A flurry of new products from infant formula makers has retailers anticipating healthy sales and even an improvement in the category's often-anemic margins. Manufacturers, trying to stretch the boundaries of their category, have been introducing pharmaceuticals for a host of baby's ills. Among the developments: The injection of specialty formulas, ordinarily placed in drug sections, into the mainstream set. The launch of a budget brand that could lead to two-tier pricing. The ...

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