Danisco has signed a long-term agreement with US-based company Arboris to market their pine-derived phytosterols. Phytosterols are naturally occurring compounds with proven ability to reduce cholesterol. Backed by over 200 human intervention studies, regulatory authorities globally have recognized phytosterols for their cardiovascular health benefit.
Large market growth potential by geographical expansion
Both companies are very excited about the opportunities specifically presented in the developing health and nutrition arena.
“While markets in Europe and, to some extent, the U.S. have seen good penetration, many parts of Asia, Eastern Europe and South America have yet to experience a broader adoption of phytosterols,” comments Patrick Veau, VP Health & Nutrition, Danisco.
“Danisco’s global presence and strong application know-how, combined with Arboris’ ability to supply high-quality products, will ensure that no country needs to miss out on one of the most effective functional food ingredients to lower cholesterol.”
Peter Acton, COO Arboris, adds, “As the leading manufacturer of pine-derived sterols, our focus is on providing a high-quality, sustainable and dependable supply of sterols. Working with Danisco, a leading ingredient supplier, enables us to combine our expertise and secure sustained growth and recognition within phytosterols.”
Stable supply and pricing
The global phytosterol market, currently estimated at more than USD 300 million and growing an annual 7-9%, will receive a significant boost through this agreement due to the complementary capabilities of the two companies. Arboris’ large-scale production and integrated access to pine tall oil, the key raw material, will provide Danisco with high-purity, free and esterified phytosterols.
The phytosterols produced by Arboris are also derived from a more stable raw material source compared to the alternative phytosterol raw material—soy deodorized distillate—ensuring sustainable growth opportunities. Danisco, with its global presence, application excellence and ability to understand local customer needs, will brand and market free and esterified phytosterols.
Market introduction of new phytosterol brand
Danisco will launch the new phytosterol range in May 2011. The ingredient group will become an integral part of Danisco’s cardiovascular health platform. Danisco has six health & nutrition platforms in all.
About Arboris LLC
Arboris LLC is the world’s leading producer of pine tree sterols, delivering a value proposition that resonates with our customers and partners: “The Long Term, Stable, Dependable and Cost-Effective supply of the highest quality sterol products.” Arboris is uniquely positioned to provide this value proposition because of its ample, cost-effective, cost-stable and long-term supply of raw material; its state-of-the-art technology; and its manufacturing scale, with plants in Savannah, Georgia and Newark, Ohio. Both plants embody advanced process technology, state-of-the-art equipment and controls, and highly qualified and experienced operators and technicians.
For more information about Arboris LLC, please visit www.arboris-us.com