Dutch-Australian joint venture responds to growing prebiotic market

Posted by Janice Wong on 2nd June 2009

Dutch company FrieslandCampina Domo and Australia’s Warrnambool Cheese & Butter Factory has announced the opening of a new plant in Australia. The opening of the joint venture, Great Ocean Ingredients, according to the company, is a response to a growing market demand for prebiotic galacto-oligosaccharides, which is marketed under the name Vivinal® GOS and used in infant nutrition, dairy products and drinks.

According to Frost and Sullivan analysis, consumers are increasingly responding to messages surrounding various prebiotic forms, and seeking prebiotic products. Frost put the European market for prebiotics used in foods and beverage at €295.5 million (A$531.3m) in 2008, and a compound annual growth rate of 14 per cent, surging to €767m (A$1,379m) by 2015.

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“We are really pleased with this new plant, which allows us to continue to meet the growing demand for the prebiotic ingredient, Vivinal GOS. It also means we can offer our customers better stock guarantees with two production facilities for Vivinal GOS”, said Roelof Joosten, Managing Director of FrieslandCampina Domo.

Vivinal GOS is a prebiotic ingredient, rich in galacto-oligosaccharides that has a positive effect on gut flora, and is also believed to have a favourable impact on the immune system. Vivinal GOS has GRAS (Generally Recognised as Safe) recognition for use in such areas as infant nutrition, dairy products and drinks.