McNeil Nutritionals and Tate & Lyle Announce Strategic Realignment of Sucralose Alliance

FT. WASHINGTON, Pa., Feb 19, 2004 /PRNewswire-FirstCall via COMTEX/ -- McNeil Nutritionals, Division of McNeil-PPC, Inc., a Johnson & Johnson company, today announced the realignment of its sucralose agreements with Tate & Lyle PLC to better position sucralose and the SPLENDA(R) Brand for future global growth opportunities.

In the new agreements, McNeil Nutritionals will retain ownership of the SPLENDA(R) Brand and have commercial responsibility for the worldwide SPLENDA(R) Brand retail and food service business. Tate & Lyle will become the sole manufacturer and will be responsible for worldwide food and beverage ingredient sales of SPLENDA(R) Brand sucralose. Tate & Lyle will supply McNeil Nutritionals sucralose requirements on an exclusive basis. This realignment of responsibilities is a natural evolution of the long-term partnership that has nurtured the success of sucralose and the SPLENDA(R) Brand. The collaborative structure plays to the strengths of each company and ensures that customers, wherever they are, receive enhanced service dedicated to their business sector.

"With the impressive growth of both the retail market for SPLENDA(R) Brand tabletop products, combined with the recent European Union approval of sucralose, the SPLENDA(R) Brand Sweetener, this realignment will enable us to better serve our customers around the world," said Brian Perkins, worldwide chairman, Consumer Pharmaceuticals & Nutritionals Group, Johnson & Johnson.

"Most importantly," he continued, "the new realignment will build our SPLENDA(R) Brand by maximizing global opportunities in retail and food service. McNeil Nutritionals will focus resources on marketing to consumers and healthcare professionals, while Tate & Lyle will provide outstanding supply-side capabilities to the food and beverage industry."

"Growing the contribution from value-added and branded products is a key part of our strategy and acquiring the sucralose ingredients business is another significant step towards achieving this goal. Sucralose is ideally placed to meet consumer demands for reduced calorie options in many categories, including soft drinks, dairy and confectionery. We look forward to offering this impressive product alongside our existing range of food ingredients and sweeteners," said Iain Ferguson, chief executive of Tate & Lyle.

He added, "We are pleased that our long-standing relationship with McNeil Nutritionals continues to be developed so that we are each best able to serve our customer base and benefit from the exciting growth opportunities that sucralose and the SPLENDA(R) Brand offer."

On closing, McNeil Nutritionals will transfer to Tate & Lyle the sucralose manufacturing plant in Alabama and other assets of the ingredient business, including intellectual property. The transaction is not expected to have a material impact on revenues or earnings of Johnson & Johnson.

The transaction is subject to clearance under the Hart-Scott-Rodino Anti-Trust Improvement Act in the United States. Both companies expect to conclude this transaction by April 2, 2004.

About SPLENDA(R) Brand

SPLENDA(R) Brand products are produced by McNeil Nutritionals Division of McNeil-PPC, Inc. SPLENDA(R) Brand No Calorie Sweetener products are available at U.S. retail stores in packet and granular form. SPLENDA(R) Brand No Calorie Sweetener is also available to food service operators throughout the U.S. SPLENDA(R) Brand Sweetener is used in more than 3,500 products of major food brands worldwide. More information about SPLENDA(R) Brand and recipes, tips on cooking and baking with SPLENDA(R) can be found at or by calling 1-800-7-SPLENDA (1-800-777-5363).

About McNeil Nutritionals

McNeil Nutritionals Division of McNeil-PPC, Inc. is a marketer of innovative nutritional products that are validated by science. Its major brands include SPLENDA(R) Brand No Calorie Sweetener (, VIACTIV(R) Soft Calcium Chews (, LACTAID(R) Milk and Dietary Supplements ( and BENECOL(R) Spreads and SoftGels ( that are proven to help reduce cholesterol.

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