Danisco Acquires Equity Stake in Health and Nutrition Ingredient Company GraceLinc Ltd

The purchase is the start of a partnership aimed to make Glucagel a category leading functional food and dietary supplement ingredient.

23/10/08 Danisco agreed to acquire an equity stake in the New Zealand company GraceLinc Limited. GraceLinc produces and markets Glucagel, which is a naturally-extracted barley beta-glucan.

As a soluble dietary fibre ingredient, Glucagel has potential health benefits, particularly for cardiovascular health, digestive health and glucose and weight management. The cardiovascular health benefits of cereal beta-glucans are attributable to their widely studied cholesterol-lowering properties. In addition, beta-glucans are low glycaemic and hence suitable for consumers seeking low impact carbohydrates including diabetics.

Cereal beta-glucans have the potential to capture a significant share of the market for soluble dietary fibres which is estimated at more than EUR 400 million. The purchase is the start of a partnership aimed to make Glucagel a category leading functional food and dietary supplement ingredient. When key milestones – relating to completion of human intervention studies and process development – are met, Danisco plans to move to full ownership of the start-up company.

’We are delighted to seize this early stage opportunity. Becoming a GraceLinc shareholder is a further step towards becoming our customers’ First choice ingredient partner within health and nutrition. It will at the same time strengthen our leading position in speciality carbohydrates. Glucagel is a very innovative beta-glucan ingredient because it has a high purity and is easy to formulate without affecting taste or odour of the foods to which it is added. This unique combination of health benefits and ease of application is why we expect a lot from Glucagel in the future,’ says Fabienne Saadane-Oaks, President of Danisco Bio Actives.

Glucagel can be used in a wide range of applications such as bakery, nutrition bars, beverages, dairy and dietary supplements. Food manufacturers, particularly in Europe and Asia, have shown strong interest in the product and food products containing Glucagel are already on the market in Europe.

’Together with Danisco, Glucagel has the potential to become a leader in its ingredient category and we are also pleased that Danisco’s investment will benefit New Zealand’s export food business. Glucagel is an example of a New Zealand research and development innovation which has built significant business value and this success comes on the back of more than a decade of fundamental and applied research carried out by New Zealand scientists,’ says Paddy Boyle, Chairman of GraceLinc.