Arla Foods Partners With German Company forTagatose Production

Arla Foods Partners With German Company forTagatose Production

NORDSTEMMEN, Germany--Arla Foods announced in lateJune plans to join forces with the German sugar company Nordzucker on industrialproduction of Gaio tagatose, a multipurpose sweetener. The final decision on thecompanies' joint venture has not been decided; however, when necessary approvalsare obtained, Arla Foods (www.arlafoods.com)and Nordzucker (www.nordzucker.de) planto establish an equal joint venture company with production of Gaio tagatose atone of Nordzucker's plants in Nordstemmen, near Hannover, beginning in thesummer of 2003. If market acceptance is favorable, Arla will establish atagatose plant in connection with its dairy plant in Taulov, Denmark. During theinitial phases of development, Arla Foods introduced the product to the Americanfood industry, and last year, Arla Foods obtained the necessary approvals fromAmerican authorities to market Gaio tagatose. In addition, Arla Foods announcedthe intention to seek relevant approvals for markets in Asia and Europe.