Quaker, Novartis Form Health-Food Venture

Quaker Oats Co. said it is entering a joint venture with Swiss drug company Novartis to woo consumers who want foods that have proven health benefits. The new firm, Altus Food Co., will develop “functional foods”--those with ingredients said to contribute to better health--in the United States, Canada and Mexico. The companies said they intend to get a sizable chunk of the U.S. market for healthy food, which they estimate at $10 billion to $20 billion and which is growing by 10% or more a year. Altus, which consists of 20 to 30 executives from the two firms, is based in Chicago, as is Quaker, and aims to have new products on the market by year’s end. The companies did not disclose financial details of the 50-50 partnership or specify what products are envisioned, other than that they could include beverages, snacks and cereals. The companies said they will focus particularly on the health-care concerns of women, children, athletes and older adults. Quaker’s stock closed off $1.13 at $55.56 on the New York Stock Exchange.