Sudzucker forms Beneo functional foods group

The German sugar producer and food group has previously held the three companies as separate entities, and over the past decade has built them up into market leaders in their respective fields.

Orafti claims to have played a major hand in developing the prebiotic market as a pioneer in inulin, fructose and oligosacchardides.

Palatinit's operations are based around its Isomalt sugar replacer - used in hard boiled candies and gum - and its Palatinose slow-release carb, while Remy produces rice-derived starches, flours, proteins and stabilised rice bran.

Addressing a press conference this morning at FIE in London, Yves Servotte, member of the Beneo board, said that the move is intended to better serve the customer in a changing market environment that is defined by globalisation, climate change, new nutritional policies and changing demographics.

"People are living and eating differently," said Servotte.

"We are obliged to ensure that we have enough critical mass for our expertise in clinical research, patents, sales, marketing and consumer insights."

The three entities - now to be known as Beneo Orafti, Beneo Palatinit and Beneo Remy - are the "three pillars" of the new Beneo group.

Servotte added that Beneo is "a step forward, to reply to the future needs of the customer and to respond in advance... and to become a real innovative partner for food prospects worldwide."

In particular, he said that the problem of obesity is a major market trend that cannot be denied, since two billion people worldwide are now classified as obese.

"Functional foods and functional ingredients will play a key role in this new development," he said.

"It is not only about the recipe, but food companies need to give sound nutritional clinical evidence that what they are saying is really true."

This presents something of a problem, since in Western Europe food companies are feeling the squeeze of having to invest in research, so as to be able to tap the emerging area of functional foods.

Typically their research budgets are just 0.3 to 0.5 per cent of turnover, but the restructuring and bringing together of these companies into one entity will now enable them to invest six to eight per cent in functional food research.

"All food companies dream of having a product like Actimel, and to have the cash to drive it forward.

But how can they get there?" asked Servotte.

Beneo's proposition is to help them make the next step, especially by presenting them with ingredients that have the weight of research behind them.

Beneo currently works with some 150 research institutes worldwide.

It is prepared to share that network with customers, as part of its pledge to support its partners in all phases of product development, right through to launch.

In addition, the three entities of Beneo will share expertise in durable farming, process and food technology, marketing and communication, regulatory issues, patent policy and consumer research.

As well as leveraging existing ingredients and ensuring that they meet customer and market needs, the aim is to bring a new slate of "wellgredients" to market.

As for why Sudzucker has opted to give the new group of companies the name Beneo, which has previously been used as an ingredient brand, Servotte drew attention to the underlying meaning - Bene=good, neo=new.

The Beneo brand has already garnered considerable recognition in the marketplace and is used on around 300 consumer products around the world.

The aim is to extend this to more products, to give the end consumer added assurance on quality.

It is also in line with the slogal and selling proposition, "connecting nutrition and health".

The Sudzucker Group as a whole has a turnover of €5.3bn, with manufacturing facilities over 67 sites worldwide.