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By 1986, NutraSweet, the operating entity set up by Searle to build the aspartame business, had reached sales of $711 million. Now, NutraSweet’s patents in the European and Canadian markets were due to expire as of 1987, although the U.S. market would remain protected until December 1992.
Winfried Vermijs, president of HSC, reviewed his company’s strategy for competing in the aspartame business. Price and volume forecasts had been prepared for the European and Canadian aspartame markets. On price, two scenarios were being entertained : “normal competition” and “price war”. Vermijs wondered which scenario was the more likely...
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