Who pays? Who profits?





    The Martek company has claimed that its product had great marketing potential.


    A few years ago Martek Biosciences was recommended as a strong stock market buy. Their lead product was touted as Formulaid – a unique blend of fatty acids, DHA and ARA. The promos read:


    “Infant formula is currently a commodity market, with all products being almost identical and marketers competing intensely to differentiate their product. Even if Formulaid has no benefit (our emphasis), we think it would be widely incorporate into formulas, as a marketing tool and to allow companies to promote their formula as “closest to human milk.”


    Martek’s aggressive marketing paid off. Martek sales of nutritional products increased 183% over the first nine months of 2002 as compared to the same period for 2001 with 80% of its revenues generated from sales of its oils to infant formula companies.


    As well MeadJohnson’s second quarter profits increased 18% over the same period last year, attributed to their introduction of the Lipil product.



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