CINCINNATI, May 1, 2002 - The Procter & Gamble Company (NYSE: PG) today announced that Hunan Kinglong Bio-resources Co. Ltd. (Kinglong) will be the exclusive Chinese licensee for P&G's proprietary Lo Han Guo processing technology. The technology enables the processing of Lo Han Guo into a better-flavored concentrated juice extract for use in fruit containing beverages. Under this agreement, Kinglong will use P&G's proprietary technology to extract and concentrate Lo Han Guo juice.
Lo Han Guo is an intensely sweet fruit grown on steep mountainsides primarily in the Guangxi District in the People's Republic of China. Typically, the fruits are dried in ovens shortly after harvesting and later used to brew a tea-like broth, or are commercially extracted and concentrated to form a thick, flavored dark syrup.
P&G's proprietary process produces a less intense odor and better color, and it is much more suitable for use in a broad range of beverage applications. Because of its intense sweetness and flavor profile, similar to that of sugar, low levels of Lo Han Guo juice extract can be used to create lower calorie beverage formulations.
"Kinglong is an excellent company to commercialize our Lo Han Guo processing technology," said Dr. Kenneth T. Smith, director of P&G's food & beverage technology development and head of P&G's Nutrition Science Institute. "With Kinglong's reputation for quality and service, combined with P&G's formulation expertise, Lo Han Guo can become for the first time a commercially viable juice for application in the beverage industry."
Professor Zhonghau Liu, Vice President of Kinglong added, "P&G's Lo Han Guo processing technology, coupled with our close location to where the fruit is harvested, will allow us to produce a higher quality, more marketable product. We believe this will greatly expand our sales into the Asian market and allow development of a new global beverage market. We are now installing new capacity and plan to have commercial product available in May 2002."
Larry Martinez, president of Amax NutraSource stated, "With our exclusive North American distributorship of the improved Lo Han Guo product, new prospects open for our company and our partners. Lo Han Guo has a very rich history of usage in China and it is exciting that it will now be available here. We look forward to providing Lo Han Guo extract to the expanding marketplace in North America."
Scott Van Diest, associate director of P&G's food & beverage licensing said, "Since 1993, Kinglong has been a leader in developing and marketing exceptional quality biological plant extracts. With its close ties to Hunan Agricultural University, state-of-the-art advanced processing capability, and keen understanding of crop fundamentals and economics, Kinglong can transform Lo Han Guo form a regional Asian product into a cost effective global material."
P&G markets 250 brands to five billion consumers in 140 countries. P&G invests nearly $2 billion a year to develop and improve its products - leading the way in R&D globally among consumer products companies. P&G's External Business Development and Global Licensing organization is charged with ensuring the company maximizes the value of its 'treasure trove' of technologies by selling, licensing and, in some cases, donating these technologies. The unit is also responsible for licensing select P&G brand trademarks.
About Hunan Kinglong Bio-resources
Established in 1993, Hunan Kinglong Bio-resources Co., Ltd, located in Changsha P.R. China, is a leading high-tech enterprise producing a complete range of botanical extracts used in health foods, beverages and dietary supplements. Kinglong has a branch company located in Guilin City where Lo Han Guo originates. http://www.kinglongbio.com/index.htm
Amax NutraSource is a leading supplier of nutritional ingredients and products throughout North America from its locations in California, Oregon and New Jersey. Amax NutraSource carries a full line of botanical extracts and specialty supplements for the health foods and dietary supplement industries.