Nestlé SA may be best known for its candy bars, instant coffee, and Quik chocolate drinks, but sweet things aren’t all that the brand has up its sleeve. This week Nestlé bought a significant stake in Accera, a biotechnology company involved in “medical foods development” including the production of Axona, a prescription-based milkshake-type drink meant to manage and improve symptoms of mild to moderate Alzheimer’s disease.
According to the Wall Street Journal, Nestlé hasn’t disclosed how much money it invested in Accera, not to mention how large of a stake in the company it purchased – all that is known is that it was enough stake to earn the global superpower a seat on Accera’s board of directors:
"The significance of this is not the size of the investment, but the fact that it is our first step in developing our brain health portfolio," said Luis Cantarell, president and chief executive of Nestlé Health Science, a subsidiary set up by the Vevey, Switzerland, company last year.
But while it’s not known exactly how much money Nestlé has spent on this endeavor, it is known how much the company plans to spend in the future: WSJ notes that Nestlé has plans to invest in the vicinity of $500 million over the next ten years in health-related foods and drinks along the lines of Axona.
With that in mind, even if Nestlé only invested a relatively small amount into Accera it still appears to be a smart move. By aligning itself with a smaller business that shares its future goals and supplying the investment funding to keep up research it’s able to ensure that, when medical breakthroughs happen, not just Accera but also Nestlé will be at the forefront of it all.
[SOURCE: Wall Street Journal]