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Mountain Scholar According To Industry Official Federal Grand Jury Indicts Four Refiners New Versions of HFGS Will Lead A federal grand jury in Brooklyn indicted four Northeastern companies on charges they conspired to fix the To Growth As Sugar Replacement prices of cane sugar sold for indu.strial pl'rposes. Donald E. Nordlund, chairman of that new versions of HFCS will lead Kamed as defendants are SuCrest A. E. Staley Manufacturing Co. of De­ to its further growth as a sugar re­ Corp., New York, PepsiCo Inc., Pur­ catur, Ill., a major producer of high placement and cited a 90 per cent ch,i.se, N.Y.; RSN Projects Inc., New fructose corn syrup (HFCS) said in a fructose product with potential in low York, and CPC International Inc., talk to The New York Sugar Club calorie foods and beverages, a 55 per Englewood Cliffs, N.J. cent product for use in soft drinks, According to the indictment. the and in the longer term, a crystalline price-fixing l::egan in August, 1972, ::,-:r;?ame Awaits fru~tose for "the consumer's sugar soon after Amstar Corp. the nation's bowl." largest sugar refiner, announced a new Approval Nordlund, however, tempered his pricing policy that eliminated dis­ predictions on HFCS's significant in­ counts and provided for the sc:le of Aspartame, a non-sugar sweetener, roads with a remark that sugar will refined industrial sugar at list prices. is awaiting FDA approval and may remain the standard of the sweetener The indictment alleges that the provide America's 10 million diabetics industry for years to come. four defendants discussed Am3tar's and 150 million diet conscious people But, "we can expect the sweetener policy with each other and agreed to with a low-calorie substitute for sac­ industry to be in a state of transition start similar policies. charin if the proposed ban on sac­ as the result of technical developments "The prices of refined indi.:strial charin is carried out. The product is not just from corn wet millers, but cane sugar were raised, fixed. and intended for use in soft drinks, cereals, from sugar refiners as well," he noted. stabilized at noncompetitive levels," confections, desserts, chewing gum and Coming back to HFCS production, the indictment says. "Purchasers of granulated sweeteners. the Staley chief executive told the refined industrial cane sugar were de­ "Aspartame is a totally new kind of sugar industry officials that interest prived of free and open competition in sweetener made from two amino acids in the 90 per cent fructose product. the purchase of sugar," it adds. which are already consumed in more which is about one-and-one-half times Refined industrial sugar is sold to than half the foods we eat everyday," sweeter than sugar, has increased manufacturers for use . in food and explains Dr. John H. Rust, professor · sharply since the recent proposed ban beverages. From August, 1972, to Sep­ emeritus at the University of Chicago's on saccharin. He said the ability to tember, 1973, the period covered by Pritzker School of Medicine. "Amino produce such a product is limited but the indictment, the four companies acids are commonly found in meat, could be increased if the ban becomes sold about $257 million of industrial milk and vegetables. Aspartame is effective. sugar, the indictment says. metabolized in the body in the same In addition, a new 55 per cent fruc­ If convicted, the companies face way as the amino acids in these foods." tose product is now being aimed at maximum fines of $50,000 each. 180 times sweeter than sugar, only the soft drink industry, Nordlund said. a small amount of aspartame is needed "The crystalline high fructose pro­ The New York grand jury was con­ to sweeten foods, resulting in a signifi­ duct," Nordlund said, "is in the labor­ vened in October, 1974. In January, cant calorie reduction. atory states but could become com­ 1975, Amstar, CPC International Su­ The sweet property of aspartame mercially available in the early 1980s.'' Crest and Savannah Foods & Indus­ was discovered by chemists at the G. The Staley chairman emphasized tries Inc. said they had been served S. Searle Co., Skokie, Ill., 12 years ago. that markets for HFCS will develop to with subpoenas to produce informa­ In 1974 the FDA approved its sale as consume the increased output, but not tion for a grand jury investigation of a non-sugar sweetener in the U.S., but as fast as the new capacity comes on­ price-fixing by refiners in 1973 and because certain scientific questions stream. He said that additional new 1974. were raised regarding its metabolism high fructose entries are unlikely for It was believed at the time that the by the body, the company voluntarily the next few years but predicted fruc­ grand jury would be investigating withheld aspartame from the market. tose supply-demand would begin to whether the sugar refiners conspired Searle has conducted further studies reach equilibrium in the next year or to keep rawsugar prices artificially and this new data has recently been so. high during a period of sharp price presented to the FDA. Nordlund credited the growth in increases in 1973 and 1974. During high fructose even at lower sugar 1974, the wholesale price for a po_und prices to two sources: customers who of sugar surged to a record 74.8 cents Taiwan Crop Up are increasing their use as they gain a pound in November from 17.2 cents Taiwan is expected to turn out confidence in the product, and first­ a pound in January. 900,000 tons of sugar this year with time users who waited to see if its That investigation is completed and two-thirds planned for export, the Tai­ economic advantage would be main­ there apparently won't be any further wan Sugar Corp. reported. tained against low sugar prices. indictments, a spokesman for the Jus­ The export value is set at $150 mil­ High fructose corn syrup would tice Department said in Washington. lion. Last year Taiwan produced 780,- continue to progress regardless of U.S. "This will probably be the only 0CO tons of sugar and exported 500,000 sugar policy changes, short of corn indictment to come from that grand to:is valued at $147 million. sweetener legislation, Nordlund added. jury," the spokesman added. Page 12 SUGARBEET GROWER/April 1977 danger of any kind has emerged, says Grapefruit Peel Dr. Arthur Morgan, director of the L11karis To Head USDA research laboratory in Albany. ~ May Provide Su ar Calif. I Gourmet Foods FDA officials point out, however, Substitute Sour~~ that the grapefruit-peel sweetener has Gourmet Food Products, Inc. has some drawbacks. announced the appointment of Robert America may well get its next sug­ The substance sometimes leaves a D. Lukaris as Executive Vice Presi­ ar substitute from the lowly grapefruit bitter aftertaste - as did saccharin - dent and General Manager. peel. and it may not stay sweet for long Government scientists are n ow periods in diet drinks. Federal re­ Rowland M. Cannon, chairman of testing a natural sweetener found in searchers now are trying to solve the board of Gourmet. said the ap­ those peels that could turn out to be those problems. pointment w as made at a regular a replacement for saccharin, on which Still, USDA officials say, the peel monthly board meeting at the Bo3rd­ the U. S. Food and Drug Administra­ extract appears to offer the best hope man plant. Lukaris will be responsible tion (FDA) has proposed a ban. for oevrall operational management Without such a substitute, Amer­ for quickly finding an acceptable r e­ placement for saccharin. Several com­ of the processing facilities of Gourmet ica's diabetics and weight watchers, and their support services. who together consume vast quantities panies already have asked the FDA of diet foods and soft drinks contain­ for permission to market the new sug­ ar substitute. Lukaris has been operations man­ ing saccharin, will not have an ap­ ager for Gourmet at its Boardman proved sugarless sweetener when and Testing of this chemical was pro­ plant since it went into production in if the ban takes effect this summer. ceeding with little public attention 1975. This modern plant and an older The chemical now undergoing tests until the FDA proposed banning sac­ one at Metolius produce frozen french is about 3,000 times sweeter than sug­ charin by July because Canadian tests fried and hash brown potato products. ar but, like saccharin, it has no calor­ suggested that it caused bladder can­ ies. It was discovered in 1965 by U. S. cer in rats. A native of San Francisco, he at­ Department of Agriculture (USDA) FDA officials in Washington say tended College of San Mateo. For two researchers in California who were that the natural sweetener, called neo­ years prior to joining Gourmet, he was seeking uses for waste products from h esp er id i n e dehydrochalcone, has operations manager for Pride Pak that region's farms and fruit groves. something of a head start in its Foods at its Richland, Washington, Since the discovery, thousands of lengthy approval procedures because plant, and before that was general laboratory animals have been fed many of the animals tests, beginning manager for a Del Monte Foods pro­ large quantities of the super-sweet in the mid-1960s, were designed in co­ cessing plant in the San Francisco bay chemical. No evidence of toxicity or operation with the FDA. area. ;, l-Pg. 28 The Times-Picayune '1'11ursday, Juue ~:s, h'U . .! . ~·~·¢cJturin(;i\Yj tfl.L a/b~l ;, W~:r..1\jng :, Q·~qk~.qwf ti\i 1 ~ ~: ~y RICBA~D SALTUS · .
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