Nutrasweet
Nutrasweet's Bitter Fight
By EBEN SHAPIRO
Published: November 19, 1989
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For a company with such a sweet product, the Nutrasweet Company plays a tough game of corporate hardball.
Under the mantle of patent protection, the inventor of aspartame has made hundreds of millions of dollars selling the low-calorie sweetener. Now those patents are beginning to expire, opening the door to competitors. But the company has quickly established itself as a formidable defender of the $700 million-plus market for its only product.
But its aggressiveness in the marketplace should come as no surprise since it has long been known for its abrasive treatment of its own customers, the big food and beverage companies that use aspartame.
Chairman Robert B. Shapiro acknowledges that NutraSweet's brash manner has given it a reputation for arrogance. ''Under the pressure of trying to develop this business quickly,'' he said, ''I'm sure that there were times when we were rude or inconsiderate and that we said things we shouldn't have said, or failed to say things we should have said.'' But, he added, ''I know we've changed . . . to some degree.'' One-Product Company
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It remains to be seen to what degree Nutrasweet is refining its aggressive style, now that its customers have other choices. But clearly this is a critical time for a company that was built around a single product.
To help blunt the impact of losing its monopoly, the company, which is based in Deerfield, Ill., is trying to bring to market a second product: Simplesse, a fat substitute it developed that is expected to have broad applications as an ingredient in ice cream, salad dressing and a host of other foods.
But some industry analysts doubt that even such a promising product can compensate for the impact of losing the aspartame monopoly. And even in these early stages of product development, there are signs of tension with some potential customers of the
By EBEN SHAPIRO
Published: November 19, 1989
SIGN IN TO E-MAIL
For a company with such a sweet product, the Nutrasweet Company plays a tough game of corporate hardball.
Under the mantle of patent protection, the inventor of aspartame has made hundreds of millions of dollars selling the low-calorie sweetener. Now those patents are beginning to expire, opening the door to competitors. But the company has quickly established itself as a formidable defender of the $700 million-plus market for its only product.
But its aggressiveness in the marketplace should come as no surprise since it has long been known for its abrasive treatment of its own customers, the big food and beverage companies that use aspartame.
Chairman Robert B. Shapiro acknowledges that NutraSweet's brash manner has given it a reputation for arrogance. ''Under the pressure of trying to develop this business quickly,'' he said, ''I'm sure that there were times when we were rude or inconsiderate and that we said things we shouldn't have said, or failed to say things we should have said.'' But, he added, ''I know we've changed . . . to some degree.'' One-Product Company
ADS BY GOOGLE
It remains to be seen to what degree Nutrasweet is refining its aggressive style, now that its customers have other choices. But clearly this is a critical time for a company that was built around a single product.
To help blunt the impact of losing its monopoly, the company, which is based in Deerfield, Ill., is trying to bring to market a second product: Simplesse, a fat substitute it developed that is expected to have broad applications as an ingredient in ice cream, salad dressing and a host of other foods.
But some industry analysts doubt that even such a promising product can compensate for the impact of losing the aspartame monopoly. And even in these early stages of product development, there are signs of tension with some potential customers of the