Bakeries to face sorbate price hike from Nutrinova
energy price rises onto the market, announcing double-digit price
hike for its sorbate products, used increasingly by food
manufacturers to preserve baked goods.
From 1 September, the firm's sorbic acid and potassium sorbate will be, on average, 15 per cent more expensive.
Sorbates are chemical preservatives used extensively in the rapidly growing $600 billion global processed foods to stop moulds and yeasts damaging primarily high-moisture and high-sugar foods.
Against a backdrop of higher raw material costs and soaring energy costs, the higher selling prices for its potassium sorbate and sorbic acid product range ingredients will counter-balance this rise in costs for the firm that also makes the high intensity sweetener brand Sunnett.
The food protection market is currently enjoying decent growth thanks to strong demand from food makers looking for shelf life longevity and preservation to beat food safety concerns.
Market analysts Global Information pitch the global food preservative market at €422.7 billion, reaching €515.7 billion by 2008 thanks to a buoyant annual growth rate of 4.1 per cent.
In 2003, the chemical preservation industry was led by the sorbates, with annual sales of $162 million in the US, or approximately 53 per cent of all sales of chemical and natural preservatives.
With a value of $143 million and a 58 per cent slice of the food preservative market, sorbates dominated the sector.
Nutrinova did not disclose further details regarding the price rise for the free-flowing white powders produced at its production plants near Frankfurt in Germany.
Tentative moves to sell the Nutrinova business early last year have since been ditched by its owner, the German chemical group Celanese.
Speaking to FoodNavigator.com recently, a spokesperson for the group confirmed: "There are currently no intentions to sell Nutrinova. It is considered one of our cash contribution businesses."
