2/18/2021

Sugar reduction game changer? Hershey, ASR Group invest in startup paving way for ‘mass market adoption’ of allulose, tagatose

Sugar reduction game changer? Hershey, ASR Group invest
in startup paving way for ‘mass market adoption’ ofallulose, tagatose
By Elaine Watson
18-Feb-2021 - Last updated on 18-Feb-2021 at 17:10 GMT
RELATED TAGS: allulose, tagatose, rare sugars

Bonumose – a Virginia-based startup with patented
technology it claims could enable the “mass marketadoption” of rare sugars – has raised a Series B* round ledby Hershey and sugar re ning giant ASR Group, to support
commercial production of allulose and tagatose in early2022.
The funding round will also support R&D work on allose, and other low-glycemic, low-calorie, non-cariogenic
rare sugars with similar properties to sucrose that could be alluring additions to the sugar reduction toolkit,
were it not for their hefty price tag.
Allulose – which is found naturally in a variety of plants but produced on a commercial scale via a complex,
multi-step process typically starting with corn starch - is particularly attractive to formulators seeking toreplicate the sensory and functional properties of sugar without the calories.
The tooth-friendly ingredient - which has 70% of the sweetness of sucrose but only 0.4 calories per gram (vs4cals/g for sucrose) – has a negligible e ect on blood sugar and insulin, and has garnered a lot of interest
following the FDA’s decision to exclude it from the total and added sugars declarations on the Nutrition Facts
panel.
As it has the texture and bulk of regular sugar, allulose can be used to reduce or replace sucrose in everythingfrom beverages, yogurt and ice cream to baked products and candies, and now features in brands from Magic
Spoon and Country Archer’s new Zero Sugar Beef Jerky to Nick’s ice cream.
It also browns during baking (unlike erythritol), depresses the freezing point when making frozen products,and disperses well in batters and dough without the need for additional water.

Paving the way for mass market adoption of rare sugars
The problem is, while there are now several major players producing it commercially (Tate & Lyle,
Ingredion/Matsutani, CJ CheilJedang etc) it’s still fairly costly, claimed Ed Rogers, co-founder and CEO atBonumose, which has developed a patented process for producing allulose, tagatose, and other rare sugars
https://www.foodnavigator-usa.com/Article/2021/02/18/Sugar-reduction-game-changer-Hershey-ASR-Group-invest-in-startup-paving-way-for-mass-ma…

1/4

2/18/2021

Sugar reduction game changer? Hershey, ASR Group invest in startup paving way for ‘mass market adoption’ of allulose, tagatosethat Rogers says eliminates some processing steps and signi cantly increases yields, paving the way for their“mass market” adoption.
Bonumose’s process – developed by co-founder and CSO Dr. Daniel Wichelecki - can also utilize otheringredients as a feedstock (beyond commodity corn starch) such as by-products of plant-based protein
production that have not been valorized.
Right now, said Rogers, rms manufacturing allulose on a commercial scale deploy a multi-step process thattakes them from corn starch to maltodextrin, to glucose, to fructose, which is then converted into allulose
using enzymes, a “low-yield process with multiple separation and puri cation steps.”
Bonumose, he said, also starts with starch, but has enzymes that can convert the maltodextrin directly toallulose, with a very high yield, a potential game-changer in the market.

Tagatose: Exciting rare sugar with a hefty price tag
Tagatose – another non-cariogenic, low-glycemic rare sugar with 92% of the sweetness of sucrose, but only
38% of the calories (it has 1.5cals/gram) – is also an attractive alternative to sugar as it has bulk and sugar-likesweetness, with fewer calories and a negligible impact on blood sugar.
Right now, it still counts as sugar on the Nutrition Facts panel, but following the FDA’s recent request forcomment on sugars that are not metabolized in the same way as traditional sugars, many industry
stakeholders are hoping the agency will soon exclude it from the added and total sugars declaration on theNutrition Facts panel (as it has already done with allulose).
Bonumose – which has submitted a citizen’s petition urging the FDA to classify tagatose as a dietary ber –says there is also evidence that it serves as a prebiotic, inducing the production of the short chain fatty acidbutyrate and stimulating the growth of bene cial bacteria in the large intestine.

Tagatose production process has ‘an extremely high yield, that’s fully-plant
based and low cost’
Like allulose, tagatose is found naturally in a variety of foods but is produced on a commercial scale via acomplex, multi-step process typically starting with lactose (milk sugar) that comes with a price tag putting it
out of reach of many food manufacturers, claimed Rogers.
The lactose is hydrolyzed by lactase or acid hydrolysis to form glucose and galactose. The latter is thenisomerized to tagatose either chemically or enzymatically and then isolated by a combination of ltration andion exchange chromatography.
While new technology using yeast fermentation to produce tagatose interesting, he says, the economics ofthis approach at a commercial scale are not yet clear.
Bonumose, however, has developed a production process “with an extremely high yield, that’s fully-plant based
and low cost,” he claimed.

https://www.foodnavigator-usa.com/Article/2021/02/18/Sugar-reduction-game-changer-Hershey-ASR-Group-invest-in-startup-paving-way-for-mass-ma…

2/4

2/18/2021

Sugar reduction game changer? Hershey, ASR Group invest in startup paving way for ‘mass market adoption’ of allulose, tagatose“Our process for tagatose is just like what we’re doing with allulose; it starts with starch and then maltodextrin andwe can go straight to tagatose. At a very large scale, we could probably make it even more e ciently than highfructose corn syrup.”
The plan is for a commercial launch in early 2022, he said: “The new funding will get us to commercial production,albeit at a modest scale. But we’re already lining up partnerships for larger scale production partners in the form offeedstock suppliers but also in the form of manufacturing partners, not just here [in the US], but also in othercountries.”

ASR Group: ‘It’s about trying to o er a wide range of sweetening options thatare closer to sugar without all the trade-o s’
So what sparked the interest of ASR Group and Hershey as investors?
Rob Sproull is SVP sales, marketing & product development at ASR Group, which is Bonumose's distribution
partner for food, supplements, personal care and pharmaceutical customers in the US, Mexico, Canada, theUK, Ireland and much of mainland Europe.
And its approach to rare sugars production could be a game changer, he said: "Rare sugars have been aroundforever, but they are pretty expensive, and that’s historically been the challenge, but they o er some unique
opportunities for the food and beverage industry.
“For us, it’s about trying to o er a wide range of sweetening options that are closer to sugar without all the tradeo s... and we think these [produced by Bonumose] will be signi cantly more cost-e ective.”From a formulation perspective, rare sugars don’t behave in exactly the same way, he said, so you need to pickthe right option for any given application: “Allulose is more hygroscopic than sucrose [it has an a nity forwater] so that can present challenges in some applications, but holding moisture is a bene t in some baked goods,
for example. Tagatose, on the other hand, is less hygroscopic, and works well in confectionery, ready to eat cereals,
dairy, yogurts and so on.”Hershey: ‘Focusing internal e orts and external investments to develop future
breakthrough sugar reduction capabilities’
Hershey, in turn, said this week that it will expand its portfolio to deliver more reduced sugar options, “focusinginternal e orts and external investments to develop future breakthrough sugar reduction capabilities.”
The investment in Bonumose is via Hershey's C7 Ventures arm, which invests in “disruptive or emerging
platforms focused on new occasions, technologies and go-to-market opportunities,” said the confectionery giant on
Wednesday.
“This investment enables a research and development partnership to advance the tastes of not only zero- andreduced-sugar chocolate, but also Hershey's broader better for you snack o erings going forward.
Hershey president, U.S. Chuck Raup added: "In response and as part of our strategic vision, we're making strategic
investments, both internally and externally, and have a focused plan that allows us to make reduced and zero-sugar
https://www.foodnavigator-usa.com/Article/2021/02/18/Sugar-reduction-game-changer-Hershey-ASR-Group-invest-in-startup-paving-way-for-mass-ma…

3/4

2/18/2021

Sugar reduction game changer? Hershey, ASR Group invest in startup paving way for ‘mass market adoption’ of allulose, tagatose

chocolate that still has the same amazing taste consumers know and love."*According to an SEC ling, Bonumose raised $9m in the latest round, although none of the parties havecommented on the sum.
Copyright - Unless otherwise stated all contents of this web site are © 2021 - William Reed Business Media Ltd - All Rights
Reserved - Full details for the use of materials on this site can be found in the Terms & Conditions
RELATED TOPICS: R&D

https://www.foodnavigator-usa.com/Article/2021/02/18/Sugar-reduction-game-changer-Hershey-ASR-Group-invest-in-startup-paving-way-for-mass-ma…

4/4