Twin Rivers completes olestra plant purchase
P&G, although production of the fat replacer will continue.
Twin Rivers, the US-based producer of fatty acids for the food and supplement industries, has finally completed its purchase of the Cincinnati plant owned by Procter & Gamble and used to make the fat replacer olestra.
P&G decided to sell the olestra plant after a disappointing performance from products made using the ingredient, in part due to the unfortunate side effects which can include stomach cramps and diarrhoea.
Despite the disappointing results from olestra, Twin Rivers will continue to manufacture the product at the plant, although it is also expected to begin production of other products, such as biodiesel, there as well.
The new company will be called Twin Rivers Natural Ingredients and in the short term will concentrate on fulfilling orders for its two major customers, PepsiCo's Frito-Lay unit and P&G, which use olestra in their respective WOW and Pringles products. The 33 technicians and five managers who work at the plant have two years to decide whether they will become employees of Twin Rivers or continue to work for P&G.
Twin Rivers Technologies is one of the largest and fastest growing fatty acid producers in North America, and is a key supplier to P&G. Its estimated 2000 sales figures were in excess of $10 million (€10.6.mn).
