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Nestlé set to purchase diet firm Jenny Craig
Nestlé, the Swiss food giant, was planning to announce Monday that it had agreed to pay about $600 million for Jenny Craig, the weight-loss company that has had a surprise turnaround in recent years as a result of an irreverent advertising campaign chronicling the slimming waistline of Kirstie Alley, of "Cheers" and "Fat Actress" fame.
The deal is a bold gamble for Nestlé, which has never before ventured into the $50 billion weight loss industry but is betting that consumers, in search of health and vanity, will continue their age-old battle to lose weight through prepackaged meals and motivational workshops, especially as America is fighting an escalating obesity epidemic.
The acquisition is also part of Nestlé’s effort to expand its presence in what is described as the "functional food" category through its Nestlé Nutrition unit, which manufacturers PowerBars, baby foods and a series of nutritionally enriched products for the elderly. Jenny Craig manufacturers prepackaged meals that are sold exclusively through its weight- loss centers. (NYT)
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