• Otsuka Pharmaceutical subsidiary Nutrition & Santé has acquired French organic food product manufacturer BC BIO.
• BC BIO has continued to grow in recent years, developing a range of free-from food products, primarily organic meat-free and gluten-free items, which are attracting increased interest in Europe.
• Through this acquisition, N&S aims to reinforce its range of organic offerings and expand its business base.

Otsuka Pharmaceutical Japan Co., Ltd. (Head Office: Tokyo, Japan; President: Tatsuo Higuchi) has announced the acquisition by subsidiary Nutrition & Santé (Head Office: Revel, France; hereafter N&S) of BC BIO, a French manufacturer of organic food products^※1. The acquisition of all shares was completed on December 29, 2017.

Established in France in 2012 by Cyril and Karine Baland, BC BIO is an organic food product startup based on the principle of "familiar gourmet items created from fresh, locally harvested organic foodstuffs." The company has continued to grow by leveraging production and marketing knowhow for free-from foods^※2, with a focus on organic gluten-free and organic meat-free pizza.

In Europe, recent movements to ensure safety and integrity of food products among health-conscious consumers have contributed to growth in sales of organic foods. At the same time, a increased tendency to avoid meat and sugar has fueled interest and contributed to a growing market for free-from food products.^※3

The acquisition of BC BIO will enable N&S to grow its portfolio of organic food products and expand its overall business base by maximizing synergies between the two organizations.

International Expansion of Otsuka Pharmaceuticals Nutraceuticals Business

Otsuka Pharmaceuticals began international expansion of the nutraceuticals^※4 business in 1982, with the launch of POCARI SWEAT in Hong Kong and Taiwanese markets. The 1982 acquisition of U.S.-based Pharmavite set the stage for international expansion of Naturemade, the top U.S. brand^※5 of nutritional supplements. In 2009, Otsuka acquired French manufacturer Nutrition & Santé, and is currently expanding the N&S line of health and functional foods in European markets. Daiya Foods, a Canadian company specializing in production and sale of plant-based foods, was acquired in 2017. Otsuka Pharmaceutical is steadily expanding its portfolio of consumer products for the maintenance and improvement of health, building its nutraceutical business in Japan and overseas.

Based on its corporate philosophy of "Otsuka - people creating new products for better health worldwide," Otsuka Pharmaceutical will continue to contribute to the health and wellbeing of people around the world.

1. 1Organic food products: Food products made entirely from agricultural ingredients grown without pesticides or chemical fertilizers. Products made entirely from organic agricultural ingredients as certified by the European Food Safety Authority (EFSA). Increased food safety concerns among health-conscious European consumers have fueled growth of the market for organic foods.
2. 2Free-from food products: Food products formulated to exclude specific ingredients. In recent years, an increasing number gluten-free、sugar-free、meat-free, and other alternative products have been developed and "free-from" is becoming a key word in the food industry.
3. 3Gluten-free market: 13% growth over the five-year period 2011-2016 (Euromonitor International (world markets))
   Meat-free market: 6% growth over the two-year period 2014-2016 (MarketsandMarkets Research (world markets))
   Organic foods market: 6% growth over the five-year period 2011-2016 (Euromonitor International (world markets))
4. 4Nutraceuticals: Nutrition + pharmaceuticals
5. 5No. 1 retail vitamin and mineral supplement brand in the US: Scantrack® service, US x AOC channels, 2008-2016. ⓒ2017, The Nielsen Company

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