Innovation: Wood for a taste sensation? Yes!
Wednesday 15 Aug 2018
Perhaps the best endorsement of the technology is that Vancouver-based Fortress Global Enterprises Inc. recently bought up eight-year-old S2G in a $2.5 million deal.
Initially, S2G was focused primarily on refining bio-glycols – an alternative to the glycols derived from oil and gas – but it has now entered what could be an even more valuable market: making sweeteners for chewing gum.
According to Mark Kirby, CEO of S2G, which is now a fully owned subsidiary of the Fortress Advanced Bioproducts division, Fortress is developing a whole new strategy in wood processing. “Fortress wants to turn pulp mills into biorefineries,” he says.
S2G Biochem had inked a major partnership deal with Mondelez International, the multinational food, beverage and confectionery company that owns brands such as Nabisco, Cadbury, Toblerone and Oreo. Mondelez also owns the chewing gum brands Dentyne, Trident, Chiclets and Stride.
Xylitol is one of a handful of sugar alcohols, including sorbitol, used as an alternative to sugar in chewing gum and mints.
Typically extracted from hardwoods or corncobs, xylitol has one-third the calories of regular sugar and prevents tooth decay – two reasons why companies like Mondelez prefer to use it rather than other sweeteners, like sorbitol.
The problem is that it’s expensive to make, but S2G has developed a process for making xylitol more cost-effectively.
Xylitol is not a product that S2G even considered making until Mondelez approached the company, says Kirby. “We thought it was a pretty small market. We never attributed much weight to it. We were focused on glycols.
“It wasn’t until they [Mondelez] came to us and said, ‘We have a problem.’ And there’s nothing like having a customer that has a problem to help pull new technology forward.”
The market for glycols is huge – about $30 billion annually, although bio-glycol makers like S2G are competing with Big Oil in that space. Xylitol is a smaller market – US$600 million to US$700 million annually – but there is less competition.
Source: Business in Vancouver
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