Milling & Baking News - July 6, 2004 - 14

B U S I N E S S

Term 'interesterified soybean oil'
allowed as descriptor on labels
WASHINGTON - The Food and
Drug Administration is not objecting
to the use of "interesterified soybean
oil" in place of "hydrogenated-" or
"fully-hydrogenated soybean oil"
when describing these ingredients on
food labels.
In a response to a letter sent by Archer
Daniels Midland Co., Decatur, Ill., the
F.D.A. on May 28 said it would not object
to the name for the vegetable oil product
ADM described.
Interesterification is the process of
molecular rearrangement that randomly
distributes a triglyceride's fatty acid
components along its molecular backbone. In soybean oil or other fats, the
process improves textural and creaming
properties with steeper melt profiles
while the oil remains virtually trans
fat-free.
Recent reports from the World Health
Organization, the American Heart Association and the Institute of Medicine
state that not all saturated fats are equal
in their effects on cholesterol levels.
Based on data published in clinical studies from peer-reviewed literature, the
W.H.O. concluded that stearic acid, a
major component of fully-hydrogenated
soybean oil, probably has a cholesterol-

neutral effect on blood low-density lipoprotein (L.D.L.) compared with the
L.D.L.-raising effect of palmitic and
myristic acids, commonly found in imported palm-based products.
According to ADM, stearate-rich fat
allows bakers to replace trans fat in the
diet without compromising shortening
functionality in applications where solid
fats are required. Fully hydrogenated
soybean oil is rich in stearic acid, and
interesterification yields a product with
20% to 40% stearic acid content. The
F.D.A. did not object to this terminology when it is applied to interesterified
fats that contain more than 20% stearate
content.
ADM recently introduced a low-trans
fat portfolio of fats and oils under the
NovaLipid brand that fits the new interesterified classification.
ADM currently is producing the interesterified oil at its Quincy, Ill., facility
and has plans to expand. The manufacturing process is relatively simple, allowing the company to respond quickly
to market demand, ADM said. The
product is made by combining approximately 25% fully saturated soybean oil
(trans fat-free) and 75% liquid soybean
oil. The blend is then passed through

Dawn Food Products relocating
headquarters in Jackson area
JACKSON, MICH. - Dawn Food Products, Inc. announced last week it will be
moving its administrative operations to
the 238,000-square-foot former headquarters and warehouse of Jacobson
Stores, Inc., a specialty retailer that went
bankrupt in 2002.
According to Dawn, the relocation of
administrative offices to the new site on
Sargent Road a few miles northeast of
Jackson was deemed a better solution
than building new offices adjacent to its
current site or relocating elsewhere.
Dawn also had considered moving to

northwest Ohio, but opted against such a
move when the Michigan Economic Development Corp. approved a
$1.9-million single business
tax credit over the next
15 years as an incentive
to keep the company in
Michigan. The M.E.D.C.
approved the tax credit for Dawn and eight
other companies as part of the state's plan
to create more than 2,800 jobs.
In May, a University of Michigan economic analysis estimated that Dawn's
expansion and relocation would result

Cargill to acquire Nestle cocoa business
operations in England, Germany
VEVEY, SWITZERLAND - Nestle S.A.
said last week it has reached an agreement to sell its cocoa bean processing
activities in York, England, and Hamburg, Germany, to Minneapolis-based
Cargill, Inc.
According to Nestle, the transaction
14 / Milling & Baking News, July 6, 2004

is in line with the company's policy to
concentrate its activities on branded
value-added products.
Nestle said it expects to sign the definitive agreements in early July. Divestiture
of the activities in York and Hamburg is
expected to take effect on Oct. 1, after

an enzyme column where Novozyme
immobilized enzymes naturally rearrange the stearate-rich fatty acids and
the unsaturated fatty acids to yield a
homogeneous fat that is virtually trans
fat-free, solid at room temperature and
has characteristics well suited for baking
applications. A standard deodorizing
process follows.
In response to a further ADM request to the F.D.A., the agency allowed
the descriptor of "high stearate" or
"stearic rich" for label use. The F.D.A.
interprets descriptors such as "high
in" and "rich in" as nutrient content
claims "as defined in regulations."
The agency continued, "As such, they
may be used to characterize the level of
only those nutrients for which a R.D.I.
or D.R.V. has been established." However, the F.D.A. went on to say that it
"has not objected to the use of terms
such as 'high' and 'low' in non-nutritive context specifically when necessary to properly identify a food," and
thus had no objection to ADM's use of
the terminology.
The announcements could have implications for baking companies formulating or reformulating for trans products.
ADM said the approvals open the door
for bakers to reformulate away from
trans fat while maintaining their products' original flavor, texture and label
characteristics. MBN

in 110 new jobs created directly by the
company and 291 jobs indirectly created
as a result of increased economic activity
associated with the expansion.
Dawn expects 150 employes to move
into the new headquarters, less than
10 miles from its existing Micor Drive location, once remodeling
and other updates are
complete, including 50
workers who will transfer to Jackson from company facilities in
Detroit and Grand Rapids, Mich.
Dawn has indicated it eventually
may relocate its central purchasing operations to the warehouse portion of the
new site. MBN

completing work council consultations,
Nestle said.
Cargill, which is a major cocoa supplier in Europe, will take over the personnel dedicated to these activities.
Nestle and Cargill have a long-standing relationship under which Cargill
supplies Nestle with a range of ingredients such as vegetable oils and specialty
starches. MBN
bakingbusiness.com / world-grain.com

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Milling & Baking News - July 6, 2004

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