DGF Stoess AG: The Gelatine experts. (Supply Source).

The history of Deutsche Gelatine-Fabriken Stoess AG (DGF Stoess), Eberbach, Germany, goes back to the year 1875 when the production of gelatine was started in Schweinfurt, Germany. It was originally formed from three German gelatine manufacturing companies. In its present form, the company is a fusion of what were two leading gelatine producers involving the families Koepff (Deutsche Gelatine-Fabriken, Goppingen) and Stoess (Chemische Werke Stoess, Eberbach). Since 1989, the company has been a capital share company, however, remaining in family possession. Currently, the GELITA Group, the UNIMELT Group and various other companies are united under the holding company DGF Stoess AG. The GELITA Group, which was formed in 1999, is the world's leading producer of edible, photographic and pharmaceutical gelatine for all relevant applications.

According to the company, gelatine is the second most used food ingredient in the world. It's global production amounts to 260,000 tons per year, 65% of which is used for foodstuffs, 24% for pharmaceutical applications and the remaining 11% for use in the photo industry.

Gelatine's value to the nutraceutical industry comes from its high nutritional value. DGF Stoess began to move into the nutraceutical industry when, according to Oliver Wolf, marketing manager, it discovered the health aspects of gelatine in several studies. The company's products include GELITA[R] Edible Gelatine and GELITA[R] Gelatine Hydrolysate (non-gelling gelatine), which consist of valuable proteins and contain no preservatives, fats, carbohydrates or cholesterol. The natural foodstuff gelatine, according to DGF Stoess, differs from other protein products in that it contains 10-20 times the amount of glycine and proline, which are amino acids that are important building blocks in connective tissue that are responsible for its firmness and elasticity. For this reason, gelatine-hydrolysate is currently being used in energy bars because of its protein profile.

On the research front, studies have demonstrated gelatine's regenerative effects on the skeletal and locomotor systems of the body, particularly bone, cartilage, ligaments and tendons.

Mr. Wolf explained gelatine's unique characteristics. "In contrast to all other comparable ingredients or hydrocolbids, gelatine provides a combination of multifunctional properties," he said. "Wherever gelling agents, stabilizers, binding agents, emulsifiers, film and foam formers or whipping agents are required, the natural product gelatine, practically invisible and neutral in taste, is the component of choice." He added, "The ability to form elastic clear thermoreversible gels is one part of the success of gelatine. Another part is the fact that the melting point of gelatine-based confectioneries is in the range of the body temperature. This provides the desirable 'melting-in-the-mouth feeling' combined with an optimal flavor release, and both are reasons for the popularity of these products."

In terms of expansion, the company announced earlier this year that it had acquired 75% of the Leiner Davis gelatine business, Philadelphia, PA, from Goodman Fielder Ltd, which is based in Australia. The GELITA Group now has production sites in Australia, New Zealand, South Africa, Mexico and Brazil.

Commenting on the acquisition was Joerg Siebert, chairman of DGF Stoess AG's management board. "The acquisition of Leiner Davis represents a continuation of the company's long-term strategy towards the globalization of DGF's gelatine business, which has been going on for the last decade," Mr. Siebert explained. "The new sites will be integrated into the GELITA business worldwide. With today's global approach to business, the Leiner Davis acquisition just makes good sense as it enhances the ability of the GELITA Group to serve its growing worldwide customer base. DGF's business approach to this acquisition is one of regionalization, focusing on European, North American, South American, Asian Pacific and African regions as its global areas of operation.

For the future, Mr. Wolf offered, "There will be competitive business in the nutraceuticals market as it continues growing. Therefore only those suppliers that recognize what the consumers really want will be successful. We shall be one of them."

DGF Stoess AG

Gammelsbacher Strasse 2

Eberbach, Germany

Telephone: [phone]

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Website: www.GELITA.com