P&G to sell Olestra plant after disappointing performance
that makes its controversial fat substitute olestra, after the
product failed to live up to company expectations.
Consumer products giant Procter & Gamble is to sell the plant that makes its controversial fat substitute olestra, after the product failed to live up to company expectations.
The plant is being sold to Twin Rivers Technology, a P&G supplier, for an undisclosed sum. Under the terms of the deal, Twin Rivers will continue to supply P&G with olestra, which it sells under the brand name Olean to snack manufacturers such as PepsiCo.
P&G will also retain rights to the Olean brand and technology.
Olestra is used in fat-free snacks but has been surrounded by controversy since its launch in 1996 because of fears that it could cause gastrointestinal discomfort. The US Food and Drug Administration allowed olestra to be marketed in the US, but it has faced problems elsewhere - for example, it was banned in the Canadian market in 2000.
The problem for P&G has been that it has failed to find alternative uses for the product, which became increasingly important as consumer interest in the product failed to materialise as had been expected.
