Arla Foods is planning to join forces with the German sugar company Nordzucker on industrial production of the sweetener Gaio tagatose.

Gaio tagatose is a multipurpose sweetener with a reduced calorie value as well as other functional properties, e.g. a documented flavour-enhancing capability in soft drinks. Other applications include breakfast cereals and tabletop sweeteners.

The final decision on the two companies’ joint venture has not yet been made.
When necessary approvals are obtained, Arla Foods and Nordzucker plan to establish a 50/50 joint venture company with production of Gaio tagatose at one of Nordzucker’s plants in Nordstemmen near Hannover. Production start is expected in the summer of 2003.

If market acceptance is favourable, a tagatose plant will be established in connection with Arla Foods’ dairy plant in Taulov, Denmark.

During the initial phases of development Arla Foods has introduced the product to the American food industry, and last year Arla Foods obtained the necessary approvals from the American auth-orities to market Gaio tagatose.
Furthermore, Arla Foods intends to seek relevant approvals for markets in Asia and Europe.

Nordzucker has a turnover of approx. 1billion euro and is the fifth-largest sugar producer in Europe.

www.nordzucker.de

www.gaio-tagatose.com