Grape seed investments make Burgundy poised for growth
Backed by mother company Cristal Union, a leading producer of grape seeds for the extraction of polyphenols and actives, Burgundy claims access to more than 7000t of high quality grape seeds.
“The completion of our recent investments in terms of extra capacity of extraction, extra chromatography columns, drying and cleaning rooms give Burgundy a innovative facility, totally automated and computerized for the highest traceability and best performances,” according to a company statement.
Quality products
A spokesman told NutraIngredients: “Customers must have access to quality products without being tempted by low price. Burgundy may now offer both.”
Chinese manufacturers and traders offer grape seed in the range of $35 to $65 compared with higher-quality, assured and traceable European grape seed in the range of $50-$65, he said.
No more information was available about the cost of Burgundy’s grape seed extracts.
In addition to lower costs, the company claimed that its production processes, audited in France, produce a high-quality water extract, from non fermented seeds with a high content of oligomeric proanthocyanidin (OPC), including monomeric and dimeric constituents and antioxidant properties.
The spokesman said the decision to develop its grape seed extract business was unrelated to the state of its Cranberry business.
Expanding grape seed production capacity was in line with its strategy of catching leadership on the polyphenols marketplace, said the company.
The spokesman added: “We already noticed that the market for cranberry was getting mature when we decided to work on a more effective extract to treat urinary tracts infections issues (UTI): this is our UTIrose - selected extract from Hibiscus sabdariffa with the study published on mid of 2010.”
Global market
Meanwhile, Burgundy and Mintel estimate the size of the global market for grapeseed extracts at about 400t and about 200t in the United States. “We understand that our mother (company) Cie would represent close to half of the total access to grapeseeds for extraction of polyphenols – that is not for oil.”
Euromonitor projects single digit annual growth for this sector.
Most of the grape seed harvest is used to produce supplements and healthy food ingredients. That is particularly true since a pharmaceutical drug using up to 40t of extracts has been de-reimbursed (government price support withdrawn) leading to falling sales, said the spokesman.
