The model developed here relates the number of FFN product lines1 of a firm to a series of covariates reflecting firm characteristics, availability of capital, business practices and strategies, role of the regulatory environment, role of intellectual property, research and development spending patterns and variables representing the diet-related disease state(s) at which the firm’s products are d [...] The model is applied using three different counts of the number of product lines, as follows: 1) total number of products lines whether under development and on the market; 2) number of product lines under development; and 3) number of product lines currently on the market.2. [...] In turn the manager’s expectations of the risk and returns from each asset (or project), coupled with their risk preferences (or degree of risk aversion) shape the portfolio of products under development or on the market, and the portfolio of products firms have in totality. [...] In terms of firm characteristics, the coefficients for the dummy variables indicating the firm undertook product development/scale-up of new products and ingredient manufacture are significant at the five percent level, while the dummy variable indicating the firm was a wholesaler is significant at the ten percent level. [...] The factor score for the impact of ability of use generic health claims on FFN products has a negative and significant effect on the count of the total number of product lines (at the one percent level.