Press Release

Frutarom Industries Ltd. (“Frutarom”) announces the acquisition, via one of its subsidiaries, of the AB-Fortis® activities including a patent-protected micro-encapsulation technology that enables delivery of iron with increased biological absorption.

AB-Fortis is an advanced encapsulated iron system for delivering the recommended daily amount of iron in a single dose. It helps consumers avoid the common negative aspects and side effects of iron supplements, including metallic aftertaste, dental darkening, gastrointestinal upset, and nausea. AB-Fortis iron can be incorporated into fat-rich matrices, such as milk or yogurt, without causing oxidation. It is heat- and pH-stable. It will not accelerate oxidation of other components of a formulation, such as folate or omega-3 fatty acids. This makes it ideal for functional foods, infant nutrition and food supplements.

Iron deficiency constitutes a global health problem in developed and developing countries alike, and is particularly prevalent in children under the age of 6, for whom iron deficiency is associated with impaired psychomotor and cognitive development, as well as in pregnant women suffering from excess fatigue due to iron deficiency. Among these groups, the percentage of population suffering from iron deficiency reaches 20% in developed countries and up to 60% in some developing countries.

Frutarom acquired the technology and expanded its activity in the market after four years of experience developing applications in a wide range of food and beverage products.

“Iron’s high reactivity commonly leads to negative side effects when relevant dosages are ingested,” notes Wouter Haazen, Product Manager for Frutarom Health. “AB-Fortis is produced using a patented process, which provides highly stable encapsulation ensuring no release of free iron in the food matrix. In addition, it has a high concentration of iron (40%). Coating the iron using AB-Fortis’ unique micro-encapsulation technology stabilizes and protects it, rendering the iron flavorless and allowing for adequate dosages, all without the negative side effects, while maintaining a high bioavailability.”

“AB-Fortis expands Frutarom’s diverse product portfolio in the growing field of specialty healthy ingredients,” says Dr. Raimund C. Hoenes, General Manager of Frutarom Health. “Delivering iron supplementation in a safe, highly bioavailable, and palatable form is an important objective for many of our food and supplement customers. We work closely with them to bring innovative solutions that combine our core competencies.”

ABOUT FRUTAROM

Frutarom Industries Ltd.is a leading global company operating in the flavors and natural fine ingredients markets. Frutarom operates production and development centers on six continents, marketing and selling more than 60,000 products, mainly for the food and beverage industry, to more than 30,000 customers in more than 150 countries. Frutarom's portfolio includes flavor and fragrance extracts, and ingredients for pharmaceutical, nutraceutical, health food, functional food, food supplement, and cosmetic applications. The company employs 5,000 people worldwide.