(A very interesting article from BusinessWeek.com, on Martek and its additives - it really shows how business thinks about this, and gives some insight into what business thinks is the future market for infant formula). A Growing Boost for Baby Formula Despite patent trouble in Europe, Martek, a maker of nutritional supplements for infant sustenance, is set to further penetrate the field http://www.businessweek.com/investor/content/jan2005/pi20050111_1011_pi008.h tm Your shorter link is: http://makeashorterlink.com/?H2276253A Excerpt: Supported by scientific data, infant formula producers have embraced the idea of offering a DHA-inclusive product. In fact, all of the most significant market participants (approximately 14 infant formula manufacturers and 19 companies overall) have been licensed to offer Martek's additive in formula, and we see strong incentive for them to do so. At the start, this offered formula makers the opportunity to differentiate their product and charge premium prices for the DHA-inclusive product. We suspect that as they continue to grow shelf share of the inclusive formula, these producers are boosting earnings growth by expanding margins in a business where top-line growth had matured. Furthermore, to win Women, Infant, and Children programs (state food-stamp programs), formula manufacturers have presented the DHA-inclusive formula. Since early 2002, about 46 state WIC programs have adopted a brand of infant formula supplemented with Martek's oils, so all food-stamp purchases in those states go for formula that includes Martek's additive. We estimate the global market for infant formula at $7.9 billion, and Martek's portion at about $400 million. In 2002, the first full year the additive was offered by licensees, penetration exceeded 10%. In the most recently reported quarter (ended October 2004) market penetration in the U.S. was nearly 75%, and the company believes it will reach 100% penetration in 2005. Our model predicts average global penetration of 64% in fiscal 2005 (ending October), 70% in fiscal 2006, and 75% in fiscal 2007. (see link for full article) Janice Reynolds Saskatchewan, Canada *********************************************** To temporarily stop your subscription: set lactnet nomail To start it again: set lactnet mail (or digest) To unsubscribe: unsubscribe lactnet All commands go to [log in to unmask] The LACTNET mailing list is powered by L-Soft's renowned LISTSERV(R) list management software together with L-Soft's LSMTP(R) mailer for lightning fast mail delivery. For more information, go to: http://www.lsoft.com/LISTSERV-powered.html