Commentary

Commentary

Michael Witzel, Ph.D., Degussa Health & Nutrition Division

During the Health Ingredients Europe show in Paris, Michael Witzel, Ph.D.,head of the Health & Nutrition division at Degussa, met with Jon Benninger,group publisher of Virgo Publishing's Natural Products Division, to share hisvision of the future for dietary supplements and functional foods. Witzel'sdivision encompasses four business units with 2001 sales of nearly $1.2 billionand a goal of $2.5 billion in annual sales within four years.

Witzel described himself as a "strong believer" in the dietarysupplement segment for two main reasons. First, he cited the demographics of anincreasing population and an aging population, combined with increasing healthcare costs. Second, Witzel pointed out that people would have more free time forsports and lifestyle activities. Witzel is also bullish on the future offunctional foods, saying that he sees "more potential by far" forbeverages, dairy products, cereal and other foods that consumers perceive ashealthy.

For both the dietary supplement and functional food markets to reach theirpotential, Witzel is convinced that investment in science would be key for theindustry. If suppliers can convince the market of their product's credibility,blockbuster sales are possible, according to Witzel.

And while he believes that the industry needs a greater commitment toscience, Witzel also believes that dietary supplements and functional foodsshould not be thought of or regulated as drugs.

"We need more evidence, but we need to have a compromise somewherebetween pharmaceuticals and foods," he said. "Consumers do not want toeat drugs."

As for Degussa Health & Nutrition, Witzel has big plans for the future.The Degussa BioActives business unit is focusing on three main areas for healthyingredients: mobility and exercise, mental health and performance, andmetabolism. Witzel commented that the Degussa BioActives business unit has anexciting new product in the pipeline that will be unveiled soon. DegussaBioActives contributed more than $80 million in sales to the company in 2001.

Degussa Health & Nutrition also includes the Flavors & Fruit Systemsbusiness unit, the Texturant Systems business unit and the Feed Additivesbusiness unit. Combined, these units provide ingredients that are incorporatedinto healthy foods that look and taste good.

Degussa Health & Nutrition unveiled a new Web site during HealthIngredients Europe to explain this three-pronged approach to food development.The content of the Web site changes based on the user's location and time ofday. For each circumstance, a photo of people eating a typical meal for thattime and location appears. When the user clicks on a food item, the ingredientsthat Degussa Health & Nutrition supplies for that food are described. TheWeb site is available at www.degussa-health-nutrition.com.

Degussa BioActives is exhibiting at SupplySide West, Booth #1700.