Food products providing health benefits beyond nutrition, or functional foods, draw consumers’ attention and promise growth opportunities for innovator food manufacturers. European functional food manufacturers may be facing future challenges, mainly due to the European Union Regulation (EC) No.1924/2006 regulating food products’ health-claims. However, in spite of the interest shown by academics to understand the acceptance of these products no study exists that analyzes the profitability of functional foods. Using a relatively novel methodology – an adaptation of the LA/AIDS model by means of Pinkse Slade and Brett’s (2002) distance metric (DM) method – this article treats functional foods as differentiated products and provides estimates of demand and... |