Sugar extract offers hope for industry

A scientific project to make sugar mills more efficient has delivered a surprise bonanza – a natural cane byproduct that paradoxically may help consumers and governments tackle the health dangers posed by excessive sugar consumption.

The new mineral liquid component extracted from 3% of cane juice may help food, beer and drink companies find low-calorie alternatives demanded by health-conscious consumers that still taste sweet and good.

Already major international food and drink companies are interested in adding the extract, Plant Zap, to formerly high-sugar, high-calorie products such as cakes, snack foods, confectionery and cola drinks.

The high-potassium, low-sugar, low-sodium natural electrolyte was isolated by Queensland food scientists at the Innovative Food Technologies Centre,

While relatively tasteless itself, the extract makes drinks and foods in which it is used to taste more sweet and sugary, allowing sugar content to be reduced by 40% without affecting flavour.

Plant Zap also masks the acidic or bitter taste of artificial sweeteners and natural stevia – both used as low-calorie alternatives.

Start-up company Nutraceutical and Natural Products (NNP) has bought the commercial rights to the patented technology, with royalties flowing to the Queensland government for every tonne of Plant Zap sold to food and beverage manufacturers.

NNP chief executive Mike Lehman hopes to build the first full-scale extract plant at a sugar mill later this year and start full commercial production.

He is engaged in a $A16 million capital raising, offering 1.6 million preference units at $10 each in a three-year Plant Zap extraction facility property trust, with an interest rate return of 12%.

Once Plant Zap gains market acceptance – it has already been approved as a safe food additive by European and US regulatory authorities – Mr Lehman hopes to have five plants costing $A50 million at other major mills in Queensland.

“We believe Plant Zap as a natural additive will become ubiquitous in food and beverage manufacturing, reducing the need for both sugar and salt, cutting calories and saving costs for manufacturers,” he says.

“Five extraction plants would add $70 million to the bottom line of the sugar industry and growers, return royalties to the agriculture department that did this work, and not change the amount of sugar that can still be produced from the remaining cane juice after the extract is removed.”

A recent Credit Suisse report on the sugar industry labelled it as a commodity and industry “at the crossroads.” World consumption is tipped to fall 14-16% annually, while sugar taxes are also a threat.

Mr Lehman believes Plant Zap has few downsides, offering cane growers, sugar mills, food companies and consumers only positives.