By Marta Falconi
ZURICH--The world's largest chocolate manufacturer Barry
Callebaut AG (BARN.EB) scored a victory Tuesday, winning the
backing of a European food agency for its claim that cocoa
flavanols can be good for blood circulation.
The Swiss company said the European Food Safety Authority, or
EFSA, issued a positive opinion on a health claim dossier it
submitted last year, after the chocolate maker provided evidence
that the intake of 200 milligrams of cocoa flavanols a day, or
compounds that can also be found in dark chocolate, contributes to
normal blood flow.
There is already some evidence that suggests that small amounts
of chocolate may be beneficial. The flavanols have been shown to
lower blood pressure, improve blood flow and reduce heart-disease
risk at least in part by stimulating production of nitric oxide,
which relaxes vessels.
Barry Callebaut, one of the world's largest buyers of cocoa,
which it turns into chocolate for customers such as Nestle SA
(NESN.VX) and Kraft Foods Inc (KFT), said that it still awaits
approval from the EU Commission for its health claim, which would
give the chocolate maker the right to use the cocoa flavanols claim
for five years within EU countries. The company said a final
decision is expected at the beginning of next year.
Barry Callebaut said it is the first company in the 27-member
bloc to obtain an official validation of the positive effects of
cocoa flavanols.
The company said it sees considerable market potential,
including for applications in chocolate drinks, cereal bars and
biscuits. Barry Callebaut's customers using the high-flavanol cocoa
products would be able to apply the claim on their products and
packaging, it said.
Winning such a health claim is not easy and could give Barry
Callebaut and its clients a definite competitive advantage, said
Patrick Hasenboehler, a Zurich-based analyst with Sarasin.
"Every food company would like to have products presenting a
health benefit and if you receive a health claim it helps you
differentiate from competitors," said Mr. Hasenboehler, who has a
neutral rating on Barry Callebaut.
The Swiss company carried out over 20 clinical studies looking
at effects of cocoa flavanols on people since 2005, using cocoa
powder and chocolate products made through a special process it
developed that preserves up to 80% of flavanols, which would be
mostly destroyed in conventional chocolate-making procedures.
The worldwide market for so-called healthy products is a
fast-growing business for food giants, such as Groupe Danone SA,
Nestle SA and Unilever, along with hundreds of smaller companies.
Research by Euromonitor International showed the global market for
health and wellness food and drinks is forecast to rise to $691
billion by 2015 from $601 billion in 2010.
Food makers have embraced this strategy because it allows them
to distinguish their products and charge more by adding healthy
supplements or reformulating them with lower amounts of unhealthy
ingredients like saturated fat. Such health claims are worth
billions of euros in annual sales.
Write to Marta Falconi at marta.falconi@dowjones.com