Bunge, P&G, Peter Cremer Alliance

NEW YORK - Nov 10/04 - SNS -- Bunge Limited, Procter & Gamble and Peter Cremer North America have created an alliance to produce and market cholesterol- reducing phytosterol ingredients for pharmaceuticals and foods. Bunge has a 50% stake in the alliance.

Phytosterols are found naturally in plants, fruits and vegetables. Demand for the products has increased in response to the approval of health claims concerning sterol-enhanced food products by the U.S. Food and Drug Administration (FDA) and other regulatory bodies.

The companies estimate that by 2008, global demand for phytosterols will top 10,000 tons, a figure that represents a potential market value of between $200 and $250 million. In 1999, demand was around 4,000 tons.

Phytosterols are most commonly derived from deodorizer distillate, a byproduct of vegetable oil refining. As the world's largest oilseed processor, Bunge is one of the largest suppliers of this material. The company will make available to the alliance the deodorizer distillate created by its global oilseed processing operations, which handle soybeans, rapeseed, sunflower and other seeds.

Manufacturing will be overseen by Peter Cremer North America. P&G Food Ingredients will serve as primary marketer of the product line, which will include sterol esters, free sterols and spray-dried esters.

The continued introduction of sterol-enhanced food products is expected to drive further growth in the phytosterol market. Today, the use of sterols in vegetable oils, margarines and spreads, yogurt, snack bars, salad dressings and health drinks has received GRAS (Generally Recognized as Safe) status from the FDA. In the U.S., food products that contain at least 0.65 grams of sterol esters or 0.40 grams of free sterols per serving can include on their packaging an FDA health claim stating that the consumption of phytosterols may reduce the risk of coronary heart disease.