Danish dairy giant Arla Foods has revealed plans to join forces with German sugar company Nordzucker for the industrial production of the sweetener Gaio tagatose.
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The final decision on the two companies’ joint venture has not yet been made, but when necessary approvals are obtained, Arla and Nordzucker plan to establish a 50/50 JV company to produce Gaio tagatose at one of Nordzucker’s plants in Nordstemmen near Hannover. Production is expected to start in the summer of 2003.
If market acceptance is favourable, another tagatose plant will be established in connection with Arla’s dairy plant in Taulov, Denmark.
During the initial phases of development, Arla has introduced the product to the US food industry, and last year it obtained the necessary approvals from the US authorities to market Gaio tagatose. Arla now intends to seek relevant approvals for markets in Asia and Europe.
Gaio tagatose is a reduced calorie, multipurpose sweetener. Its applications include soft drinks, breakfast cereals and tabletop sweeteners.
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By GlobalData
