Food ingredients industry roundup

Companies on the move International Specialty Products (ISP) is shifting the manufacturing of many of its San Diego produced alginate products to its plant in Girvan, Scotland.

San Diego plant operations currently employ 125 people and are expected to cease in early 2006.

The entire San Diego product line will continue to be supported and products not transferred to Scotland will be manufactured under license.

"Our Girvan plant is the largest algin plant in the world and provides both the economy of scale and over sixty years of alginate production expertise," said Steve Olsen, ISP senior vice president for global marketing.

The governor of the US state of North Dakota has said that Cargillis exploring the possibility of building its largest ethanol plant in Stutsman County, though Cargill officials declined to comment on the Associated Pressreport.

Governor John Hoeven said Cargill had discussed building a plant capable of producing 100 million gallons of ethanol annually from maize to supply steam heat to the ethanol factory and the company's Spiritwood malting plant.

Cargill currently processes malting barley and corn (maize) syrup in North Dakota.

Grain Millers is planning a $26.7 million expansion at its oats and specialty milling facility in St. Ansgar.

The four-stage expansion will increase output by 35 percent in the next three to four years.

The company will receive a $400,000 loan from the Iowa Department of Economic Development, as well as $1 million in tax credits for the project, located in Mitchell County in northern Iowa.

And finally, Integrity Nutraceuticals International (INI), makers of Cinnulin PF, the patented water extract of cinnamon ingredient, has obtained an additional 6,500 square feet of office space to manage ongoing company growth.

"Our business continues to increase and the expansion is needed not only to keep up with ongoing growth but to position our company for future development." said Tim Romero, vice president of Integrity Nutraceuticals International.

Lawsuits A class action lawsuit has been filed in the US District Court for the Northern District of Illinois on behalf of all persons who purchased the securities of Corn Products International between 25 January 2005, and 4 April 2005.

The complaint, filed 1 June, charges that Corn Products failed to disclose and misrepresented material adverse facts that were known to defendants or recklessly disregarded by them.

ConAgra Foods has settled a second lawsuit stemming from alleged accounting irregularities at a former subsidiary that forced the food giant to restate three years' earnings.

Under the settlement with Harbor Financial Partners, ConAgra agreed to keep in place for at least three years accounting safeguards designed to prevent future irregularities.

The firm recently settled another lawsuit by individual investors for $14 million.

The suit alleged ConAgra and several company officers and directors violated federal securities laws by misrepresenting the company's financial performance to inflate its stock value.

Mergers, acquisitions and alliances Frutarom has announced the purchase of the flavoring extracts business of A.M. Todd Botanical Therapeutics.

The acquisition will be executed through Frutarom's wholly owned subsidiary, Frutarom USA.

The acquisition is intended to continue strengthening Frutarom's flavor extracts capabilities and market leadership position, and to support Frutarom's growth in the US market.

Cargill has acquired Integrated Bakery Resources (IBR), a provider of pre-mix systems, finished foods and related marketing services to North American-based bakers and retailers.

"The acquisition of Integrated Bakery Resources supports Cargill's corporate food strategy of being a leading integrator of ingredients for food and beverage companies globally," said John Geisler, Cargill corporate vice president.

And finally, Japanese brewer Kirin and functional dairy products group Yakult Honsha have formed an alliance to manufacture functional foods in Japan.

The move further strengthens the ties between the two firms, who began collaborating in 2003.

The current deal is designed to make both companies more responsive to changes and create additional value.