Ajinomoto Increases MSG Prices in US

Ajinomoto Food Ingredients LLC President Brendan Naulty said in a letter to customers that the move came as a result of strong global demand for MSG and recent upward raw material and energy costs.

Jul 29 2010 --- Ajinomoto Food Ingredients LLC has announced that it will increase the price of MSG (monosodium glutamate) effective August 1, 2010. Prices for non-contracted customers will increase $100/MT.

President Brendan Naulty said in a letter to customers that the move came as a result of strong global demand for MSG and recent upward raw material and energy costs. Additional demand comes from the processed food industry in the following two distinct areas;
• To economically incorporate the umami taste
• To build back flavor as sodium levels are reduced.

The analysts BCC estimate the global market size for main umami seasoning products in 2010 to be; monosodium glutamate (MSG) 2.1 million MT (metric tonnes) and nucleotides 22,000 MT. Ajinomoto has about one third of the market for glutamate and 40% of the market for nucleotides. The market for umami seasonings is growing (circa 4% per annum) and Ajinomoto continues to invest in production to meet growing demands, including in Brazil and Vietnam in recent years.

Ajinomoto Food Ingredients LLC introduced a new sodium reduction system at the recent IFT Food Expo in Chicago called SALT ANSWER RX-AX. The company has spent 2 years developing application systems which focus on delivering salt like taste to processed food products.

The company demonstrated how to deliver salt flavor with 30% less salt in potato chips and chicken broth. Additional low sodium systems made with AJIMATE S-AX (Kokumi & Umami flavor system) were shown including:

• Tamari marinated salmon or chicken
• Roasted salmon/chicken made with ACTIVA GS and marinated in San-J reduced sodium gluten free Tamari with AJIMATE S-AX sliced and garnished with scallions.