Breaking News on Supplements, Health & Nutrition - Europe US edition | APAC edition

News > Suppliers

Read more breaking news



Plant sterol expansion for Forbes


Canadian company Forbes Medi-Tech said yesterday that it had secured a sterols sales agreement for US$24.4 million (€20.01 million) over a three-year period beginning in January 2005.

The new customer agreement is between Forbes' manufacturing joint venture, Phyto-Source LP, and a leading multinational ingredient company, but for contractual reasons, Forbes will not disclose further information.

"Our cholesterol-lowering ingredient business is growing substantially and our core group of customers continues to expand," said Charles Butt, president and CEO of Forbes Medi-Tech . "The addition of this supply agreement in combination with the pending EU approval will provide new opportunities to expand the company's phytosterol business and allow us to look at further increasing production capabilities."

Forbes expects that approximately 54 per cent of the company's total revenue over the next three years will come from these supply agreements.

The phytosterols will be manufactured in the US in Pasadena, Texas, as a joint venture between Forbes and Chusei. But, Forbes is pinning much of its hopes for future growth on the European market and last year it began work to increase the capacity of its manufacturing joint venture by 50 per cent, in anticipation of increased demand following a positive opinion from the continent.

A Frost & Sullivan report on plant sterols forecasts growth between now and 2010 at 15 per cent annually in Europe, partly boosted by faster regulatory approval. (New applications can be cleared faster based on their similarity to previous approvals).

In July, the company received a positive opinion from European authorities for the approval of its wood-derived cholesterol-lowering ingredient Reducol.

Following publication of the decision by the EU Standing Committee on the Food Chain and Animal Health, the plant sterol ingredient will be permitted for use in milk-based drinks.

The news followed the recent approval as novel foods of a series of new plant sterol ingredients and applications from US-based Archer Daniels Midland (ADM), food giant Unilever and the smaller Finnish firms Teriaka and Pharmaconsult.

The market for heart health foods is forecast for rapid growth and therefore has room for new ingredients, especially given the slow process for approval of phytosterols until recently.

"Clearance of this regulatory hurdle secures a significant milestone for the Company, leaving only the completion of administrative steps before pursuing Reducol sales in Europe," said Charles Butt, president and CEO of Forbes Medi-Tech. "Europe represents a bourgeoning market for our cholesterol-lowering food ingredients. With the inclusion of ten new member states into the European Union, there is a substantial opportunity to further build our revenue base."

Related products

Live Supplier Webinars

Polyphenols tipped to become the way to innovate in Sports Nutrition
Alpha & Omega in Sports Nutrition – Using Omega 3’s and A-GPC to improve performance and recovery.
KD Pharma
Orally bioavailable standardized botanical derivatives in sport nutrition: special focus on recovery in post-intense physical activities
Collagen in motion: move freely and keep your injuries in check
Leading manufacturer of gelatine and collagen peptides
Life’s too short for slow proteins. Whey proteins hydrolysates: Fast delivery for enhanced performance
Arla Foods Ingredients
What it Takes to Compete and Win in Today’s Sports Nutrition Market
Sports Nutrition Snapshot: Key regional drivers and delivery format innovations
William Reed Business Media
Gutsy performance: How can microbiome modulation help athletes and weekend warriors
William Reed Business Media
Pushing the boundaries: Where’s the line between ‘cutting edge nutrition’ and doping
William Reed Business Media

On demand Supplier Webinars

High-amylose maize starch may reduce the risk of type 2 diabetes: what does this qualified health claim mean?
Balancing Innovation and Risk in Sports Nutrition Ingredients
Explaining bio-hacking: is there a marketing opportunity for food companies?
William Reed Business Media
Personalized Nutrition – how an industry can take part in shaping the future of Nutrition
BASF Nutrition & Health
Find out Nutritional and ingredient lifecycle solutions and strategies!
Is the time rIpe for I-nutrition?
William Reed Business Media
The Advantage of Outsourcing Fermentation-based Manufacturing Processes
Evonik Health Care
All supplier webinars