Abbott Plans Nutrition Business Spin-Off by End of 2027

Abbott plans to spin off its nutrition division into an independent, publicly traded company before the end of 2027, according to dairynews.today. The division generates roughly $8.5 billion in annual revenue and houses major consumer and clinical brands including Similac, Ensure, PediaSure, and Glucerna.

Daniel Salvadori to Lead Standalone Nutrition Company

The nutrition unit currently employs 16,000 workers and operates 14 manufacturing facilities worldwide. Its portfolio spans infant feeding, pediatric nutrition, adult nutritional supplements, and clinical nutrition products. Daniel Salvadori will step in as chief executive officer of the new entity. Salvadori currently serves as Abbott executive vice president and group president responsible for established pharmaceuticals and nutritional products.

Abbott plans to distribute shares of the new company to current shareholders through a tax-free transaction. Following the distribution, shareholders will hold stakes in both publicly traded corporations. After the separation concludes, Abbott will focus its operations on medical technology, diagnostics, and pharmaceuticals, generating approximately $42,000 million in annual revenue. The corporate restructuring is designed to allow each individual company to allocate capital according to distinct operating needs and business cycles.

Supply Chain Disruptions and Legal Settlements Shape Recent Operations

The separation announcement coincides with a downward revision to Abbott’s sales growth forecast for 2027. The company now projects sales growth of 6%, down from its previous forecast range of 6.5% to 7.0%. The nutrition division recently faced supply chain disruptions and ongoing litigation related to cow’s milk-based formulas for premature infants and claims tied to necrotizing enterocolitis, known as NEC.

Abbott reached a $670 million settlement connected to a 2024 ruling regarding premature infant formula claims. The company maintained that the settlement resolved disputed legal matters without admitting any wrongdoing. Despite these legal and operational headwinds, global nutrition sales grew 5.1% on a reported basis during the third quarter of 2026, while global pediatric product sales increased by nearly 9%.

Dairy Ingredients Supply Chain and New Product Launches

During the first half of 2026, the division rolled out ten new formulations through its research and development pipeline. These introductions included ready-to-feed Similac infant formulas made with whole milk and high-protein Ensure shakes targeted at clinical adult nutrition and active lifestyle consumers.

The nutrition business remains a major commercial buyer of cow’s milk derivatives. Its purchasing operations utilize demineralized whey powder, micellar caseins, lactose, and specialized whey protein concentrates, connecting its manufacturing sites directly with dairy cooperatives and ingredient processors. The upcoming spinoff will place these procurement and processing activities inside the independently managed nutrition company alongside its consumer brands and clinical products.