long-term program to bring
infant
formula closer to the effects of breast milk. Similac Advance is the
only
infant formula with added nucleotide levels and ratios patterned after
the
total potentially available nucleotides from breast milk. Nucleotides
are
compounds that are found in most living cells and in breast milk.
Similac
Advance also contains a unique blend of fats and proteins. The formula
supports visual and cognitive development similar to that of the
breast-fed
infant. Abbott has been
test marketing this improved formulation in the United States since
mid-1996, and a national launch
is planned for the first half of 1997.

Abbott's traditionally close relationship with pediatricians and other
health care providers serves as
the foundation for the company's solid market position in the United
States.
Pediatricians are also
key to the success of consumer education programs, such as the Welcome
Addition Club. The
Welcome Addition Club is a program that provides new and expectant
parents
with a broad
range of information, from nutrition and breast-feeding tips to basic
parenting skills.

Abbott's commitment to children's health extends beyond providing
quality
infant formulas. Abbott
has also had success with Pedialyte, an oral electrolyte solution for
fluid
maintenance in infants and
children with diarrhea. Abbott created this product category, and has
continually improved its
offering with new flavors, formulations and packaging. In 1996, Abbott
introduced Pedialyte
Freezer Pops in the United States. Pedialyte Freezer Pops are intended
for
use as a supplement
to liquid Pedialyte, and are available in a variety of flavors to help
ensure that children get the
liquids and minerals they need to prevent dehydration. This line
extension
has helped the company
broaden its base in the rehydration market.

The success of Abbott's nutritional business is founded on the strength
of
its reputation with
doctors and health care providers.

This reputation is supported by the company's recognized expertise in
nutritional science. Abbott
employs more than 500 nutritional scientists to develop and introduce
innovative nutritional
products and delivery devices.

Abbott's nutritional business is also strengthened by the company's
expertise in developing
innovative nutritional delivery systems. Abbott entered the enteral
delivery
system market in 1980
and has a leading share of the market today.

Nutritionals have worldwide markets
Key to the continued success of Abbott's nutritional business is the
expansion of the company's
presence in emerging markets. Emerging markets are those that are
experiencing rapid economic
growth fueled by fundamental changes in their political and economic
structures. These expanding
economies create a larger base of consumers with sufficient income to
pay
for health care products
and services. Of particular interest to Abbott's nutritional business
are
the markets of China, where
the birthrate averages 21 million babies each year, and the emerging
Asian
markets of India,
Indonesia, Pakistan, Vietnam, Philippines, Turkey, Thailand, South Korea
and
Malaysia. These
countries have more than six times the population of the United States
and
more than 11 times the
number of annual births. They represent an opportunity for products like
Similac, Isomil and
Gain, a follow-on formula for children who are over six months old.

Entering new market segments
Traditionally, Abbott has succeeded in leveraging the company's
strengths to
enter new market
segments."