National Starch Food Innovation and AVEBE Enter Into Alliance for Market Development of Specialty Potato Starches

30/07/07 National Starch Food Innovation and the AVEBE Group -- two leaders in starch- based ingredients for the development of consumer food products -- have announced an alliance that will see National Starch as sole distributor of AVEBE's specialty potato starch portfolio of food ingredients in North America, South America and Asia. The alliance will allow AVEBE to enhance market presence and penetration for its specialty potato starch products in regions that represent significant growth potential. It will also allow National Starch to complete its portfolio of starch-based ingredients, adding potato-based technology to its significant existing positions in corn, tapioca and other starches.

The AVEBE/National Starch alliance also covers a comprehensive program of joint technology development of new ingredients based on potato starch, pairing two of the most innovative carbohydrate science companies in the world. It brings together the leaders in new starch-base hybrid development and experienced cross functional teams that have consistently shown the ability to introduce high value new ingredients that respond to market requirements. The goal of the joint technical development will be the introduction of new tailored starch-based ingredients to address the changing needs of food developers across the world.

According to James P. Zallie, Group Vice President of National Starch's Natural Polymers Group, the alliance of these two global leaders in starch ingredient innovation will offer consumer food companies more options and better technological solutions as they look to create winning products for the marketplace. "Starch is the most widely used, most versatile and ultimately the most important multifunctional ingredient in delivering the attributes in foods that satisfy consumers' expectations. As we move to expand the potential for this technology that we know so well, we are excited about the opportunity to work with AVEBE -- the world leader in specialty potato starches. Our new line-up of starch ingredients immediately improves our ability to meet our customers' needs in the area of low-moisture foods like snacks, bakery and noodles, and will allow us to deliver a broader range of textural solutions to food manufacturing companies," he said.

As part of the alliance agreement, National Starch will act as the exclusive sales, marketing, technical service and distribution conduit for all of AVEBE's specialty food potato ingredients in North America, South America and Asia, as well as representing their paper products in the growing Asia- Pacific paper industry. AVEBE will continue to market its full specialty potato starch portfolio in Europe and its native and non-food potato starch ingredient portfolio globally through their existing channels (with the exception of paper products in Asia). Two specific countries in the alliance geographies that are not affected are Korea and Argentina where the existing sales channels will remain unchanged.

According to Gerben Meursing, Managing Director of Commerce, Avebe, the ability to achieve faster, broader market penetration for its potato starch ingredient portfolio is the company's main motivation for entering into the alliance with National Starch. "AVEBE and National Starch complement each other excellently in their product ranges. AVEBE produces potato starch and National Starch has strong positions in both tapioca and corn starch. We also complement each other geographically. AVEBE realizes 75 percent of our turnover in Europe and 25 percent in the rest of the world, whereas, National has a strong market presence in the Americas and Asia. The cooperation between the two companies is a good strategic fit," said Meursing.

Both AVEBE and National Starch have worldwide reputations as innovative leaders in potato, tapioca and corn starch applications, respectively. The cooperation is, therefore, expected to lead to new, pioneering products made from potato starch. This will allow for further development of AVEBE's position in the field of carbohydrates and provide the foundation for continued earnings growth at the company, according to Zallie and Meursing.

AVEBE's portfolio of potato starch-based functional ingredients include products sold under the AVEBE, Inovatex, Farinex, Perfectamyl, Selectamyl, Extrusamyl, and Paselli trade names. Also included is AVEBE's line of waxy potato starches, trade named Eliane, the world's first amylopectin potato starches obtained through traditional breeding techniques. These trade names will remain in place as National Starch takes on responsibility in the affected regions.