Nutrinova pushes up sorbates prices again
http://www.beveragedaily.com/news/ng.asp?n=86150-n [2008-7-4]
Tag : Sorbic Acid
The company did not reveal the reasons for the price increase, andspokesperson Barbara Plath told FoodNavigator.com: "It is our company policy not to comment on price changes."
It is possible that competition from emerging markets may have impacted on prices. Leatherhead Foods International ( LFI ) said: " Chinese manufacturers of the principal organic preservatives - benzoates, sorbates , and propionates - have been increasing volumes and puttingintense pressure on global prices."
Additionally, increased raw material and energy costs could havesome part to play in the move, as ingredients companies are raisingtheir prices for many products to recover margins amid the currentglobal food crisis.
While Nutrinova , which is owned by the Celanese Corporation, would not comment onthe reasons, it did implement a price increase of the same amountat this point last year.
Sorbate preservatives
Sorbates (sorbic acid and potassium sorbate) are gentle butefficient preservatives offering protection for a wide variety offood and beverage applications, such as non-alcoholicbeverages, wine, spirits, baked goods, cheese, dairy products,spreads and margarines.
They are used extensively in the rapidly growing global processedfoods market to stop moulds and yeasts damaging primarilyhigh-moisture and high-sugar foods.
Their safety has been approved by the JECFA (Joint Expert Committeeon Food Additives) of WHO/FAO, the European Communities, and the USFood and Drug Administration.
Analysts at LFI said it is estimated that the global market fororganic preservatives was worth almost $680m (€433m) in 2007,up 1.5 per cent from 2006 levels, with volume sales coming in atjust under 300,000 tonnes.
Of this total, sorbates and sorbic acid represents the largestcategory by value at $335m (€213m), up from $310m(€197m) in 2004. Volumes rose in this period from 31,000tonnes to 33,000 tonnes.
"Rising prices have been the drivers of the sector's value growth," said the research and analysis group . "Demand is currently strongest in Asian markets, particularly China . In the West, however, where preservative-free has become fairlywidespread, the use of preservatives is falling."
The growth of demand for sorbates in Asia was also indicated byGregor Peter, director of global sales at Nutrinova, who said: "We see a growing demand of sorbates especially for processed foodsin emerging markets."
Nutrinova's products
Nutrinova produces two ranges of sorbate preservatives. Vinosorb isits special grade of potassium sorbate for use in wine, while itsPanosorb brand is a grade of sorbic acid for bakery applications.
Nutrinova said they are easy to use, are effective at extreme pHlevels, neutral in odour and flavour and harmless to health.
In addition to producing preservatives, Nutrinova also manufacturesdietary fibre products and is best known for its Acesulfame K highintensity sweetener product that is marketed under the brand nameSunett.
The company did not reveal the reasons for the price increase, andspokesperson Barbara Plath told FoodNavigator.com: "It is our company policy not to comment on price changes."
It is possible that competition from emerging markets may have impacted on prices. Leatherhead Foods International ( LFI ) said: " Chinese manufacturers of the principal organic preservatives - benzoates, sorbates , and propionates - have been increasing volumes and puttingintense pressure on global prices."
Additionally, increased raw material and energy costs could havesome part to play in the move, as ingredients companies are raisingtheir prices for many products to recover margins amid the currentglobal food crisis.
While Nutrinova , which is owned by the Celanese Corporation, would not comment onthe reasons, it did implement a price increase of the same amountat this point last year.
Sorbate preservatives
Sorbates (sorbic acid and potassium sorbate) are gentle butefficient preservatives offering protection for a wide variety offood and beverage applications, such as non-alcoholicbeverages, wine, spirits, baked goods, cheese, dairy products,spreads and margarines.
They are used extensively in the rapidly growing global processedfoods market to stop moulds and yeasts damaging primarilyhigh-moisture and high-sugar foods.
Their safety has been approved by the JECFA (Joint Expert Committeeon Food Additives) of WHO/FAO, the European Communities, and the USFood and Drug Administration.
Analysts at LFI said it is estimated that the global market fororganic preservatives was worth almost $680m (€433m) in 2007,up 1.5 per cent from 2006 levels, with volume sales coming in atjust under 300,000 tonnes.
Of this total, sorbates and sorbic acid represents the largestcategory by value at $335m (€213m), up from $310m(€197m) in 2004. Volumes rose in this period from 31,000tonnes to 33,000 tonnes.
"Rising prices have been the drivers of the sector's value growth," said the research and analysis group . "Demand is currently strongest in Asian markets, particularly China . In the West, however, where preservative-free has become fairlywidespread, the use of preservatives is falling."
The growth of demand for sorbates in Asia was also indicated byGregor Peter, director of global sales at Nutrinova, who said: "We see a growing demand of sorbates especially for processed foodsin emerging markets."
Nutrinova's products
Nutrinova produces two ranges of sorbate preservatives. Vinosorb isits special grade of potassium sorbate for use in wine, while itsPanosorb brand is a grade of sorbic acid for bakery applications.
Nutrinova said they are easy to use, are effective at extreme pHlevels, neutral in odour and flavour and harmless to health.
In addition to producing preservatives, Nutrinova also manufacturesdietary fibre products and is best known for its Acesulfame K highintensity sweetener product that is marketed under the brand nameSunett.
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