The Israeli company is talking to key supplement customers ahead of a major launch at the end of the quarter.
Wild green oat is described by a German monograph and has traditionally been known to help mental health conditions. Frutarom has carried out further research to substantiate the effect on specific indicators of serotonin activity.
Speaking to journalists at a meeting in Israel, Yoni Glickman, vice president of the firm's ingredients division, said that future clinical trials would investigate the benefits to the brain in greater detail.
The company has specifically targeted mental health as an emerging category of functional foods but one that has seen few new ingredients and less development than heart or joint health.
Frutarom researchers looked at dozens of varieties of wild green oat and screened their activity, further testing the safety of extracts.
"We have gone right back to the variety of the plant so future results will be related to a specific variety, which is exclusively patented by us," added Ram Snir, vice president of the natural products unit.
The group says its new extract will target stressed out adults, helping with tiredness, stress, and anxiety. While further research is needed to support its efficacy in humans, oats are considered to be safe and well-tolerated in the diet.
Glickman added that Frutarom is set to increasingly target the functional foods sector, leveraging the technology of smaller, innovative businesses in Israel and elsewhere to create new products.
It could also seek an acquisition in this area - fresh from the purchase of a majority share in German seasonings firm Nesse earlier this week, Glickman said another was expected by the end of the year.
A functional food ingredient maker is 'possible', he said.
The company has seen rapid growth since 2001, with the acquisition of Flachsmann in 2003 giving it a major plant extract portfolio and supplement customer base. It is aiming to reach $600 million in sales by 2008.