“Abbott Ross (a subsiduary of Abbott Laboratories) markets its products in 130 countries. In 2002, Abbott achieved record sales of $17.7 billion and net earnings of $3.2 billion. The Medical Products Group, which includes diagnostics, hospital products and nutritionals, reached $8 billion in sales. There has been speculation that Abbott Laboratories would spinoff its nutritional products business in favour of more concentration on hospital products. An analyst with J.P Morgan says “But the hospital products business isn’t nearly as profitable as the nutritionals business”. The high profitability of the infant food business and intense competition from Mead Johnson are the main reason for Abbott’s aggressive marketing campaigns. Abbott successfully uses ‘image transfer’ by riding on another organisation’s good reputation. For example, in 2004, in the Gulf countries, Abbott bought UNICEF diaries and inserted its company name, mission statement and addresses on the inside front cover and the Abbott logo on the last page with the slogan “Improving Lives”. This same strategy was used for a well-known breastfeeding book published in 2002 by the American Academy of Pediatrics (AAP); Abbott bought 300,000 copies and added the Rosco bear to the cover. Mothers and doctors who receive a free copy, get a double message. Does it promote breastfeeding or Similac? The chairman of the AAP breastfeeding committee called it “Thievery”. But AAP makes a profit and agreed to sell Abbott another 300,000 copies in 2003. Abbott has continously nurtured close ties with the AAP by giving grants for its awards and donating at least $500,000 towards AAP’s operating budget. The company also contributes to the $1 million renewable grant to the AAP by several formula manufacturers. Little wonder that AAP came to the companies’ aid when they felt a 2003 US government campaign to promote breastfeeding was too hard-hitting on the risks of formula feeding. The campaign has now been watered down. In the US, where breastfeeding rates are increasing, Abbott and other formula manufacturers have launched their latest marketing tool to get a larger share of the $3 billion market: the addition of fatty acids, DHA and AHA into formula products. Abbott’s claim, however, that its Isomil and Similac products bolster IQ and eyesight are based on short term clinical trials that merely show short term benefits and no benefits when compared to breastfed children. Abbott’s Isomil soy formula has been withdrawn from the market in New Zealand following widespread concern over long term risks to child health” http://www.ibfan.org/english/pdfs/btr…