The household goods and cosmetics company acquired the OTC business unit of Chugai Pharmaceutical at the end of 2004, including its tonic business. This gave it the impetus to release the health tonic drink Guronsan Red, to relieve fatigue, to the market.

In the company's annual report released this week, it counted this as one of the activities that has "largely contributed to sales expansion within this segment" in 2005.

Lion's fledgling functional foods interest is organized under the pharmaceutical division, which reported net sales of ¥50.3 billion (€360 million) and operating sales of ¥3.6 billion (€25.9 million) in 2005.

"Sales are…expected to increase with Lion's entry into the functional food products business utilizing proprietary technology," said the company.

In fact, its medium to long-term aim is to achieve consolidated growth of 10 per cent in fiscal 2009 and achieve a number one position in the field of products that help people lead comfortable lives - that is household products, OTC drugs, and functional foods.

According to a Nikkei report, the first functional foods are expected to come to market this summer, and will consist of drinks and supplements aimed at preventing tooth decay and periodontal disease.

This is an area in which Lion Corp has a long history: 2006 marks its 110th year of marketing oral health products.